UEX Corporation (TSX:UEX) (“UEX” or the “Company”), through its
100%-owned subsidiary, CoEX Metals Corporation (“CoEX”) is pleased
to announce the maiden mineral resource estimate for the West Bear
Co-Ni Deposit, located on the Company’s 100% owned West Bear
Property.
The maiden mineral resource estimate was
completed by SRK Consulting (Canada) Inc. in accordance with
Canadian Securities Administrators’ National Instrument 43-101
Standards of Disclosure for Mineral Projects by Mr. Sébastien
Bernier, P.Geo. and has an effective date of July 6, 2018.
The West Bear Co-Ni 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). Only mineralization located within a conceptual open
pit was included in the final resource estimate. The resource
is classified as an inferred mineral resource, totaling 390,000
tonnes averaging 0.37% cobalt and 0.22% nickel which equates to
3,172,000 pounds of cobalt and 1,928,000 pounds of
nickel.
Mineral Resource Statement*, West Bear Cobalt-Nickel
Project, Saskatchewan, SRK Consulting (Canada) Inc., July
6, 2018
Category |
|
Grade |
|
Contained Metal |
Quantity |
Cobalt |
Nickel |
Cobalt |
Nickel |
|
Tonnes |
(%) |
(%) |
(‘000 lb) |
(‘000 lb) |
|
Inferred |
390,000 |
0.37 |
0.22 |
3,172 |
1,928 |
|
*Mineral resources are not mineral reserves and have
not demonstrated economic viability. There is no certainty that all
or any part of the mineral resource will be converted into mineral
reserve. All figures are rounded to reflect the relative
accuracy of the estimates. Composites were capped where
appropriate. Mineral resources are reported at a cobalt equivalent
cut-off value of 0.023 percent, considering metal prices of
US$35.00 per pound of cobalt and US$7.00 per pound of nickel, and
assuming metal recovery of 90 percent for cobalt and 90 percent for
nickel. |
|
The current mineral resource includes the
results from 53 drill holes totaling 5,774 metres drilled by UEX in
2003, 2005 and 2018 targeting mineralization between 18 m and 85 m
from surface. The reported mineral resource was constrained
within modeled cobalt mineralization wireframes and estimated using
a geostatistical block modelling approach. A block size of 5
by 5 by 2 metres for all mineralized lenses was used.
Wireframe modeling, variogram analysis and block modeling were
performed using Leapfrog Geo, Geostatisical Software Library
(GeoLib) and Datamine Studio RM software.
Resource Sensitivity
The mineral resource model is relatively
sensitive to the selection of reported CoEq cut-off grade.
The following table illustrates the sensitivity to various cut-off
grades. The reader is cautioned the figures presented in the
table should not be misconstrued as mineral resources but are
presented to show the sensitivity of the block model estimates with
a conceptual open pit shell optimized to changes in CoEq cut-off
grade.
Global Block Model Quantities and Grade
Estimates |
|
at Various Cobalt Equivalent
Grades |
|
|
|
|
|
|
|
|
|
Cut-Off Grade
CoEq
(%) |
Inferred Blocks |
|
Volume/Quantity |
|
Grade |
|
Volume |
Tonnage |
|
Co |
Ni |
CoEq |
|
(m3) |
(tonnes) |
|
(%) |
(%) |
(%) |
|
0.010 |
139,013 |
393,406 |
|
0.37 |
0.22 |
0.41 |
|
0.020 |
138,722 |
392,582 |
|
0.37 |
0.22 |
0.41 |
|
0.023 |
138,653 |
392,387 |
|
0.37 |
0.22 |
0.41 |
|
0.025 |
138,601 |
392,240 |
|
0.37 |
0.22 |
0.41 |
|
0.030 |
138,294 |
391,371 |
|
0.37 |
0.23 |
0.42 |
|
0.035 |
136,724 |
386,928 |
|
0.37 |
0.23 |
0.42 |
|
0.040 |
133,539 |
377,915 |
|
0.38 |
0.23 |
0.43 |
|
0.050 |
129,814 |
367,373 |
|
0.39 |
0.24 |
0.44 |
|
0.060 |
121,668 |
344,321 |
|
0.42 |
0.25 |
0.47 |
|
0.070 |
113,880 |
322,279 |
|
0.44 |
0.26 |
0.49 |
|
0.080 |
105,772 |
299,334 |
|
0.47 |
0.28 |
0.53 |
|
0.090 |
98,529 |
278,837 |
|
0.50 |
0.29 |
0.56 |
|
0.100 |
93,811 |
265,484 |
|
0.52 |
0.30 |
0.58 |
|
|
|
|
|
|
|
|
|
The sensitivity analysis demonstrates the high-grade nature of
the deposit. When compared to the base case resource
estimate, over 96% of the contained cobalt still lies within the
conceptual pit shell when cut-off grades are increased to 0.09%
CoEq (278,837 t at 0.50% Co and 0.29% Ni equaling 3.07 million
pounds Co and 1.78 million pounds Ni).
UEX is pleased that we have been able to report
one of the first primary cobalt mineral resources in Canada.
More exciting is the fact that the Deposit clearly remains open for
expansion. High-grade mineralization remains unfenced to the west
and to the southeast of the current mineral resource model.
Our next programs will focus on expanding the Deposit where
historic drilling has encountered anomalous cobalt and nickel at
the unconformity but failed to test the basement fault structure
that hosts the Deposit.
- Roger Lemaitre, President & CEO
All samples and specific gravity determinations
used to calculate the resource estimate were assayed at the
Saskatchewan Research Counsel’s Geoanalytical Laboratories and
umpire sampled assayed at TSL Laboratories of Saskatoon, SK.
Analytical quality control data was reviewed and validated
independently by Analytical Solutions Ltd. who confirmed that the
available cobalt and nickel assay data was sufficiently reliable to
support an initial resource evaluation of the Deposit.
The database used to estimate the West Bear
Cobalt-Nickel Deposit mineral resources was validated by SRK.
SRK is of the opinion the current drilling information is
sufficiently reliable to interpret with confidence the boundaries
for cobalt mineralization and the assay data is sufficiently
reliable to support mineral resource estimation.
About the West Bear Cobalt-Nickel
Deposit
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 7,657.3 hectares
comprising of 23 contiguous areas to which UEX has
title.
The West Bear Cobalt-Nickel Deposit is located
within an area of the Athabasca Basin that has excellent
infrastructure. The Deposit is situated within 10 km 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.
UEX, through its wholly-owned subsidiary CoEX,
commissioned a $1.6 million winter exploration program designed to
assess the continuity of cobalt mineralization in basement rocks.
The program was designed to follow-up results from 2005 that
identified the potential for economically significant cobalt
mineralization. Many of the 41 drill holes testing the
Project in 2018 were very high grade and expanded the size of the
zone. The drill program was successful at expanding the West
Bear Co-Ni Project which now has a strike length of over 250 m and
a dip length of over 100 m (see attached figure) and remains open
for expansion in all directions.
Qualified Persons and Data
Acquisition
The mineral resource estimation work was
completed by Mr. Sébastien Bernier, P.Geo. of SRK Consulting
(Canada) Inc., who is considered to be an appropriate independent
Qualified Person as defined by National Instrument 43-101.
Mr. Trevor Perkins, P.Geo., Exploration Manager
of UEX Corporation, is a Qualified Person for the purposes of NI
43-101 and has verified the sampling, analytical, and test data
underlying the information or opinions contained herein by
reviewing original data certificates and monitoring all of the data
collection protocols.
Additionally, the technical information in this
news release has been approved by Mr. Roger Lemaitre, P.Geo.,
P.Eng., President & CEO of UEX Corporation, and Mr. Trevor
Perkins.
A technical report co-authored by SRK and
Analytical Solutions Ltd will be filed on SEDAR within 45 days of
this news release.
About UEX
UEX (TSX:UEX) (OTC:UEXCF.PK) (UXO.F) is a
Canadian uranium exploration and development company involved in
seventeen uranium projects, including seven that are 100% owned and
operated by UEX, one joint venture with Orano Canada Inc. (“Orano”)
and ALX Uranium Corp. (“ALX”) that is 50.1% owned by UEX and is
under option to and operated by ALX, 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) under option from JCU (Canada) Exploration
Company Limited and operated by UEX.
The company is also involved in one
cobalt-nickel exploration project located in the Athabasca Basin of
northern Saskatchewan. The West Bear Project was formerly
part of UEX’s Hidden Bay Project and contains the West Bear
Cobalt-Nickel Prospect and the West Bear Uranium Deposit.
The seventeen projects are located in the
eastern, western and northern perimeters of the Athabasca Basin,
the world's richest uranium belt, which in 2016 accounted for
approximately 23% 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 currently 49.1%-owned
Shea Creek Project (located 50 km 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.
FOR FURTHER INFORMATION PLEASE
CONTACT
Roger LemaitrePresident & CEO(306)
713-1401
Forward-Looking Information
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 Deposit drill program, 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.
UEX
CORPORATION UNIT 200 – 3530 MILLAR AVENUE,
SASKATOON, SK., CANADA S7P 0B6 PH: (306)
979-3849 FAX (604)
669-1240 Website: www.uex-corporation.com
Email: uex@uex-corporation.com
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/a1dd75d7-36e0-4d09-9b5b-9aac50888d39
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