UEX Announces Significant Unconformity Intersections at Shea Creek's 58B Area
including 7.6 Metres of 1.81% eU(3)O(8) in SHE-133-3 and 2.4 Metres of 6.55%
eU(3)O(8) in SHE-133-4
Trading Symbol: UEX-TSX
VANCOUVER, March 17 /CNW/ - UEX Corporation ("UEX") is pleased to announce initial results from exploration in the 58B Area of the Shea Creek Project ("Shea Creek"), which is part of its 2010 Western Athabasca exploration program announced November 24, 2009. A $7.96 million annual exploration budget was approved for Shea Creek with AREVA Resources Canada Inc. ("AREVA"), of which UEX is responsible for its 49% share of approximately $3.9 million.
Shea Creek Project
Shea Creek hosts the Kianna, Anne, and Colette Deposits and is the most advanced of the ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA, the operator. The Shea Creek deposits form part of a world class uranium system in which mineralization is being defined over a strike length exceeding three kilometres along the Saskatoon Lake graphitic conductor in northern parts of Shea Creek. Most areas of mineralization continue to be open and have high potential for both expansion of known areas of mineralization and discovery of new zones (see UEX's news release of November 19, 2009).
58B Area
This highly prospective area lies between the Kianna and Colette Deposits along a one-kilometre strike length of the Shea Creek trend and has only been previously tested by very widely-spaced holes.
Previous drilling has intersected multiple intervals of basement-hosted mineralization in the 58B Area ("58B") located 700 metres northwest of Kianna. In 1997, drill hole SHE-58B intersected basement-hosted mineralization grading 2.21% U(3)O(8) over 2.6 metres including 6.73% U(3)O(8) over 0.7 metres. In addition, SHE-58B intersected unconformity mineralization grading 0.44% eU(3)O(8) over 8.1 metres.
Drilling in the 58B Area during 2009 intersected basement-hosted mineralization grading 1.34% eU(3)O(8) over 3.2 metres and 0.88% eU(3)O(8) over 1.1 metres in drill hole SHE-133-2 (see UEX's news release of November 19, 2009). This basement-hosted mineralization occurs in steeply dipping vein systems, suggesting potential for Kianna basement-style structurally controlled mineralization.
Pilot hole SHE-133 completed during 2009 is being used to test the unconformity ("UC") and basement ("B") extensions of mineralization in the 58B Area. AREVA has reported to UEX drilling results from the first two directional cuts of the current program at 58B from the SHE-133 pilot hole.
SHE-133-3
(UC) 1.81% eU(3)O(8) over 7.6 metres, including 2.65% eU3O8 over 4.8
metres;
(B) 1.02% eU(3)O(8) over 1.1 metres;
(B) 0.54% eU(3)O(8) over 0.8 metres; and
(B) 4.80% eU(3)O(8) over 0.9 metres.
SHE-133-3 is the third directional cut from pilot hole SHE-133 and the first for the 2010 drill program. The unconformity was intersected 27.0 metres west-southwest of pilot hole SHE-133 at a depth of 725.2 metres. The majority of the mineralization was associated with breccias at the unconformity between 718.2 to 725.8 metres grading 1.81% eU(3)O(8) over 7.6 metres including 2.65% eU(3)O(8) over 4.8 metres. Basement-hosted mineralization occurs in a series of narrow pitchblende-rich veins between 744.6 to 745.7 metres grading 1.02% eU(3)O(8) over 1.1 metres, 749.3 to 750.1 metres grading 0.54% eU(3)O(8) over 0.8 metres and 757.6 to 758.5 metres grading 4.80% eU(3)O(8) over 0.9 metres.
SHE-133-4
(UC) 6.55% eU(3)O(8) over 2.4 metres;
(B) 1.08% eU(3)O(8) over 1.6 metres; and
(B) 1.21% eU(3)O(8) over 1.3 metres.
The unconformity was intersected 39.0 metres southwest of pilot hole SHE-133 at a depth of 716.5 metres. The majority of the mineralization was associated with breccias at the unconformity between 714.2 to 716.6 metres grading 6.55% eU(3)O(8) over 2.4 metres. Basement-hosted mineralization occurs in a series of narrow pitchblende-rich veins between 742.0 to 743.6 metres grading 1.08% eU(3)O(8) over 1.6 metres and 784.1 to 785.4 metres grading 1.21% eU(3)O(8) over 1.3 metres.
Graham Thody, President and CEO of UEX, commented that "These high-grade intersections found both at the unconformity and in the basement of the 58B Area in each of this program's first two directional cuts off the SHE-133 pilot hole are extremely encouraging. Our objective was to establish the existence of high-grade unconformity mineralization as has previously been outlined at the Kianna, Anne and Colette Deposits and to establish the continuation of unconformity and basement mineralization in the 58B Area. These initial results have certainly met that objective."
To view maps of the 2010 drilling at 58B, please access this news release on UEX's website at www.uex-corporation.com.
Uranium grades reported are calculated from gamma probe logging (see Table 1). True widths of mineralized intervals have not yet been determined. Technical information in this news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice President of Exploration, and Erwin Koning, P.Geo., AREVA's District Geologist, West Athabasca Region, who are Qualified Persons as defined by National Instrument 43-101. Equivalent probe results were obtained using a STD-27 gamma probe which collects continuous readings along the length of the drill hole. Probe results are calibrated using an algorithm calculated from the comparison of probe results against geochemical analyses in previous drill holes in the Shea Creek area.
About UEX
UEX is a Canadian uranium exploration and development company actively involved in 19 uranium projects, including seven that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, ten joint-ventured with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 19 projects, totaling 353,134 hectares (872,613 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium district, which accounts for approximately 21% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne and Colette Deposits at its 49%-owned Shea Creek Uranium Project, a joint venture with AREVA in the western Athabasca Basin, and the West Bear, Raven and Horseshoe Deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin.
About AREVA Resources Canada Inc.
AREVA, a uranium exploration, mining and milling company, is a subsidiary of AREVA Group, a worldwide expert in the energy field with manufacturing facilities in 43 countries and a sales network in more than 100 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, the Midwest Deposit, the Millennium Deposit, and the Cigar Lake Deposit.
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Graham C. Thody,
President & C.E.O.
Forward-Looking Statements
This news release contains "forward-looking statements" that are based on UEX's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding UEX's outlook for our future operations, plans and timing for the commencement or advancement of exploration activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are based on certain factors and assumptions and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, continuity and grade of deposits, fluctuations in uranium prices and currency exchange rates, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the securities commission on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
TABLE 1
Winter 2010 Shea Creek Drill Results
All Uranium Intersections Calculated from Gamma Probe Logging
-------------------------------------------------------------------------
Hole Total Depth to From To Length Avg. Type
Depth Unconformity (metres) (metres) (metres) Grade
of Hole (metres) Within
(metres) the
Inter-
section
(% eU(3)O(8))
-------------------------------------------------------------------------
SHE-133-3 903.0 725.3 718.2 725.8 7.6 1.81 UC
including 721.0 725.8 4.8 2.65 UC
744.6 745.7 1.1 1.02 B
749.3 750.1 0.8 0.54 B
757.6 758.5 0.9 4.80 B
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SHE-133-4 975.0 716.5 714.2 716.6 2.4 6.55 UC
742.0 743.6 1.6 1.08 B
755.7 756.3 0.6 1.12 B
760.8 761.5 0.7 0.63 B
784.1 785.4 1.3 1.21 B
-------------------------------------------------------------------------
Note: Uranium grades are calculated from gamma probe logging. True widths
of mineralized intervals have not yet been determined.
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: [email protected]
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