Trading Symbol: UEX-TSX
VANCOUVER, Sept. 4 /CNW/ - UEX Corporation ("UEX") announced today that
AREVA Group subsidiary AREVA Resources Canada Inc. ("AREVA") will commence the
fall 2007 drilling program at the Shea Creek Uranium Project ("Shea Creek") on
September 10, 2007 utilizing three directional drills. Shea Creek is located
in the western Athabasca Basin of northern Saskatchewan, Canada.
Shea Creek hosts the Kianna, Anne, and Colette Uranium Deposits and is
one of the ten Western Athabasca Projects totaling 181,509 hectares
(448,327 acres) currently under option from AREVA, the operator. UEX has
earned a 40% interest in the ten projects by spending in excess of
$24.5 million on exploration and development expenditures in just over three
years. UEX has an option to earn an additional 9% interest, and anticipates
that it will earn its full 49% interest during the first quarter of 2008.
Fall 2007 Drilling Program at Shea Creek
One drill will be utilized to expand the Anne Deposit; currently the Anne
Deposit is open in all directions. Pilot hole SHE-122 (see Map 1) will be
utilized to test the unconformity and basement extensions of mineralization in
the northern portion of the Anne Deposit. With the discovery of high-grade
basement mineralization in the Kianna Deposit, a greater focus will be placed
on the basement mineralization at Anne Deposit.
Another two drills will be used to explore the area between the Kianna
and Anne Deposits, where historical drilling intersected mineralization in
9 out of 13 drill holes. The two deposits are about 600 metres apart. Drilling
will utilize pilot holes SHE-121 and SHE-123 (see Map 1) to target inferred
structures that offset a favourable geological trend between the Anne and
Kianna Deposits. Structural offsets are considered important for uranium
deposition and are recognized in all three deposits at Shea Creek.
Development Work for Proposed Exploration Shaft at Shea Creek
As first announced (see UEX News Release, April 10, 2007) AREVA has
started the necessary studies for site characterization and base line testing
for an exploration shaft. The proposed shaft has been strategically located
between the Kianna and Anne Deposits to provide underground access to both
deposits as well as the highly-prospective corridor between them (see UEX's
website at www.uex-corporation.com for a map depicting the shaft location).
The proposed shaft will have a vertical depth of approximately 950 metres and
an estimated capital cost of $100 million (CDN).
This development work is required to file a Project Description for
federal and provincial regulatory bodies. Three drill rigs recently completed
five piezometer holes each to a depth of 800 metres in the vicinity of the
planned shaft location (see Map 2). The piezometer installation and pumping
tests are near completion; groundwater monitoring and sampling will continue
into the fall.
Packer tests for hydrological studies were performed by Golder Associates
during the summer. The importance of these tests is to estimate groundwater
inflows in underground openings. A final report is expected later this year.
An environmental baseline study has been started in the form of surface
hydrology with monitoring stations and lake level gauges installed during the
summer. Aquatic and terrestrial ecology began in July. The aquatic studies
will begin in September followed by terrestrial studies later in the fall.
These studies will be ongoing into next year.
It is expected that the Project Description will be submitted to both
federal and provincial regulatory bodies in the fourth quarter of this year.
About the Kianna Deposit
At the Kianna Deposit, high-grade uranium mineralization has been
intersected in multiple zones at depths from 662 metres to 922 metres, a
vertical distance of approximately 260 metres - located in sandstone high
above the unconformity, at the unconformity, and below the unconformity in
basement rocks, with unconformity depths ranging from approximately 710 to
To date, the AREVA-UEX drilling programs from 2004 through to 2007 have
outlined three distinct styles of high-grade uranium mineralization that are
still open in all directions:
- Perched, sandstone-hosted mineralization found in discrete zones tens
of metres above the unconformity currently has a defined strike
length of 80 metres and a width of 60 metres (previously announced
2005 hole SHE-114-5, 27.4% U(3)O(8) over 8.8 metres, including 58.3%
U(3)O(8) over 3.5 metres);
- Unconformity-type mineralization, in close proximity to the
unconformity has a defined strike length of 200 metres and a width of
200 metres (previously announced 2006 hole SHE-115-3, grading 12.57%
U(3)O(8) over 11.9 metres, including 27.35% U(3)O(8) over
- Basement-hosted mineralization, found in zones up to 200 metres below
the unconformity has outlined a strike length of 200 metres and a
down-dip extension of 160 metres (previously announced 2005 hole
SHE-114-11, grading 5.40% U(3)O(8) over 37.7 metres, including 25.46%
U(3)O(8) over 4.0 metres).
A 2007 winter/spring drilling program at the Kianna Deposit produced
sixteen directional cuts from two pilot holes - SHE-115 and SHE-118 (see UEX
News Release, July 5, 2007). Multiple directional cuts, or "step-outs", can be
made from one pilot hole, which reduces costs while improving targeting
precision when drilling deep targets. The 2007 winter/spring drilling program
expanded the dimensions of the unconformity and basement portions of the
deposit. The program outlined a continuous zone of mineralization at the
unconformity that is currently 200 metres in length and will be the foundation
to continue the expansion of the deposit. In addition, the drilling expanded
the high grade basement mineralization associated with an east-west structural
corridor within the Kianna Deposit by an additional 100 metres in strike
length to a current known length of 200 metres which is still open.
About the Anne Deposit
The Anne Deposit is geologically comparable to the Kianna Deposit with
both unconformity and basement mineralization. To date, the mineralization at
the Anne Deposit has been traced by systematic drilling over a strike length
of 250 metres and a width of 100 metres and remains open in all directions.
With the recent focus on the Kianna Deposit, no work has been carried out on
the Anne Deposit since 2004.
Previous drilling programs have outlined two distinct styles of high grade
- Unconformity-type mineralization, in close proximity to the
unconformity (previous hole SHE-99-2, grading 9.17% U(3)O(8) over
15.7 metres, including 36.37% U(3)O(8) over 2.5 metres);
- Basement-hosted mineralization, found in zones up to 35 metres below
the unconformity (previous hole SHE-96-3, grading 1.39% U(3)O(8) over
To view maps of the Kianna and Anne Deposits at Shea Creek, please visit
UEX's website at www.uex-corporation.com under "Western Athabasca Basin - Shea
Uranium grades are calculated from gamma probe logging. True widths of
mineralized intervals have not yet been determined. The technical information
in this news release has been compiled and reviewed by Erwin Koning, P. Geo.,
AREVA's District Geologist, West Athabasca Region, a qualified person as
defined by National Instrument 43-101.
About AREVA Resources Canada Inc.
AREVA, a uranium exploration and mining company, is a subsidiary of AREVA
Group, a worldwide expert in the energy field with a strong industrial
presence in over 40 countries. AREVA Group, through its Canadian subsidiary,
has significant interests in several uranium deposits in the Athabasca Basin,
including the producing McClean Lake Deposits operated by AREVA, the producing
McArthur River Deposit operated by Cameco Corporation, the Millenium Deposit,
and the Cigar Lake Deposit.
UEX is a Canadian uranium exploration and development company actively
involved in 19 uranium projects, including seven that are 100% owned and
operated by UEX, one joint venture with AREVA Resources Canada Inc. ("AREVA")
that is operated by UEX, ten under option from AREVA and one under option from
Japan-Canada Uranium Company, Limited, which are operated by AREVA. The
19 projects, totaling 386,650 hectares (955,400 acres), are located in the
eastern, western and northern perimeters of the Athabasca Basin, the world's
richest uranium belt, which accounts for approximately 26% of the global
primary uranium production. UEX is currently developing several uranium
deposits in the Athabasca Basin which include the Anne and Kianna Deposits at
its Shea Creek Uranium Project, a joint venture with AREVA in the western
Athabasca Basin, and the West Bear, Raven and Horseshoe deposits located at
its 100% owned Hidden Bay Project in the eastern Athabasca Basin. UEX's
exploration and development budgets for 2007 total $28.0 million, and the
Company has a cash position of approximately $62.0 million.
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen,
President & C.E.O.
This news release contains "forward-looking statements" that are based on
UEX's current expectations, estimates, forecasts and projections. These
forward-looking statements include statements regarding UEX's outlook for our
future operations, plans and timing for the commencement or advancement of
exploration activities on our properties, and other expectations, intention
and plans that are not historical fact. The words "estimates", "projects",
"expects", "intends", "believes", "plans", or their negatives or other
comparable words and phrases are intended to identify forward-looking
statements. Such forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from future results expressed or implied by such forward-looking
statements. Many of these factors are beyond the control of UEX. Consequently,
all forward-looking statements made in this news release are qualified by this
cautionary statement and there can be no assurance that actual results or
developments anticipated by UEX will be realized. For the reasons set forth
above, investors should not place undue reliance on such forward-looking
statements. UEX disclaims any intention or obligation to update or revise
forward-looking information, whether as a result of new information, future
events or otherwise.
For further information:
For further information: UEX CORPORATION, SUITE 1007 - 808 NELSON
STREET, VANCOUVER, B.C., CANADA, V6Z 2H2, PH: (604) 669-2349, FAX (604)
669-1240, Website: www.uex-corporation.com, e-mail: email@example.com