UEX Begins 2006 Summer Drilling at Hidden Bay and Announces 2006 Winter Exploration Results
Trading Symbol: UEX-TSX
VANCOUVER, Aug. 22 /CNW/ - UEX Corporation ("UEX") is pleased to announce
the results of the 2006 winter drilling program and the commencement of a 2006
summer drilling program on its 100% owned Hidden Bay Uranium Project ("Hidden
Bay"). Hidden Bay is located in the eastern Athabasca Basin of northern
Saskatchewan and totals 57,721 hectares (142,571 acres) in size.
2006 Hidden Bay Winter Drilling Program Results
The Winter 2006 exploration program at Hidden Bay was carried out in two
areas:
- West Bear-Mitchell-Dwyer area, to reassess historical mineralization
at the Pebble Hill and North Shore Prospects, and near the West Bear
Deposit, currently the subject of a full feasibility study, to test
for extensions of mineralization there;
- Telephone Lake area, to further explore along strike of the Sue
deposits located to the north on the McClean Lake Mine property.
The $2.3 million (CDN) winter program comprised 11,582 meters of diamond
drilling in a total of 65 drill holes. Highlights include intersections of
0.20% U3O8 over 6.80 metres and 0.11% U3O8 over 6.50 metres within a 30 metre
mineralized intercept in hole SP-166, which tested a complex fault structure
on the Telephone Lake Trend. Grades from sub-intervals within these two
mineralized intervals in SP-166 ranged up to 0.66% U3O8 over 0.5 metres.
Significant intercepts with grades greater than 0.1% U3O8 are reported in
Table 1 below. True widths of mineralized intervals have not yet been
determined. All uranium analyses were performed at Saskatchewan Research
Council Geoanalytical Laboratories by fluorimetry and ICP.
Telephone Lake Trend 2006 Winter Drilling Program
The Telephone Lake fault system represents the southern continuation of a
network of faults and graphitic conductors that to the north host the
producing Sue uranium deposits at McClean Lake operated by AREVA Resources
Canada Inc ("AREVA"). The Telephone Lake Trend contains several areas of
anomalous mineralization and alteration within which several significant
intercepts have been obtained. For example, hole SP-156, drilled by UEX in
2005 and located at the north end of the Telephone Lake Trend only 2.1
kilometres southwest of the Sue E Deposit and 2.5 kilometres south of the
McClean Lake Deposits, encountered uranium mineralization at a depth of 189.8
metres in basement rocks approximately 6.2 metres below the unconformity. The
mineralized interval, from 189.8 to 190.3 metres, averaged 4.52% U3O8 over its
0.5 metres (see UEX News Release, July 26, 2005).
The objective of the 2006 winter drilling program was first to locate and
test the Telephone Lake fault structure within large gaps between historical
drill holes, and second, to follow-up known mineralized drill intercepts and
areas of alteration. A total of 7,624 meters were drilled in 29 holes, of
which 24 were completed, with 5 abandoned due to poor ground conditions.
Follow-up drilling of a number of key target areas was not possible due to
unusually mild winter weather and the resulting lack of freeze-up on many
waterways. For example, in-fill drilling of a prospective 4 kilometre-long gap
in historical drilling under Phantom Lake along the Telephone Lake Trend was
postponed as result of unsafe ice conditions on the lake. Testing of this and
other high-priority target areas is scheduled for the Winter 2007 drilling
program.
Most of the Winter 2006 drill holes successfully intersected the
Telephone Lake fault structure and confirmed a 50 to 80 metre vertical offset
on the high-angle reverse fault, which has locally created a prospective
"basement wedge", a geological feature often associated with major
unconformity uranium deposits. Holes SP-173 to SP-176 were follow-up holes to
2005 hole SP-156 and generally intersected narrow intervals of uranium
mineralization (see Table 1). Hole SP-176, located 300 metres northeast of
SP-156, represents the best of these mineralized intersections, grading 0.37%
U3O8 over 0.5 metres from 202.4 to 202.9 metres, continuing to demonstrate the
prospective nature of the Telephone Lake Trend in this area.
Drilling in the South Telephone area, 2.6 kilometres to the southwest of
SP-156 along the Telephone Lake Trend, was intended to test for extensions of
mineralization intersected by historical holes SP-32 (0.60% U3O8 over 0.9
metres) and SP-38 (0.62% U3O8 over 0.6 metres). Hole SP-166 intersected an
approximately 30 metre interval containing local disseminated and
veinlet-controlled pitchblende in faulted Athabasca sandstone adjacent to
faulted basement rocks within the Telephone Lake fault zone. Mineralization in
this zone was found in two mineralized intersections:
- 0.20% U3O8 over 6.80 metres from 129.7 to 136.5 metres, including
subintervals of 0.66% U3O8 over 0.5 metres, 0.64% U3O8 over
0.4 metres and 0.57% U3O8 over 0.5 metres;
- 0.11% U3O8 over 6.50 metres from 148.5 to 155.0 metres, including
0.64% U3O8 over 0.2 metres, 0.33% U3O8 over 0.2 metres and 0.32%
U3O8 over 0.4 metres.
Follow-up holes 25 metres east, west and south of hole SP-166 did not
locate additional significant mineralization. Follow-up drill testing to the
southwest of hole SP-38 was not possible due to unsafe ice conditions on the
lake. Testing of the SP-166 area and other prospective targets along the
southern end of the Telephone Lake Trend, where in 2004 anomalous
radioactivity and alteration were observed in the shallow basement
environment, is planned for the 2007 winter drilling program.
West Bear and Mitchell-Dwyer Trend Winter 2006 Drilling Program
Thirty-six reconnaissance diamond drill holes were drilled for a total of
3,958 metres in the West Bear Deposit ("West Bear") area and along the
adjacent Mitchell-Dwyer Trend.
Sixteen holes totaling 1,831 metres were drilled immediately south of
West Bear to test for deeper, down dip extensions of the deposit in basement
rocks. West Bear mineralization lies within Athabasca sandstone approximately
13 to 31 metres from surface over a strike length of approximately 300 metres
(see UEX News Release January 25, 2006). UEX's 2006 exploration drilling at
greater depths below the known outline of the deposit did not encounter
significant mineralization. However, potential may exist for additional
mineralization on the southeastern edge of the deposit where hole WBE-108
intersected 0.30 metres grading 0.33% U3O8 from 24.9 to 25.2 metres. UEX's
2002 hole WBE-19 intersected 1.5 metres grading 0.17% U3O8 from 43.5 to 45
metres in a highly altered fault zone at the contact between pegmatite and
graphitic pelitic gneiss, also in this area. Follow-up drilling is planned as
part of the upcoming 2007 winter program.
West Bear lies on an arcing conductive trend, which extends to the north
as a part of a conductive structure observed in the 2004 airborne
electromagnetic (VTEM) survey. The data suggests the presence of a dome-like
structure that has been termed the Dwyer Lake Dome. A series of previously
discovered prospects exist along the conductive trend on the western and
northern margin of this dome, including the Pebble Hill, North Shore and
Blanche Lake Prospects. These three prospects were tested by additional drill
holes, which followed-up on historical drilling.
Two holes (186 metres) were drilled at the Pebble Hill Prospect lying to
the west of West Bear to test for further mineralization to the east and north
of known mineralization. A third hole (120 metres) tested a prominent
conductive feature on the Mitchell-Dwyer Trend to the north. No significant
mineralization was intersected and no further work is planned in the Pebble
Hill area at this time.
Thirteen holes (1,287 metres) were drilled to relocate and evaluate the
North Shore Prospect on Mitchell Lake northwest of West Bear. UEX's drilling
successfully relocated the North Shore Prospect mineralization with four of
the holes encountering significant mineralization (see Table 1). For example,
hole WBE-117 intersected 0.2 metres grading 0.51% U3O8 between 43.6 and 43.8
metres depth immediately above the unconformity. Follow-up drilling in 2007 is
planned to target extensions to the mineralization to the south and east along
the Mitchell-Dwyer conductive trend on the northwestern margin of the Dwyer
Lake Dome.
Four holes (534 metres) were drilled at the Blanche Lake Prospect further
to the east. The 2006 winter drilling program was intended to relocate and
test for potential extensions of known mineralization. Historical drill hole
BC-08 graded 0.21% U3O8 over 0.4 metres. UEX's 2006 hole WBE-112 intersected
0.13 metres grading 0.10% U3O8 (see Table 1) and although anomalous
radioactivity was intersected along the same structure at depth, no other
significant mineralization was found. The Mitchell-Dwyer conductive trend to
the east remains highly prospective, particularly those sections associated
with an offset caused by the Ahenakew Fault, a "Tabbernor" fault, which is a
north-trending regional fault similar to the Dragon Lake Fault associated with
the Rabbit Lake Deposit.
2006 Hidden Bay Summer-Fall Drilling Program
A $3.0 million (CDN) diamond drilling program totaling approximately
18,000 metres is underway at Hidden Bay, which includes the second phase of a
previously-announced, two-phase drilling program initiated in July 2005 on the
Raven-Horseshoe Uranium Deposits ("Raven-Horseshoe"). The Phase Two drilling
program consists of approximately 12,000 metres of drilling and is designed to
delineate the extent of higher grade portions of the Horseshoe Zone at a cost
of $2.0 million (CDN). One drill rig is currently working on site and a second
rig is planned to be added during September 2006.
To view maps of Hidden Bay please access UEX's website at
www.uex-corporation.com under "Latest Updates".
The information in this document has been compiled and reviewed by David
Rhys, P. Geo., a qualified person as defined by National Instrument 43-101.
About the Raven-Horseshoe Deposits
Raven-Horseshoe hosts a total historical resource estimate of 6.7 million
tonnes at an average grade of 0.16% U3O8, representing approximately 23
million contained pounds of U3O8. (Note: this is a historical resource
estimate completed by Gulf Minerals ("Gulf") that was not estimated using
current Canadian Institute of Mining, Metallurgy and Petroleum categories, and
for which no current resource or reserve confidence categories were applied.)
The deposits are of the basement-hosted type and are located approximately 5
kilometres southeast of the edge of the Athabasca Group sandstones, which
normally cover uranium deposits in the Athabasca Basin. The deposits are also
located less than 5 kilometres south of Cameco Corporation's ("Cameco") Rabbit
Lake Mill. The deposits are comprised of two shallow plunging zones developed
over a 2.5 kilometre strike length, and at depths of 50 to 450 metres below
surface. Mineralization is hosted by zones of hematite alteration which fringe
the margins of a broad, south dipping, fault-controlled clay alteration zone,
in a geometry that is comparable to some roll-front style uranium deposits.
Unlike unconformity-type deposits such as McArthur River and Cigar Lake,
Raven-Horseshoe is within competent pre-Athabasca basement rocks with no
overlying sandstone that could allow underground ramp access and conventional
underground mining methods if an economic resource is defined. Cameco's
producing Eagle Point Mine, located 17 kilometres to the northeast, is also in
basement rocks and is mined by such methods.
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 $84.0 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.
TABLE 1.
Winter 2006 Hidden Bay Reconnaissance Drilling Results
Significant Intersections over 0.1% U3O8
-------------------------------------------------------------------------
Hole Area Total Depth to From To Length Comp-
Depth Uncon- (metres) (metres) (metres) osite
of Hole formity Grade
(metres) (metres) (% U3O8)
-------------------------------------------------------------------------
SP-165 Telephone 288.4 101.3 267.00 268.00 1.00 0.14
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179.2,
184.1,
SP-166 Telephone 295.0 & 186.5(*) 129.70 136.50 6.80 0.20
including 129.70 130.20 0.50 0.57
and 133.15 133.55 0.40 0.64
and 135.50 136.00 0.50 0.66
148.50 155.00 6.50 0.11
including 149.05 149.25 0.20 0.64
and 151.10 151.30 0.20 0.11
and 154.60 155.00 0.40 0.32
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SP-173 Telephone 301.1 126.0 125.95 126.00 0.05 0.17
-------------------------------------------------------------------------
SP-174 Telephone 302.7 118.3 188.00 188.03 0.03 0.34
205.20 205.30 0.10 0.26
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SP-176 Telephone 285.5 124.0 202.35 202.85 0.50 0.37
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WBE-108 West Bear 60.0 20.9 24.90 25.20 0.30 0.33
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WBE-112 Blanche L. 114.0 30.1 68.36 68.49 0.13 0.10
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WBE-117 N. Shore 72.0 44.7 35.68 36.00 0.32 0.12
43.57 43.77 0.20 0.51
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WBE-118 N. Shore 84.0 44.3 45.00 45.52 0.52 0.25
-------------------------------------------------------------------------
WBE-122 N. Shore 84.0 44.5 44.47 44.63 0.16 0.38
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WBE-123 N. Shore 84.0 45.1 46.18 46.51 0.33 0.12
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(*) multiple unconformities intersected due to fault repetition
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%SEDAR: 00017609E
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@intergate.ca
