UEX/AREVA Drilling Continues to Expand the Colette Deposit: SHE-66-2 Intersects 26.0 Metres Grading 1.28% eU3O8 and SHE-66-3 Intersects 27.9 Metres Grading 1.22% eU3O8
Trading Symbol: UEX-TSX
VANCOUVER, Oct. 31, 2011 /CNW/ - UEX Corporation ('UEX') is pleased to announce results from three pilot holes and twenty-two directional drill holes from the continued exploration of the Colette Deposit ('Colette') on the Shea Creek Project ('Shea Creek') as reported to UEX by the project operator, AREVA Resources Canada Inc. ('AREVA'). Shea Creek hosts the Kianna, Anne, Colette and 58B deposits and is one of ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA.
Drill hole intersections in the SHE-66 series at Colette have expanded the unconformity mineralization northward (see Figure 1). These drill intersections lie at the northern margin of, and extend outside of, the existing National Instrument 43-101 ('N.I. 43-101') compliant mineral resource estimate. Mineralization is open northward in the direction of UEX and AREVA's Douglas River Project and to the east.
Mineralization intersected in drill holes SHE-66-2 and SHE-66-3 straddles the unconformity ('UC') extending for over 25 metres above the unconformity. Intercepts are as follows:
SHE-66-2: (UC) 1.28% eU3O8over 26.0 metres, including
(UC) 1.82% eU3O8over 7.9 metres;
SHE-66-3: (UC) 1.22% eU3O8over 27.9 metres, including
(UC) 1.41% eU3O8over 10.3 metres.
SHE-66-2 and SHE-66-3 lie 30 to 50 metres north of previous drill hole SHE-52, which intersected 2.34% U(3)O(8) over 16.8 metres at the unconformity, including an interval of 4.29% U(3)O(8) over 7.8 metres which contains a subinterval of 7.55% U(3)O(8) over 2.7 metres. These drill holes collectively define a flat-lying lens of mineralization at the unconformity which, on the basis of its overall morphology, suggests that the new intercepts are within 90% of true thickness. The new intercepts also suggest a northward thickening of this lens of mineralization.
'These intercepts are by far the thickest intersections of mineralization in the Colette area to date. They provide a focal area for expanding the Colette Deposit northward and suggest potential for rapid expansion of the northern Colette resource base,' said Graham Thody, President and CEO of UEX.
Infill drilling between the widely spaced drill holes in this area will be required to assess the extent of this zone and higher grade pods within it. Significant faulting which offsets and repeats the Athabasca unconformity is present in these drill holes suggesting potential for basement mineralization at the downdip projection of the structures.
In addition to the drilling to the north of the Colette Deposit, drilling also tested extensions of mineralization in the southern area of Colette (see Figure 1). Previous drilling at Colette was widely spaced and, as a result, the extent of high-grade mineralization at the unconformity was poorly defined since drill holes were locally up to 100 metres apart.
Mineralization intersected in drill holes from the southern area of Colette at the unconformity ('UC') and in the underlying basement rocks ('B') includes the following notable intercepts:
SHE-111-14: (UC) 0.32% eU3O8over 3.2 metres, and
(UC) 0.51% eU3O8over 1.9 metres;
SHE-111-15: (UC) 0.83% eU3O8over 3.5 metres;
SHE-111-16: (UC) 0.15% eU3O8over 5.5 metres;
SHE-137-1: (UC) 0.82% eU3O8over 1.1 metres;
SHE-137-2: (UC) 0.92% eU3O8over 1.6 metres, and
(B) 1.54% eU3O8over 0.7 metres, and
(B) 0.82% eU3O8over 1.1 metres;
SHE-139-1: (B) 1.23% eU3O8over 8.3 metres, including
(B) 4.39% eU3O8over 2.1 metres.
Complete results from the drilling are reported in Table 1. Uranium grades reported here have been calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.
The unconformity mineralization at Colette has now been defined over a strike length of greater than 900 metres. A significant zone of basement mineralization, which is open downdip to the west, was identified in multiple drill holes completed in 2007 and 2008 in the southern part of this deposit. This open basement-hosted mineralization has been intersected over a strike length of 250 metres and contains intercepts such as 3.23% U(3)O(8) over 8.0 metres, including 12.38% U(3)O(8) over 0.5 metres, and 23.93% U(3)O(8) over 0.5 metres in drill hole SHE-111-06. The higher grade intercept in 2011 drill hole SHE-139-1 lies within, and expands, this basement zone.
The drill holes in the Colette area are part of a larger exploration program on the Shea Creek property. Currently, one drill is operating on the project at the Kianna Deposit and will continue drilling into early November 2011.
To view Figure 1 showing the 2011 Drilling - Colette Deposit, please access this news release 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 District Geologist, West Athabasca Region, who are each Qualified Persons as defined by National Instrument 43-101.
Equivalent grade results 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.
About Shea Creek
UEX reported a combined N.I. 43-101 compliant mineral resource estimate for the Kianna, Anne and Colette deposits of 1,872,600 tonnes grading 1.54% U(3)O(8) containing 63.57 million pounds of U(3)O(8) in the Indicated Mineral Resource category and an additional 1,068,900 tonnes grading 1.04% U(3)O(8) in the Inferred Mineral Resource category containing 24.53 million pounds of U(3)O(8) at a cut-off of 0.3% U(3)O(8) (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 and 2011 drilling programs, which include the expansion of Kianna, Colette and the addition of the 58B Deposit, are not incorporated in this 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 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 328,151 hectares (810,879 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 18% 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 $7.2 million at September 30, 2011, UEX is well-financed to carry out its remaining 2011 exploration and development programs.
UEX's two major projects have N.I. 43-101 compliant mineral resources as follows:
UEX Corporation - Indicated Mineral Resources ((1) (2) (3) (4) (5))
_________________________________________________________
| Project | Tonnes | Grade | Total |UEX's share|
| | |U3O8(%)|U3O8(lbs) | U3O8(lbs) |
|_______________|__________|_______|__________|___________|
| Shea Creek | 1,872,600| 1.540 |63,572,000| 31,150,280|
|_______________|__________|_______|__________|___________|
| Hidden Bay |10,293,600| 0.155 |35,044,000| 35,044,000|
|_______________|__________|_______|__________|___________|
|TOTAL INDICATED| | |98,616,000| 66,194,280|
|_______________|__________|_______|__________|___________|
UEX Corporation - Inferred Mineral Resources ((1) (2) (3) (4) (5))
_______________________________________________________
| Project | Tonnes | Grade | Total |UEX's share|
| | |U3O8(%)|U3O8(lbs) | U3O8(lbs) |
|______________|_________|_______|__________|___________|
| Shea Creek |1,068,900| 1.041|24,525,000| 12,017,250|
|______________|_________|_______|__________|___________|
| Hidden Bay |1,109,200| 0.111| 2,715,000| 2,715,000|
|______________|_________|_______|__________|___________|
|TOTAL INFERRED| | |27,240,000| 14,732,250|
|______________|_________|_______|__________|___________|
Notes:
(1) The mineral resource estimates comply with the requirements of
N.I. 43-101 and classifications comply with 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) Please refer to the technical report on the Kianna, Anne and
Colette deposits dated effective May 26, 2010, available online
under UEX's profile at
www.sedar.com.
(5) Please refer to the technical report on the Horseshoe and Raven
deposits dated effective July 15, 2009, available online under
UEX's profile at www.sedar.com.
A summary of UEX's mineral reserves are as follows:
UEX Corporation - Total Probable Mineral Reserves ((1) (2) (3))
______________________________________________
| Deposit|Tonnes| Grade| Total|UEX's share|
| | |U3O8(%)|U3O8(lbs)| U3O8(lbs)|
|_________|______|_______|_________|___________|
|West Bear|72,374| 0.94|1,492,261| 1,492,261|
|_________|______|_______|_________|___________|
Notes:
(1) The mineral reserve estimates comply with the requirements of
N.I. 43-101 and classifications comply with CIM definition
standards.
(2) The West Bear mineral reserves were based on an estimated
processing cut-off grade of 0.18% U3O8.
(3) Please refer to the technical report on the West Bear Deposit
dated effective February 24, 2010, available online under UEX's
profile at www.sedar.com.
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, Cigar Lake and Millennium deposits operated by Cameco Corporation. AREVA also holds a majority interest in the Kiggavik deposits in Nunavut.
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 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, 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
2011 Shea Creek (Colette) Drill Results
Results are reported for holes with a grade of greater than 0.1% U3O8 and
a grade-thickness product of greater than 0.2
Hole Total Depth to From To Length Avg. Grade Type†
Depth Unconformity (metres) (metres) (metres) Within the
of Hole (metres) Intersection
(metres) (% eU3O8)
SHE-66-1 852.0 709.4 708.6 710.6 2.0 0.16 UC
718.2 719.0 0.8 0.36 B
SHE-66-2 834.0 696.8 and 683.1 709.1 26.0 1.28 UC
710.4
including 683.1 698.7 15.6 1.21 UC
including 701.2 709.1 7.9 1.82 UC
714.2 715.0 0.8 0.35 B
715.5 716.5 1.0 0.80 B
SHE-66-3 834.0 718.3 691.0 718.9 27.9 1.22 UC
including 691.0 708.0 17.0 1.15 UC
including 708.6 718.9 10.3 1.41 UC
SHE-110-1 834.0 743.4 - - - -
SHE-110-2 855.0 756.8 752.9 754.4 1.5 0.17 UC
SHE-110-3 888.0 762.0 760.9 761.8 0.9 0.45 UC
SHE-110-4 843.0 748.2 - - - -
SHE-111-14 822.0 743.3 731.2 734.4 3.2 0.32 UC
739.9 741.8 1.9 0.51 UC
SHE-111-15 849.0 747.7 686.9 690.4 3.5 0.83 P
744.5 745.0 0.5 0.42 UC
747.5 748.4 0.9 0.66 UC
SHE-111-16 801.0 746.9 710.9 711.7 0.8 0.40 P
724.3 729.8 5.5 0.15 P
SHE-126-6 819.0 740.0 745.1 746.6 1.5 0.33 B
SHE-126-7 933.0 750.3 - - - -
SHE-137 888.0 705.8 - - - -
SHE-137-1 861.0 726.2 725.3 726.4 1.1 0.82 UC
SHE-137-2 855.0 726.6 724.9 726.5 1.6 0.92 UC
779.5 780.2 0.7 1.54 B
798.9 800.0 1.1 0.82 B
SHE-137-3 827.0 717.1 - - - -
SHE-138 834.0 724.6 - - - -
SHE-138-1 813.0 729.1 712.5 713.1 0.6 0.42 P
SHE-139 831.0 717.2 718.6 719.6 1.0 0.35 B
SHE-139-1 846.0 710.0 709.9 710.9 1.0 0.30 UC
780.7 789.0 8.3 1.23 B
including 786.9 789.0 2.1 4.39 B
SHE-139-2 901.7 736.6 - - - -
SHE-139-3 843.0 738.3 - - - -
SHE-139-4 855.0 729.0 763.2 764.3 1.1 0.57 B
770.5 771.1 0.6 0.41 B
SHE-139-5 884.2 720.0 - - - -
SHE-139-6 837.0 720.9 - - - -
† UC - Unconformity mineralization
B - Basement mineralization
P - Perched mineralization
Note: Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.
UEX Corporation
CONTACT: Graham C. Thody
President & CEO
(604) 669-2349