VANCOUVER, Feb. 25 /CNW/ - UEX Corporation ("UEX") announced today that AREVA Resources Canada Inc. ("AREVA"), its joint venture partner, has commenced the 2009 drilling program at the Shea Creek Uranium Project ("Shea Creek"), which is located in the western Athabasca Basin of northern Saskatchewan, Canada. Shea Creek hosts the Kianna, Anne, and Colette deposits and is one of the ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA, the operator.
The planned budgets for 2009 at Shea Creek include $8.25 million for exploration and $2.0 million for development. Expenditures under the joint venture are funded 49% by UEX and 51% by AREVA.
UEX also reports that the 25,000 metre winter 2009 drilling program, budgeted at $5.5 million, has been underway since early January with three drills on its 100%-owned Hidden Bay Uranium Project ("Hidden Bay"), which is located in the eastern Athabasca Basin area of northern Saskatchewan. Hidden Bay hosts the Horseshoe, Raven, and West Bear deposits.
2009 Drilling and Exploration Program at Shea Creek
The 2009 diamond drilling program at Shea Creek began in early February with three diamond drills. The principal objectives of the drilling program are as follows:
- To perform infill drilling on the Kianna and Anne deposits at approximately 20-metre centres;
- To extend known mineralization of the two deposits through step-out drilling; and
- To further test the prospective corridor between the Anne and Kianna
deposits.
2009 Development Work at Shea Creek
In 2009, the Shea Creek Project will continue its transition from an exclusive exploration program to include initial development work. A budget of $2 million has been approved for 2009 studies supporting future development work. In addition, baseline data collection and site characterization will continue in 2009 in support of a future Environmental Impact Statement.
2009 Drilling and Exploration Program at Hidden Bay
The winter 2009 drilling program on the Hidden Bay property began in early January with three diamond drills. To date, 53 holes totaling approximately 16,500 metres have been completed. One drill is finishing definition drilling of the Horseshoe Northeast mineralization, and two drills are currently testing extensions of the southwestern end of the Raven Deposit, where additional historical drilling intersections also lie outside of the current Raven Deposit mineral resource. In addition to defining extensions of mineralization in the Horseshoe Northeast and Raven West areas, this program is testing the following:
- Currently open extensions of the eastern part of the Raven Deposit;
- The area between the Raven and Horseshoe deposits where
mineralization was historically intersected;
- The down dip extent of the alteration zones that host the Raven and
Horseshoe deposits; and
- Additional outlying exploration targets where clay alteration
intersected by historical drilling is coincident with resistivity and
gravity anomalies that are comparable with the setting of known
mineralization.
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 joint-ventured with AREVA and one under option from Japan-Canada Uranium Company, Limited, which are operated by AREVA. The 19 projects, totaling 374,513 hectares (925,442 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 23% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne and Colette 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 planned for 2009 total approximately $16.5 million, of which UEX will be responsible for approximately $10.9 million, with additional funds available for potential expansion pending the drilling results.
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen,
President & CEO
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 based on certain factors and assumptions and 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. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, continuity and grade of deposits, fluctuations in uranium prices and currency exchange rates, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the securities commission on SEDAR. 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. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
