Trading Symbol: UEX-TSX
VANCOUVER, Feb. 9 /CNW/ - UEX Corporation ("UEX") is pleased to announce final drilling results from the fall 2008 drilling program at the Horseshoe Deposit ("Horseshoe"), which is located within UEX's 100%-owned Hidden Bay Project in the eastern Athabasca Basin of northern Saskatchewan, Canada. The program mainly comprised definition and stepout drilling in the Horseshoe Northeast area, which lies outside and to the northeast of the existing resource for the Horseshoe Deposit. Results include intercepts of 0.57% U(3)O(8) over 23.0 metres in hole HU-289, and 0.26% U(3)O(8) over 41.5 metres in hole HU-302, both of which lie in the Horseshoe Northeast area. In addition, several holes were drilled in portions of the Horseshoe resource area to upgrade areas previously classified as Inferred resources to Indicated status.
"These new zones of mineralization will further expand our large resource base at Hidden Bay, and bolster our 2009 goal of establishing resources of 40 million pounds of U(3)O(8) at this project," said Stephen Sorensen, President and CEO of UEX.
As previously reported in the January 5, 2009 news release, the Horseshoe, Raven, and West Bear deposits collectively contain, at a cutoff grade of 0.05% U(3)O(8), National Instrument 43-101 ("N.I. 43-101") compliant resources that include 7,624,414 tonnes grading 0.175% U(3)O(8), which contain 29,425,500 pounds U(3)O(8) in the Indicated category, and a further 805,200 tonnes grading 0.144% U(3)O(8) in the Inferred category containing 2,560,000 pounds of U(3)O(8). Within these combined resources, the resources for the Horseshoe Deposit comprise 3.58 million tonnes grading 0.24% U(3)O(8) in the Indicated category containing 18.69 million pounds of U(3)O(8), and 0.31 million tonnes grading 0.21% U(3)O(8) in the Inferred category containing 1.43 million pounds of U(3)O(8). Resources for both deposits were estimated by K. Palmer of Golder Associates Ltd. ("Golder"). The Horseshoe resources are documented in a technical report dated November 13, 2008 which is filed on SEDAR. An updated report also containing the Raven Deposit ("Raven") resource will be filed shortly on SEDAR.
The results reported here pertain to drill holes completed since September 1, 2008, which includes 49 diamond drill holes totaling 15,369 m, comprising hole numbers HU-261 to HU-309 inclusive. Drill holes before that date (numbered up to HU-259 and RU-160) have been incorporated into the Horseshoe and Raven resources mentioned above. Results for these preceding drill holes are summarized in the N.I. 43-101 technical report pertaining to the Horseshoe and Raven deposits that is filed on Sedar, dated November 12, 2008, and entitled Technical Report on the Geology of, and Drilling Results from, the Horseshoe and Raven Uranium Deposits, Hidden Bay Property, Northern Saskatchewan.
Horseshoe Northeast Drilling Results
Drilling in the Horseshoe Northeast area targets areas of historically known, but poorly defined, mineralization intersected by Gulf Minerals Canada ("Gulf") in the 1970s which lie 50 to 250 metres to the northeast of the current Horseshoe resource area. In addition, exploration drilling targeting potential up and down dip extensions of clay alteration known to be associated with uranium mineralization was completed during this program. A total of 37 drill holes comprising 12,105 metres were completed in this area between September and November 2008, providing a first pass of widely spaced drill holes on approximately 60-metre spaced cross sections. Significant drilling intercepts are listed in Table 1; highlights include the following:
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- 0.051% U(3)O(8) over 54.0 metres in hole HU-267 (section 4954N)
- 0.580% U(3)O(8) over 7.7 metres in hole HU-289 (section 4805N)
- 0.567% U(3)O(8) over 23.0 metres, also in hole HU-289, including
1.903% U(3)O(8) over 3.7 metres (section 4805N)
- 1.493% U(3)O(8) over 1.3 metres in hole HU-298 (section 4870N)
- 0.098% U(3)O(8) over 37.8 metres in hole HU-301 (section 4870N)
- 0.258% U(3)O(8) over 41.5 metres in hole HU-302, including 3.985%
U(3)O(8) over 0.7 metres (section 4870N)
- 0.066% U(3)O(8) over 41.2 metres, and 0.078% U(3)O(8) over 17.8
metres in hole HU-308 (section 4915N)
>>
True thickness and morphology of the mineralization associated with these intercepts has yet to be defined. These and the additional intercepts listed in Table 1 are interpreted to outline two principal pods of mineralization which lie beyond the current Horseshoe resources. The first includes a possible reappearance of the B East zone which drilling had previously suggested was terminating at section 4785N, or alternatively a new associated pod, at depths of 300 to 400 metres below surface, represented by intercepts in holes HU-289 and HU-302 which lie 30 to 100 metres northeast of the current resource outline. A second significant zone, which lies at shallower depths of 80 to 250 metres below surface, and 130 to 250 metres to the northeast of the current resource, is a broad lower-grade zone which is represented by intercepts in drill holes HU-267 and HU-308. Mineralization style in both zones is similar to that intercepted in other parts of the Horseshoe Deposit, defined by nodular and disseminated pitchblende-uranophane-boltwoodite mineralization in hematite alteration adjacent to clay alteration zones which are hosted by folded, competent arkosic quartzite gneiss, and quartzite. Drilling in the current winter 2009 program, which commenced in early January 2009, is following up and defining the extent of mineralization in these areas. Drill holes HU-263 to HU-266 and HU-271 to HU-280 tested exploration targets outside of the areas of known Gulf historical intercepts, but did not intersect any significant mineralization.
Horseshoe Infill Drilling Results
Widely spaced drill holes in the Horseshoe S2 zone precluded much of this zone from being classified as Indicated status in the recent Horseshoe resource estimate. To better define this zone, which lies just southwest of the higher grade Horseshoe A zone, 11 holes were drilled in October 2008. These holes successfully defined the extent of the zone and confirmed its continuity, with several intercepts returning higher grades than adjacent drill holes in the resource. In addition, one hole, HU-297, was also drilled to better define the Horseshoe C zone and overlying B zones. In total, 12 holes comprising 3,264 metres were completed. Significant results are as follows, and additional composites are listed in Table 1:
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- 0.358% U(3)O(8) over 5.6 metres in hole HU-270 (S2 zone, section
4516N)
- 0.885% U(3)O(8) over 7.6 metres in hole HU-282 (S2 zone, section
4495N)
- 0.073% U(3)O(8) over 37.7 metres in hole HU-284 (S2 zone, section
4495N)
- 0.457% U(3)O(8) over 7.3 metres in hole HU-286 (S2 zone, section
4520N)
- 0.229% U(3)O(8) over 8.0 metres in hole HU-288 (S2 zone, section
4520N)
- 0.225% U(3)O(8) over 34.2 metres in hole HU-291 (S2 zone, section
4520N)
- 0.176% U(3)O(8) over 25.0 metres in hole HU-297 (BE zone, section
4715N)
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These results will be incorporated into the Horseshoe wireframe model, and will form part of a global Horseshoe resource update that will include the Horseshoe Northeast results once the current drilling program is completed, which is expected to be in April 2009. The mineralization in these intercepts occurs in shallow dipping lenticular zones, so the intercepts do approximate true thickness since they cross these zones at a high angle.
Winter 2009 Drilling Program
The winter 2009 drilling program on the Hidden Bay property is now well underway utilizing three diamond drills operated by Driftwood Diamond Drilling Ltd. of Smithers, B.C. Two drills are currently defining the Horseshoe Northeast mineralization, and a third drill is testing extensions of the southwestern end of the Raven Deposit, where additional historical drilling intersections also lie outside of the current Raven resource. The current winter program is budgeted at $5.5 million, which will include approximately 25,000 metres of drilling. In addition to defining extensions of mineralization in the Horseshoe Northeast and Raven West areas, this program will also test the following:
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- Currently open extensions of the eastern part of the Raven Deposit;
- The area between the two 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.
>>
UEX intends to update its existing, previously disclosed N.I. 43-101 compliant resources on the Horseshoe and Raven deposits after the completion and receipt of all geochemical data from the winter drilling program. With over 90% of resources at Horseshoe and Raven already in the Indicated category, metallurgical studies completed on both deposits, environmental baseline studies underway, and initial geotechnical work completed, UEX is well advanced in addressing components of upcoming scoping and feasibility studies which will commence fully once the global resource is completed after the winter drilling program.
About the Horseshoe and Raven Deposits
Mineralization at the Horseshoe and Raven deposits comprises shallow dipping zones of hematization with disseminated and veinlet pitchblende-boltwoodite-uranophane that are hosted by folded arkosic quartzite gneiss. Mineralization comprises a combination of disseminated pitchblende-chlorite-hematite, and narrower, higher grade nodular and veinlet pitchblende in hematite-clay alteration. Mineralization in the resource area at Horseshoe has been defined to date continuously over a strike length of approximately 600 metres and a dip length of up to 300 metres, occurring at depths of 100 to 420 metres below surface. At Raven, which lies 0.5 kilometres west of Horseshoe, mineralization in the current resource has been defined over a strike length to date of approximately 700 metres at depths below surface of 100 to 300 metres in two dominant, subhorizontal zones. 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. The deposits are located less than 5 kilometres south of Cameco Corporation's Rabbit Lake operations, and 12 kilometres southeast of AREVA Resources Canada Inc.'s ("AREVA") McClean Lake operations.
Raven and Horseshoe mineralization comprises pitchblende and other uranium oxides and silicates without potentially deleterious nickel-arsenide minerals that may affect extraction and pose tailings disposal problems. As reported in the September 29, 2008 news release, representative samples derived from composited drill core assay rejects from the Horseshoe Deposit, and from three HQ diameter metallurgical holes from both the Horseshoe and Raven deposits, have undergone preliminary testing for leach and effluent treatment conditions and grindability analysis under the direction of Melis Engineering Ltd. at SGS Lakefield Research Limited in Lakefield, Ontario. Leaching tests on composites indicate that the uranium in the Horseshoe and Raven deposits is easily leached under relatively mild atmospheric leach conditions. The excellent extraction levels are comparable to other metallurgically simple basement hosted deposits in the region, including the nearby Eagle Point Deposit.
In progressing toward a combined feasibility study on the Horseshoe and Raven deposits, environmental baseline studies were commenced by Golder in 2006, and Golder continues to collect biological, hydrogeological and other environmental data. During the 2007 and 2008 drilling programs, geotechnical studies of the area of the deposits also commenced, assessing rock properties and hydrogeology. Further baseline and geotechnical studies are scheduled for 2009 following the input of more detailed information on the project design generated from initial scoping work prior to commencement of the full feasibility study. Several additional infill holes were drilled to upgrade Inferred portions of the Horseshoe Deposit to Indicated status in October, 2008, which confirmed mineralization continuity in the two largest Inferred zones at Horseshoe; results will be reported when received.
The technical information in this document has been compiled and reviewed by D. Rhys, P. Geo., a geological consultant to UEX and 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 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.
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ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen,
President & CEO
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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.
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Table 1.
Fall 2008 Horseshoe Drilling Program
Intersections from Drill Holes HU-261 to HU-309.
Only intervals with composite grades greater than 0.05% U(3)O(8) and a
grade-thickness product greater than 0.1 are listed below. All analyses were
performed by Saskatchewan Research Council by ICP. No intervals greater than
0.05% U(3)O(8) and a grade thickness product higher than 0.1 were intersected
in holes HU-263-266, 268, 271-280, 285, 290, 293, 299, 303 and 309. Drill
holes HU-271 and HU-277 were lost before reaching target depth.
-------------------------------------------------------------------------
Hole Section Depth From To Length Avg. Grade
(North) of Hole (metres) (metres) (metres) (% U(3)O(8))
(metres)
-------------------------------------------------------------------------
HU-261 4890 378.7 338.0 339.8 1.8 0.202
HU-261 354.6 355.1 0.5 1.474
-------------------------------------------------------------------------
HU-262 4890 360.0 221.9 223.7 1.8 0.071
-------------------------------------------------------------------------
HU-267* 4954 282.0 102.0 104.6 2.6 0.074
HU-267 112.0 114.0 2.0 0.055
HU-267 121.5 122.5 1.0 0.124
HU-267 133.0 142.0 9.0 0.055
HU-267 161.0 162.0 1.0 0.132
HU-267 165.8 167.0 1.2 0.154
HU-267 202.0 256.0 54.0 0.051
HU-267 including 202.0 205.0 3.0 0.210
HU-267 including 212.0 220.0 8.0 0.076
HU-267 including 237.0 240.0 3.0 0.204
HU-267 including 255.0 256.0 1.0 0.206
-------------------------------------------------------------------------
HU-269 4516 221.0 128.6 129.2 0.6 0.499
-------------------------------------------------------------------------
HU-270 4516 221.0 173.5 179.1 5.6 0.358
HU-270 including 178.7 179.1 0.4 4.197
-------------------------------------------------------------------------
HU-281 4820 371.0 211.9 213.2 1.3 0.234
-------------------------------------------------------------------------
HU-282 4495 209.0 166.7 174.3 7.6 0.885
HU-282 including 172.6 174.3 1.7 3.048
-------------------------------------------------------------------------
HU-283 4820 340.0 296.2 297.1 0.9 0.629
-------------------------------------------------------------------------
HU-284 4495 212.0 133.5 171.2 37.7 0.073
HU-284 including 155.4 157.4 2.0 0.378
HU-284 183.2 185.0 1.8 0.081
-------------------------------------------------------------------------
HU-286 4520 251.0 189.0 196.3 7.3 0.457
HU-286 including 191.0 192.0 1.0 1.580
HU-286 207.0 207.6 0.6 0.506
-------------------------------------------------------------------------
HU-287 4870 329.0 160.7 162.4 1.7 0.094
HU-287 255.0 258.0 3.0 0.058
HU-287 285.0 285.7 0.7 0.391
-------------------------------------------------------------------------
HU-288 4520 242.0 178.0 186.0 8.0 0.229
-------------------------------------------------------------------------
HU-289 4805 409.0 232.0 239.7 7.7 0.580
HU-289 including 232.0 233.9 1.9 1.492
HU-289 315.9 317.5 1.6 0.196
HU-289 350.1 373.1 23.0 0.567
HU-289 including 354.9 358.7 3.8 1.280
HU-289 including 355.8 356.5 0.7 4.598
HU-289 including 369.1 372.8 3.7 1.903
HU-289 including 369.6 370.2 0.6 5.706
-------------------------------------------------------------------------
* HU-267 interval also composites to 0.035% U3O8 over 156 m, from
100.0-256.0 m
-------------------------------------------------------------------------
Hole Section Depth From To Length Avg. Grade
(North) of Hole (metres) (metres) (metres) (% U(3)O(8))
(metres)
-------------------------------------------------------------------------
HU-291 4520 221.0 143.8 178.0 34.2 0.225
HU-291 including 172.4 178.0 5.6 0.395
-------------------------------------------------------------------------
HU-292 4870 401.0 276.5 277.5 1.0 0.117
HU-292 331.5 332.0 0.5 1.486
-------------------------------------------------------------------------
HU-294 4805 402.0 212.7 214.4 1.7 0.088
-------------------------------------------------------------------------
HU-295 4870 311.0 154.5 155.5 1.0 0.134
HU-295 174.6 179.0 4.4 0.129
HU-295 287.0 287.4 0.4 1.191
HU-295 296.4 296.8 0.4 0.495
-------------------------------------------------------------------------
HU-296 4560 239.0 191.2 195.0 3.8 0.108
-------------------------------------------------------------------------
HU-297 4715 455.0 274.5 276.1 1.6 0.358
HU-297 281.9 285.0 3.1 0.055
HU-297 292.4 294.0 1.6 0.198
HU-297 308.1 333.1 25.0 0.176
HU-297 339.5 344.0 4.5 0.135
-------------------------------------------------------------------------
HU-298 4870 464.0 346.2 347.5 1.3 1.493
HU-298 374.0 377.0 3.0 0.050
HU-298 392.5 397.2 4.7 0.178
-------------------------------------------------------------------------
HU-300 4954 419.0 303.8 305.6 1.8 0.085
HU-300 313.6 314.9 1.3 0.147
-------------------------------------------------------------------------
HU-301 4870 302.0 153.2 191.0 37.8 0.098
HU-301 including 186.9 189.2 2.3 0.792
-------------------------------------------------------------------------
HU-302 4805 453.0 342.5 384.0 41.5 0.258
HU-302 including 342.5 345.5 3.0 0.814
HU-302 including 357.9 358.6 0.7 3.985
HU-302 including 377.0 384.0 7.0 0.449
HU-302 413.5 414.5 1.0 0.154
-------------------------------------------------------------------------
HU-304 4954 260.0 158.9 164.0 5.1 0.068
HU-304 184.0 185.8 1.8 0.092
-------------------------------------------------------------------------
HU-305 4870 497.0 224.0 225.5 1.5 0.111
HU-305 261.5 266.5 5.0 0.089
-------------------------------------------------------------------------
HU-306 4985 294.0 94.0 99.0 5.0 0.105
HU-306 133.0 140.5 7.5 0.104
HU-306 218.0 219.0 1.0 0.137
-------------------------------------------------------------------------
HU-307 4954 302.0 152.6 154.7 2.1 0.111
HU-307 166.7 168.3 1.6 0.080
HU-307 177.1 189.0 11.9 0.055
-------------------------------------------------------------------------
HU-308 4915 305.0 126.3 167.0 41.2 0.066
HU-308 267.0 284.3 17.3 0.078
-------------------------------------------------------------------------
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%SEDAR: 00017609E
For further information: UEX CORPORATION, SUITE 1007 - 808 NELSON STREET, VANCOUVER, B.C., CANADA , V6Z 2H2, PH: (604) 669-2349, FAX (604) 669-1240, Website: www.uex-corporation.com, email: uex@intergate.ca
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