UEX Corporation Announces Completion of Beatty River Earn-In
VANCOUVER, March 21, 2013 /CNW/ - UEX Corporation ("UEX") is pleased to announce it has completed the terms of the Beatty River Uranium Project (the "Beatty River Project" or the "Project") earn-in agreement (the "Agreement") with JCU (Canada) Exploration Company, Limited ("JCU"). The Beatty River Project is located in the western Athabasca Basin in northern Saskatchewan and situated 30 kilometres south of the Shea Creek Project area and 25 kilometres north of the recent Patterson Lake South uranium discoveries. As a result of completing the terms of the Agreement, AREVA Resources Canada Inc. ("AREVA"), the operator, owns a 50.7% interest, UEX owns a 25.0% interest, and JCU owns a 24.3% interest in the Project.On June 11, 2004, UEX entered into the Agreement with JCU whereby it granted UEX an option to acquire a 25% interest in the Beatty River Project by funding $865,000 in exploration expenditures. As at December 31, 2012, UEX had funded $858,118 in exploration expenditures. UEX and JCU amended the Agreement to allow UEX to complete its earn-in to the Project by making a payment of $3,441 to JCU.
"UEX is looking forward to continuing and building upon its excellent working relationships with both AREVA and JCU who are partners that bring years of exploration experience to the Project" said Graham Thody, President and CEO of UEX Corporation.
About the Beatty River Project
The Beatty River Project consists of seven claims comprising 6,688 hectares located within the southwestern Athabasca Basin in northern Saskatchewan. Basement rocks in the area lie 130 to over 550 metres below surface and are comprised of gneisses and granitoid rocks which straddle the Lloyd and Clearwater Domains of the Western Craton in the western Canadian Shield. The basement rocks are unconformably overlain by Athabasca Group sandstone and Cretaceous Manville Formation. Previous airborne and ground geophysics has identified a number of quality conductive units within the basement rocks. To date, 29 drill holes consisting of 11,613 metres have been completed in the project area. Eight drill holes have intersected graphite in sufficient quantity to explain the conductors and three holes have intersected anomalous uranium mineralization and anomalous values of associated pathfinder elements nickel, copper, vanadium and molybdenum. Drilling has also identified hydrothermal alteration and structural disruption (brecciation and faulting) warranting further exploration.
About UEX
UEX is a Canadian uranium exploration and development company actively involved in 17 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 under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 17 projects, totaling 264,363 hectares (653,255 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium district, which accounts for approximately 15% of the global primary uranium production. UEX is currently advancing several uranium deposits at its two major projects which include the Kianna, Anne, Colette and 58B deposits at its 49%-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 $11.1 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 (4) | 1,872,600 | 1.540 | 63,572,000 | 31,150,280 |
| Hidden Bay (5) | 10,372,500 | 0.160 | 36,623,000 | 36,623,000 |
| TOTAL INDICATED | 12,245,100 | 0.371 | 100,195,000 | 67,773,280 |
| UEX Corporation - Inferred Mineral Resources (1) (2) (3) | ||||
| Project | Tonnes | Grade U3O8 (%) | Total U3O8 (lbs) | UEX's share U3O8 (lbs) |
| Shea Creek (4) | 1,068,900 | 1.041 | 24,525,000 | 12,017,250 |
| Hidden Bay (5) | 1,109,200 | 0.111 | 2,715,000 | 2,715,000 |
| TOTAL INFERRED | 2,178,100 | 0.567 | 27,240,000 | 14,732,250 |
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. |
| (3) | The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U3O8. |
| (4) | The Shea Creek mineral resource estimates are included in the Shea Creek Technical Report with an effective date of May 26, 2010 which was filed on SEDAR at www.sedar.com on July 9, 2010. |
| (5) | The Hidden Bay mineral resource estimates are included 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. |
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, 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 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.
SOURCE UEX Corporation
Graham C. Thody
President & CEO
(604) 669-2349