Show printable version of 'UEX Launches Largest Winter Drilling Program at Hi...' in a New Window


Jan 17, 2008

UEX Launches Largest Winter Drilling Program at Hidden Bay with Six Drills

UEX Corporation ("UEX") is pleased to announce that a 40,000 metre winter exploration and infill drilling program, budgeted at $8.0 million, is under way on its 100% owned Hidden Bay Uranium Project ("Hidden Bay") in the eastern Athabasca Basin area of northern Saskatchewan. Hidden Bay includes the Raven Deposit ("Raven"), the Horseshoe Deposit ("Horseshoe"), and the West Bear Deposit. Six diamond drill rigs are on site with three operating at Horseshoe, two at Raven, and one to begin shortly at the Shamus and Telephone target areas. All drilling is being performed by Britton Bros. Diamond Drilling Ltd. of Smithers, B.C.

The 2008 winter drilling program will consist of approximately 32,000 metres of infill, stepout and exploration drilling in and around the Raven and Horseshoe Deposits. An additional 8,000 metres of exploration drilling is planned at the Shamus and Telephone target areas. The current complement of six drills and the rate of drilling will allow expansion of the program if favorable results require follow-up.

The first 45 holes from the 2007 Hidden Bay summer/fall drilling program at Horseshoe have been released (see UEX News Releases of October 29, 2007 and January 2, 2008). UEX also completed 5,973 metres of drilling at the Wolf and Tent-Seal target areas. Results from these areas, an additional 44 holes from Horseshoe and 33 holes from Raven will be released in the near future.

2008 Winter Drilling Program at Horseshoe

Approximately 20,000 metres of drilling is planned in and around the Horseshoe Deposit using three drill rigs.

One drill will carry out a 5,500 metre, 25 hole drill program to test the southern parts of the Horseshoe Deposit. This area contains a shallow northwest dipping mineralized zone that is contiguous with the A zone of Horseshoe. The zone is open in many areas to the west, and requires further infill drilling to test continuity of several significant historical intercepts so that it can be included in future Horseshoe resource calculations. It was not possible to test this area during the 2007 summer/fall drilling program due to the local swampy conditions. Cold winter temperatures over the last few weeks have created excellent surface access conditions.

Two additional drills will carry out an extensive 14,500 metre, 44 hole drill program to test the northeastern extensions of the deposit, as well as a series of targets which include resistivity and gravity anomalies, areas of alteration, and prospective faulting in the surrounding area.

While much of the core portions of the Horseshoe deposit have now been drilled to sufficient spacing to enable an indicated resource confidence level, northeastern parts of the deposit are have only been tested by widely spaced (generally 60-100 metre spacing) historical drill holes, and several historical intercepts in that area obtained by Gulf Minerals Canada ("Gulf") in the 1970's suggest that additional mineralized pods may be present. These include intercepts grading 1.06% U3O8 over 2.74 metres in hole HS-61A, 0.78% U3O8 over 2.74 metres in hole HS-49, and 0.74% U3O8 over 1.22 metres in hole HS-59 which lie on the margins of the same large clay alteration zone which is associated with the central Horseshoe deposit. Approximately 20 holes will test the extent of mineralization here.

An additional 24 holes will test targets within a kilometre radius to the north, east, south, and west of the Horseshoe Deposit. These targets include coincident gravity-resistivity anomalies that previous drilling suggests contain similar large areas of clay alteration comparable to that associated with the Raven and Horseshoe mineralization, and structural targets including altered hematite breccias along the Dragon Lake Fault.

The Dragon Lake Fault is known to be associated with uranium mineralization where it intersects the Rabbit Lake Fault a few kilometres to the north adjacent to the past producing Rabbit Lake Deposit.

2008 Winter Drilling Program at Raven

Approximately 13,200 metres of drilling is planned in and around the Raven Deposit using two drill rigs.

One drill will carry out an 8,000 metre, 31 hole drill program of infill and stepout drilling at the Raven Deposit. A second drill will carry out a 5,200 metre, 16 hole drill program to explore for extensions of the deposit down dip to the south.

Drilling at Raven is outlining several stacked, generally stratabound pods which occur in the core of the Raven syncline between depths of 50 and 350 metres below surface. These pods collectively have a linear, east-northeast trend over a strike length of more than 500 metres. The cumulative results from the 2007 summer/fall drilling program yet to be released, and the 2008 drilling program should provide enough information to calculate a National Instrument 43-101 ("N.I. 43-101") compliant resource estimate at the Raven Deposit later in 2008.

2008 Winter Drilling Program at the Shamus and Telephone Areas

One drill will carry out an 8,000 metre drill program at the Shamus and Telephone Areas.

Initial drilling at Shamus will focus on further exploring a large area of alteration in pegmatite within the hangingwall of the Telephone Lake Fault, where previous drilling has intersected multiple mineralized faults in widely spaced holes that have returned grades ranging from 0.1% to 0.46% U3O8 over intervals of several metres, including 0.39% U3O8 over 2.2 metres in hole SHA-20. This target area, in pegmatite associated with fault strands in the hangingwall to a major graphitic fault, is similar to the geological setting and style of the Eagle Point deposit.

Additional holes will test the Telephone Lake Fault itself, including follow-up to previous intercepts in the Telephone grid, where several areas of mineralization are open at depth along the fault.

The Shamus and Telephone grids lie along the southern extensions of the northeast-trending Telephone Lake fault system, a significant fault which to the north is spatially associated with the Sue Deposits on AREVA Resources Canada Inc.'s ("AREVA") adjacent McClean Lake property.

About the Raven and Horseshoe Deposits

Horseshoe and the adjacent Raven Deposit are located less than 5 kilometres south of Cameco Corporation's Rabbit Lake operations, and 12 kilometres southeast of AREVA's 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. Using widely spaced drill holes, 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 22.82 million contained pounds of U3O8 (13.2 million pounds grading 0.17% U3O8 at Horseshoe, and 9.62 million pounds grading 0.14% U3O8 at Raven). These historical resource estimates were not calculated using current Canadian Institute of Mining, Metallurgy and Petroleum standards. As a result, they are not compliant with N.I. 43-101, and should not be relied upon.

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.

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 Resources Canada Inc. ("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 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 25% 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 totaled approximately $30.0 million and are estimated at $40 million for 2008.


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.