UEX Begins 2006 Summer Exploration at Black Lake Uranium Project and Announces 2006 Black Lake Winter Exploration Results
Monday August 14, 6:24 pm ET
Trading Symbol: UEX-TSX
VANCOUVER, Aug. 14 /CNW/ - UEX Corporation ("UEX") is pleased to announce that a $1.3 million (CDN) 2006 summer/fall exploration program of diamond drilling and geophysics has commenced at the Black Lake Uranium Project ("Black Lake", the "Project" or the "Property"). The Project is located in the northeastern part of the Athabasca Basin in Saskatchewan, Canada, and covers 30,381 hectares (75,041 acres). Black Lake is a joint venture between UEX and AREVA Canada Resources Inc. ("AREVA", formerly COGEMA Resources Inc.), with UEX holding a 76.43% interest and AREVA holding a 23.57% interest as of December 31, 2005. AREVA elected not to participate in the 2006 winter program at Black Lake, and as a result, their interest will be subject to dilution.
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Winter 2006 Exploration Program Results
Diamond Drilling Program
UEX's $3.3 million (CDN) 2006 winter exploration program, consisting of ground geophysical surveying and diamond drilling using two diamond drill rigs, was intended to continue reconnaissance exploration of the main fault associated with the Black Lake conductive trend. This trend hosts UEX's 2004 discovery hole BL-18 which encountered unconformity-type uranium mineralization in the sandstone, immediately above the Athabasca unconformity. The intercept averaged 0.694 % U3O8 over 4.4 metres between 310.5 and 314.9 metres depth, including 1.96% U3O8 over 0.5 metres (see UEX News Release, October 12, 2004).
A total of 16,651 metres in thirty-nine (39) diamond drill holes were drilled during the 2006 winter program. Five drill holes were abandoned due to poor ground conditions. The thirty-four completed drill holes tested the Eastern Fault Zone and other prospective parts of the Property. The Property hosts a system of graphitic conductors that extends along strike for at least 20 kilometres and is coincident with a significant fault, the Platt Creek Fault. The main strand of the fault, termed the Eastern Fault Zone, is spatially associated with the uranium intercepts obtained to date.
The majority of the holes drilled along the Eastern Fault Zone demonstrated sandstone structure and alteration indicative of a prospective setting for uranium deposition, along with graphitic basement rocks, but did not encounter significant uranium mineralization. However, a previously-unknown mineralized reverse fault, or basement "wedge" was intersected in hole BL-82. In the Athabasca Basin, the presence of a mineralized basement "wedge" is considered to be an important geological feature for potential uranium deposition (see UEX website at www.uex-corporation.com for illustration of mineralized "wedge") having formed a structural trap for mineralizing hydrothermal fluids.
Hole BL-82: 0.50% U3O8 over 3.3 metres, including 1.6% U3O8 over 0.7 metres, was drilled to follow-up a zone of anomalous radioactivity encountered in the basement in hole BL-80. The sandstone units of hole BL-82 showed promising bleaching, fracturing, and dravite and pyrite alteration.
Two unconformities were encountered in hole BL-82, the first at 267.4 metres. Uranium mineralization was intersected within a brecciated zone 6.05 metres below the first unconformity in the lower half of the basement "wedge", grading 0.50% U3O8 over 3.3 metres from 273.45 to 276.75 metres, including 1.6% U3O8 over 0.7 metres from 274.45 to 275.15 metres. Below the second unconformity, at 300.84 metres, to the end of the hole at 423.06 metres no significant mineralization was encountered.
UEX is encouraged by the presence of the mineralized "wedge" in hole BL-82, which further confirms a prospective geological setting for uranium mineralization in that area of the Property. Due to poor ground conditions as a result of unusually warm winter weather, mineralization in hole BL-82 could not be followed-up within 200 metres along strike to the northeast. Further follow-up drilling of this target is planned for winter 2007.
All samples were analyzed at Saskatchewan Research Council Geoanalytical Laboratories by ICP, with additional uranium analyses by fluorimetry. The technical information in this document has been compiled and reviewed by Sierd Eriks, P. Geo., a qualified person as defined by National Instrument 43-101.
Ground Geophysics
Moving loop electromagnetic ("EM") surveys were carried out to provide in-fill to previous EM surveys. The Winter 2006 survey detected at least one discrete conductor on most of the lines surveyed confirming the conductive trends previously defined by surveys. These and previous EM survey results will assist in the selection of future drilling targets along the Black Lake conductive trend.
Summer/Fall 2006 Exploration Program
A summer/fall exploration 2006 program of diamond drilling and geophysical surveying has commenced at Black Lake. The program is scheduled to continue into September 2006, as weather conditions permit.
Ground Geophysical Surveys
A DC-resistivity survey is planned primarily to assist in the mapping of alteration zones in the sandstone near discovery hole BL-18 and other prospective areas of the Property.
Diamond Drilling
A total of 6,000 metres of diamond drilling is planned for the Summer/Fall program. The area available for drilling will be limited by the amount of access under summer conditions. Follow-up drilling on an expanded BL-18 step-out grid is planned. Additional drilling to test the full width of the Black Lake conductive package north and south of BL-18 is also planned.
To view maps of Black Lake please access UEX's website at www.uex-corporation.com under "Latest Updates".
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, 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.
