UEX Corp

Published : October 18th, 2007

Report Second-Best Hole Ever at the Anne Deposit Intersecting Two Zones of High-grade Base

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Keywords :   Canada | Japan | K Street | Uranium |

Attention Business Editors:

UEX/AREVA Report Second-Best Hole Ever at the Anne Deposit Intersecting Two Zones of High-grade Basement-hosted Mineralization: SHE-122-1 Intersects 4.73% U3O8 Over 33.7 metres, including 23.21% U3O8 Over 3.6 metres, and a second zone grading 1.24% U3O8 Over 11.4 metres

     Trading Symbol: UEX-TSX
     VANCOUVER, Oct. 18 /CNW/ - UEX Corporation ("UEX") announced today that
AREVA Group subsidiary AREVA Resources Canada Inc. ("AREVA") has reported to
UEX the results from the first three holes of the 2007 fall drilling program
from the Shea Creek Uranium Project ("Shea Creek"), which is located in the
western Athabasca Basin of northern Saskatchewan, Canada. AREVA has also
advised that it plans to submit a project description to the federal and
provincial regulatory agencies in early 2008 for one or two underground
exploration shafts and related test mining facilities. Construction could
begin in 2010 based on the outcome of regulatory procedures.
     Shea Creek hosts the Kianna, Anne, and Colette Deposits and is one of the
ten Western Athabasca Projects currently under option from AREVA, the
operator. UEX has earned a 40.0% 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, at which time, AREVA and UEX will form a Joint Venture where
expenditures will be shared 49% by UEX and 51% by AREVA.
     "With the recent success at the Kianna Deposit, Anne has taken a back
seat to Kianna, however, that is about to change. Anne's SHE-122-1 ranks in
the top five holes at Shea Creek," said Stephen Sorensen President and CEO of
UEX. "AREVA has informed UEX that at least three drills will be employed to
focus on all of Shea Creek starting in January 2008." Sorensen went on to say
"the escalation of drilling and development programs by AREVA at Shea is
evidence of their confidence in the potential of Shea Creek becoming a future
mining camp in the western Athabasca Basin of northern Saskatchewan."
     About the Anne Deposit
     The Anne Deposit is geologically comparable to the Kianna Deposit with
both unconformity and basement mineralization. To date, the unconformity
mineralization at the Anne Deposit has been traced 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 the fall of 2004.
     Previous drilling programs have outlined three distinct styles of
high-grade mineralization:
     -   Unconformity-type mineralization ("UC") in close proximity to the
         unconformity (previous hole SHE-99-2, grading 9.17% U3O8 over
         15.7 metres, including 36.37% U3O8 over 2.5 metres);
     -   Basement-hosted mineralization ("B") found in zones up to 35 meters
         below the unconformity: (previous hole SHE-96-3, grading 1.39%
         U3O8 over 47.3 meters).
     -   Fracture/fault controlled perched mineralization ("P") higher in the
         sandstone column is also prevalent within the Anne area. However,
         intersections can not be correlated between drill holes with the
         current density of drill information
     2007 Fall Drilling Program at the Shea Creek Project
     Drilling continues utilizing three drills which started in mid-September.
One drill is being used to expand the Anne Deposit; currently the Anne Deposit
is open in all directions. Pilot hole SHE-122 completed during the summer
months (see Map 1 on UEX's website), is being used 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 is being placed on the basement mineralization
at the Anne Deposit.
     Another two drills are being 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
is using pilot holes SHE-121 and SHE-123 (see Map 2) 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.
     Anne Deposit:
     SHE-122-1:
     (B) 4.73% U3O8 over 33.7 metres, including 23.21% U3O8 over 3.6 metres
     (B) 1.24% U3O8 over 11.4 metres
     SHE-122-1, the first hole of the 2007 fall drilling program at Shea
Creek, has resulted in the second-best intersection of high-grade
mineralization to date at the Anne Deposit. The hole was a step-out of 20
metres and targeted the continuation of potential mineralization within a
basement structure that was first observed in SHE-96-3 during the 1999
drilling campaign. With the success of intersecting basement mineralization at
Kianna, the importance of basement structures has been applied to Anne. The
unconformity was intersected 35 metres northwest of pilot hole SHE-122 at a
depth of 713.0 meters (see accompanying Map 1 on UEX's website).
     High-grade basement mineralization was encountered between 713.8 and
747.5 metres grading 4.73% U3O8 over 33.7 metres, including 23.21% U3O8 over
3.6 metres from 715.9 to 719.5 metres.
     A second zone of high-grade basement mineralization was also encountered
between 773.4 and 784.8 metres grading 1.24% U3O8 over 11.4 metres.
     It is currently recognized that all the mineralization is associated with
a large structure that remains open along its strike length. The high-grade
zone directly below the unconformity will expand the basement mineralization
at the Anne Deposit. New drilling targets have also been outlined to follow-up
on this success.
     Drilling Between the Anne and Kianna Deposits:
     SHE-121-1
     (P) 0.17% U3O8 over 5.5 metres
     SHE-121-1 is located between the Anne and Kianna deposits. The purpose of
this hole was to start exploration drilling between the deposits and target
unconformity mineralization and identify basement structures that could host
additional deposits. The unconformity was intersected 50 metres south east of
SHE-121 at a depth of 718.1 metres (see accompanying Map 2 on UEX's website).
The majority of the mineralization intersected was a perched style above the
unconformity in the sandstone between 708.2 and 713.7 metres grading 0.17%   
U3O8 over 5.5 metres. Perched mineralization is seen in all three deposits at
Shea Creek and is considered very significant for follow-up drilling.
     SHE-123-1:
     (UC) 0.37% U3O8 over 2.1 metres
     SHE-123-1 is located between the Anne and Kianna deposits and the purpose
of this hole was the same as SHE-121-1. The unconformity was intersected 65
metres southeast of SHE-123 at a depth of 743.4 metres (see accompanying Map 2
on UEX's website). The mineralization was associated with breccias just above
the unconformity between 740.6 to 742.7 metres grading 0.37% U3O8 over
2.1�metres.
     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.
     Development Work for Proposed Exploration Shaft(s) at Shea Creek
     AREVA is planning to submit a project description to the federal and
provincial regulatory agencies in early 2008 for one or two underground
exploration shafts and related test mining facilities. Construction could
begin in 2010 based on the outcome of regulatory procedures.
     As first announced (see UEX News Release, April 10, 2007) AREVA has
started the necessary studies for site characterization and base line studies
for an exploration shaft. The first 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). Each of the proposed shafts will have a vertical depth of
approximately 950 metres and an estimated capital cost of $100 million (CDN).
     Three drill rigs during the 2007 summer completed five piezometer holes
each to a depth of 800 metres in the vicinity of the planned shaft location.
The piezometer installation and pumping tests, groundwater monitoring and
sampling have recently been completed.
     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.
     This development work and related studies are required to file a Project
Description to the federal and provincial regulatory agencies.
     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
760�metres.
     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% U3O8 over 8.8 metres, including 58.3%
         U3O8 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%
         U3O8 over 11.9 metres, including 27.35% U(3)O8 over 4.2 metres);
     -   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% U3O8 over 37.7 metres, including 25.46% U3O8
         over 4.0 metres).
     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 Millennium Deposit,
and the Cigar Lake Deposit.
     About UEX
     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 $61.0 million.
     ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
     Stephen H. Sorensen,
     President & C.E.O.
     Forward-Looking Statements
     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.
                                    TABLE 1
                      Fall 2007 Shea Creek Drill Results
         All Uranium Intersections Calculated from Gamma Probe Logging
     -------------------------------------------------------------------------
                          2007 Fall Drilling Results
     -------------------------------------------------------------------------
     Hole      Total     Depth to     From       To      Length    Avg. Grade
               Depth   Unconformity (metres)  (metres)  (metres)   Within the
              of Hole    (metres)                                Intersection
              (metres)                                             (% U3O8)
     -------------------------------------------------------------------------
     SHE-122-1   898.0     713.0      713.8     747.5     33.7         4.73
                         including    715.9     719.5      3.6        23.21
                                      773.4     784.8     11.4         1.24
     -------------------------------------------------------------------------
     SHE-121-1   881.0     718.1      708.2     713.7      5.5         0.17
     -------------------------------------------------------------------------
     SHE-123-1   863.0     743.4      740.6     742.7      2.1         0.37
     -------------------------------------------------------------------------
     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.
     %SEDAR: 00017609E
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, email: uex@intergate.ca

Data and Statistics for these countries : Canada | Japan | All
Gold and Silver Prices for these countries : Canada | Japan | All

UEX Corp

EXPLORATION STAGE
CODE : UEX.TO
ISIN : CA9026661061
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UEX is an exploration gold and copper company based in Canada.

UEX holds various exploration projects in Canada.

Its main exploration properties are BLACK LAKE, RIOU LAKE, BEATTY RIVER, DOUGLAS, NORTHERN ATHABASCA PROJECTS, WESTERN ATHABASCA PROJECTS, FOND DU LAC, SHEA CREEK, HIDDEN BAY, ALEXANDRA, BRANDER LAKE PROJECTS and JAMES CREEK PROJECTS in Canada.

UEX is listed in Canada and in Germany. Its market capitalisation is CA$ 39.9 millions as of today (US$ 30.1 millions, € 27.8 millions).

Its stock quote reached its lowest recent point on August 15, 2003 at CA$ 0.05, and its highest recent level on November 09, 2007 at CA$ 9.30.

UEX has 319 240 000 shares outstanding.

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