UEX Corporation ("UEX") is pleased to announce that a $3.0 million (CDN) winter 2006 program of diamond drilling and geophysical surveying has commenced at the Black Lake Uranium Project ("Black Lake", the "Project" or the "Property") within the northern Athabasca Basin in Saskatchewan, Canada. Black Lake was the site of a uranium discovery by UEX during 2004 in drill hole BL-18 (see UEX News Release, October 12, 2004). The project is favorably located adjacent to the town of Stony Rapids, which is serviced by Provincial Highway 905 and regular air service, and which is connected to the Saskatchewan power grid.
The Project is a joint venture between UEX, the operator, with a 76.4% interest, and AREVA subsidiary COGEMA Resources Inc. ("COGEMA"), with a minority interest of 23.6%. COGEMA has chosen not to participate in the $3.0 million winter 2006 exploration program, and UEX will take the opportunity to increase its interest in the project by funding 100% of the program. UEX's planned exploration budgets in 2006 for all of its uranium projects in the Athabasca Basin will be approximately $17.0 million.
Highlights of the Black Lake Project
• Mineralization: UEX's 2004 discovery hole BL-18 discovered unconformity-type uranium mineralization in the sandstone, immediately above the Athabasca unconformity. The intercept averaged 0.694 % U3O8 over 4.4 metres between 310.5 and 314.9 metres depth, including 1.96% U3O8 over 0.5 metres.
• Subsequent drilling by UEX encountered significant uranium mineralization in 4 additional holes: BL-23 and BL-32, reported previously, and two new intercepts in the summer/fall 2005 program in holes BL-56 and BL-64 that are reported here for the first time.
• Faulted geophysical conductors: The Property hosts a system of graphitic conductors which extend along strike for at least 20 kilometres, and which is coincident with a significant fault, the Platt Creek Fault zone. The main strand of the fault, termed the Eastern Fault, is spatially associated with the uranium intercepts obtained to date.
• Alteration: Chlorite, dravite, siderite, illite and pyrite alteration associated with anomalous uranium, lead, and boron geochemistry is developed in the sandstone within the Eastern Fault zone. Such assemblages are developed along faults associated with uranium mineralization in other parts of the Athabasca basin.
2005 Summer/Fall Exploration Results
The $1.4 million (CDN) 2005 summer/fall exploration program consisted of an 18-hole diamond drilling program totaling 8,360 metres, a geochemical (MMI) soil sampling program, and a Falcon Gravity Gradiometer airborne geophysical survey. One drill hole that was not completed due to technical difficulties will be re-drilled in 2006. The drilling program was carried out from July to October 2005, testing the extent of the mineralization encountered in discovery hole BL-18, and continuing systematic testing of the graphitic conductors that extend along strike within the Property.
2005 Summer/Fall Diamond Drilling Program
Significant uranium mineralization was encountered in two holes along the Eastern Fault Zone at, or immediately below the Athabasca unconformity. In hole BL-56, located approximately 200 metres south of hole BL-18, mineralization was intersected from 319.9 metres to 322.5 metres, grading 0.22%% U3O8 over 2.9 metres (calculated from geochemical analysis). Hole BL-64, located approximately 600 metres south of BL-18, intersected unconformity-style uranium mineralization similar to that found in hole BL-18, from 338.75 metres to 340.75 metres, grading 0.45% U3O8 over the 2.0 metre interval, including 0.66% U3O8 over 0.5 metres, from 340.25 to 340.75 metres (calculated from geochemical analysis). All core samples were analyzed at Saskatchewan Research Council Geoanalytical Laboratories by ICP, with additional uranium analyses by fluorimetry.
Both of the mineralized holes, and many other holes drilled along the Eastern Fault zone over several kilometers of strike length, encountered faulting with pervasive dravite, pyrite, chlorite and illite alteration and anomalous uranium, lead and boron enrichment in the sandstone up to tens of metres above the unconformity. Together with favorable graphitic basement rocks that were intersected in all of the 18 holes drilled during the program, the anomalous alteration and geochemistry continues to underscore the prospectivity of this fault zone. Compilation and interpretation of the exploration results are ongoing. UEX is encouraged by the latest drilling results and plans to continue systematic drilling of the conductive system on the Property to locate additional uranium mineralization.
2005 Summer/Fall Geochemical Survey
An MMI geochemical sampling program was carried out on the northern Black Lake grid to seek anomalous responses from potential buried mineralization. 551 samples were collected at 25 metre spacing, and analyzed at SGS Laboratories of Toronto, ON. The MMI survey defined three multi-element anomalies. UEX plans to integrate the results of the MMI survey with existing geological and geophysical data to assist in prioritizing targets for its 2006 drilling programs.
2005 Summer/Fall Airborne Geophysical Surveys
To complement the 2005 airborne MEGATEM survey, an airborne Falcon Gravity Gradiometer survey was completed late in 2005 to assist in identifying favorable structures and alteration in the sandstone. The contractor is currently processing the data.
2006 Winter Exploration Program
2006 Winter Diamond Drilling Program
Diamond drilling in the winter of 2006 is designed to follow up mineralized intercepts, and to systematically test the conductive system on the Property in areas interpreted to be prospective. Two drills have been mobilized to drill approximately 25 to 30 holes, totaling about 12,000 metres.
2006 Winter Ground Geophysical Surveys
A program of linecutting and 53.0 kilometres of UTEM III moving loop electromagnetic surveys is underway to better detail the geophysical conductors outlined by the 2005 airborne MEGATEM survey and previous ground electromagnetic surveys. A ground gravity survey is also planned to identify areas of low gravity potentially associated with alteration.
About UEX
UEX is a Canadian uranium exploration company formed under an agreement between Cameco and Pioneer Metals Corporation. Cameco, the world's largest supplier of uranium, is UEX's largest shareholder. UEX began trading on the Toronto Stock Exchange in July 2002 and is actively involved in the exploration and development of 19 uranium projects, including seven that are 100% owned and operated by UEX, one joint ventured with COGEMA that is operated by UEX, ten under option from COGEMA and one under option from Japan-Canada Uranium Company, Limited, which are operated by COGEMA. The 19 projects, totaling 386,650 hectares (955,400 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 30% of global primary uranium production.
The technical information in this document has been compiled and reviewed by Sierd Eriks, P. Geo., a qualified person as defined by National Instrument 43-101. To view a map of Black Lake, please access UEX's website at www.uex-corporation.com
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen
President & C.E.O.
Forward looking statements: This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond UEX's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although UEX believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.
Black Lake Summer 2005 Exploration Results
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Black Lake North Summer 2005 Exploration Results
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