UEX/AREVA Drilling Expands Basement Mineralization at Kianna Deposit: SHE-130-4 Intersects 25.1 Metres Grading 1.28% eU(3)O(8), Including 9.5 Metres Grading 2.30% eU(3)O(8)
VANCOUVER, May 3 /CNW/ --
Trading Symbol: UEX-TSX
VANCOUVER, May 3 /CNW/ - UEX Corporation ('UEX') (TSX: UEX) is pleased
to announce results from its first directional drill hole from the
continued exploration of the Kianna Deposit ('Kianna') on the Shea
Creek Project ('Shea Creek') as reported to UEX by the project
operator, AREVA Resources Canada Inc. ('AREVA'). Shea Creek hosts the
Kianna, Anne, Colette and 58B deposits and is one of ten 49%-owned
Western Athabasca Uranium Projects joint-ventured with AREVA (see
Figure 1).
The mineralized intersection in the basement of hole SHE-130-4
represents a 20 metre extension to the north of the main zone of
basement mineralization in the Kianna Deposit. The intercept both
expands the outline of the Kianna basement zone, and potentially links
the main Kianna basement mineralization with a northern, parallel zone
of structurally controlled mineralization which has now been
intersected in several drill holes outside of the existing resource.
Further drilling is in progress to test for mineralization to the west
and east of the SHE-130-4 intercepts.
Significant mineralization was intersected in drill hole SHE-130-4 both
at the unconformity ('UC') and in the underlying basement rocks ('B').
Highlights of the drill results include:
SHE-130-4: (UC) 0.96% eU(3)O(8) over 3.2 metres,
(B) 1.28% eU(3)O(8) over 25.1 metres, including
2.30% eU(3)O(8) over 9.5 metres;
(B) 0.36% eU(3)O(8) over 2.9 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 new basement intercept is significant because it likely links what
was previously thought to represent two distinct parallel mineralized
zones, and consequently could greatly expand the area of known basement
mineralization at Kianna' said UEX Advisory Board Member, David Rhys.
Drill hole SHE-130-4 is the first of four directional drill cuts planned
for the 2011 drilling program at the Kianna Deposit which is part of a
larger exploration program on the Shea Creek Project. Currently, there
are three drills operating on the project, two at the Colette Deposit
and one at the Kianna Deposit.
SHE-130-4 was designed to follow up on successful drilling results from
the SHE-136 series drill holes which were obtained during the 2010
program (see Figure 2). The SHE-136 series drill holes intersected new,
open areas of structurally controlled mineralization which are
developed to the north of the main Kianna basement deposit in an area
of sparse drilling, including 1.84% eU(3)O(8) over 16.6 metres in drill hole SHE-136-1 (see UEX news release dated
September 11, 2010). These intercepts lie outside of UEX's 2010 Kianna
resource estimate within a large basement-hosted clay alteration zone
that has the potential to contain additional areas of mineralization,
and extensions of the main zone of basement-hosted mineralization at
Kianna which is open is several areas.
To view maps of the 2011 drilling at the Kianna Deposit, please access
this news release on UEX's website at www.uex-corporation.com.
Qualified Persons and Data Acquisition
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 DHT27-STD 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 Shea Creek
UEX reported a combined N.I. 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 recently 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.
TABLE 1
2011 Shea Creek (Kianna) Drill Results
Hole Total Depth to From To Length Avg. Grade Type†
Depth Unconformity (metres) (metres) (metres) Within the
of Hole (metres) Intersection
(metres) (% eU(3)O
(8))
SHE-130-4 978.0 722.5 709.5 712.7 3.2 0.96 UC
718.2 722.1 3.9 0.19 UC
842.9 844.7 1.8 0.46 B
845.9 846.5 0.6 0.18 B
851.1 852.0 0.9 0.23 B
888.1 888.8 0.7 0.30 B
894.0 919.1 25.1 1.28 B
including 903.7 913.2 9.5 2.30 B
925.8 927.5 1.7 0.11 B
935.9 938.8 2.9 0.36 B
941.2 943.1 1.9 0.07 B
† UC - Unconformity mineralization
B - Basement mineralization
P - Perched mineralization
Note: Uranium grades are calculated from gamma probe logging. True
widths of mineralized intervals have not yet been determined.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/03/c8703.html
Graham C. Thody
President & CEO,
(604) 669-2349