VANCOUVER, Oct. 29 /CNW/ - UEX Corporation ("UEX") is pleased to announce the results from the first 22 diamond drill holes of approximately 90 holes (30,000 metres) that are anticipated to be completed during the ongoing summer/fall 2007 program at the Horseshoe Deposit ("Horseshoe") located within UEX's 100% owned Hidden Bay Project in the eastern Athabasca Basin area of northern Saskatchewan. Drilling continues to confirm the continuity of mineralization and expand the extent of the Deposit beyond and beneath the limits of historical drilling conducted by Gulf Minerals Canada ("Gulf").
The most significant intercepts in this set of holes include intersections in hole HU-93 grading 0.83% U(3)O(8) over 23.0 metres, hole HU-99 grading 1.86% U(3)O(8) over 8.3 metres, hole HU-101 grading 0.80% U(3)O(8) over 22.3 metres, and hole HU-102 grading 0.68% U(3)O(8) over 21.0 metres. Due to the positive development of the greater than anticipated extent of mineralization at the deposit which has required further drilling, final results of the drilling program are now not anticipated until January 2008, which will delay final resource disclosure at Horseshoe until late in the first quarter of 2008. The UEX drilling program is encountering higher grades, wider intersections, better continuity and an overall greater extent of mineralization at Horseshoe than the historically determined mineralized areas outlined by Gulf in the 1970's.
Horseshoe and the adjacent Raven Deposit ("Raven") are located less than 5 kilometres south of Cameco Corporation's Rabbit Lake operations, and 12 kilometres southeast of AREVA Resources Canada Inc.'s ("AREVA") McClean Lake operations. Both deposits are hosted by competent basement rocks that could be amenable to both open-pit and conventional underground ramp access mining methods, pending a positive feasibility study. In 1980, Gulf estimated a total resource at Raven and Horseshoe of 6.7 million tonnes at an average grade of 0.16% U(3)O(8), representing approximately 23 million contained pounds of U(3)O(8). This historical resource estimate based on widely-spaced drill holes was not calculated using current Canadian Institute of Mining, Metallurgy and Petroleum categories and no current resource or reserve competence categories were applied. As a result, such resource estimate is not compliant with N.I. 43-101 and should not be relied upon.
To view maps and cross sections of Raven and Horseshoe, please access UEX's website at www.uex-corporation.com under "Projects - Eastern Athabasca - Hidden Bay".
"The historical resource at the Horseshoe Deposit is approximately 13.2 million pounds of U(3)O(8) grading 0.17% U(3)O(8). Our extensive drilling and in-house modeling suggest this resource has been understated both in its grade and contained pounds," said Stephen Sorensen, President and CEO of UEX. "We are confident that our work will be confirmed by Golder Associates who should complete a National Instrument 43-101 compliant resource estimate on the Horseshoe Deposit in early 2008." Sorensen went on to say that "the historical resource at the Raven Deposit is approximately 9.62 million pounds of U(3)O(8) grading 0.14% U(3)O(8). Our goal is not only to confirm the resource at Raven, but to expand on it as we believe we have done at Horseshoe."
In addition to the drilling program reported below, Golder Associates ("Golder") is in the latter stages of an environmental baseline study, and has also undertaken initial geotechnical work towards a feasibility study. Two HQ-diameter drill holes have just been completed at Horseshoe to provide representative samples for metallurgical testing from two of the largest zones: the A and BE Zones. The metallurgical work is being supervised by Melis Engineering Ltd. of Saskatoon, Saskatchewan, and will provide (greater than)100 kilogram samples for comprehensive metallurgical testing of different styles of mineralization in the deposit. As previously reported, initial test work on three drill core reject composite samples revealed low levels of deleterious elements and obtained over 97% uranium extraction under mild acid leach conditions.
Raven and Horseshoe Potential Future Tailings Management Facilities
In recognition of the potential limited future tailings facility capacity at operating mills in the area, UEX has also requested that Golder assess the economic benefit of an assumption that following open-pit mining of the Raven and Horseshoe Deposits, the final pits would be used as tailings management facilities. Given the basement hosted nature of the Raven and Horseshoe Deposits, overall strength of the host rocks encountered during drilling, and lack of overlying Athabasca sandstone cover, it is anticipated that the ground conditions and low permeability host rocks to the deposits could be highly amenable to such a use and may increase the value of the project.
To view a map of Hidden Bay area uranium mines, mills, deposits and tailings management facilities please access UEX's website at www.uex-corporation.com under "Projects - Eastern Athabasca - Hidden Bay".
Horseshoe Deposit Results
UEX's ongoing drilling program at the Horseshoe Deposit is designed to further define the extent of Horseshoe mineralization to provide the basis for a National Instrument 43-101 ("N.I. 43-101") compliant resource estimate, and to test areas where Horseshoe mineralization extends into previously unexplored areas. The set of holes reported here is largely infill drilling which is intended to bring a significant portion of the upcoming resource calculation at Horseshoe into an indicated category, providing a resource with sufficient confidence levels to support the basis of a feasibility study. In addition to the 22 holes reported here, another 68 holes should be completed on Horseshoe by the end of November for a total of approximately 90 holes (30,000 metres) during the program. Analytical results from the remaining holes will be reported when received. This drilling program is larger than previously reported in the June 2007 news release since drilling continues to expand the dimensions of the deposit. Many subsequent holes have now traced mineralization into previously untested areas, often beneath or between areas of drilling historically conducted by Gulf, with mineralization still open in northeastern portions of the deposit. Preliminary, interpretation of the current drilling indicates that in addition to the A and B Zones which were previously reported, several newer pods of mineralization have been discovered, which include the A1, A2, BE (B east), and C Zones. Cross sections illustrating the geometry of these zones have been placed on UEX's website under Projects, East Athabasca - Hidden Bay property.
Many significant drill intercepts were obtained from the initial summer/fall 2007 Horseshoe drill holes. Those composited to grades of at least 0.05% U(3)O(8) with a grade-thickness product of greater than 0.1 are listed in Table 1. Some of the most significant of these intercepts include the following:
- 0.39% U(3)O(8) over 7.0 metres in hole HU-91 (A zone, section 4665N)
- 0.15% U(3)O(8) over 12.0 metres in hole HU-92 (A east zone, section
4665N)
- 0.83% U(3)O(8) over 23.0 metres in hole HU-93 (A zone, section 4626N)
- 0.22% U(3)O(8) over 25.4 metres in hole HU-98 (BE zone, section
4682N)
- 1.86% U(3)O(8) over 8.3 metres in hole HU-99 (A zone, section 4626N)
- 0.28% U(3)O(8) over 38.8 metres in hole HU-100 (A zone, section
4593N)
- 0.80% U(3)O(8) ove 22.3 metres in hole HU-101 (A zone, section 4611N)
- 0.68% U(3)O(8) over 21.0 metres in hole HU-102 (A2 zone, section
4682N)
- 0.37% U(3)O(8) over 11.4 metres in hole HU-103 (BE zone, section
4724N)
- 0.12% U(3)O(8) over 17.9 metres in hole HU-104 (A zone, section
4570N)
- 2.20% U(3)O(8) over 4.3 metres in hole HU-106 (A zone, section 4626N)
- 0.18% U(3)O(8) over 31.0 metres in hole HU-107 (BE zone, section
4740N)
- 0.32% U(3)O(8) over 15.0 metres in hole HU-108 (A east zone, section
4665N)
- 0.18% U(3)O(8) over 50.4 metres in hole HU-109 (BE zone, section
4740N)
- 0.36% U(3)O(8)over 20.4 metres in hole HU-111 (A zone, section 4626N)
- 0.31% U(3)O(8) over 16.1 metres in hole HU-112 (BW zone, section
4682N)
Highest grades encountered within these intervals include 18.9% U(3)O8 over 0.2 metres at 163.2 metres in hole HU-100, 10.3% U(3)O8 over 0.5 metres at 180.9 metres in hole HU-93, and 9.4% U(3)O(8) over 0.6 metres at 187.0 metres in hole HU-99. Drill holes reported here from the A zone are mainly infill holes which further confirm the continuity and grade of that portion of the deposit, and with additional holes for which assays are pending now have tested the central portions of the A zone at a drill spacing of at least 15 m. Drill holes in the BE, A1 and A2 zones reported here are the initial set of infill holes which are defining the grade and morphology of these zones at 15-30 m drill spacing. While true widths of mineralized intervals have not yet been determined, drill core axis angles and continuity of mineralization between drill holes suggest that the vertical to steep angle of drill holes crosses the shallow-dipping mineralized zones at a high angle, which is close to true thickness.
Mineralization at Horseshoe comprises zones of hematization with disseminated and veinlet pitchblende-boltwoodite-uranophane mineralization within arkosic quartzite gneiss. The zones dip shallowly, have an overall plunge to the northeast, and occur at depths of between 120 and 450 m below surface. Two mineralization styles are now apparent: a) veinlet and nodular pitchblende + boltwoodite-uranophane in clay alteration, comprising most of the A Zone, and which contains locally very high grades, and b) disseminated pitchblende in hematite or chlorite altered arkosic quartzite. The latter mineralization style has consistent grades typically ranging between 0.15 and 0.3% U(3)O(8), is often developed over broad intervals, and comprises most of the BE and other zones to the northeast. The two recently completed HQ diameter holes are for metallurgical tests from each style of mineralization.
Continuing summer/fall 2007 exploration programs at Hidden Bay
A total of five drills are currently operating at Horseshoe and Raven, with three drills testing the northern sections of the Horseshoe Deposit. Drilling has now commenced with two drills at the Raven deposit located approximately one kilometre southwest of Horseshoe, and will be ramped up during the latter part of the program as drills become available from Horseshoe. The program here was delayed due to drill availability and the expanded focus on defining the Horseshoe deposit. Drilling here will comprise a combination of stepout and infill drill holes to test the continuity and extent of mineralization there to enable a 2008 resource calculation. This program follows up a successful winter 2007 drilling program at Raven, the results of which suggest the presence of at least three stacked, linear zones. Initial infill drilling of the current program appears to be confirming this interpretation. It is anticipated that approximately 40,000 metres of drilling will have been completed at Raven and Horseshoe during this program.
In addition to the drilling at the Horseshoe and Raven Deposits, the summer/fall 2007 exploration programs at the Wolf Lake and Tent-Seal target areas were recently completed using a helicopter based drill. Approximately 6,000 metres of drilling was completed in these project areas which was designed to follow up on mineralization and favorable geological settings identified by historic drill holes. Results will be reported when assays are received and fully interpreted.
Sample Handling and Quality Assurance
Geochemical samples are selected with the aid of a hand-held scintillometer to identify areas of above-background radioactivity. Samples are split, with half remaining in the core box, and the remainder shipped to Saskatchewan Research Council Geoanalytical Laboratories ("SRC") where they are crushed and ground to minus 106 microns. The pulp is digested in aqua regia leach and analyzed by ICP for uranium and other elements. In addition to the geochemical analyses, down-hole probe radiometric results, obtained for all drill holes on completion of drilling, provide an independent check of the geochemical data. Probe results can be used for grade calculations where poor ground conditions occur and drill core recoveries are low, although at Raven and Horseshoe recoveries are generally at, or close to, 100%. UEX has commenced systematic insertion of sample blanks and standards of several grades into the sample stream. In addition, repeat analyses are routinely analyzed, laboratory standards are inserted by SRC, and selected sample pulps have been submitted to other independent laboratories for check analyses to assess sample repeatability and accuracy of the SRC results.
The technical information in this news release regarding Raven and Horseshoe has been compiled by David Rhys, P. Geo., a Qualified Person as defined by N.I. 43-101.
About UEX
UEX is a Canadian uranium exploration and development company actively involved in 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 26% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Anne and Kianna Deposits at its Shea Creek Uranium Project, a joint venture with AREVA in the western Athabasca Basin, and the West Bear, Raven and Horseshoe deposits located at its 100% owned Hidden Bay Project in the eastern Athabasca Basin. UEX's exploration and development budgets for 2007 total $28.0 million, and the Company has a cash position of approximately $58.0 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.
Table 1.
Summer/Fall 2007 Horseshoe Drilling Program
Significant Intersections from Drill Holes HU-091 to HU-112
Only intervals with composite grades greater than 0.05% U(3)O(8) and a
grade-thickness product greater than 0.1 are listed below. All analyses
were performed by SRC by ICP.
-------------------------------------------------------------------------
Hole Section Depth of Hole From To Length Avg. Grade
(North) (metres) (metres) (metres) (metres) (% U(3)O(8))
-------------------------------------------------------------------------
HU-91 4665 281 173.30 174.50 1.20 0.091
HU-91 187.00 194.00 7.00 0.393
HU-91 221.00 223.10 2.10 0.205
-------------------------------------------------------------------------
HU-92 4665 311 162.00 164.00 2.00 0.114
HU-92 215.00 227.00 12.00 0.150
HU-92 243.00 245.50 2.50 0.279
HU-92 289.00 291.00 2.00 0.073
-------------------------------------------------------------------------
HU-93 4626 220 179.60 202.60 23.00 0.827
HU-93 including 180.90 181.40 0.50 10.257
HU-93 including 196.60 197.60 1.00 4.857
-------------------------------------------------------------------------
HU-94 4700 324 249.00 254.60 5.60 0.152
HU-94 259.20 274.00 14.80 0.092
HU-94 including 260.50 262.50 2.00 0.277
HU-94 293.70 295.40 1.70 0.157
-------------------------------------------------------------------------
HU-95 4626 233 217.60 221.80 4.20 0.098
HU-95 224.70 226.00 1.30 0.918
-------------------------------------------------------------------------
HU-96 4650 209 140.60 142.00 1.40 0.151
HU-96 172.00 174.00 2.00 0.064
HU-96 181.60 186.00 4.40 0.132
-------------------------------------------------------------------------
HU-97 4650 221 99.50 107.00 7.50 0.105
HU-97 119.00 121.00 2.00 0.241
HU-97 141.00 141.80 0.80 0.191
-------------------------------------------------------------------------
HU-98 4682 327 194.00 219.40 25.40 0.222
HU-98 including 209.50 219.40 9.90 0.406
HU-98 including 236.70 243.50 6.80 0.402
HU-98 236.70 258.00 21.30 0.186
-------------------------------------------------------------------------
HU-99 4626 220 182.30 190.60 8.30 1.861
HU-99 including 185.10 188.20 3.10 4.198
-------------------------------------------------------------------------
HU-100 4593 206 153.00 195.10 38.80(*) 0.277(*)
HU-100 including 162.80 164.00 1.20 3.450
HU-100 including 171.40 173.00 1.60 2.133
-------------------------------------------------------------------------
HU-101
(**) 4611 221 162.10 184.40 22.30 0.798(**)
HU-101 including 169.00 171.30 2.30 1.905
HU-101 including 176.00 178.20 2.20 3.872
-------------------------------------------------------------------------
HU-102 4682 330 196.50 203.50 7.00 0.906
HU-102 223.00 244.00 21.00 0.684
HU-102 including 229.00 234.50 5.50 1.569
HU-102 256.00 264.00 8.00 0.097
-------------------------------------------------------------------------
HU-103 4724 354 231.00 236.60 5.60 0.180
HU-103 275.00 278.00 3.00 0.385
HU-103 300.00 307.00 7.00 0.061
HU-103 320.60 332.00 11.40 0.374
-------------------------------------------------------------------------
HU-104 4570 221 136.80 138.80 2.00 0.096
HU-104 140.30 141.80 1.50 0.083
HU-104 147.80 149.60 1.80 0.062
HU-104 151.60 169.50 17.90 0.120
HU-104 177.30 178.40 1.10 0.121
HU-104 196.30 200.60 4.30 0.092
-------------------------------------------------------------------------
HU-105 4682 315 135.00 141.00 6.00 0.053
HU-105 152.50 154.00 1.50 0.222
HU-105 236.00 237.90 1.90 0.078
-------------------------------------------------------------------------
HU-106 4626 236 180.80 185.10 4.30 2.201
HU-106 211.50 213.65 2.15 0.124
-------------------------------------------------------------------------
HU-107 4740 475 296.00 327.00 31.00 0.176
HU-107 352.40 353.30 0.90 0.156
-------------------------------------------------------------------------
HU-108 4665 374 251.80 266.80 15.00 0.324
HU-108 317.80 319.80 2.00 0.111
-------------------------------------------------------------------------
HU-109 4740 476 272.80 274.80 2.00 0.057
HU-109 277.60 328.00 50.40 0.184
HU-109 including 286.00 298.60 12.60 0.339
HU-109 363.00 373.00 10.00 0.117
-------------------------------------------------------------------------
HU-110 4682 320 172.00 173.50 1.50 0.055
HU-110 186.00 189.00 3.00 0.087
HU-110 266.00 267.50 1.50 0.074
HU-110 275.50 276.50 1.00 0.366
-------------------------------------------------------------------------
HU-111 4626 231 163.50 183.90 20.40 0.362
HU-111 179.20 183.90 4.70 1.273
HU-111 204.60 206.70 2.10 0.416
-------------------------------------------------------------------------
HU-112 4682 296 237.00 238.00 1.00 0.211
HU-112 242.80 258.90 16.10 0.305
-------------------------------------------------------------------------
(*) includes 3.30 metres not analyzed, and here composited at zero grade:
sampling to be completed
(**)two samples over 1.3 m are still at the lab and should increase the
grade of this intercept slightly since they are currently included at
0 grade
%SEDAR: 00017609E
For further information: UEX CORPORATION, Suite 1007 - 808 Nelson Street, Vancouver, B.C., Canada, V6Z 2H2, PH: (604) 669-2349, FAX (604) 669-1240, Website: www.uex-corporation.com, email: uex@intergate.ca
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