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Tuesday, August 06, 2013
UEX Reports 22.3 Metres Grading 0.85% eU3O8, including 5.93% eU3O8 over 1.4 Metres in Hole SHE-142 at Shea Creek and Provides Hidden Bay Update
UEX Corporation ("UEX") is pleased to announce the results from the first five drill holes of the 2013 summer 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 eight 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA Resources Canada Inc. ("AREVA"), the project operator.
The 2013 summer drilling results to date include two holes drilled in the Kianna East Zone ("Kianna East") area as part of a $2.0 million supplemental exploration budget and three holes drilled to test the prospective Saskatoon Lake Conductor ("SLC") which continues to the south of the Anne Deposit (see Figure 1) as part of a $3.1 million exploration budget (of which UEX is responsible for funding $1.52 million).
Drilling Results - Kianna East
The results reported are from a new pilot hole, SHE-142, and one directional drill hole, SHE-142-1, which were drilled to test the up dip projection and the northern extension respectively of the previous drilling in Kianna East (see Figure 2). Kianna East is a mineralized body discovered in 2012 that dips shallowly to the southwest and lies to the east of, and below the main zone of Kianna basement mineralization. Results from these drill holes include:
| SHE-142: |
(B) |
0.85% |
eU3O8 over 22.3 metres, including: |
| Upper Kianna East Zone |
(B) |
5.93% |
eU3O8 over 1.4 metres, and |
| Kianna East Zone |
(B) |
1.30% |
eU3O8 over 6.9 metres. |
Complete results from drilling in Kianna East that have been intersected to date are reported in Table 1.
The mineralization in drill hole SHE-142 expands Kianna East mineralization approximately 15 metres to the east of drill hole SHE 118-24, which intersected 1.55% eU3O8 over 19.9 metres, and maintains a substantial width. The position of the drill hole suggests that the zone continues to the east of the previously reported drilling beyond the 2013 Shea Creek resource estimate. Mineralization is open east and southeast of this drill hole and there is potential for the still open, thick, higher-grade areas seen in previous drilling to extend into this area.
Drill hole SHE-142-1 intersected a section of lower-grade mineralization grading 0.23% eU3O8 over 1.6 metres approximately 35 metres north of mineralization in drill hole SHE 118-24. In addition, the hole intersected a fault zone with strongly tectonized and brecciated graphitic pelitic gneiss from 934.1 metres to 969.7 metres which shows strong clay alteration and dravite infilling between breccia fragments. This fault zone is present in all of the Kianna East drill holes and represents the controlling, shallow dipping structure to the mineralization which may project up eastward to the Athabasca unconformity where it represents an exploration target for additional areas of unconformity mineralization.
The drilling in the Kianna East area is part of a $2.0-million budget for exploration on the Shea Creek Project funded by UEX under the agreement signed on April 4, 2013 (see UEX's news release dated June 4, 2013). The 2013 additional drilling program of approximately 4,000 metres is designed to test open portions of the Kianna East mineralized zone as well as open portions of the northern part of the Kianna Deposit ("Kianna North").
Drilling Results - Anne South
The 2013 exploration program south of the Anne Deposit has a budget of $3.1 million, for which UEX will be responsible for its 49% share, or $1.52 million. This exploration program consists of a $0.5 million geophysical Tensor Magnetotelluric ("MT") survey in the northern Colette and southern Anne areas which has been completed and a $2.6 million drilling program of 5,000 metres south of the Anne Deposit ("Anne") that commenced in mid-June.
There are only four previous drill holes in this area south of Anne (see Figure 1), including drill hole SHE 24 which intersected mineralization grading 0.074% U3O8 over 2.3 metres in the basement rocks approximately 20 metres below the unconformity.
Two directional holes were completed using SHE-24 as a pilot hole. Holes SHE-24-1 and SHE-24-2 targeted the up-dip (northeast) and down-dip (southwest) extensions of mineralization in SHE-24 respectively. The holes both encountered favorable graphitic structural zones in the basement. Hole SHE-24-1 intersected minor mineralization of 0.05% eU3O8 over 1.9 metres within weakly hematized conglomeratic sandstone, including 0.17% eU3O8 over a narrow 0.2 metre interval just above the unconformity from 703.3 to 703.5 m.
A new pilot hole, SHE-143, tested the SLC on line 62+00N (see Figure 1). The drill hole intersected a strongly graphitic structural zone from 800.0 to 804.2 metres containing abundant angular rubble with small sections of fault gouge. No significant results above a 0.1% eU3O8 cut-off were returned from probing.
Merger of the Shea Creek and Douglas River Projects
AREVA and UEX have agreed to combine the Shea Creek Project and the contiguous Douglas River Project as the known mineralization at the northern boundary of Shea Creek extends into the Douglas River property. The combined projects are now referred to as the Shea Creek Project.
Hidden Bay Update
On the Hidden Bay Project, UEX, together with its consultants, have completed various component studies and examined alternatives for the potential mining and processing of its mineral resources. UEX is conducting other field tests on waste rock materials which require a longer time frame to complete. We believe that, as a result of the undertaking of these various studies, we have improved our knowledge of the deposits, potential mining scenarios, and the alternatives available for future development. These studies provide the basis for future project evaluation and potential development. The mining industry has generally experienced increases in capital and operating costs on almost all projects. We recognize that the Hidden Bay Project is subject to the same financial and economic challenges. We plan to defer further evaluation and development of the Project until there is a sustained recovery of spot and long-term uranium commodity prices to appropriate levels.
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.
Equivalent uranium grade (eU3O8) reported 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.
About UEX
UEX is a Canadian uranium exploration and development company actively involved in 16 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 eight joint-ventured with AREVA and one joint venture with AREVA and JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 16 projects, totaling 264,363 hectares (653,255 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 15% of the global primary uranium production. UEX is currently advancing several uranium deposits in the Athabasca Basin 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 $11.2 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) |
2,067,900 |
1.484 |
67,663,000 |
33,154,870 |
| Hidden Bay (5) |
10,372,500 |
0.160 |
36,623,000 |
36,623,000 |
| TOTAL INDICATED |
12,440,400 |
0.380 |
104,286,000 |
69,777,870 |
UEX Corporation - Inferred Mineral Resources (1) (2) (3)
| Project |
Tonnes |
Grade
U3O8 (%) |
Total
U3O8 (lbs) |
UEX�s share
U3O8 (lbs) |
| Shea Creek (4) |
1,272,200 |
1.005 |
28,192,000 |
13,814,080 |
| Hidden Bay (5) |
1,109,200 |
0.111 |
2,715,000 |
2,715,000 |
| TOTAL INFERRED |
2,381,400 |
0.589 |
30,907,000 |
16,529,080 |
Notes:
- The mineral resource estimates follow the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards.
- The Shea Creek mineral resources were estimated at a cut-off of 0.30% U3O8.
- The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U3O8.
- The Shea Creek mineral resource estimates are included in the Shea Creek Technical Report with an effective date of May 31, 2013 which was filed on SEDAR at www.sedar.com on May 31, 2013.
- 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.
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, intentions and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", "will", "may", 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.
Cautionary Note to United States Investors
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral resource" exists or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in-place tonnage and grade without reference to unit measures. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards.
TABLE 1
2013 Summer Shea Creek 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 |
Area |
Total Depth of Hole (metres) |
Depth to Unconformity
(metres) |
From
(metres) |
To
(metres) |
Length
(metres) |
Avg. Grade Within the Intersection
(% eU3O8) |
Type� |
| SHE-142 |
Kianna East |
1056.0 |
726.5 |
885.3
including 887.5
907.9
915.2
including 915.2
which includes 915.2
including 930.6
949.3 |
888.7
888.7
910.8
937.5
924.0
916.6
937.5
953.1 |
3.4
1.2
2.9
22.3
8.8
1.4
6.9
3.8 |
0.20
0.35
0.34
0.85
1.14
5.93
1.30
0.15 |
B
B
B
B
B
B
B
B |
| SHE-142-1 |
Kianna East |
1083.0 |
727.4 |
939.4 |
941.0 |
1.6 |
0.23 |
B |
| SHE-24-1 |
Anne South |
804.0 |
703.8 |
No significant results |
| SHE-24-2 |
Anne South |
906.0 |
711.1 |
No significant results |
| SHE-143 |
Anne South |
840.0 |
697.5 |
No significant results |
| � |
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 - 2013 Drilling Programs
Click to Enlarge
FIGURE 2
2013 Shea Creek (Kianna East) Drill Results:
SHE-142 and SHE-142-1
Click to Enlarge
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