UEX Corporation ("UEX") announced today that AREVA subsidiary AREVA Canada Resources Inc. ("AREVA") has commenced the Fall 2006 drilling program at the Kianna Deposit located within the Shea Creek Uranium Project ("Shea Creek"), the site of a high-grade uranium discovery in July 2005 where subsequent drilling has continued to intersect high-grade mineralization (see UEX News Releases July 13, September 14 and October 11, 2005, and June 6, and August 23, 2006). Shea Creek (Kianna, Anne, and Collette Deposits) is one of ten Western Athabasca projects ("the "Projects") under option to UEX from AREVA totaling 181,509 hectares (448,327 acres) in size that are located in the Athabasca Basin in northern Saskatchewan, Canada.
UEX can acquire a 49% interest in these ten Projects from AREVA, the operator, by funding $30 million (CDN) in exploration expenditures by June 2015. UEX announced on August 8, 2006 that it had earned its second partial interest of 12.25% in the Projects by spending a total of $15.0 million (CDN), increasing its interest to 24.5%.
2006 Shea Creek Fall Drilling Program
Phase I of the 2006 Shea Creek diamond drilling program at the Kianna Deposit completed 13 directional holes and one pilot hole SHE-118 from January to June 2006. Phase II of the 2006 Shea Creek diamond drilling program is now underway at the Kianna Deposit. Two drill rigs have been mobilized, and 10 directional holes are planned from pilot holes SHE-115 and SHE-118 to continue testing the Kianna Deposit along strike for additional high-grade uranium mineralization.
At the Kianna Deposit, high-grade uranium mineralization has been intersected in multiple zones at depths from 665 metres to 917 metres, a vertical distance of approximately 250 metres - located in sandstone high above the unconformity, at the unconformity, and below the unconformity in basement rocks, with unconformity depths ranging from 713 to 758 metres.
To date, the mineralization at the Kianna Deposit has been traced over a strike length of 200 metres and a width of 100 metres, and remains open in all directions. The AREVA-UEX drilling programs of 2004, 2005 and 2006 have outlined three distinct styles of high-grade uranium mineralization:
- Perched ("P"), sandstone-hosted mineralization found in discrete zones tens of metres above the unconformity (previously announced 2005 hole SHE-114-5, 27.4% U3O8 over 8.8 metres, including 58.3% U3O8 over 3.5 metres);
- Unconformity-type mineralization ("UC"), in close proximity to the unconformity (previously announced 2006 hole SHE-115-3, grading 12.57% U3O8 over 11.9 metres, including 27.35% U3O8 over 4.2 metres);
- Basement-hosted mineralization ("B"), found in zones up to 200 metres below the unconformity (previously announced 2005 hole SHE-114-11, grading 5.4% U3O8 over 37.7 metres, including 25.46% U3O8 over 4.0 metres).
The technical information in this news release has been reviewed by Erwin Koning, P. Geo., AREVA's District Geologist, West Athabasca Region, a qualified person as defined by National Instrument 43-101. Mineralized intersections are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.
To view a map of the Kianna Deposit (formerly 63B area) at Shea Creek, please refer to UEX's website at http://www.uex-corporation.com under "Western Athabasca Projects - Shea Creek".
About AREVA
AREVA, a uranium exploration and mining company, is a subsidiary of AREVA Group, a worldwide expert in the energy field with a strong industrial presence in over 40 countries. AREVA Group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the producing McClean Lake Deposits operated by AREVA, the producing McArthur River Deposit operated by Cameco Corporation, and the Cigar Lake Deposit, which is scheduled for production in 2007.
About UEX
UEX is a Canadian uranium exploration company formed under an agreement between Pioneer Metals Corporation and Cameco Corporation. Cameco Corporation, 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 AREVA that is operated by UEX, ten under option from AREVA and one under option from Japan-Canada Uranium Company, Limited, which are operated by AREVA. 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. UEX's exploration budget for 2006 is $19.0 million and the Company has a cash position of approximately $83.0 million.
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.
