Jul 11, 2007
UEX Commences Summer/Fall 2007 Drilling Programs at the Raven and Horseshoe Deposits: Horseshoe Resource Definition Drilling on Schedule
UEX Corporation ("UEX") is pleased to announce that it has commenced the 2007 summer/fall exploration drilling programs at the Raven and Horseshoe Deposits ("Raven", and "Horseshoe") located within UEX's 100% owned Hidden Bay Project in the eastern Athabasca Basin of northern Saskatchewan. Permits are in place, geologists and drill crews have mobilized to the site, and diamond drilling is under way. Britton Brothers of Smithers, B.C. will continue to provide drilling services to the project. The summer/fall 2007 program will comprise approximately 30,000 metres of drilling to be completed by four drilling rigs.
The majority of the program will be focused at Raven and Horseshoe, where 16,000 metres of drilling is planned 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 as well as test areas where Horseshoe mineralization extends into previously unexplored areas, and a further 8,000 metres is planned at Raven to further trace mineralization continuity for future resource definition and delineate potential new mineralized zones identified by the recently reported winter 2007 drilling program (see UEX News Release, June 14, 2007).
The drilling program at Horseshoe is intended to provide sufficient density of drill spacing to achieve an indicated resource status to allow further progress towards a feasibility study. Golder Associates, who are also performing baseline environmental studies at Raven and Horseshoe, will be performing a resource calculation which is anticipated to be completed in early 2008, once drilling results have been fully received and interpreted. Golder personnel will also be involved in ongoing technical input into the project to ensure all satisfactory steps, and sufficient information are available to provide resource, engineering, metallurgical and environmental components of the planned feasibility study.
In addition to the 24,000 metres of drilling at Raven and Horseshoe, 6,000 metres of helicopter-supported drilling will test outlying targets on the project. Much of this program will be devoted to testing exploration targets in the Wolf Lake area in southern parts of the Hidden Bay Project. Drilling here will follow-up on historically identified areas of alteration and mineralization along two parallel, faulted graphitic conductors beneath a shallow veneer of Athabasca sandstone. Historical drill results from drill holes on widely spaced cross sections in this area include an intersection of 4.0 metres grading 0.204% U3O8 in hole WO-84, and intersections of 0.127% U3O8 over 3.1 metres and 0.21% U3O8 over 1.5 metres in hole WO-25.
Drilling is also planned in the West Rabbit area and Tent-Seal fault system in the central and northern portions of the property. Central portions of the potential source area of a large airborne radiometric and overburden geochemical anomaly will be tested at West Rabbit adjacent to the economically important Rabbit Lake fault. The potential for continuity of mineralization identified on the adjacent McClean Lake property operated by AREVA Resources Canada Ltd ("AREVA"), which may extend along the Tent-Seal fault on to the Hidden Bay property, will also be tested.
About the Raven and Horseshoe Deposits
In 1980, Gulf estimated a total resource at Raven and Horseshoe of 6.7 million tonnes at an average grade of 0.16% U3O8, representing approximately 23 million contained pounds of U3O8. This historical resource estimate was based on widely-spaced drill holes and 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 a 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 technical information in this news release has been compiled by David Rhys, P. Geo., a qualified person as defined by N.I. 43-101.
UEX is a Canadian uranium exploration company formed under an agreement between Pioneer Metals Corporation and Cameco Corporation ("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 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 2007 is $25.0 million, and the Company has a cash position of approximately $67.0 million.
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen, President & C.E.O.
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.