UEX Outlines the 58B Deposit and Expands Mineralization at the Kianna
Deposit, Including Intercepts of 12.40% eU(3)O(8) Over 3.7 Metres and 1.39%
eU(3)O(8) Over 34.3 Metres
Trading Symbol: UEX-TSX
VANCOUVER, Sept. 21 /CNW/ - UEX Corporation ("UEX") is pleased to announce results from the continued exploration of the Kianna and the 58B Deposits, both of which occur in northern portions of the Shea Creek Project ("Shea Creek") in the Athabasca Basin of northern Saskatchewan. The drilling results for the completed $8.25 million 2010 Shea Creek exploration program have been reported to UEX by AREVA Resources Canada Inc. ("AREVA"). Shea Creek hosts the Kianna, Anne, Colette and 58B Deposits and is 49%-owned by UEX, with AREVA being the operator (see Figure 1).
UEX recently reported combined National Instrument 43-101 ("N.I. 43-101") compliant mineral resource estimates for the Shea Creek deposits of 63.6 million pounds U(3)O(8) in the Indicated category and 24.5 million pounds U(3)O(8) in the Inferred category at a cutoff of 0.3% U(3)O(8) (see UEX news release dated May 26, 2010). Mineralization in these deposits is open, and the results reported here include stepout drill holes, many of which lie outside the outlines of the resources which were recently reported.
The drilling program met its objectives to test open areas of the Kianna Deposit ("Kianna") basement mineralization, test for hanging wall mineralization in new zones which lie to the north of Kianna, and further expand and delineate the newly identified 58B Deposit ("58B"). Highlights of the program were as follows:
- Confirmation that the 58B target area represents a new uranium
deposit along the Shea Creek trend;
- Discovery of a new mineralized structure immediately to the north of
the Kianna Deposit intersected by SHE-136 series drill holes; and
- Expansion of the footprint of higher-grade areas of the Kianna
unconformity mineralization.
Drilling Results - Kianna Deposit
The 2010 program at Kianna consisted of 25 drill holes in the SHE-118, SHE-134, SHE-135 and SHE-136 series drilling (see Figure 2). Significant mineralization developed both at the unconformity ("UC") and in underlying basement rocks ("B") has consistently been intersected at Kianna. The drilling included both infill and stepout drill holes, the latter which expand the overall footprint of the Kianna mineralization beyond the limits that were used to calculate the recently reported resource estimate.
Highlights of the recent drill results include:
- SHE-118-19: (UC) 12.40% eU(3)O(8) over 3.7 metres, including
30.37% eU(3)O(8) over 1.4 metres;
- SHE-103-3: (B) 5.52% eU(3)O(8) over 1.9 metres;
- SHE-134-2: (B) 0.96% eU(3)O(8) over 5.9 metres, including
4.36% eU(3)O(8) over 1.2 metres;
- SHE-135-1: (UC) 1.57% eU(3)O(8) over 7.9 metres;
- SHE-135-4: (B) 1.39% eU(3)O(8) over 34.3 metres, including
2.06% eU(3)O(8) over 8.8 metres and 1.70% eU(3)O(8)
over 16.2 metres;
- SHE-135-5: (UC) 1.36% eU(3)O(8) over 9.1 metres;
- SHE-135-7: (B) 1.50% eU(3)O(8) over 6.7 metres, and
(B) 1.02% eU(3)O(8) over 5.1 metres;
- SHE-135-8: (B) 1.25% eU(3)O(8) over 9.6 metres;
- SHE-136-1: (B) 1.84% eU(3)O(8) over 16.6 metres;
- SHE-136-2: (B) 0.98% eU(3)O(8) over 4.8 metres; and
- SHE-136-3: (B) 0.86% eU(3)O(8) over 10.4 metres.
Complete results from the drilling are reported in Table 1. Uranium grades reported here have been calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.
The infill drill holes, which include holes from the SHE-134 and SHE-135 series drilling, confirm the position, grade and continuity of the modeled Kianna basement and unconformity mineralization from the recent resource model, and will increase both the confidence level and the grade, with mineralization remaining open.
Drill hole SHE-118-19 was targeted to extend the Kianna unconformity mineralization southward into an untested area. The high-grade intercept in this hole successfully extended the Kianna high-grade unconformity mineralization by approximately 25 metres to the southwest.
Intercepts from the SHE-136 series drill holes tested northwestern parts of the Kianna mineralization and have intersected new, open areas of structurally controlled mineralization in the hanging wall of the main Kianna basement zone.
Overall, much of the Kianna mineralization remains open and the new drilling, particularly in the SHE-136 series drill holes, has emphasized the significant potential for new sub-parallel mineralized zones adjacent to the existing Kianna Deposit.
Drilling Results - 58B Deposit
Five additional drill holes completed the 2010 exploration program at 58B, an emerging new deposit in a previously sparsely tested area between the Kianna and Colette Deposits (see Figure 3).
Mineralization at 58B has now been traced over a strike length of 400 metres and occurs over a width of up to 110 metres in plan view. The mineralization displays the same stacking of basement, unconformity and perched mineralization as is seen at the Kianna Deposit, and includes steeply dipping, east-northeast trending pitchblende veins which are of similar style and orientation as the main Kianna basement zone.
The 58B Deposit was not included in the May 2010 N.I. 43-101 resource estimate. Previously reported drilling in 2010 includes unconformity and basement intercepts of 6.53% eU(3)O(8) over 1.6 metres in drill hole SHE-133-5, 2.13% eU(3)O(8) over 10.6 metres in drill hole SHE-133-7 and 6.55% eU(3)O(8) over 2.4 metres in drill hole SHE-133-4 (see UEX News Releases dated June 14, 2010 and March 17, 2010).
Recent intercepts include the following (see Table 1 for complete results):
- SHE-104-7: (UC) 0.82% eU(3)O(8) over 3.0 metres and
(B) 1.51% eU(3)O(8) over 1.9 metres;
- SHE-104-8: (B) 1.16% eU(3)O(8) over 3.8 metres;
- SHE-133-11: (UC) 1.32% eU(30O(8) over 5.8 metres; and
- SHE-133-12: (B) 1.51% eU(3)O(8) over 3.6 metres.
The new 58B results further define northern portions of the zone at the unconformity, better constrain the distribution of basement mineralization, and will contribute to the overall Shea Creek resource base. The 58B Deposit remains a high-priority area for future exploration, with emphasis on testing down dip and lateral extensions of basement mineralization given its similarities to the Kianna style of deposit. Broad areas of the highly prospective structural corridor hosting 58B that lie between the Kianna and Colette Deposits remain sparsely tested and will be explored in subsequent drilling programs.
About the Shea Creek Deposits
The Kianna, Anne, Colette and 58B Deposits within Shea Creek are distributed along a strike length of over three kilometres of the north-northwest trending Saskatoon Lake graphitic conductor (see Figure 1). The 33 kilometre long Saskatoon Lake conductor is coincident with a southwest-dipping, reverse fault that displaces the flat-lying unconformity with the overlying Athabasca Group sandstone by several tens of metres. Depth to unconformity typically ranges from 700 to 750 metres. As a result of the sandstone thickness, drilling is normally completed by drilling a master pilot drill hole from which several wedge holes are drilled to enable close-spaced drilling.
Known deposits along the Saskatoon Lake conductor at Shea Creek occur often in areas where east-northeast trending discordant faults offset the north-northwest trending conductive graphitic unit. Three styles and settings of mineralization are present, all of which form components of the current Shea Creek resource estimate:
- Perched, sandstone-hosted mineralization is found in discrete zones
tens of metres above the unconformity;
- Unconformity-type mineralization found in close proximity to the
unconformity; and
- Basement-hosted mineralization found in zones up to 200 metres below
the unconformity.
Although each style of mineralization is comparable to individual uranium deposits in the Athabasca Basin, the common vertical stacking of these three styles is unique to the deposits at Shea Creek. Mineralization is mineralogically simple comprising dominantly pitchblende as the primary host to uranium, typical of other significant deposits in the Athabasca Basin, and lacking significant quantities of deleterious elements such as As, Ni, and Co found in some uranium deposits. Some portions of the Shea Creek deposits contain significant gold grades which were not assessed in this current resource but will be further investigated.
Qualified Persons and Data Acquisition
Technical information in this news release has been reviewed by R. Sierd Eriks, P.Geo., UEX's Vice President of Exploration, David Rhys, P.Geo., UEX Advisory Board member, and Erwin Koning, P.Geo., AREVA's District Geologist, West Athabasca Region, all of whom who are Qualified Persons as defined by N.I. 43-101.
Probe results were obtained using a DHT-27 gamma probe which collects continuous readings along the length of the drill hole. Probe results are converted into equivalent uranium grade using a relationship derived 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 18 uranium projects, including six 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 18 projects, totaling 338,972 hectares (837,618 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 22% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B Deposits at its 49%-owned Shea Creek Uranium Project, a joint venture with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West Bear 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, the global nuclear industry leader with an expanding presence in the renewable energies field, and 50,000 employees worldwide to help supply safer, cleaner and more economical energy to the greatest number of people. AREVA group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the McClean Lake, Midwest and Shea Creek deposits operated by AREVA, as well as the McArthur River, Cigar Lake and Millennium deposits operated by Cameco Corporation. AREVA also holds a majority interest in the Kiggavik deposits in Nunavut.
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 resource estimates, 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, additional drilling results, continuity and grade of deposits, 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 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
2010 Shea Creek Drill Results
-------------------------------------------------------------------------
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-104-5(xx) 909.0 721.5 721.2 721.9 0.7 0.28 UC
726.2 726.9 0.7 0.31 B
853.9 854.8 0.9 1.18 B
-------------------------------------------------------------------------
SHE-104-6(xx) 861.0 723.6 717.2 718.4 1.2 2.10 UC
720.0 720.5 0.5 0.66 UC
-------------------------------------------------------------------------
SHE-104-7 942.0 728.2 725.4 728.4 3.0 0.82 UC
827.9 829.8 1.9 1.51 B
-------------------------------------------------------------------------
SHE-104-8 897.0 738.5 734.0 738.4 4.4 0.23 UC
761.6 765.4 3.8 1.16 B
-------------------------------------------------------------------------
SHE-118-19 888.0 711.2 709.2 712.9 3.7 12.40 UC
including 709.8 711.2 1.4 30.37 UC
726.9 727.8 0.9 0.79 B
-------------------------------------------------------------------------
SHE-118-20 840.0 712.9 712.4 713.1 0.7 0.19 UC
803.6 805.1 1.5 0.08 B
-------------------------------------------------------------------------
SHE-118-21 1,002.0 736.0 728.5 735.4 6.9 0.19 UC
-------------------------------------------------------------------------
SHE-130-3 1,005.0 725.4 717.4 723.3 5.9 0.69 UC
831.1 831.6 0.5 0.36 B
864.3 865.0 0.7 1.55 B
869.2 871.1 1.9 5.52 B
876.7 878.6 1.9 0.29 B
-------------------------------------------------------------------------
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
-------------------------------------------------------------------------
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
-------------------------------------------------------------------------
SHE-133-5(xx) 954.0 719.0 717.0 719.9 2.9 3.00 UC
849.1 850.7 1.6 6.53 B
-------------------------------------------------------------------------
SHE-133-6(xx) 930.0 712.4 713.6 714.4 0.8 1.48 UC
786.3 787.9 1.6 6.17 B
-------------------------------------------------------------------------
SHE-133-7(xx) 939.0 716.5 705.6 716.2 10.6 2.13 UC
779.5 779.8 0.3 0.14 B
-------------------------------------------------------------------------
SHE-133-8(xx) 888.0 721.0 705.4 709.9 4.5 0.20 P
719.7 721.2 1.5 2.57 UC
-------------------------------------------------------------------------
SHE-133-9(xx) 870.0 717.2 718.1 719.2 1.1 1.90 UC
-------------------------------------------------------------------------
SHE-133-10 930.0 727.4 726.6 727.8 1.2 0.21 UC
751.8 752.5 0.7 0.93 B
-------------------------------------------------------------------------
SHE-133-11 933.0 728.1 719.7 725.5 5.8 1.32 UC
including 720.9 723.6 2.7 2.71 UC
757.5 759.4 1.9 0.30 B
-------------------------------------------------------------------------
SHE-133-12 849.0 727.0 724.9 727.5 2.6 0.21 UC
748.2 757.1 8.9 0.34 B
760.4 764.0 3.6 1.51 B
-------------------------------------------------------------------------
SHE-134 1,017.0 714.9 869.3 872.1 2.8 0.27 B
-------------------------------------------------------------------------
SHE-134-1 888.0 720.6 718.3 722.1 3.8 0.23 UC
-------------------------------------------------------------------------
SHE-134-1A 1,083.0 - 719.3 722.0 2.7 0.24 UC
842.2 843.5 1.3 0.36 B
852.4 853.5 1.1 0.30 B
-------------------------------------------------------------------------
SHE-134-2 994.5 721.1 718.6 723.5 4.9 0.24 UC
798.3 799.1 0.8 1.96 B
810.6 812.0 1.4 1.41 B
827.3 833.2 5.9 0.96 B
including 829.9 831.1 1.2 4.36 B
845.8 847.7 1.9 0.49 B
848.9 852.6 3.7 1.02 B
-------------------------------------------------------------------------
SHE-135 1,017.0 741.9 853.0 858.8 5.8 0.47 B
including 853.0 854.4 1.4 0.88 B
-------------------------------------------------------------------------
SHE-135-1 875.0 734.1 733.5 741.4 7.9 1.57 UC
813.1 816.0 2.9 1.22 B
823.5 828.5 5.0 0.55 B
including 823.5 824.2 0.7 1.90 B
836.2 837.8 1.6 0.72 B
-------------------------------------------------------------------------
SHE-135-2 1,027.5 747.3 825.5 827.5 2.0 0.49 B
830.1 831.7 1.6 0.38 B
-------------------------------------------------------------------------
SHE-135-3 949.0 738.1 736.9 737.7 0.8 0.36 UC
899.4 900.6 1.2 0.27 B
-------------------------------------------------------------------------
SHE-135-4 984.0 744.7 744.5 745.8 1.3 0.81 UC
821.1 855.4 34.3 1.39 B
including 821.1 829.9 8.8 2.06 B
and including 837.0 853.2 16.2 1.70 B
-------------------------------------------------------------------------
SHE-135-5 951.0 744.7 713.9 715.4 1.5 0.46 P
739.2 748.3 9.1 1.36 UC
-------------------------------------------------------------------------
SHE-135-6 1,050.0 750.6 748.1 749.7 1.6 0.51 UC
822.5 823.9 1.4 0.28 B
871.9 873.7 1.8 0.26 B
901.1 902.1 1.0 0.35 B
-------------------------------------------------------------------------
SHE-135-7 978.0 749.5 747.1 748.0 0.9 0.21 UC
842.6 849.3 6.7 1.50 B
860.0 861.6 1.6 1.12 B
865.9 871.0 5.1 1.02 B
including 865.9 868.7 2.8 1.55 B
885.3 891.7 6.4 0.41 B
-------------------------------------------------------------------------
SHE-135-8 957.0 748.5 746.3 749.6 3.3 0.52 UC
826.0 827.4 1.4 0.41 B
831.6 834.0 2.4 0.74 B
839.6 849.2 9.6 1.25 B
-------------------------------------------------------------------------
SHE-135-9 954.0 757.5 752.7 754.5 1.8 0.42 UC
-------------------------------------------------------------------------
SHE-136 900.0 710.7 768.8 769.4 0.6 0.34 B
-------------------------------------------------------------------------
SHE-136-1 1,068.0 712.5 871.6 888.2 16.6 1.84 B
899.5 903.7 4.2 1.80 B
-------------------------------------------------------------------------
SHE-136-2 1,029.0 715.7 891.7 896.5 4.8 0.98 B
903.9 906.1 2.2 0.40 B
909.3 913.0 3.7 0.50 B
916.2 918.6 2.4 0.69 B
-------------------------------------------------------------------------
SHE-136-3 1,059.0 715.1 869.0 879.4 10.4 0.86 B
886.5 887.1 0.6 0.42 B
-------------------------------------------------------------------------
SHE-136-4 984.0 711.1 791.0 791.4 0.4 0.44 B
801.0 803.1 2.1 0.35 B
-------------------------------------------------------------------------
SHE-136-5 1,071.0 715.6 No significant mineralization
-------------------------------------------------------------------------
SHE-136-6 957.0 718.4 No probing - hole lost
-------------------------------------------------------------------------
* Previously reported hole - (see UEX news release dated March 17,
2010)
(xx) Previously reported hole - (see UEX news release dated June 14,
2010)
(+) P - Perched mineralization
UC - Unconformity mineralization
B - Basement mineralization
Note: Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.
For further information: Graham C. Thody, President & CEO, (604) 669-2349
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