News-full reportUEX Reports Drilling Continues to Expand Shea Creek's Kianna Deposit at Multiple Depths With Numerous High-Grade Intercepts, SHE-115-3 Intersects 12.57% U3O8 Over 11.9 metres, Including 27.35% U3O8 Over 4.2 metres
Trading Symbol: UEX-TSX
VANCOUVER, June 6 /CNW/ - UEX Corporation ("UEX") announced today that
AREVA Group subsidiary AREVA Resources Canada Inc. ("AREVA", formerly COGEMA
Resources Inc.) has reported to UEX interim results from the Winter 2006
drilling program at the Shea Creek Uranium Project (Kianna, Anne, and Colette
Deposits), which is located in the Western Athabasca Basin in northern
Saskatchewan, Canada.
The Shea Creek Uranium Project ("Shea Creek") is one of the ten Western
Athabasca Projects currently under option from AREVA, the operator. UEX has
earned a 12.25% interest in the ten projects (see UEX News Release, August 24,
2005) and has an option to earn an additional 36.75% interest, up to a maximum
of 49%.
The 2006 drilling program began in January 2006 at Shea Creek, and is
ongoing using two drills at the Kianna Deposit. The results of 12 directional
holes carried out at the Kianna Deposit from pilot holes SHE-114 and SHE-115,
located 100 metres apart and 2 exploration holes 600 metres and 800 metres
west of the Colette Deposit have been reported to UEX and are summarized in
this release. At the Kianna Deposit, high-grade uranium mineralization has
been intersected in multiple zones at depths from 665 metres to 917 metres, a
vertical distance of approximately 250 metres - located in sandstone high
above the unconformity, at the unconformity, and below the unconformity in
basement rocks, with unconformity depths ranging from 713 to 758 metres.
To date, the mineralization at the Kianna Deposit has been traced over a
strike length of 200 metres and a width of 100 metres, and remains open in all
directions. The AREVA-UEX drilling programs of 2004, 2005 and 2006 have
outlined three distinct styles of high-grade uranium mineralization:
<<
- Perched ("P"), sandstone-hosted mineralization found in discrete
zones tens of metres above the unconformity (previously announced
2005 hole SHE-114-5, 27.4% U3O8 over 8.8 metres, including 58.3%
U3O8 over 3.5 metres);
- Unconformity-type mineralization ("UC"), in close proximity to the
unconformity (hole SHE-115-3, grading 12.57% U3O8 over 11.9 metres,
including 27.35% U3O8 over 4.2 metres);
- Basement-hosted mineralization ("B"), found in zones up to 200 metres
below the unconformity (previously announced 2005 hole SHE-114-11,
grading 5.4% U3O8 over 37.7 metres, including 25.46% U3O8 over
4.0 metres).
>>
"The AREVA-UEX pursuit of an economic uranium resource at our world-class
Kianna discovery looks promising as Kianna continues to expand. We are
encountering three distinct styles of high-grade mineralization, which in a
future mining scenario could be mined simultaneously," said Stephen Sorensen,
President and CEO of UEX. "There is no doubt that the mineralizing and
associated alteration system at the Kianna Deposit is the largest and most
powerful system ever encountered in the Athabasca Basin."
Sorensen went on to say: "The discovery of high-grade, basement-hosted
mineralization to depths greater than 200 metres below the unconformity
beneath high-grade perched and unconformity-type mineralization is extremely
significant not only for the Kianna Deposit, but because it will trigger
additional drilling at the Anne and Colette Deposits to search for this style
of deep mineralization."
"This basement-hosted mineralization occurs in rocks that have the
structural integrity that would not require the expense of freezing
mineralized zones during underground mining operations, which is necessary at
unconformity-style deposits like Cigar Lake and McArthur River, a synergistic
factor that could positively affect the future mining feasibility of the Shea
Creek deposits."
See Table 1 below for a list of significant mineralized intersections
reported from the Kianna Deposit in 2006, and for comparative purposes, the
2004-2005 Kianna Deposit drilling results. Uranium grades are calculated from
gamma probe logging. True widths of mineralized intervals have not yet been
determined.
To view a drawing of the Kianna Deposit area at Shea Creek, please refer
to UEX's website at www.uex-corporation.com under "Western Athabasca Projects
- Shea Creek".
Highlights of 2006 Shea Creek Drilling Program
Kianna Deposit (formerly known as the "63B Zone") 2006 Drilling Program
SHE-115-6: (P) 2.25% U3O8 over 8.2 metres, (UC) 2.96% U3O8 over
11.1 metres, including 6.03% U3O8 over 3.0 metres, and (B) 2.42% U3O8 over
8.7 metres, targeted the continuity of high-grade mineralization 75 metres
northeast of pilot hole SHE-115. The unconformity was intersected at
745.6 metres.
High-grade, perched mineralization was encountered 43 metres above the
unconformity from 702.7 to 710.9 metres, grading 2.25% U3O8 over 8.2 metres.
High-grade unconformity-type mineralization was encountered from 730.2 to
741.3 metres, grading 2.96% U3O8 over 11.1 metres, including 6.03% U3O8 over
3.0 metres. High-grade mineralization was intersected in several zones in the
basement rocks, the best of which from 820.2 to 828.9 metres graded 2.42% U3O8
over 8.7 metres. Three other zones of significant mineralization were
intersected in the basement: from 773.4 to 774.5 metres, grading 2.48% U3O8
over 1.1 metres, from 793.9 to 795.2 metres, grading 2.93% U3O8 over
1.3 metres, and from 870.3 to 875.5 metres, grading 0.72% U3O8 over 5.2
metres.
SHE-115-5: (UC) 12.74% U3O8 over 4.9 metres, including 23.55% U3O8 over
2.4 metres, and (B) 3.77% U3O8 over 4.4 metres, targeted the western extension
of high-grade unconformity mineralization intersected in SHE-115-3 and
SHE-102-2 at the unconformity. The unconformity was intersected at a depth of
735.2 metres, 80 metres east-northeast from pilot hole SHE-115.
High-grade unconformity-type mineralization was encountered at
731.5 metres, approximately 4 metres above the unconformity, grading 12.74%
U3O8 over 4.9 metres, including 23.55% U3O8 over 2.4 metres. High-grade
basement-hosted mineralization was encountered at a depth of 57 metres below
the unconformity from 791.9 to 796.3 metres, grading 3.77% U3O8 over 4.4
metres, including 9.21% over 0.5 metres.
SHE-115-4: (UC) 3.56% U3O8 over 19.8 metres, including 5.89% U3O8 over
11.3 metres, was targeted to test the eastern extension of high-grade
mineralization intersected in SHE-115-3 at the unconformity. The unconformity
was intersected at 758.5 metres, 102 metres east-northeast of pilot hole
SHE-115.
High-grade unconformity-type mineralization was intersected from
745.8 metres to 765.6 metres, grading 3.56% U3O8 over 19.8 metres, including
5.89% U3O8 over 11.3 metres. Anomalous radioactivity was detected in two other
areas, from 846.0 to 849.7 metres and from 920.0 to 927.0 metres.
SHE-115-3: (UC) 12.57% U3O8 over 11.9 metres, including 27.35% U3O8 over
4.2 metres, and (B) 0.53% U3O8 over 4.8 metres, and (B) 1.04% U3O8 over
4.9 metres, was targeted to test the continuity of high-grade mineralization
in the basement and the western margin of high-grade, perched mineralization
encountered in SHE-102-11 that was drilled in 2000. The unconformity was
intersected at a depth of 743.5 metres, 88 metres east-northeast from pilot
hole SHE-115.
Classic, high-grade unconformity-type mineralization was intersected from
735.0 to 746.9 metres, grading 12.57% U3O8 over 11.9 metres including 27.35%
U3O8 over 4.2 metres. In the basement, mineralization was intersected from
847.5 to 852.3 metres, grading 0.53% U3O8 over 4.8 metres, and high-grade
mineralization was intersected from 892.2 to 897.1 metres, grading 1.04% U3O8
over 4.9 metres.
SHE-115-2: (UC) 1.2% U3O8 over 12.1 metres, (B) 1.7% U3O8 over 2.4
metres, and (B) 2.84% U3O8 over 4.9 metres, tested the continuity of
high-grade mineralization within the sandstone and basement encountered in the
SHE-114 series of holes, at a point approximately 20 metres southeast of the
SHE-114-5 unconformity impact. The unconformity was intersected at a depth of
737.5 metres, 78 metres northeast of pilot hole SHE-115.
High-grade unconformity-type mineralization was encountered from 730.7 to
742.8 metres, grading 1.2% U3O8 over 12.1 metres. In the basement, high-grade
mineralization was intersected in two zones: from 769.9 to 772.3 metres,
grading 1.7% U3O8 over 2.4 metres, and from 847.1 to 852 metres, grading 2.84%
U3O8 over 4.9 metres, including 12.23% U3O8 over 0.6 metres.
SHE-115-1: (P) 0.42% U3O8 over 6.5 metres, (UC) 0.50% U3O8 over
9.5 metres, (B) 2.52% U3O8 over 1.0 metres, and (B) 3.63% U3O8 over 5.7
metres, including 20.66% over 0.8 metres, was the first directional cut from
SHE-115, located 100 metres due south of pilot-hole SHE-114. The drill hole
tested the continuity of high-grade mineralization encountered in the SHE-114
series of holes, within the sandstone and basement, approximately 20 metres
south-east of the high-grade intersection in SHE-114-5. The unconformity was
intersected at a depth of 734.8 metres, 63 metres north-northeast of pilot
hole SHE-115.
Perched mineralization was encountered from 659.9 to 666.4 metres,
grading 0.42% U3O8 over 6.5 metres. Unconformity-type mineralization was
intersected from 728.3 metres to 737.8 metres, grading 0.50% U3O8 over
9.5 metres. High-grade basement-hosted mineralization was encountered from
781.35 to 782.35 metres, grading 2.52% over 1.0 metre. A very significant
high-grade intersection from 911.0 to 916.7 metres, grading 3.63% U3O8 over
5.7 metres included a 0.8 metre interval grading 20.66% U3O8. This last
intersection is very important because it increases the limit of known
high-grade mineralization in the basement to a depth approximately 175 metres
below the unconformity.
SHE-114-17: (UC) 0.98% U3O8 over 2.5 metres, (UC) 1.06% U3O8 over
2.5 metres, and (B) 3.2% U3O8 over 8.4 metres, including 16.62% over 1.1
metres, targeted the presence of high-grade sandstone and basement
mineralization due north of the pilot hole SHE-114, between the unconformity
impacts of SHE-114-16 and SHE-114-2. The unconformity was intersected at 729.3
metres, 26 metres north-northeast of pilot hole SHE-114.
Unconformity-type mineralization was intersected from 718.8 to
721.3 metres, grading 0.98% U3O8 over 2.5 metres, and from 724.5 to 727.0
metres, grading 1.06% over 2.5 metres. One hundred and fifty metres below the
unconformity, high-grade basement mineralization was intersected from 881.8 to
890.2 metres, grading 3.2% over 8.4 metres, including 16.62% over 1.1 metres.
The existence of a high-grade basement intersection at such depth has very
significant implications for additional drilling along the Shea Creek corridor
where it contains the Anne, Colette and Kianna Deposits, an area measuring
about 3.0 kilometres in length.
SHE-114-16: (no significant mineralization) was targeted to the
west-northwest, between pilot hole SHE-114 and 1997 hole SHE-55. The
unconformity was intersected at 716.3 metres, 35 metres northwest of pilot
hole SHE-114. Although the hole did not encounter significant mineralization,
it did intersect altered sandstone, and faulted basement rocks that contained
weak radioactivity.
SHE-114-15: (B) 0.29% U3O8 over 23.9 metres, was targeted to test the
continuity of high-grade sandstone and basement mineralization to the
southwest of 2004 pilot hole SHE-114. The unconformity was intersected at
714.4 metres, 38 metres west-southwest of pilot hole SHE-114.
Basement-hosted mineralization was intersected 200 metres below the
unconformity in faulted and strongly altered rocks from 895.1 to 919.0 metres,
grading 0.29% U3O8 over 23.9 metres. Although the mineralization is relatively
weak, the intersection is impressive considering its depth, and may represent
the western, down-dip extension of a major east-west trending structure
associated with the high-grade mineralization encountered in SHE-115-3.
SHE-114-14: (UC) 0.45% U3O8 over 4.8 metres, and (B) 0.57% U3O8 over
7.8 metres, was planned to test for the continuity of high-grade,
sandstone-hosted mineralization north of SHE-114-8 and to undercut the
basement mineralization in SHE-114-8. The unconformity was intersected at
718.3 metres, 27 metres south-southwest of pilot hole SHE-114.
Unconformity-type mineralization was intersected from 712.7 to
717.5 metres, grading 0.45% U3O8 over 4.8 metres. Basement-hosted
mineralization was intersected over 200 metres below the unconformity from
925.9 to 933.7 metres, grading 0.57% U3O8 over 7.8 metres.
SHE-114-13: (Mineralized, hole lost - no gamma probe grade available),
was targeted to test for continuity of high-grade sandstone mineralization
between SHE-114-8 and SHE-114-11 and basement mineralization at depth. The
unconformity was intersected at 715.9 metres, 51 metres south-southeast of
pilot hole SHE-114.
Trace mineralization was intersected high in the sandstone, extending the
western margin of the deposit, and higher-grade mineralization was intersected
deep within the basement from 809.7 to 810.7 metres, and from 817.0 to
818.1 metres with intervals up to 30 centimetres of massive pitchblende. The
hole could not be probed because the drill rods snapped.
SHE-114-12: (P) 1.81% U3O8 over 5.6 metres, (UC) 2.08% U3O8 over
3.7 metres, and (B) 1.37 % U3O8 over 6.8 metres, was the first directional
hole of the 2006 program and targeted the continuity of high-grade sandstone
mineralization between SHE-114-8 and SHE-114-11, and high-grade basement
mineralization at depth. The unconformity was intersected at 713.8 metres,
33 metres south-southeast of pilot hole SHE-114.
High-grade perched mineralization was intersected from 682.8 metres to
688.4 metres, approximately 31 metres above the unconformity, grading 1.81%
U3O8 over 5.6 metres. High-grade unconformity-type mineralization was
intersected from 713.1 and 716.8 metres, grading 2.08% U3O8 over 3.7 metres.
High-grade basement-hosted mineralization was intersected from 834.4 and
841.2 metres, grading 1.37% U3O8 over 6.8 metres, at approximately 120 metres
below the unconformity.
Table 1 below summarizes the most significant 2006 mineralized
intersections from the SHE-114 and SHE-115 series of holes currently testing
the Kianna Deposit at Shea Creek, as calculated from gamma probe logging, and
displayed in descending numerical order. For comparison, the previously
released results for pilot holes SHE-114, SHE-115, and directional holes
SHE-114-1 to SHE-114-11 are also included. The technical information in this
news release has been compiled and reviewed by Erwin Koning, P. Geo., AREVA's
District Geologist, West Athabasca Region, a qualified person as defined by
National Instrument 43-101.
2006 Kianna Deposit Fall Drilling Program
Drilling is planned to continue until mid-June 2006. During the summer
months, AREVA will analyze and interpret the 2006 results, and plans to resume
the drilling program in September 2006.
Colette Deposit 2006 Drilling Program
Two diamond drill holes (SHE-116 and SHE-117) were targeted 600 metres
and 800 metres to the west of the Colette Deposit mineralization to test a
newly-discovered zone of low resistivity identified by the 2005 DC Resistivity
survey. The targeted zone exhibited a resistivity response similar to what was
observed in the mineralized zone at Colette. Hole SHE-116 encountered some
encouraging sandstone alteration features but did not intersect significant
mineralization. Within hole SHE-117, a zone of increased brecciation and
associated dravite was observed between 650.0 to 670.0 metres, with an
accompanying increase in radioactivity throughout the interval. AREVA has
recommended follow-up drilling in the area.
To view a map of the Colette Deposit at Shea Creek, please refer to UEX's
website at www.uex-corporation.com under "Western Athabasca Projects - Shea
Creek".
About AREVA Resources Canada Inc
AREVA, a uranium exploration and mining company, is a subsidiary of AREVA
Group, a worldwide expert in the energy field with a strong industrial
presence in over 40 countries. AREVA Group, through its Canadian subsidiary,
has significant interests in several uranium deposits in the Athabasca Basin,
including the producing McClean Lake Deposits operated by AREVA, the producing
McArthur River Deposit operated by Cameco Corporation, and the Cigar Lake
Deposit, which is scheduled for production in 2007.
About UEX
UEX is a Canadian uranium exploration company formed under an agreement
between Pioneer Metals Corporation and Cameco. Cameco, the world's largest
supplier of uranium, is UEX's largest shareholder. UEX began trading on the
Toronto Stock Exchange in July 2002 and is actively involved in the
exploration and development of 19 uranium projects, including seven that are
100% owned and operated by UEX, one joint venture with AREVA that is operated
by UEX, ten under option from AREVA and one under option from Japan-Canada
Uranium Company, Limited, which are operated by AREVA. The 19 projects,
totaling 386,650 hectares (955,400 acres), are located in the eastern, western
and northern perimeters of the Athabasca Basin, the world's richest uranium
belt, which accounts for approximately 30% of the global primary uranium
production. UEX's exploration budget for 2006 is $19.0 million and the Company
has a cash position of approximately $86.0 million.
<<
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen, President & C.E.O.
>>
Forward looking statements:
This news release contains certain forward-looking statements. These
forward-looking statements are subject to a variety of risks and uncertainties
beyond UEX's ability to control or predict, which could cause actual events or
results to differ materially from those anticipated in such forward-looking
statements. Although UEX believes that the assumptions inherent in the
forward-looking statements are reasonable, undue reliance should not be placed
on these forward-looking statements.
<<
TABLE 1.
Summary of 2005-2006 Kianna Deposit Drill Results
All Uranium Intersections Calculated from Gamma Probe Logging
-------------------------------------------------------------------------
Avg.
Grade
Within
Hole Area Total Depth to the
Depth Uncon- Inter-
of Hole formity From To Length section
(metres) (metres) (metres) (metres) (metres) (% U3O8)
-------------------------------------------------------------------------
SHE-115-6 Kianna 974.0 745.6 702.7 710.9 8.2 2.25
730.2 741.3 11.1 2.96
including 738.3 741.3 3.0 6.03
773.4 774.5 1.1 2.48
793.9 795.2 1.3 2.93
820.2 828.9 8.7 2.42
870.3 875.5 5.2 0.72
-------------------------------------------------------------------------
SHE-115-5 Kianna 959.5 735.2 731.5 736.4 4.9 12.74
including 732.4 734.8 2.4 23.55
791.9 796.3 4.4 3.77
including 794.4 794.9 0.5 9.21
-------------------------------------------------------------------------
SHE-115-4 Kianna 935.0 758.5 745.8 765.6 19.8 3.56
including 745.8 757.1 11.3 5.89
including 751.0 751.8 0.8 14.34
including 754.7 755.4 0.7 12.80
including 760.6 765.6 5.0 0.71
-------------------------------------------------------------------------
SHE-115-3 Kianna 1015.0 743.5 735.0 746.9 11.9 12.57
including 738.6 739.6 1.0 19.89
including 741.4 745.6 4.2 27.35
847.5 852.3 4.8 0.53
892.2 897.1 4.9 1.04
-------------------------------------------------------------------------
SHE-115-2 Kianna 980.0 737.5 730.7 742.8 12.1 1.20
769.9 772.3 2.4 1.70
847.1 852.0 4.9 2.84
including 849.0 849.6 0.6 12.23
-------------------------------------------------------------------------
SHE-115-1 Kianna 956.0 734.8 659.9 666.4 6.5 0.42
728.25 737.75 9.5 0.50
781.35 782.35 1.0 2.52
911.0 916.7 5.7 3.63
including 911.6 912.4 0.8 20.66
-------------------------------------------------------------------------
SHE-115(x) Kianna 845.0 718.0 716.1 720.0 3.9 0.48
-------------------------------------------------------------------------
SHE-114-17 Kianna 989.0 729.3 718.8 721.3 2.5 0.98
724.5 727.0 2.5 1.06
881.8 890.2 8.4 3.20
including 882.5 883.6 1.1 16.62
-------------------------------------------------------------------------
SHE-114-16 Kianna 914.0 716.3 Weakly mineralized
-------------------------------------------------------------------------
SHE-114-15 Kianna 989.0 714.4 895.1 919.0 23.9 0.29
-------------------------------------------------------------------------
SHE-114-14 Kianna 1016.0 718.3 712.7 717.5 4.8 0.45
-------------------------------------------------------------------------
925.9 933.7 7.8 0.57
-------------------------------------------------------------------------
SHE-114-13 Kianna 936.0 715.9 810.0 817.0 Massive
pitchblende veins
in the basement.
-------------------------------------------------------------------------
Hole lost
- not probed
-------------------------------------------------------------------------
SHE-114-12 Kianna 926.5 713.8 682.8 688.4 5.6 1.81
713.1 716.8 3.7 2.08
834.4 841.2 6.8 1.37
-------------------------------------------------------------------------
SHE-114-11(x) Kianna 934.0 714.2 678.5 692.2 13.7 5.83
710.3 713.7 3.4 1.43
789.9 791.3 1.4 2.04
800.0 802.4 2.4 1.05
816.1 853.8 37.7 5.40
-------------------------------------------------------------------------
SHE-114-
10A(x) Kianna 804.0 728.4 726.4 732.5 6.1 1.15
-------------------------------------------------------------------------
SHE-114-10(x) Kianna Hole lost - not probed
-------------------------------------------------------------------------
SHE-114-9(x) Kianna 890.0 720.1 677.0 697.0 20.0 5.88
709.2 719.2 10.0 1.48
803.9 805.4 1.5 1.71
808.5 812.9 4.4 1.02
825.7 827.5 1.8 1.09
829.9 832.5 2.6 1.64
840.7 841.9 1.2 1.38
-------------------------------------------------------------------------
SHE-114-8(x) Kianna 889.5 715.8 835.7 843.6 7.9 5.81
853.4 861.8 8.4 4.38
-------------------------------------------------------------------------
SHE-114-7(x) Kianna 800.0 722.5 665.6 679.7 14.1 7.73
-------------------------------------------------------------------------
SHE-114-6(x) Kianna 747.0 715.3 Mineralized - hole lost
- not probed
-------------------------------------------------------------------------
SHE-114-5(x) Kianna 866.0 714.2 677.8 686.6 8.8 27.40
814.4 816.6 2.2 1.08
821.2 823.0 1.8 5.49
-------------------------------------------------------------------------
SHE-114-4(x) Kianna 884.0 732.5 723.6 729.7 6.10 1.10
794.8 796.0 1.2 1.26
796.8 801.2 4.4 1.27
-------------------------------------------------------------------------
SHE-114-3(x) Kianna 835.0 752.7 748.9 752.9 4.0 1.06
-------------------------------------------------------------------------
SHE-114-2(x) Kianna 863.0 735.7 731.2 735.8 4.6 1.71
-------------------------------------------------------------------------
SHE-114-1(x) Kianna 850.0 720.8 680.4 687.9 7.5 1.36
806.9 807.6 0.7 1.71
809.3 810.4 1.1 2.60
-------------------------------------------------------------------------
SHE-114(x) Kianna 795.0 713.9 684.0 686.0 2.0 3.26
(Fall 2004) 713.2 715.2 2.0 0.69
-------------------------------------------------------------------------
(x) results previously announced - see UEX News Releases:, February 10,
July 13, September 14 and October 11, 2005.