UEX Corporation ("UEX") is pleased to announce that the winter 2007 program of diamond drilling and geophysical surveying has commenced at the Black Lake Uranium Project ("Black Lake", or the "Project"), located in the northern Athabasca Basin near Stony Rapids, 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 a joint venture between UEX, the operator, holding a 87.2% interest, and AREVA Resources Canada Inc. ("AREVA"), holding a 12.8% interest, as of December 31, 2006.
2006 Summer/Fall Exploration Results
The 2006 summer/fall exploration program consisted of a 23-hole diamond drilling program totaling 10,830 metres, with one hole abandoned due to technical problems. The drilling program tested the extent of mineralization encountered in discovery hole BL-18, and continued systematic testing of the graphitic conductors within the Project area that are interpreted to be prospective for uranium mineralization.
A ground geophysical survey consisting of 77.0 kilometres of pole-pole resistivity was carried out along the Black Lake conductive system to outline areas of potential alteration that could be associated with unconformity-type uranium mineralization. The use of resistivity surveys in the Athabasca Basin has proved to be a useful exploration tool for mapping alteration in sandstone, especially when applied to a known graphitic conductor system like that at Black Lake. The survey was successful in defining an area encompassing hole BL-18 that exhibits a significant low resistivity anomaly situated above a low magnetic and low gravity signature in the basement rocks. Other similar resistivity lows were detected along strike of the known Black Lake conductor system.
A closely-spaced pattern of drill holes identified an alteration zone striking through the location of hole BL-18 to the northwest, cross-cutting the alignment of the Eastern Fault zone and its coincident conductor system. Three holes located within the alteration zone encountered uranium mineralization at, or immediately above, the Athabasca Group sandstone unconformity:
• BL-109: 0.10% U3O8 over 1.90 metres, from 311.70 to 313.60 metres
• BL-110: 0.79% U3O8 over 2.82 metres, from 309.73 to 312.55 metres
• BL-111: 0.11% U3O8 over 2.90 metres, from 312.50 to 315.40 metres
Following the identification of the alteration zone, now called the "No Red Zone", two drill fences consisting of five holes 200 metres north of BL-18 and four holes 200 metres south of BL-18 were drilled to cordon off the alteration zone and its associated mineralization. Hole BL-119, located on the western end of the North Fence, encountered 600 ppm uranium at the unconformity, with elevated values of arsenic, nickel, copper and cobalt. The area around BL-119 is interpreted to be near the edge of the low resistivity anomaly detected by the geophysical survey, and follow-up drilling is planned.
The other holes drilled in the 2006 summer/fall program did not encounter significant uranium mineralization, but assisted in mapping the graphitic conductor system and alteration in the sandstone. Many previous holes drilled along the Eastern Fault zone over several kilometres of strike length have 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. These are alteration features observed at, or near, unconformity-type uranium deposits. UEX is encouraged by the latest drilling results and plans to continue an optimized drilling program in conjunction with resistivity surveys to search for additional uranium mineralization that may be present along the 20 kilometre-long Black Lake conductor system.
To view a map of Black Lake, please access UEX's website at
www.uex-corporation.com
2007 Winter Exploration Program
A diamond drilling program of approximately 7 to 10 holes totaling about 6,000 metres is underway, and is planned to continue until March 31, 2007.
A program of linecutting and 230 kilometres of ground resistivity and 25 kilometres of detailed magnetic surveys is also underway to better define the character of geophysical conductors outlined by UEX's previous airborne and ground geophysical surveys, and to assist in the delineation of sandstone alteration zones.
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. True widths of mineralized intervals have not yet been determined. All core samples were analyzed at Saskatchewan Research Council Geoanalytical Laboratories by ICP, with additional uranium analyses by fluorimetry.
To view a map of Black Lake, please access UEX's website at
www.uex-corporation.com
About 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;
• Follow-up drilling by UEX has encountered significant uranium mineralization: 2005 holes BL-23, BL-32, BL-56, BL-64 and winter 2006 hole BL-82, all reported previously, and a new intercept in BL-110 during the summer/fall 2006 program drilled within an alteration trend interpreted to be associated with discovery hole BL-18;
• 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 occurs in the sandstone within the Eastern Fault zone. Such assemblages are developed along faults associated with uranium mineralization in other areas of the Athabasca Basin.
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 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 approximately 386,250 hectares (954,040 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 2007 is approximately $25.0 million and the Company has a cash position of approximately $77.0 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 "forward-looking statements" that are based on UEX's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding UEX's outlook for our future operations, plans and timing for the commencement or advancement of exploration activities on our properties, 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 statements. Such forward-looking statements 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 statements. Many of these factors are beyond the control of UEX. Consequently, all forward-looking statements made in this news release are 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 statements. UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
