UEX Commences 18,000 Metre Summer Drilling Program at Hidden Bay
VANCOUVER, Aug. 9, 2011 /CNW/ --
Trading Symbol: UEX-TSX
VANCOUVER, Aug. 9, 2011 /CNW/ - UEX Corporation ('UEX') is pleased to
announce that its summer 2011 diamond drilling program has commenced on
its 100%-owned Hidden Bay Project in the eastern Athabasca Basin of
northern Saskatchewan, Canada. Two drills operated by Graham Brothers
Drilling Ltd. are currently being utilized on the Project. Drilling
totaling approximately 18,000 metres with a budget of $3.0 million will
focus on targets in the vicinity of the Horseshoe and Raven deposits.
Given the successful results from drilling the Horseshoe and Raven
deposits over the last several years, UEX intends to carry out an
aggressive drilling program to test additional geological targets in
the area. The drilling will be carried out at Horseshoe-Raven in three
areas:
1. Step out and infill drilling at the Raven Deposit to assess
possible extensions of mineralization into open areas, upgrade
portions of the deposit resources from Inferred to Indicated
status, and to evaluate the potential for greater continuity and
expansion of higher grade portions of the deposit.
2. Drilling between the Horseshoe and Raven deposits to follow up
previous intercepts, and to assess potential for additional pods
of mineralization.
3. Drilling at the Horseshoe Deposit to further enhance geological
interpretation and to provide additional infill information which
may upgrade the resources.
In February 2011, UEX announced the results of the Preliminary
Assessment Report ('PA') on the Horseshoe and Raven deposits, prepared
by SRK Consulting (Canada) Inc. ('SRK') (see UEX news release dated
February 23, 2011). Using a mine design based upon cut-off grades
defined by a $60 (US) per pound price of U(3)O(8) and prices for U(3)O(8) of $70 (US) per pound, the PA calculated Earnings Before Interest and
Taxes ('EBIT') of $394M. To evaluate the impact of higher uranium
prices, the PA estimated EBIT at approximately $620M by using a mine
design based upon lower cut-off grades defined by an $80 (US) per pound
price of U(3)O(8).
The PA referred to the Hidden Bay Project as 'very robust' and SRK made
some specific recommendations to advance the project to a
pre-feasibility level. These recommendations included that UEX conduct
an infill drilling program at the Raven Deposit to upgrade Inferred
resources to Indicated resources. This is particularly important as the
price of U(3)O(8 )increases, thereby allowing for the lower grade mineralization, some of
which is in the Inferred category, to be included in the mine plan. The
PA also recommended that further expansion drilling be conducted where
it appears the resources can be increased. The summer 2011 diamond
drilling program will in part follow up on these recommendations as
well as testing additional exploration targets.
In furtherance of the recommended Preliminary Feasibility Study ('PFS'),
UEX intends to conduct additional field work and information gathering
for geotechnical, structural, environmental, metallurgical and
hydrological studies. UEX has retained SRK to assist in these studies.
The planned step out and infill drill holes at the Horseshoe and Raven
deposits will also provide information utilizable for geotechnical and
structural purposes for the mine design as part of the PFS study.
Results of the Winter 2011 Drilling Program on the Hidden Bay Property
A reconnaissance drilling program was carried out in from January to
April, 2011 in the eastern Hidden Bay property to test areas of
possible structurally controlled clay and hematite alteration
associated with resistivity and gravity anomalies that are similar to
those associated with mineralization at the Horseshoe and Raven
deposits. Thirteen holes totaling 3,546 metres were completed.
Anomalous radioactivity, including several intercepts of >200 ppm U(3)O(8), was intersected in association with alteration and structures but no
significant mineralization was identified. Additional drill-worthy
targets exist several kilometres to the west of the Raven Deposit.
Widely spaced exploration drilling consisting of six holes totaling
2,759 metres was also completed in the Shamus Lake area ('Shamus')
located in the northwestern part of the Hidden Bay property. Shamus
lies south of and along strike from the Sue deposits on the adjacent
McClean Lake Mine property operated by AREVA Resources Canada Inc.
Drilling at Shamus targeted basement-hosted mineralization associated
with resistivity low anomalies. Several areas of low grade
mineralization were intersected, including 0.055% U(3)O(8) over 2.0 metres in drill hole SHA-046 and 0.048% U(3)O(8) over 4.5 metres in drill hole SHA-047. These and past drilling results
further convey the anomalous nature of the Shamus area.
About the Horseshoe, Raven and West Bear Deposits
The Horseshoe and Raven deposits are located in the central portion of
UEX's 100%-owned Hidden Bay Project which also contains the West Bear
Deposit. Mineralization at the Horseshoe and Raven deposits comprises
shallow dipping zones of hematization with disseminated and veinlet
pitchblende-boltwoodite-uranophane that are hosted by folded arkosic
quartzite gneiss. The two deposits are located less than 5 kilometres
south of Cameco's Rabbit Lake milling operation, and 22 kilometres
southeast of AREVA's McClean Lake milling operation. As previously
announced in July 2009, the Horseshoe and Raven deposits collectively
contain, at a cut-off grade of 0.05% U(3)O(8), National Instrument 43-101 ('N.I. 43-101') compliant resources as
filed on SEDAR (www.sedar.com) on September 8, 2009 of:
-- 10.29 million tonnes containing 35.04 million pounds of U(3)O
(8) with a grade of 0.155% U(3)O(8) in the Indicated Mineral
Resource category; and
-- 1.11 million tonnes containing 2.72 million pounds of U(3)O(8)
with a grade of 0.111% U(3)O(8) in the Inferred Mineral
Resource category.
The West Bear Deposit, which lies approximately 35 kilometres to the
south, has a N.I. 43-101 compliant Probable Mineral Reserve estimate of
72,347 tonnes containing 1,492,261 pounds of U(3)O(8) grading 0.94% U(3)O(8) at a cut-off of 0.18% U(3)O(8), based on a Preliminary Feasibility Study filed on SEDAR on March 30,
2010.
To view additional information and maps of the deposits, visit UEX's
website at www.uex-corporation.com.
Qualified Persons
Technical information in this news release has been reviewed by R. Sierd
Eriks, P.Geo., UEX's Vice-President of Exploration and David Rhys,
P.Geo., UEX Advisory Board member, both of whom who are Qualified
Persons as defined by N.I. 43-101.
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 $13.5 million at June 30, 2011, UEX is well-financed
to carry out the remainder of its 2011 exploration and development
programs, budgeted at approximately $8.5 million.
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 resource 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 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 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, 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.
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Graham C. Thody
President & CEO
(604) 669-2349