UEX/AREVA Report Drilling Results from Laurie and Mirror River Projects
June 5, 2014 (Source: CNW) — UEX Corporation (“UEX”) and AREVA Resources Canada Inc. (“AREVA”) announce the drilling results from the 2014 exploration program at the Laurie (“Laurie”) and Mirror River (“Mirror River”) Projects. Laurie and Mirror River are two of eight 49.1%-owned Western Athabasca Projects joint-ventured with AREVA, the project operator (see Figure 1).
The Laurie and Mirror River project areas lie along the southern margin of the Athabasca Basin approximately 35 and 55 kilometres, respectively, east of the Patterson Lake South discovery. An eight-hole 3,382 metre drill program was completed for approximately $1.4 million which tested several electromagnetic (“EM”) conductors in areas where crosscutting structures were postulated to be present.
Drilling Results – Laurie
Drilling on the Laurie Project consisted of five diamond drill holes (LAUR-12 to LAUR-16) totaling 1,803 metres (see Figure 2). Hole LAUR-12 intersected a large fault zone in the basement from 294.0 to 315.2 metres characterized by moderately to strongly graphitic and moderately pyritic gneiss with abundant fault gouge, breccia, chloritization and high‑angle graphitic shears. Future exploration will target the projected up-dip continuation of the fault at the unconformity.
The remaining Laurie drill holes tested several EM conductors (A, A2 and C) at the unconformity. Moderately to strongly graphitic pelitic gneiss was intersected confirming the existence of the conductors. No significant radioactivity or geochemical uranium values were returned.
Drilling Results – Mirror River
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Three diamond drill holes (MRR-05 to MRR-07) totaling 1,579 metres were completed at the Mirror River Project (see Figure 3). The holes tested several EM conductors (A4, C1 and C2) and resistivity anomalies at the unconformity. Hole MRR-05 tested a resistivity anomaly near the A4 conductor in the southern portion of the property and intersected minor disseminated sulfides and moderate local bleaching in the sandstone and graphitic pelites in the basement rocks, which likely explain the resistivity anomaly at this location. The final two holes (MRR‑06 and MRR-07) tested segments of the north-trending EM conductors (C1 and C2) in the northern portion of the property. Hole MRR-06 intersected graphite in sufficient quantities to confirm the conductor but hole MRR-07 drilled to test the C1-south conductor did not. No significant radioactivity was identified.
These 2014 grassroots drilling programs have only just begun to test the exploration potential of the Laurie and Mirror River projects, which remain vastly underexplored and have extensive untested EM conductors that warrant additional drilling in future programs.
Erica Project – Geophysical Survey
A ground geophysical program consisting of a Tensor Magnetotelluric survey on the Erica Project commenced in mid-April of 2014 and is currently in progress. This program has a budget of $600,000 of which UEX is responsible for funding its 49.1% share, or approximately $294,600. The objective is to define future drill targets by investigating the NW-SE conductive trend outlined by previous geophysical surveys.
Further information regarding UEX’s projects, including maps, is available on UEX’s website at www.uex-corporation.com.
To view Figure 1 (Western Athabasca Projects – Location of Erica, Laurie and Mirror River Projects), Figure 2 (Laurie Project – Winter 2014 Drilling) and Figure 3 (Mirror River Project – Winter 2014 Drilling) please access this news release on UEX’s website at http://www.uex-corporation.com.
Qualified Persons and Data Acquisition
Technical information in this news release has been reviewed and approved by Dwayne Morrison, P.Geo., AREVA’s District Geologist, West Athabasca Region and R. Sierd Eriks, P.Geo., UEX’s Vice-President of Exploration who are each Qualified Persons as defined by National Instrument 43‑101.
UEX (TSX:UEX, OTC:UEXCF.PK, UXO.F) is a Canadian uranium exploration and development company actively involved in fifteen uranium projects, including five that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as eight joint-ventured with AREVA and one joint venture with AREVA and JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The fifteen projects, totaling 261,040 hectares (645,044 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world’s richest uranium belt, which in 2013 accounted 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 currently 49.1%-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 $7.1 million.
UEX’s two major projects have mineral resource estimates as follows:
UEX Corporation – Indicated Mineral Resources (1) (2) (3)
|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|
UEX Corporation – Inferred Mineral Resources (1) (2) (3)
|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|
|(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.|
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 news 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 pounds” 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.
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