UEX Corporation ("UEX") is pleased to announce that a winter exploration program of ground geophysical surveying has begun on its 100%-owned Northern Athabasca Uranium Projects ("Northern Projects") in the northern Athabasca Basin of Saskatchewan, totaling 83,758 hectares (206,900 acres). The Northern Projects were recently surveyed, in conjunction with UEX's adjacent Black Lake and Riou Lake Uranium Projects, using Fugro's MEGATEM(r) (airborne electromagnetics/magnetics) system and BHP Billiton's FALCON(r) (airborne gravity/radiometrics) system, with the surveys costing approximately $660,000 (CDN) and $590,000 (CDN), respectively.
The Northern Projects, located on the northern rim of the Athabasca Basin between Stony Rapids and Fond du Lac, Saskatchewan, were staked by UEX in late 2004 (see UEX news release January 26, 2005) following a uranium discovery at the Black Lake Uranium Project (see UEX News Release October 12, 2004), a joint venture between UEX and AREVA subsidiary COGEMA Resources Inc. ("COGEMA"). The Black Lake discovery renewed interest in the northern part of the Athabasca Basin, with its numerous uraniferous occurrences such as radioactive boulders, radioactive springs, and lake sediment and uranium-in-till anomalies. The Northern Projects are in their "grass-roots" stage of exploration and form an integral part of UEX's strategy of maintaining a steady stream of new exploration properties to augment its diverse portfolio of projects.
UEX's five Northern Projects are:
• Butler Lake Project - 19,648 hectares (48,531 acres)
• Fond du Lac Project - 16,838 hectares (41,590 acres)
• Otherside River Project - 12,762 hectares (31,522 acres)
• Munroe Lake Project - 18,275 hectares (45,139 acres)
• Jacques Point Project - 16,235 hectares (40,100 acres)
2005 Northern Projects Exploration Results
During 2005, UEX completed MEGATEM and FALCON airborne geophysical surveys providing blanket coverage to the five Northern Projects as well as to UEX's adjacent Black Lake and Riou Lake Uranium Projects. Both of these airborne systems represent leading-edge technology and are effective methods to explore new terrains for uranium deposits.
MEGATEM is a deep-penetrating, fixed-wing airborne electromagnetic ("EM") system with excellent depth penetration. MEGATEM's EM data, along with the magnetic data collected in conjunction with the EM survey, is used to locate graphitic conductors within favourable pelitic basement rocks - two essential geological features associated with uranium deposits in the Athabasca Basin. These conductive target areas are then followed-up using detailed ground or helicopter-borne geophysical surveys. FALCON is a fixed-wing airborne gravity gradiometer system that precisely measures minute changes in the earth's gravity, reflecting density variations below the surface. Such density variations may represent fault structures or zones of altered sandstone generally associated with uranium deposits in the Athabasca Basin.
The MEGATEM survey identified several target areas on UEX's Northern Projects. The FALCON survey was only recently completed and the data is at present being processed. Exploration programs to follow up these surveys are planned for 2006 and beyond.
2006 Northern Projects Exploration Programs
A winter program of approximately 80 line kilometres of fixed-loop, time-domain electromagnetic and magnetic surveying is planned on UEX's 100%-owned Butler Lake Project ("Butler Lake"). The Butler Lake 2006 winter program is the first to follow-up conductive trends identified by the 2005 MEGATEM airborne survey and represents the beginning of the next stage of exploration on UEX's Northern Projects. The conductive trend (BTL-1) covered by the Winter 2006 geophysical grid at Butler Lake is one of three identified by the MEGATEM survey and was selected as the first to be followed-up due to its relatively easy access from Stony Rapids and close proximity to UEX's other winter exploration programs at the Black Lake and Riou Lake Uranium Projects. The conductive trend also lies in an up-ice direction from a radioactive, highly-altered sandstone boulder found during a 1980 prospecting program by Saskatchewan Mining and Development Corporation ("SMDC"), one of the predecessor companies of Cameco Corporation ("Cameco"). This boulder lies on what is now UEX's Fond du Lac Project.
UEX plans to follow-up other MEGATEM conductive trends with future geophysical programs designed on the basis of an integrated interpretation of the MEGATEM and FALCON airborne surveys and historical drillhole data. These follow-up programs may include detailed surveying using ground geophysics or helicopter-borne systems, when and where ground follow-up is impractical and the sandstone cover is less than 300 metres thick. Historical drillhole data suggests that the maximum depth to basement in the area is approximately 300 metres. UEX plans to drill test as many of the most prospective targets as possible during the summer of 2006 as part of a helicopter-assisted exploration program.
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 access maps depicting UEX's Northern Athabasca projects, please visit UEX's website at www.uex-corporation.com under "Projects -- Northern Athabasca" and "Map Gallery".
About UEX's Northern Projects
The northern rim of the Athabasca Basin is relatively underexplored compared to its southeastern and western regions, where uranium mines were discovered and developed beginning in the late 1960s. In the 1970s, explorers such as Eldorado Nuclear Ltd., SMDC (both predecessor companies of Cameco), Amok Ltd. (a predecessor company of COGEMA) and Marline Oil carried out prospecting and sampling programs, airborne electro-magnetic and radiometric surveys, and limited drilling programs in the northern Basin. Numerous uraniferous occurrences such as radioactive boulders, radioactive springs, and lake sediment and uranium-in-till anomalies were found during that exploration era. However, the discovery of large, high-grade deposits in the southeastern part of the Athabasca Basin such as Cigar Lake in 1981 and McArthur River in 1988 diverted exploration funds away from the northern rim, and areas that had been blanket-staked in the 1970s gradually lapsed.
About UEX
UEX is a Canadian uranium exploration company formed under an agreement between Pioneer Metals Corporation and Cameco. 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 venture 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 the global primary uranium production.
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.
Northern Project Map
click to enlarge
