Time to Load Up on UEX CorpI picked up another 10,000 shares last week.
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UEX Corp (C-UEX) - News Release
UEX drills 10.3 m of 0.87% U3O8 at Hidden Bay
2008-05-27 09:31 ET - News Release
Shares issued 182,118,052
UEX Close 2008-05-26 C$ 4.30
Mr. Stephen Sorensen reports
UEX EXPANDS HORSESHOE DEPOSIT INTERSECTING 0.87% U(3)O(8) OVER 10.3 METRES AND REPORTS FURTHER CONTINUITY OF MINERALIZATION AT THE RAVEN DEPOSIT INTERSECTING 0.38% U(3)O(8) OVER 37.3 METRES
UEX Corp. has provided the results from the first 93 diamond drill holes which were completed during the winter 2008 program on UEX's 100-per-cent-owned Hidden Bay property in Northern Saskatchewan. The program comprised mainly definition and step-out drilling at the Horseshoe and Raven deposits. In total, 20,371 metres of drilling were completed in 77 holes at Horseshoe, and 18,314 metres in 72 holes were completed at Raven between January and April, 2008, of which the first 47 holes from Horseshoe (HU-180 to HU-226) and first 46 holes from Raven (RU-059 to RU-104) are reported here. Results include intercepts of 0.87 per cent U3O8 over 10.3 metres at Horseshoe in hole HU-182 and 0.38 per cent U3O8 over 37.3 metres at Raven in hole RU-095. Drill holes for which assays have not yet been returned will be released when results are received.
"The Raven, Horseshoe and West Bear deposits at Hidden Bay are adding significant value to shareholders," said Stephen Sorensen, president and chief executive officer of UEX. "Two thousand eight will be an important year for UEX at Hidden Bay. Geotechnical, metallurgical and environmental baseline studies are ongoing at both Raven and Horseshoe, and compliant resource estimates slated for completion this year should allow us to complete final feasibility studies at both deposits in 2009." Mr. Sorensen went on to say, "We expect the final feasibility study for West Bear to be delivered this year and once received fast-track the deposit through to production."
Given the competent host rock and depths to mineralization at the Raven and Horseshoe deposits, UEX has requested that Golder Associates Ltd. of Saskatoon, Sask., assess the cost of developing the shallower Raven deposit as a tailings management facility under the assumption that the deposit will be mined by way of open pit. UEX will need tailings capacity to deal with the anticipated future mining of Raven and Horseshoe. Raven could provide this tailing capacity for UEX and others in the area.
The close proximity of UEX's Raven and Horseshoe deposits to Cameco's Rabbit Lake Mill could create an opportunity for the companies to capitalize on each other's assets. "The concept of access to future milling capacity for UEX in exchange for access to future tailings capacity for Cameco would appear to make economic sense for both companies," said Mr. Sorensen.
Horseshoe deposit results
The 2008 drilling, combined with results from previous drilling programs in 2006 and 2007, has now defined the Horseshoe deposit over a strike length of approximately 550 metres. Throughout this area, mineralization occurs in several stacked, linear and shallow dipping, east-northeast plunging zones. These have now been defined continuously to the limits of mineralization at a drill spacing of 15 to 30 metres. The winter 2008 drilling results represent the final data needed for a National Instrument 43-101-compliant resource calculation at Horseshoe which is expected to be delivered in the summer of 2008 by Golder. The drilling spacing should be sufficient to place much of this resource in at least an indicated resource category, enabling a feasibility study.
The 2008 drilling was concentrated mainly in the Horseshoe South area which lies under swampy low ground that prevented drilling in the summer of 2007. Drill holes composited to grades of at least 0.05 per cent U3O8 with a grade-thickness product of greater than 0.1 are listed in the "Winter 2008 Horseshoe drilling program -- intersections from drill holes HU-180 to HU-226" table. Several holes reported in the "Winter 2008 Horseshoe drilling program -- intersections from drill holes HU-180 to HU-226" table lacked any significant intercepts because they tested the limits of mineralized zones and consequently provide boundaries for resource modelling purposes. The most significant of the intercepts are listed below and except for holes HU-180, HU-208 and HU-212, which were drilled in the B West zone where some additional infill holes were required, all of the holes listed below were drilled in the Horseshoe South area:
- 0.32 per cent U3O8 over 18.6 metres in hole HU-180 (BW zone, Section 4710N);
- 0.87 per cent U3O8 over 10.3 metres in hole HU-182 (Section 4490N);
- 0.28 per cent U3O8 over 14.3 metres in hole HU-184 (Section 4516N);
- 0.25 per cent U3O8 over 7.1 metres in hole HU-188 (Section 4490N);
- 0.18 per cent U3O8 over 11.1 metres in hole HU-189 (Section 4490N);
- 0.60 per cent U3O8 over 3.5 metres in hole HU-194 (Section 4540N);
- 0.21 per cent U3O8 over 13.2 metres in hole HU-199 (Section 4516N);
- 0.23 per cent U3O8 over 13.6 metres in hole HU-208 (BW zone, Section 4724N);
- 2.81 per cent U3O8 over 0.8 metre in hole HU-209 (Section 4385N);
- 0.34 per cent U3O8 over 19.6 metres in hole HU-212 (BW zone, Section 4724N);
- 0.22 per cent U3O8 over 10.4 metres in hole HU-216 (Section 4735N);
- 0.29 per cent U3O8 over 18.1 metres in hole HU-217 (Section 4385N);
- 0.27 per cent U3O8 over 34.0 metres in hole HU-220 (Section 4516N);
- 0.16 per cent U3O8 over 20.9 metres in hole HU-221 (Section 4735N);
- 0.23 per cent U3O8 over 26.6 metres in hole HU-223 (Section 4516N);
- 0.39 per cent U3O8 over 7.1 metres in hole HU-225 (Section 4593N).
No zone names have been assigned yet to drill hole intersections in the Horseshoe South area since further modelling will be necessary before the outline of mineralized zones can be fully interpreted. The B West zone and an unnamed zone which lies above the B West zone pass through this area and extend through the previous drilling continuously to the northeast end of the deposit. Other zones, including the large A zone, which will host much of the Horseshoe resource, also extend though the Horseshoe South area either continuously, or as a series of subzones which extend off its southwestern end. Many of the intercepts reported here lie beyond the limits of previous drilling and have, as with previous drilling programs, significantly extended the overall footprint of the deposit. The true thickness of each of these intercepts has yet to be determined since interpretation of the results is continuing, although the shallow dipping zones in many holes appear to have been intersected at close to true width of the lens-shaped, shallow-plunging mineralized zones. The mineralization in the Horseshoe South area lies at depths of 80 to 250 metres below surface, shallower than other parts of the deposit to the northeast.
In addition to the results reported above, geochemical results have now been received from metallurgical holes HU-156 and HU-157, which are currently undergoing metallurgical processing at SGS Lakefield Research under the supervision of Melis and Associates of Saskatoon, Sask. Previously, only probe results were released from these holes since the whole core was sent to Lakefield for processing. Geochemical data from holes HU-156, in the Horseshoe A zone, returned 1.01 per cent U3O8 over 18.2 metres between 168.8 and 187.0 metres, including 2.2 per cent U3O8 over 5.2 metres. This compares closely, although is higher in grade than previously released probe results of 0.90 per cent eU3O8 over 19.7 metres. This intercept upgrades this part of the A zone, having higher grades and widths than adjacent holes. Hole HU-157 intersected 0.13 per cent U3O8 over 34.9 metres between 285.5 and 320.4 metres, which is closely comparable with the 0.14 per cent eU3O8 over 34.8 metres previously reported from probe grades. The very good correlation between values obtained from probe and geochemical grades allow independent verification of geochemical results to be used in the resource calculation, in addition to other quality assurance and quality control procedures routinely undertaken by UEX. Processing and metallurgical testing on these holes are currently under way.
Additional mineralization intersected by Gulf Minerals Canada historically at Horseshoe is present to the northeast of the resource area. This area will be tested by drilling during the summer of 2008, and additional resources could be delineated there.
Raven deposit results
The winter 2008 drilling program at the Raven deposit continued to expand along 30-metre step-out cross-sections along strike, with some infill drilling where necessary to provide a minimum 30-metre drill spacing for resource calculation. Apart from some infill holes which will be required early during the summer 2008 program, drilling at Raven is sufficient to proceed with the planned fall, 2008 timeline for completion of a resource estimate. Recent and historical drilling suggests that mineralization is still open in some areas to the east, and these areas will be further tested later in the summer program.
Drill holes from the initial winter 2008 drill holes at Raven which composited to grades of at least 0.05 per cent U3O8 with a grade-thickness product of greater than 0.1 are listed in the "Winter 2008 Raven drilling program intersections from drill holes RU-059 to RU-104." The most significant of these intercepts include the following:
- 0.09 per cent U3O8 over 22.2 metres in hole RU-068 (Section 5385E);
- 0.09 per cent U3O8 over 20.0 metres and 0.30 per cent U3O8 over 11.0 metres in hole RU-071 (Section 5630E);
- 0.21 per cent U3O8 over 8.0 metres in hole RU-077 (Section 5630E);
- 0.22 per cent U3O8 over 8.1 metres in hole RU-085 (Section 5385E);
- 0.17 per cent U3O8 over 13.5 metres and 0.21 per cent U3O8 over 8.5 metres in hole RU-087 (Section 5360E);
- 0.16 per cent U3O8 over 11.0 metres in hole RU-091 (Section 5360E);
- 0.39 per cent U3O8 over 4.3 metres in hole RU-092 (Section 5506E);
- 0.38 per cent U3O8 over 37.3 metres, including 0.82 per cent U3O8 over 9.4 metres in hole RU-095 (Section 5445E);
- 0.51 per cent U3O8 over 7.0 metres in hole RU-103 (Section 5360E);
- 1.04 per cent U3O8 over 1.9 metres in hole RU-104 (Section 5506E).
To date, mineralization has been defined over a strike length of approximately 600 metres in a horizontal, cylindrically shaped zone fringing an area of intense clay alteration that is developed in the hangingwall of a steeply dipping fault. Mineralization occurs near the axis of the Raven syncline at depths of 50 to 275 metres below surface. Highest grades typically occur in its upper northern and central margins, where intersections such as seen in hole RU-095 are locally developed. Areas of lower grade mineralization, which typically grade between 0.05 per cent and 0.15 per cent U3O8, may be developed over widths of several tens of metres, defining several subhorizontal, elongated zones that are controlled by the distribution of lithologic units.
One metallurgical drill hole, hole RU-130, was completed at Raven late during the winter program using HQ diameter rods. The core is currently being prepared for metallurgical testing by Melis and Associates, and will be used in future economic assessment of the deposit.
Summer 2008 drilling program
Drilling during the summer of 2008 is planned to commence in early June and will consist of a three-stage drilling program comprising the following:
- Further infill and step-out drilling at Raven, and testing of historically known mineralization northeast of Horseshoe to be conducted during June and July using three drills;
- Helicopter-supported drilling of outlying targets such as Tent-Seal, Rhino, Shamus and Rabbit West, to be conducted during August and September using two drills, where previously alteration and mineralization have been intersected in several holes;
- Further ground drill testing of targets in the Raven-Horseshoe and Telephone Lake areas to be conducted late during the program.
The regional drilling program will be complemented by high resolution airborne radiometric and magnetic surveys which will be flown during June, 2008, over much of the southern and central portions of the Hidden Bay project by Geo Data Solutions Inc. (GDS).
About the Raven and Horseshoe deposits
Mineralization at Horseshoe comprises shallow-dipping zones of hematization with disseminated and veinlet pitchblende-boltwoodite-uranophane that are hosted by folded arkosic quartzite gneiss. Mineralization defined to date occurs in at least five dominant zones termed A, BW, BE, A1 and A2, which define two different styles comprising: a) disseminated pitchblende-chlorite-hematite and b) narrower, higher grade nodular and veinlet pitchblende in hematite-clay alteration. To view maps and cross-sections of Raven and Horseshoe, please access UEX's website under "Projects -- Hidden Bay."
Horseshoe and the adjacent Raven deposit are located less than five kilometres south of Cameco Corp.'s Rabbit Lake operations and 12 kilometres southeast of AREVA Resources Canada Inc.'s McClean Lake operations. 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. Using widely spaced drill holes, in 1980 Gulf estimated a total resource at Raven and Horseshoe of 6.7 million tonnes at an average grade of 0.16 per cent U3O8, representing approximately 22.82 million contained pounds of U3O8 (13.2 million pounds grading 0.17 per cent U3O8 at Horseshoe and 9.62 million pounds grading 0.14 per cent U3O8 at Raven). These historical resource estimates were not calculated using current Canadian Institute of Mining, Metallurgy and Petroleum standards. As a result, they are not compliant with National Instrument 43-101, and should not be relied upon.
Sample handling and quality assurance
Drill core geochemical samples are selected with the aid of a hand-held scintillometer to identify areas of above-background radioactivity. Samples are split, with half remaining in the core box, and the remainder shipped to Saskatchewan Research Council Geoanalytical Laboratories (SRC) where they are crushed and ground to minus 106 microns. The pulp is digested in aqua regia leach and analyzed by ICP for uranium and other elements. In addition to the geochemical analyses, down-hole probe radiometric results, obtained for all drill holes on completion of drilling, provide an independent check of the geochemical data. Probe results can be used for grade calculations where poor ground conditions occur and drill core recoveries are low, although at Raven and Horseshoe recoveries are generally at, or close to, 100 per cent. UEX routinely inserts sample blanks and uranium standards of several grades into the sample stream. In addition, repeat analyses are routinely analyzed, laboratory standards are inserted by SRC, and selected sample pulps have been submitted to other independent laboratories for check analyses to assess sample repeatability and accuracy of the SRC results. Core loss in mineralized zones within the Horseshoe and Raven deposits is minimal, and geochemical results are highly repeatable.
The technical information in this news release regarding Raven and Horseshoe has been compiled by David Rhys, PGeo, a qualified person as defined by National Instrument 43-101.
WINTER 2008 HORSESHOE DRILLING PROGRAM INTERSECTIONS FROM DRILL HOLES HU-180 TO HU-226 Only intervals with composite grades greater than 0.05 per cent U3O8 and a grade-thickness product greater than 0.1 are listed below. All analyses wereperformed by Saskatchewan Research Council by ICP. No intervals greater than0.05 per cent and a grade thickness product higher than 0.1 were intersected in holes HU-181, 186, 187, 191, 196, 202, 203, 204, 206, 207, 210, 211, 215, 218, 219, 222 and 224. Section Depth of hole From To Length Avg. gradeHole (North) (metres) (metres) (metres) (metres) (% U3O8)HU-180 4710 344 216.0 217.4 1.4 0.090HU-180 220.8 221.7 0.9 0.077HU-180 244.1 252.4 8.3 0.103HU-180 261.0 279.6 18.6 0.322HU-182 4490 200 172.7 183.0 10.3 0.871HU-183 4710 341 106.9 112.7 5.8 0.166HU-183 115.9 117.0 1.1 0.196HU-183 240.9 243.0 2.1 0.085HU-183 269.3 275.3 6.0 0.215HU-184 4516 221 181.5 195.8 14.3 0.277HU-185 4490 209 182.4 186.7 4.3 0.308HU-188 4490 220 166.2 173.3 7.1 0.254HU-189 4490 207 164.5 166.0 1.5 0.115HU-189 176.9 188.0 11.1 0.177HU-190 4540 220 96.2 97.7 1.5 0.147HU-190 120.5 127.1 6.6 0.151HU-190 192.5 194.1 1.6 0.189HU-192 4540 237 166.0 167.0 1.0 0.129HU-192 192.5 194.5 2.0 0.203HU-193 4490 242 176.0 176.8 0.8 0.200HU-193 200.1 201.9 1.8 0.777HU-193 206.5 207.2 0.7 0.447HU-194 4540 240 146.0 149.0 3.0 0.100HU-194 153.0 156.5 3.5 0.604HU-194 179.0 180.5 1.5 0.486HU-195 4411 222 195.7 196.6 0.9 0.433HU-197 4465 211 135.0 138.2 3.2 0.216HU-198 4411 219 155.0 157.0 2.0 0.105HU-198 166.8 168.5 1.7 0.073HU-198 209.8 210.4 0.6 0.733HU-199 4516 224 111.8 125.0 13.2 0.211HU-199 205.8 206.7 0.9 0.376HU-200 4465 260 99.5 100.0 0.5 0.653HU-200 140.0 142.0 2.0 0.127HU-200 221.7 230.2 8.5 0.151HU-201 4411 240 214.7 216.0 1.3 0.186HU-205 4490 200 167.9 168.8 0.9 0.537HU-208 4724 326 243.7 248.0 4.3 0.116HU-208 288.5 302.1 13.6 0.232HU-209 4385 241 210.5 211.3 0.8 2.806HU-212 4724 307 137.0 138.5 1.5 0.116HU-212 211.0 212.6 1.6 0.387HU-212 243.0 245.6 2.6 0.083HU-212 252.8 272.4 19.6 0.344HU-213 4385 249 135.8 136.9 1.1 0.165HU-214 4570 215 131.2 132.2 1.0 0.644HU-214 137.9 139.5 1.6 0.869HU-214 171.3 173.0 1.7 0.177HU-216 4735 347 122.0 123.4 1.4 0.082HU-216 237.0 245.2 8.2 0.158HU-216 257.0 259.0 2.0 0.120HU-216 274.6 285.0 10.4 0.218HU-216 320.0 320.6 0.6 0.205HU-217 4385 246 187.4 205.5 18.1 0.290HU-220 4516 230 122.0 156.0 34.0 0.268HU-221 4735 323 134.9 137.0 2.1 0.117HU-221 278.5 281.5 3.0 0.087HU-221 286.7 307.6 20.9 0.155HU-223 4516 200 104.5 131.1 26.6 0.228HU-225 4593 256 155.7 162.8 7.1 0.390HU-225 183.3 184.2 0.9 0.766HU-226 4516 215 185.8 189.3 3.5 0.363
WINTER 2008 RAVEN DRILLING PROGRAM INTERSECTIONS FROM DRILL HOLES RU-059 TO RU-104 Only intervals with composite grades greater than 0.05 per cent U3O8 and a grade-thickness product greater than 0.1 are listed below. All analyses wereperformed by SRC by ICP. No intervals greater than 0.05 per cent and a grade thickness product higher than 0.1 were intersected in holes RU-059, 061, 062, 066, 074, 082, 086, 088, 089, 101 and 102. Section Depth of Hole From To Length Avg. GradeHole (East) (metres) (metres) (metres) (metres) (% U3O8)RU-060 5580 242 71.0 71.5 0.5 0.355RU-060 141.4 150.0 8.6 0.084RU-060 164.5 166.1 1.6 0.059RU-063 5580 272 206.0 208.5 2.5 0.063RU-063 212.0 213.0 1.0 0.153RU-063 231.7 234.6 2.9 0.054RU-063 242.7 243.6 0.9 0.121RU-063 246.0 253.0 7.0 0.079RU-064 5385 297 139.1 140.5 1.4 0.097RU-064 142.6 143.9 1.3 0.080RU-064 145.9 153.4 7.5 0.093RU-064 158.0 163.0 5.0 0.086RU-064 187.9 204.3 16.4 0.092RU-065 5580 272 209.0 213.0 4.0 0.089RU-065 218.7 223.0 4.3 0.098RU-067 5580 242 153.7 155.7 2.0 0.133RU-067 188.0 195.5 7.5 0.096RU-068 5385 302 108.0 130.2 22.2 0.093RU-068 207.2 210.0 2.8 0.068RU-069 5580 246 205.0 205.5 0.5 0.391RU-070 5664 244 179.1 180.1 1.0 0.533RU-070 194.5 199.2 4.7 0.112RU-070 225.5 226.7 1.2 0.206RU-071 5630 302 63.0 64.0 1.0 0.540RU-071 113.0 114.0 1.0 0.203RU-071 121.0 141.0 20.0 0.088RU-071 146.0 147.0 1.0 0.199RU-071 167.0 178.0 11.0 0.304RU-071 185.0 186.0 1.0 0.354RU-072 5385 251 164.1 165.3 1.2 0.247RU-072 182.5 186.4 3.9 0.120RU-072 192.5 194.2 1.7 0.225RU-073 5664 239 162.3 165.1 2.8 0.097RU-075 5630 302 121.0 143.0 22.0 0.067RU-075 160.0 161.0 1.0 0.193RU-075 169.0 184.5 15.5 0.090RU-075 268.3 269.0 0.7 0.191RU-076 5664 239 62.7 64.0 1.3 0.081RU-076 127.0 128.6 1.6 0.071RU-076 148.0 149.1 1.1 0.097RU-076 154.4 156.2 1.8 0.264RU-077 5630 302 93.0 101.0 8.0 0.208RU-078 5385 232 106.3 111.6 5.3 0.119RU-078 197.0 199.8 2.8 0.086RU-079 5360 341 117.7 120.5 2.8 0.054RU-079 133.0 137.0 4.0 0.067RU-079 141.8 144.5 2.7 0.085RU-079 160.0 169.0 9.0 0.074RU-079 188.0 196.0 8.0 0.073RU-079 223.0 225.0 2.0 0.117RU-080 5630 247 129.9 132.5 2.6 0.100RU-080 216.3 219.6 3.3 0.211RU-081 5630 200 32.1 33.1 1.0 0.253RU-081 110.4 113.6 3.2 0.173RU-081 129.5 133.5 4.0 0.070RU-083 5360 341 123.0 132.0 9.0 0.077RU-084 5630 200 93.5 96.9 3.4 0.078RU-085 5385 302 102.0 109.8 7.8 0.051RU-085 127.9 128.9 1.0 0.100RU-085 157.2 165.3 8.1 0.222RU-087 5360 240 98.0 111.5 13.5 0.172RU-087 133.0 138.0 5.0 0.058RU-087 237.0 245.5 8.5 0.214RU-090 5664 161 42.0 44.1 2.1 0.336RU-090 68.6 69.1 0.5 0.163RU-090 120.4 122.7 2.3 0.357RU-090 131.6 132.7 1.1 0.272RU-091 5360 300 152.5 167.0 14.5 0.100RU-091 187.0 198.0 11.0 0.163RU-091 210.0 220.0 10.0 0.065RU-092 5506 278 186.3 186.6 0.3 0.863RU-092 194.0 198.3 4.3 0.390RU-092 209.4 212.6 3.2 0.091RU-092 217.6 222.3 4.7 0.080RU-093 5695 317 65.3 67.3 2.0 0.157RU-093 103.7 117.8 14.1 0.076RU-094 5360 360 87.6 88.2 0.6 0.259RU-094 97.5 100.5 3.0 0.127RU-094 113.0 118.5 5.5 0.072RU-094 125.0 126.5 1.5 0.084RU-094 137.0 146.5 9.5 0.100RU-094 227.0 228.5 1.5 0.067RU-094 241.0 245.0 4.0 0.094RU-094 260.0 263.0 3.0 0.094RU-095 5445 242 117.0 154.3 37.3 0.377RU-095 including 120.4 129.8 9.4 0.816RU-095 160.8 162.2 1.4 0.131RU-095 185.4 186.1 0.7 0.403RU-096 5360 263 183.0 185.0 2.0 0.162RU-096 188.0 191.0 3.0 0.055RU-097 5695 251 58.8 61.6 2.8 0.061RU-097 178.6 181.5 2.9 0.073RU-098 5445 239 93.9 95.2 1.3 0.180RU-098 124.4 125.0 0.6 0.173RU-099 5360 242 107.0 108.5 1.5 0.323RU-099 158.4 179.0 20.6 0.072RU-100 5695 251 89.7 92.5 2.8 0.051RU-100 234.3 241.8 7.5 0.065RU-103 5360 301 117.5 125.0 7.5 0.145RU-103 157.0 164.0 7.0 0.507RU-103 193.5 194.0 0.5 0.307RU-103 206.5 208.0 1.5 0.160RU-104 5506 179 79.0 80.9 1.9 1.036
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