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EVA Resources Canada Inc. ("AREVA") has informed UEX
Corporation ("UEX") that it has commenced the 2011 Western
Athabasca drilling program that was announced on November 18, 2010. The
program will test open mineralization and prospective target areas along
trend at the Shea Creek Project ("Shea Creek") and at the adjacent Douglas
River Project ("Douglas River"). The projects represent two of the
ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA,
the operator, the most advanced of which is Shea Creek, for which resources
were announced in 2010.
Shea Creek Project
Shea Creek hosts a world-class uranium system, which includes the Kianna, Anne, Colette and 58B deposits, with
mineralization defined over a strike length exceeding three kilometres along the Saskatoon Lake graphitic conductor
in northern parts of project. The 2011 exploration expenditures are budgeted
at $7.90 million of which UEX's 49% share is approximately $3.87 million. The
drilling program will focus on extensions and open areas of the Kianna and Colette deposits, as well as untested areas
between the 58B Deposit and the Kianna Deposit.
Kianna
Deposit
Drilling is currently testing portions of the northern and eastern
parts of the Kianna Deposit ("Kianna"), where approximately six directional drill
holes are planned to follow up on successful drilling results from the 2010
program.
Four directional drill cuts will follow up on recently reported
intercepts from the SHE-136 series drill holes which intersected new, open
areas of structurally controlled mineralization north of the main Kianna basement deposit. These intercepts, which included
1.84% eU3O8 over 16.6 metres
in drill hole SHE-136-1, form additional mineralized zones which lie outside
of the 2010 Kianna resource estimation and occur
within a large basement-hosted clay alteration zone which could contain
multiple new mineralized zones.
Open basement mineralization in the main Kianna
basement deposit will also be tested. Intercepts such as those in the
recently reported drill hole SHE 135-4, which encountered 1.39% eU3O8
over 34.3 metres and 1.70% eU3O8
over 16.2 metres, lie on the eastern fringes of the
Kianna basement mineralization. Open eastern
extensions of this mineralization will be tested by a minimum of two drill
holes during the 2011 drilling program.
Colette Deposit
A drill has started testing extensions of mineralization in the
southern area of the Colette Deposit ("Colette"). Previous drilling
at Colette is widely spaced and, as a result, the extent of high-grade
mineralization at the unconformity is poorly defined since drill holes are
locally up to 100 metres apart. The extent of the
unconformity mineralization at Colette is greater than 650 metres along strike. In addition, a significant zone of
basement mineralization which is open down dip to the west was identified in
multiple drill holes completed in 2007 and 2008 in the southern part of this
deposit. This open basement-style mineralization was intersected over a
strike length of 250 metres, containing intercepts
such as 3.23% U3O8 over 8.0 metres,
including 12.38% U3O8 over 0.5 metres
and 23.93% U3O8 over 0.5 metres,
in drill hole SHE-111-06.
Three pilot drill holes and a minimum of nine directional cuts will
test open areas for additional basement and unconformity mineralization.
Area between the Kianna and 58B Deposits
The partial definition of the 58B Deposit in 2010 highlighted the
significant exploration potential of the Shea Creek mineralization trend
along the Saskatoon Lake Conductor. The 700-metre area between the Kianna and 58B deposits remains sparsely tested,
particularly along a 400-metre strike extent of this corridor which has only
been tested by one drill hole. Following the drilling at the Kianna Deposit, two pilot holes and approximately seven
directional cuts have been initially planned to test this area within which
additional zones of mineralization could be present.
Douglas River Project
The Douglas River Project ("Douglas River") is contiguous
with the north end of Shea Creek, where the Colette Deposit is located. The
2011 diamond drilling program, which represents the first drilling program at
Douglas River since 1998, is currently underway and consists of one pilot
hole and three directional cuts totaling 2,500 metres.
The objective of the program is to expand geological knowledge and mineral
resources north of Colette on Shea Creek and south of a mineralized intercept
on Douglas River.
Mineralization has been previously intersected at Douglas River in
drill hole DGS-10, which intersected unconformity mineralization grading
0.53% eU3O8 over 3.7 metres.
An untested strike length of 300 metres is present
between this hole and the northern portion of Colette. The two most northern
holes in the Colette Deposit, SHE-66 and SHE-74 spaced 40 metres
apart, consist of perched mineralization grading 0.98% eU3O8
over 4.0 metres and 0.94% eU3O8
over 4.4 metres respectively and could be analogous
to the discovery hole at the Kianna Deposit.
To view maps and other information regarding UEX's exploration
projects, please access UEX's website at www.uex-corporation.com
under "Projects". The website also contains a recent presentation
on Shea Creek given by David Rhys at the Saskatchewan Geological Survey Open
House in November 2010.
Technical information in this news release has been reviewed and
approved by R. Sierd Eriks,
P.Geo., UEX's Vice-President of Exploration and Erwin
Koning, AREVA's District Geologist, West Athabasca
Region, who are a Qualified Persons as defined by National Instrument 43-101.
About Shea Creek
UEX reported a combined National Instrument 43-101 compliant mineral
resource estimate for the Kianna, Anne and Colette
deposits of 1,872,600 tonnes grading 1.54% U3O8
containing 63.57 million pounds of U3O8, in the
Indicated category and an additional 1,068,900 tonnes
grading 1.04% U3O8 in the Inferred category containing
24.53 million pounds of U3O8 at a cut-off of 0.3% U3O8
(see UEX news release dated May 26, 2010). This mineral resource estimate is
based on drilling information up to December 31, 2009. Results from the 2010
drilling, which include the expansion of Kianna and
the newly discovered 58B Deposit, are not incorporated in this resource
estimate.
This estimate confirms Shea Creek as the largest undeveloped uranium
resource in the Athabasca Basin. It 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.
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 338,972 hectares (837,618 acres), are located in the eastern,
western and northern perimeters of the Athabasca Basin, the world's richest
uranium belt, which accounts for approximately 22% of the global primary
uranium production. UEX is currently developing several uranium deposits in
the Athabasca Basin which include the Kianna, Anne,
Colette and 58B deposits at its 49%-owned Shea Creek Project, a joint venture
with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West
Bear deposits located at its 100%-owned Hidden Bay Project in the eastern
Athabasca Basin. With a cash position of approximately $16.8 million at December
31, 2010, UEX is well-financed to carry out its 2011 exploration and
development programs budgeted at approximately $9.6 million.
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 50,000 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, Cigar Lake and
Millennium deposits operated by Cameco Corporation.
AREVA also holds a majority interest in the Kiggavik
deposits in Nunavut.
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