UEX Corp fka UEX

[Destinator]

Analysis and some questions for UEX at the PDAC for anyone attending.

First, allow me to say that it looks like UEX has been really busy these past few months. They have a LOT going on with Christie Lake, West Bear and Hidden Bay. I was getting pretty numb on Christie Lake but the VRIC presentation has revived my interest. I’m still rather confused as to the status of West Bear and I am really optimistic about Hidden Bay’s potential. The VRIC presentation, assuming that I understand what Roger is trying to say, has really woken my interest in Shea Creek as well.

Finally, I have to stop myself when it comes to the fact that both Cameco and UEX home pages contain such similar messaging. Coincidence or a sign of what is on the horizon?

Below is my analysis of the UEX Corporate presentation delivered at VRIC 2020 that is now replaced the Nov 2019 Corporate presentation on the UEX website. Here is the link. You may want to have it open as you read this post.

UEX Corporate Presentation

As a shareholder, I can be critical at times but I prefer to provide constructive input to help in any way that I can. Today’s analysis is intended to be constructive though some may see my content get critical at times. I don’t mean to be. I merely want to provoke thought for those reading it and for management if they can find any points to be beneficial to them. If only one or two of my points serve to make the presentation even better before PDAC, than it is now, then I have met part of my goal.


Christie Lake

Page 9
Observation: Notice the border line between Cameco McArthur (Not to be confused with McArthur Lake Mine) and Christie Lake. This could be significant, if you review my earlier post about the Home Pages.
Observation: Notice the blue showing that straddles the border. Slightly more than ½ lies on the UEX side.
Question: What does the big red star to the immediate right represent? What is its significance?

Page 10
Observation: Notice the top part of the grey hockey stick formation. What can’t be seen on this map is that under that grey lies a similar blue spot to that I observed in my page 9 comments. You will have to go to previously published maps to see that. From what I understood of the VRIC presentation, this grey area (covering up the blue) is what Roger is targeting.

With that said, look down to Ken Pen and Paul Bay. Much of that find (which forms the bulk of Christie Lake’s maiden resource, was within a similar blue showing. Hence drilling closer to similar readings, makes perfect sense to me but then I’m not a geologist.

Observation: In his VRIC presentation, Roger mentions that Uranium explorers get excited about 2 ppm and that UEX is finding over 10 ppm. That comment is supported by the boxed graphic to the left of the map where drill holes show 8.3 ppm, 23.8 ppm, 11.2 ppm 12 ppm and 44.3 ppm.

Question: Do investors recognize ppm reportings? Personally, I don’t think the market (rightly or wrongly) recognizes ppm as exciting no matter what the number is in front of it is. For now, I will trust this to be a significant number for Uranium Geologists.

Page 11
[b[color=blue]]Observation:[/color] This page suggests that the string of Uranium ‘pearls’ continues to align south west. One such hole is almost 2 KM south west of Paul Bay. Still, the grades are expressed in ppm which I don’t think does much for the Market.


West Bear

Page 14-15
Observation: I’m still confused as to what was and what was NOT drilled from this map. The VRIC presentation seems to suggest that there are still holes to be drilled under West Bear’s Uranium discovery. Conversely, Roger states in the presentation that they think they have found all that there is to find at the original West Bear drill site depicted on page 14 of the Feb 2020 VRIC presentation.

At the risk of digressing a bit, it is important to remember that the drill holes from the 2019 Summer Program are EXCLUDED from the Maiden 43-101 report. Most of the 2019 Summer holes were drilled in the area of the oval (formerly Big Foot outline). But that is different than saying some areas have never been drilled because they stopped at 30 meters or so. I think he is referring to the area below the West Bear Uranium Discovery. That said, I thought UEX drilled there at some point and included those holes in the Maiden West Bear 43-101. Is anyone else confused by this or is it just me? Please help me out if you can see what I am missing.

Observation: In most maps, red is used to indicate Uranium such as page 14. Then, suddenly on page 15, red is used to indicate cobalt nickel. This really confused me for a while until I figured it out. I would suggest that Uranium be one color regardless of map and Cobalt Nickel be another color regardless of map. It is true that the line numbers are provided, but unless you have a big screen like I do, those numbers are hard to read without using the zoom and even then they are hard to make out.

Suggestion: I believe that Roger really has a great opportunity if he clears up West Bear for his audience before the PDAC. Excluding Umpherville, is there more potential / drilling that needs to be done at West Bear or not? If not, could he clarify why he stated at the VRIC that they have found all that they are going to find? Previous reports suggested that there was drilling done under the Uranium discovery at West Bear. I’m not suggesting that they need to drill it more at this time. I’m merely asking for clarification for what I see as being mixed messages. Maybe I’m just too tired of writing this today!

Suggestion: Usage of the words ‘unconformity’ leave most of the audience saying ‘Whaaat’? If there is more potential then show it on a map. Most people don’t know what an unconformity is or which one Roger is referring to. Also, tell the audience clearly what has never been drilled. Every time I think I understand it, I hear another statement that this area has never been drilled. There is no question that this is a great discovery. It just needs to be described in simpler terms. Use color coding and lay it out on a legend. One color for Uranium and another for cobalt nickel. Then keep the colors consistent from map to map and any new iterations thereafter. Throw in a third color for NOT YET DRILLED if you think there is added potential for more.

Page 16
Observation: Roger states that early indicators show that Umpherville may be even better than the original Cobalt find 2 km south of Umpherville. That is certainly exciting to hear but I’d like to better understand the basis for that view. I realize that the presentation was only allowed 10 minutes and that only so much could be covered in that short time frame, but I’m hoping that this could be clarified somehow before the PDAC.

Questions: Is it the discovery of 200 ppm nickel below the lost holes that provides this optimism? If the holes were lost in the clay above the nickel, how do we know there is nickel below the clay?

Note: UEX will be displaying a CORE SHACK at the PDAC. It would be interesting to see the Cobalt Nickel cores from the Big Foot area compared to any Umpherville cores that may be completed by then.


Hidden Bay

Observation: This is a great area of potential when one looks at the historical open pit mining that has taken place at the bordering property to the north east. It is however getting confusing to discern the placement of Eagle Point from McLean South. The Holes along the Telephone fault are right on the fault whereas the discoveries at Sue are just to the west of the fault line.
Question: Why are we looking at the Radon Reading to the East of Telephone fault? I realize that Radon may be an indicator but there is no indication of Uranium to the East of the Sue fault other than the pearls that straddle the line. Perhaps we don’t know the answer, but I wonder if there ever were any recorded radon readings to the east of Sue and if so, were they ever followed up by Orano?


Shea Creek

Comment: I recall the exploration of Shea Creek 15 years ago. The excitement was incredible and I can see why some would want to recreate that excitement today. That said, I never saw the need to drill it any more. We know the uranium is there so why drill it now.

That said, it took me several listens to the VRIC presentation to see exactly what Roger was getting at when talking about Shea Creek. From what I gathered, the red on page 25 represents discovered uranium as represented in the 43-101 while the blue areas are target areas that are believed to contain more uranium. I don’t know how such an assessment can be arrived at but, if all those blue areas do in fact contain uranium in similar grade, Shea Creek could almost double in size.

Uranium is the heaviest metal in the world. What I am unsure of is whether or not the principle of ‘heaviest at the bottom’ applies here. If it does, then the grades could actually increase and Shea Creek could grow by more than that. Judging by what Roger stated in some previous interview (I believe it was with CRUX) the blue areas caught Orano’s attention when he presented them to Orano. Orano is a bigger and slower company to make any decisions so we may have to wait for any drill program there.

Meanwhile, we have Hidden Bay, Christie Lake and a potential spinout/dividend to keep Roger and his staff really busy this coming year.