UEX/AREVA Announce 2015 Western Athabasca Exploration Budget of $4.8 Million
January 8, 2015
UEX Corporation (“UEX”) and AREVA Resources Canada Inc. (“AREVA”), the operator, are pleased to announce the 2015 exploration budget for the Western Athabasca Joint Venture (“WAJV”) Projects of $4.8 million, of which UEX has indicated its intention to fund $2.1 million.
“I view the increase in the total 2015 joint venture budget over recent years to be a positive indication that AREVA is strongly committed to the advancement of the Western Athabasca Projects.” Roger Lemaitre, President and CEO
Details of the approved programs and budgets are outlined below.
Shea Creek – Winter/Summer 2015
A budget of $2.8 million has been approved for the Shea Creek Project. In 2015, exploration activities will consist of drilling in four areas and a moving-loop SQUID electromagnetic survey on the southernmost Shea Creek claim. A total of 4,900 m of drilling is planned (eight holes) this summer and approximately 31.5 km of electromagnetic surveying will be completed this winter season.
Drilling will follow up on hole SHE-2, the first mineralized hole encountered on the property during a systematic drilling campaign of the Saskatoon Lake Conductor undertaken in 1992 by Amok, a previous operator of the project. SHE-2 intersected significant uranium mineralization (0.342% U3O8 over 0.4 m) associated with the Saskatoon Lake Conductor. Until now, this intersection has not been followed up with additional drilling as other mineralized holes that tested the Saskatoon Lake Conductor led the exploration team toward the discovery of the current Shea Creek Deposits approximately 2.0 km to the north.
The insight that has been gained over the last 10 years that UEX has been involved with the Shea Creek Project suggests that this historical shallow basement intersection exhibits many of the same characteristics that led to the discovery of the Shea Creek Deposits on the Saskatoon Lake Conductor to the north.
One hole is planned to intersect a previously untested electromagnetic conductor parallel to and west of the Saskatoon Lake Conductor at a location approximately 650 m southwest of the Anne Deposit. Three holes are planned to systematically test segments of the Saskatoon Lake Conductor system 3.7 to 4.9 km south of the Shea Creek Deposits.
Three holes will also be drilled to test the sparsely explored southernmost extent of the Saskatoon Lake Conductor system at the southern end of the Shea Creek property where unconformity depths are in the range of 450 to 500 m.
UEX has approved the Shea Creek program and budget and intends to fund its 49.1% share of this program or approximately $1.4 million.
Erica – Winter 2015
A winter drilling program with a budget of $1.5 million has been approved for the Erica Project in 2015.
The program will consist of 3,500 m of drilling (4 to 6 holes) to test a newly defined electromagnetic conductor trend coincident with a magnetic low located 15 km west‑southwest of the Shea Creek Deposits. The trend is oriented parallel to the Saskatoon Lake Conductor and exhibits a similar geophysical signature as the basement rocks on the Shea Creek property.
UEX has approved the Erica program and budget and intends to fund its 49.1% share of this program or approximately $736,000.
Brander, Alexandra and Nikita Projects
No significant exploration activities are planned on the Brander, Alexandra and Nikita Projects in 2015. Budgets of $10,000 have been approved for each of these projects in 2015 to prepare for future exploration activities, possibly as soon as 2016.
UEX has approved the budgets for the Brander, Alexandra and Nikita Projects totaling $30,000. UEX intends to fund its 49.1% share of these budgets or approximately $14,700.
Laurie Project – Winter 2015
A budget of $500,000 has been approved for the Laurie Project. In winter 2015, exploration activities will consist exclusively of a moving-loop time-domain electromagnetic (“ML‑TEM”) survey on the southern end of the project where the Athabasca sandstone ranges from 0 to 225 m thick. A total of 49 km of ML-TEM is planned on fourteen profiles with the objective of defining future drill targets.
UEX has elected not to participate in the 2015 Laurie program. UEX’s interest in this project is anticipated to drop from the current 49.097% interest to approximately 42.25% should AREVA complete the approved ML-TEM program.
For additional clarity, UEX’s decision to not fund exploration work at the Laurie Project does not have an impact on UEX’s ownership interest in the other eight WAJV projects which will remain at 49.097%, including the Company’s ownership of the existing uranium resources at the Shea Creek Project.
UEX continues to have the ability to propose up to an additional $4.0 million budget for the Western Athabasca in 2015; however, to date no decision has been made with respect to supplemental budgets.
UEX (TSX:UEX) is a Canadian uranium exploration and development company actively involved in seventeen uranium projects, including six that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as nine joint‑ventured with AREVA and one joint venture with AREVA and JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The seventeen projects, totaling 260,121 hectares (642,773 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 $8.0 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.
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 N.I. 43‑101 standards.
FOR FURTHER INFORMATION PLEASE CONTACT
President & CEO
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.