AREVA Resources Canada Inc. ("AREVA") and UEX Corporation ("UEX") have commenced the 2012 drilling program on the Shea Creek Project ("Shea Creek") that was announced on November 30, 2011. The program will test open mineralization and prospective target areas along trend at Shea Creek. The project is one of the ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA, the operator. Shea Creek is the most advanced of these projects, for which initial resources were announced in 2010.
Shea Creek Project
Shea Creek hosts a world-class uranium system which includes the Kianna, Anne, Colette and 58B deposits which occur over a strike length exceeding three kilometres along the Saskatoon Lake graphitic conductor in the northern part of the project. The 2012 exploration expenditures are budgeted at $6.0 million of which UEX's 49% share is approximately $2.94 million.
2012 Shea Creek Exploration
The 2012 exploration program will comprise at least 25 drill holes and use two drills to test extensions and open areas of mineralization at the Kianna, Colette and 58B deposits as well as untested portions of the Shea Creek corridor between the 58B and Kianna deposits.
The following areas will be targeted (see Figure 1):
- North Colette: Several drill holes are planned to test the open extensions of thick intercepts of unconformity mineralization encountered in the 2011 program, which includes intervals of 1.28% eU3O8 over 26.0 metres in drill hole SHE-66-2 and 1.22% eU3O8 over 27.9 metres in drill hole SHE-66-3. Mineralization in these drill holes is open to the east and north. Drilling will test the extent of this zone and test for higher grade areas of mineralization within it, as well as evaluate the potential for underlying fault-associated basement mineralization such as is seen at the Kianna Deposit.
- Kianna Deposit: Continued testing of basement mineralization discovered in 2011 which lies north of the main Kianna basement zone is planned. Drilling in 2011 identified a new zone which extends from the north side of the Kianna main basement zone and may join with a second steeply dipping mineralized structure to the north. This new zone, which lies outside of the Kianna mineral resource estimate, has returned broad intercepts of mineralization including 1.28% eU3O8 over 25.1 metres in drill hole SHE-130-4 and 0.81% eU3O8 over 32.0 metres in drill hole SHE 130-12, for which true widths have not yet been determined. The 2012 drilling will target these areas, as well as explore the continuity of higher grade portions of unconformity and basement mineralization to the south.
- 58B Deposit: The 58B Deposit lies between Kianna and Colette, and to date sufficient drilling has not been completed to estimate a mineral resource. Drilling in 2012 will further test basement mineralization where multiple high-grade veins have been intersected, including 6.53% U3O8 over 1.6 metres in drill hole SHE-133-5. Drilling will also test the extent and continuity of overlying unconformity mineralization.
- Area between the 58B and Kianna deposits: The partial definition of the 58B Deposit in 2010 highlighted the significant exploration potential of the Shea Creek mineralization trend along the Saskatoon Lake Conductor. The 700-metre strike length between the Kianna and 58B deposits remains sparsely tested. The possibility exists for the discovery of unconformity mineralization in this area and to potentially connect the Kianna and 58B deposits. Drilling in 2012 is planned for the area immediately south of the 58B Deposit.
Following completion of the 2012 exploration program and the receipt of the geochemical results from that program, UEX intends to update the mineral resource estimate for the Shea Creek deposits incorporating results from 2010, 2011 and 2012.
Further information regarding UEX's projects, including maps and cross sections, is available on UEX's website www.uex-corporation.com
This news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration, and Erwin Koning, P.Geo., AREVA's District Geologist, West Athabasca Region, who are each Qualified Persons as defined by National Instrument 43 101.
About Shea Creek
Effective December 31, 2009, UEX reported a combined mineral resource estimate for the Kianna, Anne and Colette deposits of 1,872,600 tonnes grading 1.54% U3
containing 63.57 million pounds of U3
in the Indicated Mineral Resource category and an additional 1,068,900 tonnes grading 1.04% U3
in the Inferred Mineral Resource category containing 24.53 million pounds of U3
, both at a cut-off of 0.3% U3
(see UEX news release dated May 26, 2010). This mineral resource estimate is based on drilling information up to December 31, 2009. Results from the 2010 and 2011 drilling, which include the discovery of the 58B Deposit and the expansion of the Kianna and Colette deposits, are not incorporated in this mineral resource estimate.
This estimate confirmed Shea Creek as the largest undeveloped uranium resource in the Athabasca Basin. Shea Creek also ranks as the third largest uranium resource in the Basin, exceeded in size only by McArthur River and Cigar Lake. Resources at Shea Creek are largely open and have excellent potential for both expansion of known areas of mineralization and discovery of new zones.
UEX is a Canadian uranium exploration and development company actively involved in 18 uranium projects, including six that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as ten joint-ventured with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 18 projects, totaling 308,320 hectares (761,875 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 17% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its 49%-owned Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin.
UEX's two major projects have mineral resource estimates as follows:
UEX Corporation -- Indicated Mineral Resource Estimates (1) (2) (3)
UEX Corporation -- Inferred Mineral Resource Estimates (1) (2) (3)
|Shea Creek (4)
|Hidden Bay (5)
|Shea Creek (4)
|Hidden Bay (5)
FOR FURTHER INFORMATION PLEASE CONTACT
- The mineral resource estimates follow the requirements of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards.
- The Shea Creek mineral resources were estimated at a cut-off of 0.30% U3O8.
- The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U3O8.
- The Shea Creek mineral resource estimates are included in the Shea Creek Technical Report with an effective date of May 26, 2010 which was filed on SEDAR at www.sedar.com on July 9, 2010.
- The Hidden Bay mineral resource estimates are included in the Hidden Bay Technical Report with an effective date of February 15, 2011 which was filed on SEDAR at www.sedar.com on February 23, 2011.
Graham C. Thody
President & CEO
This news release may contain statements that constitute "forward-looking information" for the purposes of Canadian securities laws. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding UEX's mineral resource and mineral reserve estimates, outlook for our future operations, plans and timing for exploration activities, 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 information. Such forward-looking information is based on certain factors and assumptions and is 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 information. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to interpretation of drill results and geology, additional drilling results, continuity and grade of deposits, participation in joint ventures, reliance on other companies as operators, public acceptance of uranium as an energy source, fluctuations in uranium prices and currency exchange rates, changes in environmental and other laws affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is 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 information. 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.
2012 Shea Creek Drill Targets