UEX Extends Footprint of Michael Lake Zone by 200 m With The Widest Interval of Co‑Ni Mineralization Encountered To Date
Saskatoon, Saskatchewan, June 28, 2021 – UEX Corporation (TSX:UEX, OTCQB:UEXCF) (“UEX” or the “Company”) is pleased to announce the final drill results from the 2021 winter drilling programs at West Bear and Hidden Bay (Figures 1 & 2). Drill hole MIC-015 encountered Cobalt-Nickel mineralization grading 0.029% Co and 0.024% Ni over 34 m from 154.5 to 188.5 m, which included a subinterval of 0.125% Co and 0.106% Ni over 3.0 m from 154.5 to 157.5 m. Drill hole MIC-015 extends the footprint of the newly discovered Michael Lake Cobalt-Nickel Zone by approximately 200 m to the south of previously reported hole MIC-011 (see UEX news release dated April 21, 2021) and suggests there is continuity down-dip from the previously reported drill holes (Figure 3).
UEX also announces the results of the winter uranium exploration drill program at the Uranium-Nickel Sands Area on the Hidden Bay Project (see UEX news release dated December 21, 2020).
West Bear – Michael Lake Target
MIC-015 was collared on line 22+00N to test the extension of the Michael Lake Cobalt-Nickel mineralization south and down-dip from several mineralized holes drilled earlier in the winter program and previously reported by UEX (see news releases dated March 8, 2021, April 1, 2021 and April 21, 2021. The mineralization in MIC-015 is the widest interval encountered to date at Michael Lake and includes two higher-grade subintervals, one at the top and the other at the bottom of this wide interval which averaged 0.125% Co & 0.106% Ni from 154.5 to 157.5 m and 0.029% Co & 0.036% Ni from 179.5 to 188.5 m.
Winter drilling at Michael Lake has defined cobalt-nickel mineralization over a length of approximately 325 m when traced along surface. However, additional drilling will be required to confirm the continuity of mineralization between MIC-011 and MIC-015. The mineralization appears to plunge from the bedrock surface under ~20 m of overburden to a vertical depth of ~165 m at the bottom of the mineralization in MIC-015, a plunge length of about 350 m. The Michael Lake Zone remains open for expansion to the south, east, and west, and with limited space to the north.
The actual dip of the mineralization has yet to be confirmed. However, mineralized core lengths reported in this news release are expected to be greater than 90% of the core length based on core measurements and the dip of the drill hole.
Our Exploration Team’s discovery of a second cobalt-nickel zone on the West Bear Project this winter is a huge accomplishment for the Company on many fronts. First, it proves that our unique exploration model on the cobalt-nickel potential of the Athabasca Basin has tremendous merit. Second, the Michael Lake area was only the second target area drill tested by UEX after the West Bear Deposit discovery, proving that cobalt and nickel deposits may be more common than even we previously believed. Third, the discovery of the Michael Lake Zone highlights a slightly different structural host scenario than observed at the nearby West Bear Co-Ni Deposit. The Michael Lake structural setting occurs at several locations within the West Bear Project and at the adjacent Hidden Bay Project, dramatically expanding our prospective inventory of cobalt-nickel targets in our existing portfolio.
- Roger Lemaitre, President & CEO, UEX Corporation
Hidden Bay Project – U-Ni Sands Target
UEX also completed a reconnaissance drilling program of six holes at the U-Ni Sands target in late March and early April (Figure 4). The reconnaissance program identified alteration and geochemical anomalism that is consistent with the geochemical and alteration signature associated with UEX’s nearby Raven and Horseshoe uranium deposits, located approximately 2.5 km to the south of the U-Ni Sands area. The indicative hydrothermal alteration encountered in these drill holes has been traced over a 1,300 m long area from drill hole VIX-004 to VIX-006 (see Figure 4). The geology and alteration encountered in this area suggests that there is the potential for the discovery of shallow uranium mineralization similar to that observed at the Raven and Horseshoe deposits to the south. The UEX team will be further analyzing the results of the reconnaissance program in advance of a future drill program that will follow up on these results.
Sample Collection and Compositing
Samples for assaying are selected using a portable X-Ray Fluorescence (“XRF”) Spectrometer to aid in the identification of mineralized intervals. Selected drill core is then split in half sections on site and one half is collected for analysis with the other half core remaining on site for reference. Where possible, samples are collected at a standardized 0.5 m interval through zones of mineralization but respect geological units and intervals.
The samples are shipped to the Geoanalytical Laboratory at the Saskatchewan Research Council (“SRC”) in Saskatoon, Saskatchewan. Analysis at the SRC laboratory for Cobalt and Nickel was completed using the ICP-OES method with an Aqua Regia digestion. The SRC Geoanalytical Laboratory is an ISO/IEC 17025:2005 accredited facility (#537) by the Standards Council of Canada.
Assay intervals were composited using a cut-off grade of 0.023% Cobalt equivalent (CoEq) using the equation CoEq = Co + (Ni x 0.2). All depth measurements and sample intervals reported are down-hole measurements from drill core.
Qualified Persons and Data Acquisition
The technical information in this news release has been reviewed and approved by Roger Lemaitre, P.Eng., P.Geo., UEX’s President and CEO, and Chris Hamel, P.Geo., UEX’s Exploration Manager, who are each considered to be a Qualified Person as defined by National Instrument 43-101.
About the West Bear Cobalt-Nickel Project
The West Bear Property is an advanced exploration project located in the eastern Athabasca Basin of northern Saskatchewan, Canada that contains both the West Bear Cobalt-Nickel Deposit and the West Bear Uranium Deposit. The Property is approximately 740 kilometres north of Saskatoon, west of Wollaston Lake and measures approximately 11,104 hectares comprising of 27 contiguous areas to which UEX has 100% ownership, with the exception of Mineral Lease 5424 in which UEX owns a 77.575% interest. The Deposit is located within an area of the Athabasca Basin that has excellent infrastructure and is situated within 10 kilometres of an existing all-weather road and power lines that service Cameco Corporation’s nearby Cigar Lake Mine and Rabbit Lake Operation, as well as Orano’s McClean Lake Operation.
The West Bear Cobalt-Nickel Deposit currently has a strike length of over 600 metres and a dip length of over 100 metres. On April 15, 2020, the Company announced an updated indicated resource estimate for the Deposit of 1,223,000 tonnes grading 0.19% cobalt and 0.21% nickel, which equates to 5,122,000 pounds of cobalt and 5,662,000 pounds of nickel The West Bear Cobalt-Nickel Deposit mineral resources were determined using a cut-off grade of 0.023 percent cobalt equivalent (“CoEq”), using the equation CoEq = Co + (Ni x 0.2).
The West Bear Uranium Deposit has been defined over a strike length of 530 m, ranges in width between 20 m and 70 m, ranges in thickness from 0.1 m to over 15 m and is located at vertical depths between 15 m to 35 m. The WBU Deposit is a classic cigar-shaped body similar to the Cigar Lake and McClean Lake deposits and is hosted at and above the intersection of faulted graphitic metapelites at the unconformity with the overlying Athabasca Group sandstone.
UEX (TSX:UEX, OTCQB:UEXCF, UXO.F) is a Canadian uranium and cobalt exploration and development company involved in an exceptional portfolio of uranium projects, including a number that are 100% owned and operated by UEX, one joint venture with Orano Canada Inc. (“Orano”) and ALX Uranium Corp. (“ALX”) that is 51.43% owned by UEX, as well as eight joint ventures with Orano, one joint venture with Orano and JCU (Canada) Exploration Company Limited, which are operated by Orano, and one project (Christie Lake), that is 65.55% owned by UEX with JCU (Canada) Exploration Company Limited which is operated by UEX.
UEX has reached agreements with Overseas Uranium Resources Development Co. Ltd and Denison Mines Corp. to become 50% owners of JCU (Canada) Exploration Company Ltd. (“JCU”) on or before August 3, 2021. JCU’s assets include a 30.099% interest in Cameco’s Millennium Uranium Development Project, a 10% interest in Denison Mines Wheeler River Project, and a 33.8123% interest in Orano Canada’s Kiggavik Project, as well as minority interests in nine other grassroots uranium projects in the Athabasca Basin.
UEX is also leading the discovery of cobalt in Canada, with three cobalt-nickel exploration projects located in the Athabasca Basin of northern Saskatchewan, including the only primary cobalt deposit in Canada. The 100% owned West Bear Project was formerly part of UEX’s Hidden Bay Project and contains the West Bear Cobalt-Nickel Deposit and the West Bear Uranium Deposit. UEX also owns 100% of two early stage cobalt exploration projects, the Axis Lake and Key West Projects.
Our portfolio of projects is located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which in 2019 accounted for approximately 12.6% of the global primary uranium production. UEX is currently advancing several uranium deposits in the Athabasca Basin which include the Christie Lake deposits, the Kianna, Anne, Colette and 58B deposits at its 49.1%-owned Shea Creek Project (located 50 kilometres north of Fission’s Triple R Deposit and Patterson Lake South Project, and NexGen’s Arrow Deposit), the Horseshoe and Raven deposits located on its 100%-owned Horseshoe-Raven Development Project and the West Bear Uranium Deposit located at its 100%-owned West Bear Project.
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President & CEO
This news release contains 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 the West Bear Co-Ni Property, the Christie Lake Property drill program, the Hidden Bay Property, the Shea Creek Property, UEX's drill hole results, uranium, cobalt and nickel prices, outlook for our future operations, plans and timing for exploration activities, and other expectations, intentions and plans that are not historical fact. 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 the, interpretation of drill results and geology, assay confirmation, additional drilling results, continuity and grade of deposits, fluctuations in uranium, cobalt and nickel prices and currency exchange rates, changes in environmental and other laws affecting uranium, cobalt and nickel 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.