UEX (UEX-T) Feb 29, '16 is pleased to announce that exploration drilling has commenced on the Christie Lake Project.
UEX intends to complete a $2.75 million drill program focused upon expanding the known Paul Bay and Ken Pen uranium deposits in the down-dip direction. The program will consist of 13-18 holes totaling approximately 10,000 m and will be completed by late July or early August 2016.
Both the Paul Bay and Ken Pen uranium deposits occur at and just below the unconformity within a relatively shallow basement fault structure. Down-dip continuations of these deposits following the new basement-hosted uranium deposit models had not been tested when all exploration activities were suspended 18 years ago, long before basement-hosted deposit settings were well understood. UEX recently completed a new three-dimensional model of the deposits that strongly suggest down-dip exploration potential.
"The UEX exploration team has been hard at work since the signing of the LOI in October evaluating and uncovering the geological secrets of Christie Lake. The new 3-D modeling work reveals that the two deposits appear to be wide open for expansion. Rarely does a company have the opportunity to start a first exploration campaign with such compelling untested targets. I am eagerly awaiting the results of our first drill holes down-dip of the Ken Pen Deposit," said Roger Lemaitre, President and CEO of UEX.
The Paul Bay and Ken Pen Deposits are estimated to host a combined 20.87 million pounds of U3O8 at an average grade of 3.22% U3O8 and were discovered in 1989 and 1993 respectively. (This is a historic resource estimation which does not use resource classifications consistent with NI 43-101. The historical resource estimate was presented in an internal report titled Christie Lake Project, Geological Resource Estimate completed by PNC Tono Geoscience Center, Resource Analysis Group, dated September 12, 1997. The historical resource was calculated using a 3 D block model using block sizes of 2 m by 2 m by 2 m, and block grades interpolated using the inverse distance squared method over a circular search radius of 25 m and 1 m height. Specific gravities for each deposit were averaged from specific gravity measures of individual samples collected for assay. UEX plans to complete additional infill drilling on the deposits during the option earn-in period to upgrade these historic resources to indicated and inferred. A qualified person has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves. UEX is not treating the historic estimate as current mineral reserves or mineral resources.)
UEX provided JCU (Canada) Exploration Company Limited ("JCU") with the first option payment of $1.75 million on January 21, 2016 which granted UEX an immediate 10% interest in the Project.
The Christie Lake Project is located approximately 9 km northeast and along strike of Cameco's McArthur River Mine, the world's largest uranium producer. The P2 Fault, the controlling structure for all of the McArthur River deposits, continues to the northeast beyond the mine. UEX believes that through a series of en-echelon steps the northeast strike extension of the P2 Fault not only crosses the Project but also controls the two known uranium deposits on Christie Lake, the Paul Bay and Ken Pen Deposits (see Figure 1).
Beyond the immediate deposit areas, uranium mineralization is also found almost continuously along the unconformity over a 1.5 km long strike length extending northeast and along strike of the Paul Bay and Ken Pen Deposits. UEX believes there is great potential to make additional uranium deposit discoveries through follow-up of these mineralized holes, as drill holes have not yet tested down-dip of the fault structure at the same locations in the basement fault where the Paul Bay and Ken Pen Deposits are located. Seven high priority exploration targets have been identified along this 1.5 km long mineralized trend and will be a focus of UEX's future exploration activities (see Figure 2).
The first phase of this multi-phase exploration program will be completed by April and will utilize approximately $1.1 million of flow-through funds that the Company has remaining to be spent from the May 11, 2015 flow-through placement. These funds must be spent on eligible expenditures prior to December 31, 2016.
To view Figure 1 (Christie Lake Location Map) and Figure 2 (Christie Lake Project - Closeup with P2 Fault & Paul Bay Mineralization), please access this news release on UEX's website at www.uex-corporation.com.
Qualified Persons and Data Acquisition
Technical information in this news release has been reviewed and approved by Roger Lemaitre, P.Eng., P.Geo., UEX's President and CEO who is a Qualified Person as defined by National Instrument 43-101.
About UEX
UEX (TSX:UEX)(OTC PINK:UEXCF)(FRANKFURT:UXO) is a Canadian uranium exploration and development company involved in sixteen uranium projects, including four that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as nine joint ventures with AREVA, one joint venture with AREVA and JCU (Canada) Exploration Company Limited, which are operated by AREVA, and one project under option from JCU (Canada) Exploration Company Limited and operated by UEX. The sixteen projects are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which in 2014 accounted for approximately 16% 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 currently 49.1%-owned Shea Creek Project, the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay.
UEX's Hidden Bay and Shea Creek projects have mineral resource estimates as follows:
| | | UEX Corporation - Indicated Mineral Resources (1) (2) (3) | | Project | | Tonnes | | Grade
U3O8 (%) | | Total
U3O8 (lbs) | | UEX's share
U3O8 (lbs) | | Shea Creek (2) | | 2,067,900 | | 1.484 | | 67,663,000 | | 33,222,533 | | Hidden Bay (3) | | 10,372,500 | | 0.160 | | 36,623,000 | | 36,623,000 | | TOTAL INDICATED | | 12,440,400 | | 0.380 | | 104,286,000 | | 69,845,533 | | | | | | UEX Corporation - Inferred Mineral Resources (1) (2) (3) | | Project | | Tonnes | | Grade
U3O8 (%) | | Total
U3O8 (lbs) | | UEX's share
U3O8 (lbs) | | Shea Creek (2) | | 1,272,200 | | 1.005 | | 28,192,000 | | 13,842,272 | | Hidden Bay (3) | | 1,109,200 | | 0.111 | | 2,715,000 | | 2,715,000 | | TOTAL INFERRED | | 2,381,400 | | 0.589 | | 30,907,000 | | 16,557,272 | | 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% U3O8, and are documented 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.
| (3) The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U3O8, and are documented 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 JCU
JCU is a private company that is actively engaged in the exploration and development of 15 uranium assets in Canada. JCU is owned by three Japanese companies. Amongst these, Overseas Uranium Resources Development Co., Ltd. ("OURD") acts as the manager of JCU. JCU has partnerships with UEX, AREVA, Cameco, Denison and others on uranium exploration and development projects in the Athabasca Basin of Northern Saskatchewan including Millennium and Wheeler River and Alberta, and the Kiggavik project in the Thelon Basin in Nunavut.
UEX Corporation
Roger Lemaitre
President & CEO
(604) 669-2349
www.uex-corporation.com |
