Tuesday, February 02, 2010 10:36:30 AM
Press Release Source: UEX Corporation On Wednesday January 6, 2010, 8:29 am EST
http://finance.yahoo.com/news/UEX-Reports-Results-of-Summer-cnw-3767690194.html?x=0&.v=1
UEX Plans $1.6 Million Winter 2010 Exploration Program at Hidden Bay and the Commencement of Scoping Studies on its Horseshoe and Raven Deposits.
Trading Symbol: UEX-TSX
VANCOUVER, Jan. 6 /CNW/ - UEX Corporation ("UEX") is pleased to announce the results of the summer 2009 drilling program and its plans for 2010 exploration and scoping studies on its 100%-owned Hidden Bay Project ("Hidden Bay"). Hidden Bay is located in the productive eastern Athabasca uranium district and contains the Horseshoe, Raven and West Bear Deposits.
"Hidden Bay hosts one of the most significant uranium resources in the Athabasca Basin due primarily to our successful drilling programs in recent years at the Horseshoe and Raven Deposits," said Graham Thody, President and CEO of UEX. "We will now advance these deposits through scoping studies to be conducted during 2010. In addition, we are very encouraged by the drilling results from our 2009 exploration program at Telephone Lake and will continue to explore this promising area, which lies immediately to the south of the McClean Lake Mine."
Results from the Hidden Bay Summer 2009 Drilling Program
The summer 2009 drilling program at Hidden Bay was comprised of 49 drill holes totaling 15,071 metres. Significant mineralization was found in several holes. The program was completed in September 2009 and was carried out in three areas:
- Horseshoe and Raven - designed to test targets peripheral to the
Horseshoe and Raven Deposits for possible extensions of
mineralization and to assess nearby geophysical and geological
targets;
- Telephone Lake - designed to follow up previous drilling results and
to further explore the Telephone Lake trend. This trend is a major
fault zone which contains previous mineralized drill intercepts and
extends northward into the Sue Deposits on the adjacent McClean Lake
Mine property, operated by AREVA Resources Canada Inc. ("AREVA"); and
- Vixen Lake South - designed to test a geophysical anomaly coincident
with intense clay alteration in historical drill holes.
Maps of the 2009 drilling at Hidden Bay are available for viewing in the "News Releases" section of UEX's website at www.uex-corporation.com.
Drilling in the Area of the Horseshoe and Raven Deposits
During the winter of 2009, UEX successfully expanded the Horseshoe and Raven Deposits through a stepout drilling program. In July 2009, UEX reported National Instrument 43-101 compliant resource estimates for the Horseshoe and Raven Deposits as follows:
- At a cut-off grade of 0.05% U(3)O(8) total resources are:
-------------------------------------------------------------------------
Category Tonnes U(3)O(8)(%) U(3)O(8)(lbs)
-------------------------------------------------------------------------
Indicated 10,293,600 0.155 35,044,000
Inferred 1,109,200 0.111 2,715,000
-------------------------------------------------------------------------
- At a lower cut-off grade of 0.02% U(3)O(8) total resources are:
-------------------------------------------------------------------------
Category Tonnes U(3)O(8)(%) U(3)O(8)(lbs)
-------------------------------------------------------------------------
Indicated 16,688,500 0.108 39,971,000
Inferred 1,982,500 0.079 3,470,000
-------------------------------------------------------------------------
During the summer of 2009, 23 drill holes totaling 7,103 metres were completed in the Horseshoe, Raven and adjacent areas. Thirteen of these holes tested possible extensions of some mineralized zones to assess the potential for resource expansion and for down dip continuation of mineralization. Results of principal intercepts in the Horseshoe and Raven area are reported in Table 1. Drilling intercepts with a grade-thickness product of greater than 0.05 and grades of greater than 0.05% U(3)O(8) include the following:
- 0.076% U(3)O(8) over 4.0 metres, and 0.140% U(3)O(8) over 2.1 metres
in hole HU-361 (Horseshoe northeast);
- 0.087% U(3)O(8) over 1.0 metre in hole RU-219 (pod on south side of
Raven);
- 0.107% U(3)O(8) over 4.4 metres in hole RU-225 (Raven west); and
- 0.120% U(3)O(8) over 4.6 metres in hole RU-226 (Raven west).
These intercepts slightly expand the strike length of the mineralized zones and would result in a small increase in estimated resources. Other drill holes bounded mineralization down dip.
The remaining drill holes tested geophysical, structural and known alteration targets within one kilometre of the Horseshoe and Raven Deposits. While none of these holes intersected any significant mineralization, areas of intense alteration which could potentially host mineralization were intersected, identifying future targets. Notably, in one deep hole (HU-363) which tested the Dragon Lake Fault on the east side of the Horseshoe Deposit, extensive and intense alteration extends downward for at least 600 metres into basement rocks, forming a potential feeder zone for mineralization. Given the intensity of alteration along this corridor, future drilling will target areas to the south where the Dragon Lake Fault intersects graphitic gneiss.
Telephone Lake
During the summer of 2009, 7,968 metres of drilling in 26 drill holes distributed over a four-kilometre strike length were completed in the Telephone Lake area ("Telephone"). Telephone is located immediately south of the Sue and McClean Lake Deposits and has the potential for the discovery of Sue C, D and E or Eagle Point style basement-hosted mineralization along the Telephone Lake Fault, or where fault systems intersect the sub-Athabasca unconformity.
Drilling in 2009 targeted areas of known mineralization near the unconformity that included previous intercepts of 0.20% U(3)O(8) over 6.8 metres in 2006 drill hole SP-166 and 4.52% U(3)O(8) over 0.5 metres in 2005 drill hole SP-156.
Results of principal intercepts obtained during 2009 at Telephone are reported in Table 1. Drilling intercepts with a grade-thickness product of greater than 0.05 and grades of greater than 0.05% U(3)O(8) include the following:
- 0.110% U(3)O(8) over 0.5 metres in hole SP-191;
- 0.100% U(3)O(8) over 2.0 metres, and 0.401% U(3)O(8) over 1.9 metres
in hole SP-193;
- 0.277% U(3)O(8) over 0.3 metres in hole SP-194;
- 0.066% U(3)O(8) over 1.1 metres, and 0.055% U(3)O(8) over 1.0 metres
in hole SP-196;
- 0.105% U(3)O(8) over 1.1 metres, and 0.074% U(3)O(8) over 2.8 metres
in hole SP-201;
- 1.527% U(3)O(8) over 1.5 metres in hole SP-203;
- 0.076% U(3)O(8) over 1.6 metres in hole SP-207;
- 0.062% U(3)O(8) over 1.0 metres in hole SP-209;
- 0.120% U(3)O(8) over 0.7 metres in hole SP-210;
- 0.370% U(3)O(8) over 6.5 metres, including 1.131% U(3)O(8) over
2.0 metres, in hole SP-211;
- 0.360% U(3)O(8) over 1.0 metres in hole SP-212; and
- 0.140% U(3)O(8) over 0.4 metres, and 0.125% U(3)O(8) over 2.7 metres
in hole SP-213.
True thickness of mineralization has not yet been determined. Intercepts in drill holes SP-201, 203, 210, 211 and 212 are unconformity-hosted mineralization, while all other intercepts are basement-hosted.
The Telephone drilling has highlighted three anomalously mineralized areas that contain a combination of unconformity-hosted and basement-hosted mineralization. Additional mineralized drilling intercepts are also present periodically along the four-kilometre length of the Telephone Lake trend and extend southward into the Shamus Lake area.
As mineralization is open in many areas, UEX will focus its 2010 winter exploration program to follow up on these results. It is anticipated that this drilling program will commence in mid-January 2010.
Vixen Lake South
In the Vixen Lake South area, which lies 1.5 kilometres northwest of the Raven Deposit, drilling tested the core of a well-defined, east-northeast trending gravity-resistivity low where historical drilling in shallow holes had identified broad areas of clay alteration. Alteration style, geophysical signature and the east-northeast trend of the alteration zones are similar to the signature of alteration associated with the Horseshoe and Raven Deposits. Four drill holes (VU-001 to VU-004, 1,697 metres total) were drilled; no significant mineralization was intersected.
Future Scoping Studies for Horseshoe and Raven
With a high proportion of the Horseshoe and Raven resource base in the Indicated category, UEX will be initiating a scoping level evaluation of the potential economic viability of mining the deposits, which could then be advanced to feasibility level if results are encouraging. These studies will examine the most efficient methods and procedures for extracting the defined uranium resource, including the most appropriate road access and support infrastructure, mining methods, operating plans, cash flow analyses and projections in order to determine net present values and internal rates of return for the deposits at various uranium price levels. In support of such work, environmental baseline studies have been underway since 2006, previously reported metallurgical studies have been completed and initial geotechnical studies have been performed. UEX intends to identify a lead contractor for the scoping and potential feasibility level work in the near future.
2010 Winter Program at Hidden Bay
A budget of $1.6 million has been approved for UEX's upcoming 2010 winter program on the Hidden Bay property. This winter exploration program will be comprised of the following:
- Telephone Lake - a 20-hole, 6,000-metre diamond drilling program to
test potential down dip continuation of known mineralization, to test
along strike for extensions of unconformity mineralization, and to
test gaps where widely spaced sections have favourable geology for
basement-hosted mineralization; and
- Shamus grid - a 120 line-kilometre geophysical survey consisting of
D.C. resistivity and gravity. This geophysical survey will extend
from the southwestern parts of the Telephone Lake area southwesterly
to the Hidden Bay property boundary and will test for areas of
alteration potentially associated with uranium mineralization. Areas
of anomalous alteration and low-grade mineralization have previously
been intersected in several drill holes on the Shamus grid and
mineralization occurs to the southwest on adjacent properties along
the same trend.
In addition to these activities, property-wide compilation and evaluation will continue utilizing previous exploration data.
Maps and other information regarding UEX's exploration projects are available for viewing on UEX's website at www.uex-corporation.com under "Projects".
Sample Handling and Quality Assurance
Geochemical samples are selected with the aid of a hand-held scintillometer to identify areas of above-background radioactivity. Samples are split, with half remaining in the core box, and the remainder shipped to Saskatchewan Research Council Geoanalytical Laboratories ("SRC") where they are crushed and ground to minus 106 microns. The pulp is digested in aqua regia leach and analyzed by ICP for uranium and other elements. In addition to the geochemical analyses, down-hole probe radiometric results obtained for all drill holes on completion of drilling provide an independent check of the geochemical data. UEX systematically inserts sample blanks and standards of several grades into the sample stream. In addition, repeat analyses are routinely analyzed, laboratory standards are inserted by SRC, and selected sample pulps have been submitted to other independent laboratories for check analyses to assess sample repeatability and accuracy of the SRC results.
Technical information in this news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice President of Exploration, and David Rhys, P.Geo., a consultant to UEX, who are Qualified Persons as defined by National Instrument 43-101.
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 that is operated by UEX, ten joint-ventured with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 19 projects, totaling 353,134 hectares (872,613 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 21% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne and Colette Deposits at its 49%-owned Shea Creek Uranium 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.
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Graham C. Thody
President and CEO
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 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 statements. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, continuity and grade of deposits, fluctuations in uranium prices and currency exchange rates, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the securities commission on SEDAR. 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. 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
Summer 2009 Hidden Bay Drilling Program
Intersections from Drill Holes HU-359 to HU-367, RU-217 to RU-226,
SP-191 to SP-216 and VU-001 to VU-004.
Only intervals with composite grades greater than 0.02% U(3)O(8)
and a grade-thickness product greater than 0.02 are listed below.
All analyses were performed by Saskatchewan Research Council by ICP.
-------------------------------------------------------------------------
Depth
Hole Location of Hole From To Length Avg. Grade
(metres) (metres) (metres) (metres) (% U(3)O(8))
-------------------------------------------------------------------------
HU-359 Horseshoe 300.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
HU-360 Horseshoe 300.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
HU-361 Horseshoe 270.0 71.0 72.0 1.0 0.032
120.0 124.0 4.0 0.076
133.0 136.0 3.0 0.107
including 133.4 135.5 2.1 0.140
220.5 223.0 2.5 0.034
-------------------------------------------------------------------------
HU-362 Horseshoe 291.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
HU-363 Horseshoe 639.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
HU-364 Horseshoe 534.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
HU-365 Horseshoe 399.0 271.0 272.0 1.0 0.023
-------------------------------------------------------------------------
HU-366 Horseshoe 324.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
HU-367 Horseshoe 489.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
RU-217 Raven 81.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
RU-218 Raven 72.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
RU-219 Raven 81.0 45.0 48.0 3.0 0.035
including 46.0 47.0 1.0 0.087
-------------------------------------------------------------------------
RU-220 Raven 72.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
RU-221 Raven 81.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
RU-222 Raven 72.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
RU-223 Raven 411.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
RU-224 Raven 549.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
RU-225 Raven 222.0 179.5 180.5 1.0 0.061
183.4 192.6 9.2 0.062
including 187.2 191.6 4.4 0.107
-------------------------------------------------------------------------
RU-226 Raven 219.0 112.0 113.0 1.0 0.040
138.4 143.0 4.6 0.120
-------------------------------------------------------------------------
SP-191 Telephone 349.0 230.0 230.8 0.8 0.030
295.0 297.0 2.0 0.042
including 295.5 296.0 0.5 0.110
325.0 328.0 3.0 0.035
-------------------------------------------------------------------------
SP-192 Telephone 411.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
SP-193 Telephone 369.0 226.0 229.0 3.0 0.020
236.0 238.0 2.0 0.100
252.0 253.9 1.9 0.401
-------------------------------------------------------------------------
SP-194 Telephone 359.0 223.7 224.5 0.8 0.128
including 223.7 224.0 0.3 0.277
270.0 272.5 2.5 0.023
-------------------------------------------------------------------------
SP-195 Telephone 321.0 101.3 102.0 0.7 0.025
291.0 292.0 1.0 0.035
-------------------------------------------------------------------------
SP-196 Telephone 345.0 258.0 259.0 1.0 0.021
314.3 315.4 1.1 0.066
325.0 326.0 1.0 0.055
334.0 336.0 2.0 0.024
-------------------------------------------------------------------------
SP-197 Telephone 398.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
SP-198 Telephone 352.0 310.0 314.0 4.0 0.020
324.0 325.0 1.0 0.022
-------------------------------------------------------------------------
SP-199 Telephone 386.0 298.0 298.5 0.5 0.054
361.0 362.0 1.0 0.027
363.0 364.0 1.0 0.021
376.0 378.0 2.0 0.026
-------------------------------------------------------------------------
SP-200 Telephone 300.0 272.0 273.0 1.0 0.020
-------------------------------------------------------------------------
SP-201 Telephone 300.0 165.0 166.1 1.1 0.105
230.5 234.0 3.5 0.026
239.5 242.3 2.8 0.074
266.0 267.0 1.0 0.031
-------------------------------------------------------------------------
SP-202 Telephone 372.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
SP-203 Telephone 270.0 122.0 123.5 1.5 1.527
252.5 253.0 0.5 0.045
-------------------------------------------------------------------------
SP-204 Telephone 351.0 266.5 267.5 1.0 0.044
-------------------------------------------------------------------------
SP-205 Telephone 343.0 237.0 239.5 2.5 0.030
248.0 250.0 2.0 0.035
-------------------------------------------------------------------------
SP-206 Telephone 351.0 178.0 178.5 0.5 0.045
-------------------------------------------------------------------------
SP-207 Telephone 351.0 279.4 281.0 1.6 0.076
-------------------------------------------------------------------------
SP-208 Telephone 300.0 121.0 122.6 1.6 0.039
137.5 138.0 0.5 0.077
142.5 143.5 1.0 0.021
180.5 181.5 1.0 0.035
-------------------------------------------------------------------------
SP-209 Telephone 348.0 139.0 140.0 1.0 0.020
188.6 189.6 1.0 0.062
200.6 202.6 2.0 0.021
-------------------------------------------------------------------------
SP-210 Telephone 171.0 99.0 103.0 4.0 0.035
including 101.3 102.0 0.7 0.120
-------------------------------------------------------------------------
SP-211 Telephone 180.0 135.0 145.0 10.0 0.245
including 137.5 144.0 6.5 0.370
including 137.5 139.5 2.0 1.131
-------------------------------------------------------------------------
SP-212 Telephone 180.0 140.0 141.0 1.0 0.360
-------------------------------------------------------------------------
SP-213 Telephone 330.0 250.95 252.0 1.05 0.064
including 250.95 251.35 0.4 0.140
259.3 265.0 5.7 0.068
including 259.3 262.0 2.7 0.125
295.0 296.0 1.0 0.027
-------------------------------------------------------------------------
SP-214 Telephone 180.0 136.0 137.0 1.0 0.024
-------------------------------------------------------------------------
SP-215 Telephone 171.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
SP-216 Telephone 180.0 142.0 145.0 3.0 0.028
including 144.0 144.5 0.5 0.090
155.6 156.6 1.0 0.022
-------------------------------------------------------------------------
VU-001 Vixen 391.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
VU-002 Vixen 366.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
VU-003 Vixen 549.0 405.0 405.5 0.5 0.043
VU-004 Vixen 391.0 No intervals (greater than) 0.02% U(3)O(8)
with grade-thickness (greater than) 0.02
-------------------------------------------------------------------------
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@uex-corporation.com
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