CMKM Diamonds Inc. (fka CMKX)

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Canadian Press


October 12, 2004


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VANCOUVER (CP) - Shares in UEX Corp. jumped nearly five per cent after the exploration company announced Tuesday it has discovered uranium at its joint venture in Saskatchewan.

UEX (TSX:UEX) stock traded up six cents, or 2.5 per cent, at $2.40 Tuesday afternoon on the Toronto stock market. Earlier in the day, it traded as high as $2.55.

"This discovery validates UEX's commitment to its exploration efforts in the northern rim of the Athabasca Basin," CEO Stephen Sorensen said in a release.

"The Black Lake discovery opens up the potential of a large, underexplored area of the Athabasca Basin."

The discovery comes at a time when spot uranium prices are soaring near $20 US per pound on worldwide demand for nuclear energy.

The Black Lake joint venture is operated by UEX, 70 per cent owned by UEX and 30 per cent owned by Cogema, a subsidiary of French energy company Areva.

"We believe this is something peripheral to the main area of mineralization, so we're planning to go back in the winter and put many holes there," UEX spokesman Warren Stanyer said from Vancouver.

"We're quite confident there's more and we expect it to be of a higher grade."

The company said the grade of uranium found in the Athabasca Basin is the highest in the world.

UEX has 13 uranium projects, totalling 248,000 hectares, in the Athabasca Basin. Its largest shareholder is global uranium giant Cameco Corp. (TSX:CCO).

© The Canadian Press 2004
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