VANCOUVER, Aug. 14, 2006 (Canada NewsWire via COMTEX News Network) --
Trading Symbol: UEX-TSX
UEX Corporation ("UEX") announced today that AREVA Group subsidiary AREVA Resources Canada Inc. ("AREVA", formerly COGEMA Resources Inc.) has reported to UEX results from the last two holes of the Winter/Spring 2006 drilling program at the Shea Creek Uranium Project (Kianna, Anne, and Colette Deposits), which is located in the Western Athabasca Basin in northern Saskatchewan, Canada. The Shea Creek Uranium Project ("Shea Creek") is one of the ten Western Athabasca Projects currently under option from AREVA, the operator. UEX has earned a 24.5% interest in the ten projects (see UEX News Release, August 8, 2006) and has an option to earn an additional 24.5% interest, up to a maximum of 49%.
The 2006 Winter/Spring drilling program at the Kianna Deposit operated from January to June 2006. Drilling is planned to resume in September using two diamond drills set up at pilot holes SHE-115 and SHE-118. Seven directional cuts have been made from pilot hole SHE-115, with several more cuts planned. Pilot hole SHE-118, which impacted the unconformity 80 metres east of SHE-115 and 120 metres southeast of SHE-114, will be used for a new series of directional cuts intended to test for extensions of the known uranium mineralization. Multiple directional cuts, or "step-outs", can be made from one pilot hole, which reduces costs while improving targeting precision when drilling deep targets. For example, since 2005, 17 directional cuts were completed from pilot hole SHE-114 (see UEX website at www.uex-corporation.com/s/Home.asp)
At the Kianna Deposit, high-grade uranium mineralization has been intersected in multiple zones at depths from 665 metres to 917 metres, a vertical distance of approximately 250 metres - located in sandstone high above the unconformity, at the unconformity, and below the unconformity in basement rocks, with unconformity depths ranging from approximately 710 to 760 metres. To date, the mineralization at the Kianna Deposit has been traced over a strike length of 200 metres and a width of 100 metres, and remains open in all directions. The AREVA-UEX drilling programs of 2004, 2005 and 2006 have outlined three distinct styles of high-grade uranium mineralization:
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- Perched ("P"), sandstone-hosted mineralization found in discrete
zones tens of metres above the unconformity (previously announced
2005 hole SHE-114-5, 27.4% U(3)O(8) over 8.8 metres, including 58.3%
U(3)O(8) over 3.5 metres);
- Unconformity-type mineralization ("UC"), in close proximity to the
unconformity (previously announced 2006 hole SHE-115-3, grading
12.57% U(3)O(8) over 11.9 metres, including 27.35% U(3)O(8) over
4.2 metres);
- Basement-hosted mineralization ("B"), found in zones up to 200 metres
below the unconformity (previously announced 2005 hole SHE-114-11,
grading 5.4% U(3)O(8) over 37.7 metres, including 25.46% U(3)O(8)
over 4.0 metres).
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Latest Results from 2006 Shea Creek Drilling Program at the Kianna
Deposit
SHE-118: (UC) 5.62% U(3)O(8) over 8.6 metres, including 11.50% U(3)O(8) over 1.2 metres and 15.07% U(3)O(8) over 1.0 metre, was a vertical hole which will act as a pilot hole for directional drilling to test for extensions of known uranium mineralization. The unconformity was intersected at 711.4 metres.
Although primarily positioned as a pilot hole, SHE-118 nevertheless intersected high-grade unconformity mineralization at and just above the unconformity from 703.5 to 712.1 metres, grading 5.62% U(3)O(8) over 8.6 metres, including 11.50% U(3)O(8) over 1.2 metres and 15.07% U(3)O(8) over 1.0 metre. This intersection extends the strike length of the high-grade unconformity mineralization intersected in SHE-115-3 and SHE-115-5 by 30 metres in a southeast direction.
SHE-115-7: (UC) 0.94% U(3)Of(8) over 4.1 metres, (B) 1.03% U(3)O(8) over 6.5 metres and (B) 1.46% U(3)O(8) over 3.1 metres, targeted the continuity of high-grade unconformity mineralization 20 metres west-southwest of the SHE-115-6 unconformity impact, the possibility of perched mineralization observed in the SHE-114 series of drill holes, and deep, basement-hosted mineralization. The unconformity was intersected at 723.3 metres.
SHE-115-7 intersected unconformity-type uranium mineralization from 720.3 to 724.4 metres, grading 0.94% U(3)O(8) over 4.1 metres. A high-grade, mineralized basement interval located 94 metres below the unconformity from 817.3 to 823.8 metres graded 1.03% U(3)O(8) over 6.5 metres. A second high-grade mineralized basement interval, located 109 metres below the unconformity from 832.4 to 835.5 metres, graded 1.46% U(3)O(8) over 3.1 metres.
See Table 1 below for a list of significant mineralized intersections reported from the Kianna Deposit in 2006, and for comparative purposes, the 2004-2005 Kianna Deposit drilling results. Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined. The technical information in this news release has been compiled and reviewed by Erwin Koning, P. Geo., AREVA's District Geologist, West Athabasca Region, a qualified person as defined by National Instrument 43-101.
About AREVA Resources Canada Inc.
AREVA, a uranium exploration and mining company, is a subsidiary of AREVA Group, a worldwide expert in the energy field with a strong industrial presence in over 40 countries. AREVA Group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the producing McClean Lake Deposits operated by AREVA, the producing McArthur River Deposit operated by Cameco Corporation ("Cameco"), and the Cigar Lake Deposit, which is scheduled for production in 2007.
About UEX
UEX is a Canadian uranium exploration company formed under an agreement between Pioneer Metals Corporation and Cameco. Cameco, the world's largest supplier of uranium, is UEX's largest shareholder. UEX began trading on the Toronto Stock Exchange in July 2002 and is actively involved in the exploration and development of 19 uranium projects, including seven that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, ten under option from AREVA and one under option from Japan-Canada Uranium Company, Limited, which are operated by AREVA. The 19 projects, totaling 386,650 hectares (955,400 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 30% of the global primary uranium production. UEX's exploration budget for 2006 is $19.0 million and the Company has a cash position of approximately $85.0 million.
<< ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION Stephen H. Sorensen, President & C.E.O. >>
Forward looking statements: This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond UEX's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although UEX believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.
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TABLE 1.
Summary of 2005-2006 Kianna Deposit Drill Results
All Uranium Intersections Calculated from Gamma Probe Logging
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Avg.
Grade
Within
Hole Area Total Depth to the
Depth Uncon- Inter-
of Hole formity From To Length section
(metres) (metres) (metres) (metres) (metres)(% U3O8)
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SHE-118 Kianna 880.0 711.4 703.5 712.1 8.6 5.62
including 706.9 708.1 1.2 11.50
including 709.6 710.6 1.0 15.07
737.5 739.4 1.9 0.71
762.9 765.4 2.5 0.56
766.5 771.3 4.8 0.50
-------------------------------------------------------------------------
SHE-115-7 Kianna 943.0 723.3 720.3 724.4 4.1 0.94
814.2 816.6 2.4 0.63
817.3 823.8 6.5 1.03
832.4 835.5 3.1 1.46
-------------------------------------------------------------------------
SHE-115-6* Kianna 974.0 745.6 702.7 710.9 8.2 2.25
730.2 741.3 11.1 2.96
including 738.3 741.3 3.0 6.03
773.4 774.5 1.1 2.48
793.9 795.2 1.3 2.93
820.2 828.9 8.7 2.42
870.3 875.5 5.2 0.72
-------------------------------------------------------------------------
SHE-115-5* Kianna 959.5 735.2 731.5 736.4 4.9 12.74
including 732.4 734.8 2.4 23.55
791.9 796.3 4.4 3.77
including 794.4 794.9 0.5 9.21
-------------------------------------------------------------------------
SHE-115-4* Kianna 935.0 758.5 745.8 765.6 19.8 3.56
including 745.8 757.1 11.3 5.89
including 751.0 751.8 0.8 14.34
including 754.7 755.4 0.7 12.80
including 760.6 765.6 5.0 0.71
-------------------------------------------------------------------------
SHE-115-3* Kianna 1015.0 743.5 735.0 746.9 11.9 12.57
including 738.6 739.6 1.0 19.89
including 741.4 745.6 4.2 27.35
847.5 852.3 4.8 0.53
892.2 897.1 4.9 1.04
-------------------------------------------------------------------------
SHE-115-2* Kianna 980.0 737.5 730.7 742.8 12.1 1.20
769.9 772.3 2.4 1.70
847.1 852.0 4.9 2.84
including 849.0 849.6 0.6 12.23
-------------------------------------------------------------------------
SHE-115-1* Kianna 956.0 734.8 659.9 666.4 6.5 0.42
728.25 737.75 9.5 0.50
781.35 782.35 1.0 2.52
911.0 916.7 5.7 3.63
including 911.6 912.4 0.8 20.66
-------------------------------------------------------------------------
SHE-115* Kianna 845.0 718.0 716.1 720.0 3.9 0.48
-------------------------------------------------------------------------
SHE-114-17* Kianna 989.0 729.3 718.8 721.3 2.5 0.98
724.5 727.0 2.5 1.06
881.8 890.2 8.4 3.20
including 882.5 883.6 1.1 16.62
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SHE-114-16* Kianna 914.0 716.3 Weakly mineralized
-------------------------------------------------------------------------
SHE-114-15* Kianna 989.0 714.4 895.1 919.0 23.9 0.29
-------------------------------------------------------------------------
SHE-114-14* Kianna 1016.0 718.3 712.7 717.5 4.8 0.45
-------------------------------------------------------------------------
925.9 933.7 7.8 0.57
-------------------------------------------------------------------------
SHE-114-13* Kianna 936.0 715.9 810.0 817.0 Massive
pitchblende veins
in the basement.
Hole lost
- not probed
-------------------------------------------------------------------------
SHE-114-12* Kianna 926.5 713.8 682.8 688.4 5.6 1.81
713.1 716.8 3.7 2.08
834.4 841.2 6.8 1.37
-------------------------------------------------------------------------
SHE-114-11* Kianna 934.0 714.2 678.5 692.2 13.7 5.83
710.3 713.7 3.4 1.43
789.9 791.3 1.4 2.04
800.0 802.4 2.4 1.05
816.1 853.8 37.7 5.40
-------------------------------------------------------------------------
SHE-114-
10A* Kianna 804.0 728.4 726.4 732.5 6.1 1.15
-------------------------------------------------------------------------
SHE-114-10* Kianna Hole lost - not probed
-------------------------------------------------------------------------
SHE-114-9* Kianna 890.0 720.1 677.0 697.0 20.0 5.88
709.2 719.2 10.0 1.48
803.9 805.4 1.5 1.71
808.5 812.9 4.4 1.02
825.7 827.5 1.8 1.09
829.9 832.5 2.6 1.64
840.7 841.9 1.2 1.38
-------------------------------------------------------------------------
SHE-114-8* Kianna 889.5 715.8 835.7 843.6 7.9 5.81
853.4 861.8 8.4 4.38
-------------------------------------------------------------------------
SHE-114-7* Kianna 800.0 722.5 665.6 679.7 14.1 7.73
-------------------------------------------------------------------------
SHE-114-6* Kianna 747.0 715.3 Mineralized - hole lost
- not probed
-------------------------------------------------------------------------
SHE-114-5* Kianna 866.0 714.2 677.8 686.6 8.8 27.40
814.4 816.6 2.2 1.08
821.2 823.0 1.8 5.49
-------------------------------------------------------------------------
SHE-114-4* Kianna 884.0 732.5 723.6 729.7 6.10 1.10
794.8 796.0 1.2 1.26
796.8 801.2 4.4 1.27
-------------------------------------------------------------------------
SHE-114-3* Kianna 835.0 752.7 748.9 752.9 4.0 1.06
-------------------------------------------------------------------------
SHE-114-2* Kianna 863.0 735.7 731.2 735.8 4.6 1.71
-------------------------------------------------------------------------
SHE-114-1* Kianna 850.0 720.8 680.4 687.9 7.5 1.36
806.9 807.6 0.7 1.71
809.3 810.4 1.1 2.60
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SHE-114* Kianna 795.0 713.9 684.0 686.0 2.0 3.26
(Fall 2004) 713.2 715.2 2.0 0.69
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* Results previously announced - see UEX News Releases:,
February 10, July 13, September 14 and October 11, 2005, and
June 6, 2006.
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%SEDAR: 00017609E
SOURCE: UEX Corporation
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@intergate.ca
Copyright (C) 2006 CNW Group. All rights reserved.
