UEX/AREVA 2011 Western Athabasca Basin Drilling Programs Underway at Shea Creek and Douglas River
VANCOUVER, Feb. 24 /CNW/ --
Trading Symbol: UEX-TSX
VANCOUVER, Feb. 24 /CNW/ - AREVA Resources Canada Inc. ('AREVA') has
informed UEX Corporation ('UEX') that it has commenced the 2011 Western
Athabasca drilling program that was announced on November 18, 2010. The
program will test open mineralization and prospective target areas
along trend at the Shea Creek Project ('Shea Creek') and at the
adjacent Douglas River Project ('Douglas River'). The projects
represent two of the ten 49%-owned Western Athabasca Uranium Projects
joint-ventured with AREVA, the operator, the most advanced of which is
Shea Creek, for which resources were announced in 2010.
Shea Creek Project
Shea Creek hosts a world-class uranium system, which includes the
Kianna, Anne, Colette and 58B deposits, with mineralization defined
over a strike length exceeding three kilometres along the Saskatoon
Lake graphitic conductor in northern parts of project. The 2011
exploration expenditures are budgeted at $7.90 million of which UEX's
49% share is approximately $3.87 million. The drilling program will
focus on extensions and open areas of the Kianna and Colette deposits,
as well as untested areas between the 58B Deposit and the Kianna
Deposit.
Kianna Deposit
Drilling is currently testing portions of the northern and eastern parts
of the Kianna Deposit ('Kianna'), where approximately six directional
drill holes are planned to follow up on successful drilling results
from the 2010 program.
Four directional drill cuts will follow up on recently reported
intercepts from the SHE-136 series drill holes which intersected new,
open areas of structurally controlled mineralization north of the main
Kianna basement deposit. These intercepts, which included 1.84% eU(3)O(8) over 16.6 metres in drill hole SHE-136-1, form additional mineralized
zones which lie outside of the 2010 Kianna resource estimation and
occur within a large basement-hosted clay alteration zone which could
contain multiple new mineralized zones.
Open basement mineralization in the main Kianna basement deposit will
also be tested. Intercepts such as those in the recently reported drill
hole SHE 135-4, which encountered 1.39% eU(3)O(8) over 34.3 metres and 1.70% eU(3)O(8) over 16.2 metres, lie on the eastern fringes of the Kianna basement
mineralization. Open eastern extensions of this mineralization will be
tested by a minimum of two drill holes during the 2011 drilling
program.
Colette Deposit
A drill has started testing extensions of mineralization in the southern
area of the Colette Deposit ('Colette'). Previous drilling at Colette
is widely spaced and, as a result, the extent of high-grade
mineralization at the unconformity is poorly defined since drill holes
are locally up to 100 metres apart. The extent of the unconformity
mineralization at Colette is greater than 650 metres along strike. In
addition, a significant zone of basement mineralization which is open
down dip to the west was identified in multiple drill holes completed
in 2007 and 2008 in the southern part of this deposit. This open
basement-style mineralization was intersected over a strike length of
250 metres, containing intercepts such as 3.23% U(3)O(8) over 8.0 metres, including 12.38% U(3)O(8) over 0.5 metres and 23.93% U(3)O(8) over 0.5 metres, in drill hole SHE-111-06.
Three pilot drill holes and a minimum of nine directional cuts will test
open areas for additional basement and unconformity mineralization.
Area between the Kianna and 58B Deposits
The partial definition of the 58B Deposit in 2010 highlighted the
significant exploration potential of the Shea Creek mineralization
trend along the Saskatoon Lake Conductor. The 700-metre area between
the Kianna and 58B deposits remains sparsely tested, particularly along
a 400-metre strike extent of this corridor which has only been tested
by one drill hole. Following the drilling at the Kianna Deposit, two
pilot holes and approximately seven directional cuts have been
initially planned to test this area within which additional zones of
mineralization could be present.
Douglas River Project
The Douglas River Project ('Douglas River') is contiguous with the north
end of Shea Creek, where the Colette Deposit is located. The 2011
diamond drilling program, which represents the first drilling program
at Douglas River since 1998, is currently underway and consists of one
pilot hole and three directional cuts totaling 2,500 metres. The
objective of the program is to expand geological knowledge and mineral
resources north of Colette on Shea Creek and south of a mineralized
intercept on Douglas River.
Mineralization has been previously intersected at Douglas River in drill
hole DGS-10, which intersected unconformity mineralization grading
0.53% eU(3)O(8) over 3.7 metres. An untested strike length of 300 metres is present
between this hole and the northern portion of Colette. The two most
northern holes in the Colette Deposit, SHE-66 and SHE-74 spaced 40
metres apart, consist of perched mineralization grading 0.98% eU(3)O(8) over 4.0 metres and 0.94% eU(3)O(8) over 4.4 metres respectively and could be analogous to the discovery
hole at the Kianna Deposit.
To view maps and other information regarding UEX's exploration projects,
please access UEX's website at www.uex-corporation.com under 'Projects'. The website also contains a recent presentation on
Shea Creek given by David Rhys at the Saskatchewan Geological Survey
Open House in November 2010.
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, AREVA's District Geologist, West Athabasca Region,
who are a Qualified Persons as defined by National Instrument 43-101.
About Shea Creek
UEX reported a combined National Instrument 43-101 compliant mineral
resource estimate for the Kianna, Anne and Colette deposits of
1,872,600 tonnes grading 1.54% U(3)O(8) containing 63.57 million pounds of U(3)O(8), in the Indicated category and an additional 1,068,900 tonnes grading
1.04% U(3)O(8) in the Inferred category containing 24.53 million pounds of U(3)O(8) at a cut-off of 0.3% U(3)O(8) (see UEX news release dated May 26, 2010). This mineral resource
estimate is based on drilling information up to December 31, 2009.
Results from the 2010 drilling, which include the expansion of Kianna
and the newly discovered 58B Deposit, are not incorporated in this
resource estimate.
This estimate confirms Shea Creek as the largest undeveloped uranium
resource in the Athabasca Basin. It also ranks as the third largest
uranium resource in the Basin, exceeded in size only by McArthur River
and Cigar Lake. Resources at Shea Creek are largely open and have
excellent potential for both expansion of known areas of mineralization
and discovery of new zones.
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,
as well as 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
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. With a cash position
of approximately $16.8 million at December 31, 2010, UEX is
well-financed to carry out its 2011 exploration and development
programs budgeted at approximately $9.6 million.
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 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 resource 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 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 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, 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.
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PLEASE CONTACT
Graham C. Thody, President & CEO, (604) 669-2349