UEX Hidden Bay Basement Drilling Program Commences with $2.5 Million Budget
Trading Symbol: UEX-TSX
VANCOUVER, Jan. 9, 2015 /CNW/ - UEX Corporation ("UEX" or the "Company") is pleased to announce the commencement of its 2015 winter exploration program at its 100% owned Hidden Bay Project with a budget of $2.5 million. This program's objective is to begin testing a few of the higher priority basement targets that were identified during the review of the Company's database which was compiled when typical unconformity-style deposits were being sought by previous explorers in the area. The summer 2014 field review of historical drill core has confirmed the validity of these targets.
The 10,000-metre drilling program has commenced utilizing one drill rig, with a second rig expected in late January 2015.
The program will focus on two key target areas, Dwyer Lake and Wolf Lake, where the Company recognized the presence of previously overlooked but intense and widespread clay alteration within basement rocks and fault zones that is uncommon and often observed within and proximal to the large basement-hosted uranium deposits of the eastern Athabasca Basin, such as at the Millennium, Roughrider and Eagle Point Deposits.
"Since the completion of our summer core review program in September, our exploration team and I have been eagerly anticipating the start of our winter drill program. The mild weather in December delayed our start, but now that we have mobilized to the site we are looking forward to the drilling results from some of the most compelling basement targets I have seen in the Basin." Roger Lemaitre, President and CEO.
The program will test up to 4 of the initial 12 target areas that were recently identified and exhibit characteristics associated with known basement uranium deposits. These characteristics or markers were present in the core extracted from areas with shallow sandstone cover drilled by previous explorers looking for unconformity‑style mineralization. The winter 2015 drill holes are targeting depths between 150 and 250 metres from surface. UEX expects to complete approximately 30 holes dependent on drilling conditions.
About the Hidden Bay Project
UEX's Hidden Bay Project is located in the eastern Athabasca Basin and is proximal to several of the region's major uranium deposits and mines. The property lies adjacent to two operating uranium mills, is divided by a provincial highway and is located minutes from daily all-weather commercial air service at a nearby regional air terminal. The Hidden Bay Project has been explored for uranium by UEX and preceding companies for over four decades, with this exploration leading to the discovery of three deposits documented in National Instrument 43-101 ("N.I. 43-101") reports which are referenced below.
About UEX
UEX (TSX:UEX) is a Canadian uranium exploration and development company actively involved in seventeen uranium projects, including six that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as nine joint‑ventured with AREVA and one joint venture with AREVA and JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The seventeen projects, totaling 260,121 hectares (642,773 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which in 2013 accounted for approximately 15% of the global primary uranium production. UEX is currently advancing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its currently 49.1%-owned Shea Creek Project, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project. UEX currently has a cash position of approximately $8.0 million.
UEX's two major projects have mineral resource estimates as follows:
UEX Corporation – Indicated Mineral Resources (1) (2) (3)
| Project |
Tonnes |
Grade U3O8 (%) |
Total U3O8 (lbs) |
UEX's share U3O8 (lbs) |
| Shea Creek (2) |
2,067,900 |
1.484 |
67,663,000 |
33,222,533 |
| Hidden Bay (3) |
10,372,500 |
0.160 |
36,623,000 |
36,623,000 |
| TOTAL INDICATED |
12,440,400 |
0.380 |
104,286,000 |
69,845,533 |
UEX Corporation – Inferred Mineral Resources (1) (2) (3)
| Project |
Tonnes |
Grade U3O8 (%) |
Total U3O8 (lbs) |
UEX's share U3O8 (lbs) |
| Shea Creek (2) |
1,272,200 |
1.005 |
28,192,000 |
13,842,272 |
| Hidden Bay (3) |
1,109,200 |
0.111 |
2,715,000 |
2,715,000 |
| TOTAL INFERRED |
2,381,400 |
0.589 |
30,907,000 |
16,557,272 |
Notes:
| (1) |
The mineral resource estimates follow the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards. |
|
| (2) |
The Shea Creek mineral resources were estimated at a cut-off of 0.30% U3O8, and are documented in the Shea Creek Technical Report with an effective date of May 31, 2013 which was filed on SEDAR at www.sedar.com on May 31, 2013. |
|
| (3) |
The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U3O8, and are documented in the Hidden Bay Technical Report with an effective date of February 15, 2011 which was filed on SEDAR at www.sedar.com on February 23, 2011. |
Qualified Persons and Data Acquisition
Technical information in this news release has been reviewed and approved by Roger Lemaitre, P.Eng., P.Geo., UEX's President and CEO who is a Qualified Person as defined by N.I. 43‑101 standards.
Forward-Looking Information
This news release may contain statements that constitute "forward-looking information" for the purposes of Canadian securities laws. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding UEX's mineral resource and mineral reserve estimates, outlook for our future operations, plans and timing for exploration activities, and other expectations, intentions and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", "will", "may", or their negatives or other comparable words and phrases are intended to identify forward-looking information. Such forward-looking information is based on certain factors and assumptions and is 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 information. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, additional drilling results, continuity and grade of deposits, participation in joint ventures, reliance on other companies as operators, public acceptance of uranium as an energy source, fluctuations in uranium prices and currency exchange rates, changes in environmental and other laws affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is 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 information. 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.
Cautionary Note to United States Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral resource" exists or is economically or legally mineable. Disclosure of "contained pounds" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in-place tonnage and grade without reference to unit measures. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards.
SOURCE UEX Corporation
Roger Lemaitre, President & CEO, (604) 669-2349
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