UEX Corporation (UEX:TSX) (“UEX” or the “Company”), is pleased to
announce that drilling has commenced on the Company’s 100% owned
West Bear Property with the objective of expanding the high-grade
West Bear Co-Ni Deposit (the “Deposit”).
The 2019 winter exploration program will consist
of approximately 17,000 m of drilling in approximately 110-160
holes utilizing two drill rigs. Initially, the program will
focus on extending high-grade cobalt mineralization along strike to
the west (see Figure 1).
Results from UEX’s 2004 – 2006 sonic drill
programs, located 100-500 m west of the Deposit highlight the
excellent potential to expand the cobalt-nickel mineralization
along strike to the west. These sonic holes were able to
penetrate only 5-10 m below the uranium mineralization defining the
West Bear Uranium Deposit terminating at vertical depths ranging
between 25-35 m. Almost all the sonic holes ended in
cobalt-nickel mineralization. The key fault structure
hosting cobalt-nickel mineralization in the Deposit area occurs
downdip of these mineralized sonic holes and remains untested by
drilling.
Significant drill results from the 2018 program
included hole WBC-012 that assayed 4.90% Co and 2.08% Ni
over 8.0 m from 77.0 to 85.0 m (see UEX News Release dated
April 19, 2018) and hole WBC-001 which intersected 2.00%
cobalt and 1.26% nickel over 10.5 m between 46.0 m and
56.5 m (see UEX News Release dated April 9, 2018).
The drill program will also test for extensions
of high-grade cobalt-nickel mineralization down-plunge and along
strike to the southeast.
The goal of the winter program is to drill the
Deposit to such an extent that the Company will be able to commence
studies to determine the economic viability of the Deposit in the
second half of 2019.
The winter drill program will also begin the
process of investigating the area around the Deposit for additional
cobalt-nickel deposits. Historical drilling along the margins
of the West Bear Dome was focussed on targeting uranium
mineralization at the unconformity and often failed to test these
fault structures downdip into the basement for cobalt and
nickel. Frequently, samples collected from these holes were
not sampled for cobalt and nickel. Five high-priority target
areas have been identified from the Company’s review of the
historical data of previous explorers on the north and west flanks
of the West Bear Dome (see Figure 1).
UEX believes the West Bear Cobalt-Nickel Deposit
has potential to develop into a significant cobalt deposit with
several potential advantages:
- High Grades
- Cobalt grades from several of UEX’s drill holes compare
favorably to the grades of many global and North American
deposits
- Open-Pit Amenable
- Open in All Directions for Expansion
- Historical Focus on Unconformity Uranium Targets
Avoided Co-Ni Opportunities
- Historical drill holes did not test the clay-altered host fault
structure down-dip from the unconformity, the host environment for
the West Bear Cobalt-Nickel Deposit.
- Mining Friendly Location
- Located in Saskatchewan, the world’s second most attractive
mining investment jurisdiction according to the Fraser Institute’s
2017 Survey of Mining Companies.
- Potential Secure and Ethical North American Cobalt
Source
- Could help alleviate concerns regarding supply security and
ethical sourcing of cobalt seen in other jurisdictions.
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 100%
ownership. The Deposit is located within an area of the
Athabasca Basin that has excellent infrastructure and 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.
The West Bear Cobalt-Nickel Deposit has a strike
length of over 250 m and a dip length of over 100 m and remains
open for expansion in all directions. On July 10, 2018, the Company
announced a maiden inferred resource estimate for the Deposit of
390,000 tonnes grading 0.37% cobalt and 0.22% nickel, which equates
to 3,172,000 pounds of cobalt and 1,928,000 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). Only mineralization located within a conceptual open
pit was included in the final resource estimate.
A sensitivity analysis completed by SRK
Consulting (Canada) Inc. within the Technical Report for the West
Bear Cobalt-Nickel Project, Saskatchewan, Canada dated August 7,
2018 (filed on SEDAR at www.sedar.com) demonstrates the high-grade
nature of the Deposit. 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).
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 and Trevor Perkins, P.Geo., UEX’s Exploration
Manager, who are each considered to be a Qualified Person as
defined by National Instrument 43-101.
About UEX
UEX (TSX:UEX, OTC:UEXCF.PK, UXO.F) is a Canadian
uranium exploration and development company involved in nineteen
uranium projects, including eight 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), that is 60% owned by UEX with JCU (Canada)
Exploration Company Limited which is 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 Deposit and the West Bear Uranium Deposit.
The nineteen projects are located in the
eastern, western and northern perimeters of the Athabasca Basin,
the world's richest uranium belt, which in 2017 accounted for
approximately 22% 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.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/da2fb9eb-aab0-4d46-b6b8-e8fad9aa5633
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