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Thursday, December 20, 2012
UEX/AREVA Report Final Results from 2012 Drilling Program at Shea Creek
UEX Corporation ("UEX") is pleased to announce the results from the final two holes of the 2012 exploration program at the Shea Creek Project ("Shea Creek"). Shea Creek hosts the Kianna, Anne, Colette and 58B deposits (see Figure 1) and is one of ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA Resources Canada Inc. ("AREVA"), the project operator.
The new results reported are from two step-out directional drill holes, SHE-118-25 and SHE-135-15, which were drilled to test the northwest extensions and up dip projection of the previous drilling in the Kianna East Zone ("Kianna East"). Kianna East is a newly discovered mineralized body that dips shallowly to the southwest and lies to the east of, and below the main zone of Kianna basement mineralization. Drill hole SHE-135-15 significantly expands Kianna East mineralization approximately 40 metres to the northwest. Results from this drill hole are:
| SHE-135-15: |
| Upper Kianna East Zone |
(B) |
0.41% eU3O8 over 9.3 metres, including |
| |
|
1.40% eU3O8 over 1.8 metres, and |
| Kianna East Zone |
(B) |
0.19% eU3O8 over 23.7 metres, including |
| |
|
0.50% eU3O8 over 5.0 metres and |
| |
|
0.47% eU3O8 over 3.4 metres. |
Complete results from drilling in Kianna East that have been intersected to date are reported in Table 1.
Although SHE-135-15 did not intersect higher grades as previously obtained in other drill holes which lie to the southeast, the mineralization in this drill hole maintains a substantial width, and the position of the drill hole suggests that the zone continues to the northwest of the previously reported drilling. Mineralization is open in most directions around this drill hole and there is potential for the still open, thick, higher-grade areas seen in previous drilling to extend into this area.
In addition, drill hole SHE-135-15 intersected 9.3 metres grading 0.41% eU3O8, including 1.8 metres grading 1.40% eU3O8, located approximately 20 metres above the Kianna East mineralization. This intersection, when modelled in conjunction with previous results, indicates that a second, parallel, narrower mineralized zone ("Upper Kianna East") is located approximately 20 to 50 metres above the Kianna East mineralization (see Figure 2). This mineralized zone displays continuity between several holes and includes previously reported intercepts such as 14.6 metres grading 0.18% eU3O8, including 0.8 metres grading 2.64% eU3O8 in drill hole SHE-118-23, 6.2 metres grading 0.26% eU3O8 in drill hole SHE-135-13, and 11.0 metres grading 0.17% eU3O8 in drill hole SHE-135-14.
Drill hole SHE-118-25 did not intercept any mineralization above the 0.1% eU3O8 cut-off utilized in Table 1, but did intersect sections exhibiting lower-grade mineralization. In addition, the hole intersected a fault zone with strongly tectonized and brecciated graphitic pelitic gneiss from 995.2 metres to 1004.1 metres approximately 50 metres up dip to the northeast of mineralization in drill hole SHE-118-24. This fault zone is present in all of the Kianna East drill holes and represents the controlling structure to the mineralization. Although no significant mineralization was intersected at this location, the drill hole provides important geological information to continue future tracing of the mineralized structure.
The results reported here conclude the 2012 drilling program at Shea Creek. A total of 29 directional holes were completed for the year. The program was very successful in identifying new mineralization as seen at Kianna East, as well as expanding the footprint of mineralization at the Colette and 58B deposits. Planning for the 2013 exploration program at Shea Creek is currently underway, and the plan and budgets will be reported when they are finalized. The Kianna East Zone will be included in an upcoming mineral resource update for Shea Creek which will be reported in early 2013.
Kianna East Mineralization
The Kianna East mineralization is a southwest-dipping zone of mineralization which lies approximately 80 to 110 metres below and east of the main Kianna basement resource and about 200 metres below the unconformity (see Figure 2). Previous results from Kianna East include 16.0 metres grading 3.59% eU3O8 in drill hole SHE-135-11 and 18.1 metres grading 3.70% eU3O8 in drill hole SHE-135-13 (see UEX's news release dated October 15, 2012) as well as 1.55% eU3O8 over 19.9 metres in drill hole SHE-118-24 and 7.0 metres grading 2.36% U3O8 in hole SHE-135-12 (see UEX's news release dated November 14, 2012). Full results of drilling from the Kianna East Zone in 2012 are reported in Table 1.
This high-grade zone occurs parallel to and along the top of a southwest-dipping graphitic unit which forms an electromagnetic (EM) anomaly to the east of, and parallel to, the Saskatoon Lake Conductor (see Figure 1 inset). Given the orientation of the drill holes, the Kianna East intercepts may lie at or close to true thickness. The new zone is open to the northwest, southeast and up dip to the northeast. Future drilling will test for the potential of the new basement zone to extend upward along the graphitic unit to the unconformity and for new mineralized zones along this parallel conductive graphitic unit.
Further information regarding UEX's projects, including maps, is available on UEX's website at www.uex-corporation.com.
Qualified Persons and Data Acquisition
Technical information in this news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration, David Rhys, P.Geo., UEX Advisory Board member and Erwin Koning, P.Geo., AREVA's Technical Advisor, Exploration, who are each Qualified Persons as defined by National Instrument 43-101.
Uranium grades (U3O8) reported for the 7.0-metre intersection in SHE 135-12 were obtained from geochemical analysis. All other equivalent uranium grade (eU3O8) results referenced here were obtained using a DHT27-STD gamma probe which collects continuous readings along the length of the drill hole. Probe results are calibrated using an algorithm calculated from the comparison of probe results against geochemical analyses in previous drill holes in the Shea Creek area. True widths of mineralized intervals have not yet been determined. All intervals are also analyzed geochemically at the SRC Geoanalytical Laboratories in Saskatoon, SK to support the probe data.
The primary geochemical analytical methods used for uranium analysis on the Shea Creek samples are ICP-MS (Inductively Coupled Plasma Mass Spectroscopy) for samples with grades lower than 1,000 ppm U, and U3O8 uranium assay by ICP-OES (Inductively Coupled Plasma Optical Emission Spectroscopy) for samples determined by ICP-MS to contain uranium concentrations higher than 1,000 ppm U.
About Shea Creek
Effective December 31, 2009, UEX reported a combined mineral resource estimate for the Kianna, Anne and Colette deposits as tabulated below in "About UEX." This mineral resource estimate is based on drilling information up to December 31, 2009. Subsequent results, which include the identification of the 58B Deposit and the expansion of the Kianna and Colette deposits, are not incorporated in this mineral resource estimate.
This estimate confirmed Shea Creek as the largest undeveloped uranium resource in the Athabasca Basin. Shea Creek also ranks as the third largest uranium resource in the Basin, exceeded in size only by McArthur River and Cigar Lake. Resources at Shea Creek are largely open and have excellent potential for both expansion of known areas of mineralization and discovery of new zones.
UEX intends to update its mineral resource estimate for Shea Creek in early 2013 to include the results from the 2010, 2011 and 2012 drilling campaigns.
About UEX
UEX is a Canadian uranium exploration and development company actively involved in 18 uranium projects, including six that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as ten joint-ventured with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 18 projects, totaling 308,320 hectares (761,875 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 17% of the global primary uranium production. UEX is currently advancing several uranium deposits at its two major projects which include the Kianna, Anne, Colette and 58B deposits at its 49%-owned Shea Creek Project, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project. UEX currently has a cash position of approximately $12.1 million.
UEX's two major projects have mineral resource estimates as follows:
UEX Corporation -- Indicated Mineral Resources (1) (2) (3)
| Project |
Tonnes |
Grade
U3O8 (%) |
Total
U3O8 (lbs) |
UEX�s share
U3O8 (lbs) |
| Shea Creek (4) |
1,872,600 |
1.540 |
63,572,000 |
31,150,280 |
| Hidden Bay (5) |
10,372,500 |
0.160 |
36,623,000 |
36,623,000 |
| TOTAL INDICATED |
12,245,100 |
0.371 |
100,195,000 |
67,773,280 |
UEX Corporation -- Inferred Mineral Resources (1) (2) (3)
| Project |
Tonnes |
Grade
U3O8 (%) |
Total
U3O8 (lbs) |
UEX�s share
U3O8 (lbs) |
| Shea Creek (4) |
1,068,900 |
1.041 |
24,525,000 |
12,017,250 |
| Hidden Bay (5) |
1,109,200 |
0.111 |
2,715,000 |
2,715,000 |
| TOTAL INFERRED |
2,178,100 |
0.567 |
27,240,000 |
14,732,250 | Notes:
(1) The mineral resource estimates follow the requirements of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards.
(2) The Shea Creek mineral resources were estimated at a cut-off of 0.30% U3O8.
(3) The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U3O8.
(4) The Shea Creek mineral resource estimates are included in the Shea Creek Technical Report with an effective date of May 26, 2010 which was filed on SEDAR at www.sedar.com on July 9, 2010.
(5) The Hidden Bay mineral resource estimates are included in the Hidden Bay Technical Report with an effective date of February 15, 2011 which was filed on SEDAR at www.sedar.com on February 23, 2011.
About AREVA Resources Canada Inc.
AREVA, a uranium exploration, mining and milling company, is a subsidiary of AREVA group, the global nuclear industry leader with an expanding presence in the renewable energies field, and 48,000 employees worldwide to help supply safer, cleaner and more economical energy to the greatest number of people. AREVA group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the McClean Lake, Midwest and Shea Creek deposits operated by AREVA, as well as the McArthur River and Cigar Lake deposits operated by Cameco Corporation. AREVA also holds a majority interest in the Kiggavik deposits in Nunavut.
FOR FURTHER INFORMATION PLEASE CONTACT
Graham C. Thody
President & CEO
(604) 669-2349
Forward-Looking Information
This news release may contain statements that constitute "forward-looking information" for the purposes of Canadian securities laws. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding UEX's mineral resource and mineral reserve estimates, outlook for our future operations, plans and timing for exploration activities, 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 information. Such forward-looking information is based on certain factors and assumptions and is 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 information. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, additional drilling results, continuity and grade of deposits, participation in joint ventures, reliance on other companies as operators, public acceptance of uranium as an energy source, fluctuations in uranium prices and currency exchange rates, changes in environmental and other laws affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is 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 information. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
TABLE 1
2012 Shea Creek (Kianna East) Drill Results
Results are reported with a grade of greater than 0.1% eU3O8 and a grade-thickness product of greater than 0.2
| Hole |
Total Depth of Hole (metres) |
Depth to Unconformity
(metres) |
From
(metres) |
To
(metres) |
Length
(metres) |
Avg. Grade Within the Intersection
(% eU3O8) |
Type� |
| SHE-118-22* |
1003.5 |
745.0 |
737.5 |
755.2 |
17.7 |
0.22 |
UC |
| |
|
|
including 739.8 |
746.2 |
6.4 |
0.49 |
UC |
| |
|
|
946.4 |
978.7 |
32.3 |
0.24 |
B |
| |
|
|
including 968.1 |
975.6 |
7.5 |
0.52 |
B |
| SHE-118-23** |
1013.0 |
749.4 |
743.5 |
749.7 |
6.2 |
0.36 |
UC |
| |
|
|
including 743.5 |
745.2 |
1.7 |
0.43 |
UC |
| |
|
|
including 748.2 |
749.7 |
1.5 |
0.68 |
UC |
| |
|
|
941.6 |
942.4 |
0.8 |
2.64 |
B |
| |
|
|
953.6 |
956.2 |
2.6 |
0.19 |
B |
| |
|
|
962.1 |
962.9 |
0.8 |
0.26 |
B |
| |
|
|
969.7 |
972.4 |
2.7 |
0.23 |
B |
| |
|
|
982.5 |
983.5 |
1.0 |
1.10 |
B |
| SHE-118-24** |
1041.0 |
755.1 |
750.6 |
756.4 |
5.8 |
0.13 |
UC |
| |
|
|
943.7 |
963.6 |
19.9 |
1.55 |
B |
| |
|
|
including 943.7 |
947.8 |
4.1 |
3.09 |
B |
| |
|
|
including 948.9 |
950.1 |
1.2 |
0.57 |
B |
| |
|
|
including 960.6 |
963.6 |
3.0 |
5.73 |
B |
| |
|
|
987.5 |
988.3 |
0.8 |
1.58 |
B |
| SHE-118-25 |
1080.0 |
769.0 |
No significant results |
| SHE-135-10* |
765.0 |
749.2 |
746.8 |
749.7 |
2.9 |
0.13 |
UC |
| |
|
|
including 748.1 |
749.7 |
1.6 |
0.20 |
UC |
| |
NOTE: Before reaching the depth of the new mineralized zone, hole SHE-135-10 was terminated at
765.0 m due to excessive deviation and was re-drilled as hole SHE-135-11. |
| SHE-135-11* |
1074.6 |
756.6 |
807.7 |
808.9 |
1.2 |
0.22 |
B |
| |
|
|
979.2 |
995.2 |
16.0 |
3.59 |
B |
| |
|
|
including 979.2 |
987.4 |
8.2 |
6.39 |
B |
| |
|
|
including 991.0 |
995.0 |
4.0 |
1.25 |
B |
| SHE-135-12* |
1029.0 |
755.0 |
888.7 |
899.9 |
11.2 |
0.22 |
B |
| |
|
|
including 888.7 |
889.8 |
1.1 |
0.33 |
B |
| |
|
|
including 896.0 |
899.9 |
3.9 |
0.35 |
B |
| |
|
|
990.5 |
997.5 |
7.0 |
2.36*** |
B |
| |
|
|
including 994.0 |
997.5 |
3.5 |
4.06*** |
B |
| SHE-135-13* |
1065.0 |
758.7 |
948.6 |
954.8 |
6.2 |
0.26 |
B |
| |
|
|
including 949.6 |
952.0 |
2.4 |
0.60 |
B |
| |
|
|
985.5 |
1003.6 |
18.1 |
3.70 |
B |
| |
|
|
including 985.5 |
989.1 |
3.6 |
2.62 |
B |
| |
|
|
including 991.7 |
996.5 |
4.8 |
11.28 |
B |
| |
|
|
including 998.8 |
1003.6 |
4.8 |
0.66 |
B |
| SHE-135-14** |
1042.0 |
748.1 |
745.4 |
749.0 |
3.6 |
0.11 |
UC |
| |
|
|
938.6 |
949.6 |
11.0 |
0.17 |
B |
| |
|
|
984.7 |
993.5 |
8.8 |
1.29 |
B |
| |
|
|
including 984.7 |
987.4 |
2.7 |
2.84 |
B |
| |
|
|
including 989.1 |
992.3 |
3.2 |
0.99 |
B |
| SHE-135-15 |
1041.0 |
749.2 |
843.7 |
844.3 |
0.6 |
0.43 |
B |
| |
|
|
953.6 |
962.9 |
9.3 |
0.41 |
B |
| |
|
|
including 955.9 |
957.7 |
1.8 |
1.40 |
B |
| |
|
|
974.6 |
998.3 |
23.7 |
0.19 |
B |
| |
|
|
including 974.6 |
979.6 |
5.0 |
0.50 |
B |
| |
|
|
including 988.3 |
991.7 |
3.4 |
0.47 |
B |
* Previously reported hole - (see UEX news release dated October 15, 2012)
** Previously reported hole - (see UEX news release dated November 14, 2012)
*** Corrected geochemical results in %U3O8
� UC - Unconformity mineralization
B -- Basement mineralization
Note: Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.
FIGURE 1
Northern Shea Creek Area -- 2012 Drilling Program
FIGURE 2
2012 Shea Creek (Kianna East) Drill Results:
SHE-118-25 and SHE-135-15
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