UEX/AREVA Drilling Expands Mineralization Northward from the Kianna Deposit at Shea Creek
Trading Symbol: UEX-TSX
VANCOUVER, Dec. 6, 2011 /CNW/ - UEX Corporation ('UEX') is pleased to announce the final drilling results from the 2011 exploration program 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.
The results reported are from three pilot holes and ten directional drill holes in the SHE-136, SHE-140 and SHE-141 series which were drilled in the area between the Kianna and 58B deposits. Drill hole intersections within this area have expanded the unconformity mineralization northward from the Kianna Deposit ('Kianna') towards the 58B Deposit ('58B') (see Figure 1). These drill intersections, which lie at the northern margin of Kianna, extend well outside of the existing National Instrument 43-101 ('N.I. 43-101') compliant mineral resource estimate. The holes drilled in the Kianna area and the area between Kianna and 58B were part of a larger 2011 exploration program on the Shea Creek Project that was completed in November (see UEX's news releases dated September 29 and October 31, 2011).
Mineralization was intersected in all directional drill holes in the area between Kianna and 58B either at the unconformity or in the underlying basement rocks. These drill holes represent the first systematic exploration of this corridor and the highly encouraging results provide significant geological information which will be followed up in subsequent drilling programs. Complete results from the drilling are reported in Table 1.
The results include unconformity intercepts of 0.42% eU(3)O(8) over 5.0 metres in drill hole SHE-136-7, 0.25% eU(3)O(8) over 19.7 metres including 0.99% eU(3)O(8) over 3.1 metres in drill hole SHE-140-1 as well as 0.88% eU(3)O(8) over 1.2 metres in drill hole SHE-141-1. These intercepts suggest that unconformity mineralization may extend continuously over a strike length of greater than 300 metres northwest of the Kianna Deposit, with mineralization open along trend toward the 58B Deposit.
In addition to the unconformity intercepts, drill holes also encountered basement mineralization which is of similar style to that in Kianna and 58B, suggesting there is potential for the discovery of basement deposits in this corridor. Basement intercepts include 0.37% eU(3)O(8) over 2.2 metres in drill hole SHE-140, 0.57% eU(3)O(8) over 2.5 metres including 0.96% eU(3)O(8) over 1.4 metres in drill hole SHE-140-3 as well as 1.85% eU(3)O(8) over 0.7 metres in drill hole SHE-140-5.
Drilling difficulties were encountered in drill hole SHE-141-1 due to a large fault zone. This hole was not completed to target depth where it was intended to test open areas of the Kianna basement mineralization which had been considerably expanded during the 2011 exploration program (see UEX's news release dated September 29, 2011).
Drilling is planned for 2012 in the area immediately south of the 58B Deposit to further test the continuity of unconformity mineralization between 58B and Kianna (see UEX's news release dated November 30, 2011).
To view Figure 1 showing the 2011 Drilling - Area between the Kianna and 58B Deposits, 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, David Rhys, P.Geo., UEX Advisory Board member and Erwin Koning, P.Geo., AREVA's District Geologist, West Athabasca Region, who are each Qualified Persons as defined by National Instrument 43-101.
Equivalent grade results reported here 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. True widths of mineralized intervals have not yet been determined.
About Shea Creek
Effective December 31, 2009, 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 Mineral Resource category and an additional 1,068,900 tonnes grading 1.04% U(3)O(8) in the Inferred Mineral Resource 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 and 2011 drilling programs, which include the expansion of Kianna, Colette and the addition of the 58B Deposit, are not incorporated in this resource estimate.
This estimate confirmed Shea Creek as the largest undeveloped uranium resource in the Athabasca Basin. Shea Creek 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 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 328,151 hectares (810,879 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 18% 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.
UEX's two major projects have N.I. 43-101 compliant mineral resources as follows:
UEX Corporation - Indicated Mineral Resources ((1) (2) (3) (4) (5))
_________________________________________________________
| Project | Tonnes | Grade | Total |UEX's share|
| | |U3O8(%)|U3O8(lbs) | U3O8(lbs) |
|_______________|__________|_______|__________|___________|
| Shea Creek | 1,872,600| 1.540|63,572,000| 31,150,280|
|_______________|__________|_______|__________|___________|
| Hidden Bay |10,293,600| 0.155|35,044,000| 35,044,000|
|_______________|__________|_______|__________|___________|
|TOTAL INDICATED| | |98,616,000| 66,194,280|
|_______________|__________|_______|__________|___________|
UEX Corporation - Inferred Mineral Resources ((1) (2) (3) (4) (5))
_______________________________________________________
| Project | Tonnes | Grade | Total |UEX's share|
| | |U3O8(%)|U3O8(lbs) | U3O8(lbs) |
|______________|_________|_______|__________|___________|
| Shea Creek |1,068,900| 1.041|24,525,000| 12,017,250|
|______________|_________|_______|__________|___________|
| Hidden Bay |1,109,200| 0.111| 2,715,000| 2,715,000|
|______________|_________|_______|__________|___________|
|TOTAL INFERRED| | |27,240,000| 14,732,250|
|______________|_________|_______|__________|___________|
Notes:
(1) The mineral resource estimates comply with the requirements of
N.I. 43-101 and classifications comply with 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) Please refer to the technical report on the Kianna, Anne and
Colette deposits dated effective May 26, 2010, available online
under UEX's profile at
www.sedar.com.
(5) Please refer to the technical report on the Horseshoe and Raven
deposits dated effective July 15, 2009, available online under
UEX's profile at www.sedar.com.
A summary of UEX's mineral reserves are as follows:
UEX Corporation - Total Probable Mineral Reserves ((1) (2) (3))
______________________________________________
| Deposit |Tonnes| Grade | Total |UEX's share|
| | |U3O8(%)|U3O8(lbs)| U3O8(lbs) |
|_________|______|_______|_________|___________|
|West Bear|72,374| 0.94|1,492,261| 1,492,261|
|_________|______|_______|_________|___________|
Notes:
(1) The mineral reserve estimates comply with the requirements of
N.I. 43-101 and classifications comply with CIM definition
standards.
(2) The West Bear mineral reserves were based on an estimated
processing cut-off grade of 0.18% U3O8.
(3) Please refer to the technical report on the West Bear Deposit
dated effective February 24, 2010, available online under UEX's
profile at www.sedar.com.
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.
TABLE 1
2011 Shea Creek Drill Results
Results are reported for holes with a grade of greater than 0.1% U(3)O(8) and
a grade-thickness product of greater than 0.1
_____________________________________________________________________________________
| Hole |TotalDepth| Depth to | From | To | Length | Avg. Grade |Type†|
| | of Hole |Unconformity|(metres)|(metres)|(metres)| Withinthe | |
| | (metres) | (metres) | | | |Intersection| |
| | | | | | | (% eU3O8) | |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-136-7| 885.0 | 729.0 | 724.2 | 729.2 | 5.0 | 0.42 | UC |
| | | including | 724.9 | 727.9 | 3.0 | 0.64 | UC |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-136-8| 873.0 | 719.9 | 744.3 | 745.5 | 1.2 | 0.20 | B |
| | | | 762.0 | 762.3 | 0.3 | 0.43 | B |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-136-9| 835.0 | 745.2 | 735.1 | 735.8 | 0.7 | 0.18 | UC |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-140 | 864.0 | 709.0 | 742.6 | 744.8 | 2.2 | 0.37 | B |
| | | | 765.9 | 766.8 | 0.9 | 0.14 | B |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-140-1| 818.0 | 719.8 | 715.1 | 734.8 | 19.7 | 0.25 | UC |
| | | including | 717.7 | 727.6 | 9.9 | 0.47 | UC |
| | | including | 717.7 | 720.8 | 3.1 | 0.99 | UC |
| | | | | | | | |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-140-2| 861.0 | 712.8 | 712.1 | 722.7 | 10.6 | 0.08 | UC |
| | | including | 720.0 | 722.7 | 2.7 | 0.21 | B |
| | | | 729.3 | 730.3 | 1.0 | 0.21 | B |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-140-3| 852.0 | 723.4 | 760.2 | 762.7 | 2.5 | 0.57 | B |
| | | including | 761.3 | 762.7 | 1.4 | 0.96 | B |
| | | | | | | | |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-140-4| 867.0 | 721.3 | 717.8 | 721.2 | 3.4 | 0.18 | UC |
| | | including | 718.6 | 719.9 | 1.3 | 0.34 | UC |
| | | | 755.4 | 757.5 | 2.1 | 0.15 | B |
| | | | | | | | |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-140-5| 834.0 | 716.0 | 710.5 | 712.1 | 1.6 | 0.31 | UC |
| | | | 732.3 | 733.0 | 0.7 | 1.85 | B |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-141 | 789.0 | 720.2 | - | - | - | - | |
|_________|__________|____________|________|________|________|____________|___________|
|SHE-141-1| 951.0 | 715.1 | 713.9 | 715.1 | 1.2 | 0.88 | UC |
| | | | 875.9 | 878.8 | 2.9 | 0.22 | B |
| | | | 892.8 | 893.5 | 0.7 | 0.14 | B |
|_________|__________|____________|________|________|________|____________|___________|
† 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.
UEX Corporation
CONTACT: Graham C. Thody
President & CEO
(604) 669-2349