UEX Announces Additional $2.0 Million Drilling Budget for Shea Creek 2013 Exploration Program
UEX Announces Additional $2.0 Million Drilling Budget for Shea Creek 2013 Exploration Program
Trading Symbol: UEX-TSX
VANCOUVER, June 4, 2013 /CNW/ - UEX Corporation ("UEX") is pleased to announce an additional 2013 exploration budget for drilling on the Shea Creek Project ("Shea Creek") of $2.0 million. This program will be funded by UEX under the recent agreement signed with AREVA Resources Canada Inc. ("AREVA"), which was announced in UEX's news release dated April 10, 2013.
This 2013 supplemental drilling program of approximately 4,000 metres is designed to test open portions of the high-grade Kianna East mineralized zone as well as open portions of the northern part of the Kianna Deposit ("Kianna North") (see Figure 1 for drilling area). Considerable exploration success was achieved in both of these areas from 2010 through 2012. This program represents a commitment by UEX to further the expansion of mineral resources at the Kianna Deposit ("Kianna").
This supplemental program is in addition to the $3.1 million program announced in March 2013, of which UEX is responsible for funding $1.52 million, consisting of a $0.5 million geophysical program in the northern Colette and southern Anne Deposit areas and a $2.6 million 5,000-metre drilling program south of the Anne Deposit (see Figure 1 and UEX's news release dated March 20, 2013).
The drilling south of the Anne Deposit and in the Kianna area will be conducted concurrently utilizing two drill rigs and will commence in early June 2013. Drilling rigs will be mobilized shortly. The geophysical program commenced in May 2013.
Kianna East represents a shallow southwest-dipping zone of mineralization which lies approximately 80 to 110 metres below and east of the main Kianna basement zone and about 200 metres below the unconformity (see Figure 2). Given the orientation of the drill holes, the Kianna East intercepts lie at or close to true thickness. Significant previous results from drilling at Kianna East, which were incorporated into the recently announced 2013 Mineral Resource Estimate (as defined below), include:
SHE-135-11* 3.59% eU(3)O(8) over 16.0 metres;
SHE-135-13* 3.70% eU(3)O(8) over 18.1 metres;
SHE-118-24** 1.55% eU(3)O(8) over 19.9 metres; and
SHE-135-12** 2.36% U(3)O(8) over 7.0 metres.
* see UEX's news release dated October 15, 2012 ** see UEX's news release dated November 14, 2012 This high-grade zone occurs parallel to and along the top of a southwest-dipping graphitic unit which forms an electromagnetic (EM) anomaly to the east of, and parallel to, the Saskatoon Lake Conductor (see Figure 1 inset). The new zone is open to the northwest, southeast and up dip to the northeast. Drilling will test for the potential of the new basement zone to continue along strike and to extend upward along the graphitic unit toward the unconformity. Kianna North This area, also referred to as the GAMP Zone, includes a zone of mineralization which lies to the north of the main Kianna basement zone and was initially intersected in 2010. During that program, drill hole SHE-136-1 intersected 1.84% eU(3)O(8) over 16.6 metres approximately 50 metres to the north of the main Kianna basement zone. Subsequent drilling intercepts in the area include 1.28% eU(3)O(8) over 25.1 metres in hole SHE-130-4 drilled in 2011. This zone of mineralization, which was incorporated into the 2013 Mineral Resource Estimate, is still open to the east. Additional mineralized intercepts, which lie outside of this resource, define further prospective targets for similar mineralization styles. Recent Developments at Shea Creek Results of drilling at Kianna East and Kianna North were incorporated into the recent updated National Instrument 43-101 independent mineral resource estimate for Shea Creek ("2013 Mineral Resource Estimate") (see UEX's news release dated April 17, 2013) which, at a cut-off grade of 0.30% U(3)O(8), totals: -- 67.66 million pounds of U(3)O(8) in the Indicated mineral resource category comprising 2,067,900 tonnes grading 1.48% U (3)O(8); and -- 28.19 million pounds of U(3)O(8) in the Inferred mineral resource category comprising 1,272,200 tonnes grading 1.01% U (3)O(8). The updated mineral resource estimate reflects the success of UEX and AREVA in expanding Kianna which, together with the contiguous Anne Deposit ("Anne"), represents a substantial portion of the Shea Creek resource. The Anne and Kianna deposits at a cut-off grade of 0.30% U(3)O(8) contain: -- 59.6 million pounds of U(3)O(8) in the Indicated mineral resource category comprising 1,598,500 tonnes grading 1.69% U (3)O(8); and -- 19.5 million pounds of U(3)O(8) in the Inferred mineral resource category comprising 695,600 tonnes grading 1.27% U(3)O (8). The April 4, 2013 agreement with AREVA provides UEX the option to spend up to $18.0 million over the next six years on exploration in addition to the amount agreed to annually by the Western Athabasca Joint Venture ("WAJV"). During the term of this option, UEX will increase its interest in the WAJV projects on a pro-rata basis for exploration amounts expended. UEX can spend up to $4.0 million annually without prior approval of the WAJV, a limit designed to ensure AREVA, the operator, has sufficient personnel to conduct any exploration program put forth. Another feature of the agreement is that the floor level of minimum budgets for the WAJV has been increased during the term of the agreement. UEX may gain not only a further interest of 0.9% in the existing resource, but also up to 49.9% of any further resources discovered. This agreement provides UEX with a multi-year opportunity to build upon past successes with AREVA by continuing exploration intended to expand known Shea Creek resources while concurrently seeking new uranium deposits along the many graphitic conductors identified on the WAJV projects. Further information regarding UEX's projects, including maps and cross sections, is available on UEX's website www.uex-corporation.com. To view Figure 1 (2013 Shea Creek Additional Drilling Program) and Figure 2 (2012 Shea Creek (Kianna East) Drill Results: SHE-118-22 to SHE-118-25 and SHE-135-10 to SHE-135-15), please access this news release on UEX's website at 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 Technical Advisor, Exploration, who are each Qualified Persons as defined by National Instrument 43-101. About UEX UEX is a Canadian uranium exploration and development company actively involved in 17 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 nine joint-ventured with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 17 projects, totaling 264,363 hectares (653,255 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 15% of the global primary uranium production. UEX is currently advancing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its 49%-owned Shea Creek Project, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project. UEX currently has a cash position of approximately $10.4 million. UEX's two major projects have mineral resource estimates as follows: UEX Corporation - Indicated Mineral Resources ((1) (2) (3)) _____________________________________________________________________ | Project | Tonnes | Grade | Total | UEX's share | | | |U(3)O(8) (%)|U(3)O(8) (lbs)|U(3)O(8) (lbs)| |_______________|__________|____________|______________|______________| | Shea Creek ( | 2,067,900| 1.484 | 67,663,000 | 33,154,870 | | (4)) | | | | | |_______________|__________|____________|______________|______________| | Hidden Bay ( |10,372,500| 0.160 | 36,623,000 | 36,623,000 | | (5)) | | | | | |_______________|__________|____________|______________|______________| |TOTAL INDICATED|12,440,400| 0.380 | 104,286,000 | 69,777,870 | |_______________|__________|____________|______________|______________| UEX Corporation - Inferred Mineral Resources ((1) (2) (3) ) _____________________________________________________________________ | Project | Tonnes | Grade | Total | UEX's share | | | |U(3)O(8) (%)|U(3)O(8) (lbs)|U(3)O(8) (lbs)| |________________|_________|____________|______________|______________| |Shea Creek ((4))|1,272,200| 1.005| 28,192,000| 13,814,080| |________________|_________|____________|______________|______________| |Hidden Bay ((5))|1,109,200| 0.111| 2,715,000| 2,715,000| |________________|_________|____________|______________|______________| | TOTAL INFERRED |2,381,400| 0.589| 30,907,000| 16,529,080| |________________|_________|____________|______________|______________| Notes: (1) The mineral resource estimates follow the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards. (2) The Shea Creek mineral resources were estimated at a cut-off of 0.30% U(3)O(8). (3) The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U(3)O(8). (4) The Shea Creek mineral resource estimates are included in the Shea Creek Technical Report with an effective date of May 31, 2013 which was filed on SEDAR at www.sedar.com on May 31, 2013. (5) 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. About AREVA Resources Canada Inc. AREVA, a uranium exploration, mining and milling company, is a subsidiary of AREVA group, the global nuclear industry leader with an expanding presence in the renewable energies field, and 47,000 employees worldwide to help supply safer, cleaner and more economical energy to the greatest number of people. AREVA group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the McClean Lake, Midwest and Shea Creek deposits operated by AREVA, as well as the McArthur River and Cigar Lake deposits operated by Cameco Corporation. AREVA also holds a majority interest in the Kiggavik deposits in Nunavut. Forward-Looking Information 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, intentions and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", "will", "may", 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. Cautionary Note to United States Investors This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral resource" exists or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in-place tonnage and grade without reference to unit measures. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards. Graham C. Thody President & CEO (604) 669-2349 SOURCE: UEX Corporation To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2013/04/c5157.html CO: UEX Corporation ST: British Columbia NI: MNG FIELD ORDER -0- Jun/04/2013 21:00 GMT