Global X Uranium ETF Completes Rebalancing
of UEX Shareholdings
UEX Corporation (UEX:TSX) (“UEX” or the “Company”) is pleased to
announce the results of the summer drilling program in the
Shoreline area at the Christie Lake Project.
The summer program’s main goal was to test the
unconformity intersection of the Yalowega Trend in the 350 m wide
gap in drilling between the Ken Pen Deposit and the high-grade
Ōrora Deposit. UEX completed five holes during the summer
program totaling 2,637 m and assay results have been
received. All holes drilled during the summer program
intersected uranium mineralization, confirming the potential for
additional mineralization between the two deposits.
Highlights from the summer program include hole
CB-132 that intersected 0.37% U3O8 over 11.2 m from 450.0 to 461.2
m approximately 250 m southwest of the Ōrora Deposit, which
included a subinterval of 1.21% U3O8 over 2.7 m from 458.5 to 461.2
m, which itself included a subinterval of 5.67% U3O8 over 0.5 m
from 459.3 to 459.8 m.
Assay results collected during the summer
program are shown in the table below. Uranium assay analysis
was conducted at the Saskatchewan Research Council’s Geoanalytical
Laboratory in Saskatoon, Saskatchewan. 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 0.1% U3O8. All depth
measurements and sample intervals reported are down-hole
measurements from drill core. True thickness has yet to be
determined and is estimated at 80-85% of core thickness.
Table 1 – Assay Results –
Summer 2018 Christie Lake Exploration Program |
|
|
|
|
|
Hole |
Depth |
Core Length |
Uranium |
From (m) |
To (m) |
(m*) |
(wt%) |
CB-130 |
464.0 |
465.0 |
1.0 |
0.33 |
|
476.6 |
477.3 |
0.7 |
0.17 |
CB-131 |
469.7 |
470.0 |
0.3 |
0.16 |
CB-132 |
450.0 |
461.2 |
11.2 |
0.37 |
incl |
458.5 |
461.2 |
2.7 |
1.21 |
and |
459.3 |
459.8 |
0.5 |
5.67 |
CB-133 |
444.6 |
445.0 |
0.4 |
0.13 |
CB-134 |
447.7 |
448.0 |
0.3 |
0.43 |
|
|
|
|
|
*True Thickness is estimated to be 80-85% core thickness |
|
|
|
|
|
|
|
The locations of the summer drill intersections in relation to
the Ken Pen and Ōrora Deposits can be found in Figure 1.
Now that the summer program has been completed,
UEX will be focusing its efforts for the rest of the year on
completing three-dimensional models of the Paul Bay, Ken Pen, and
Ōrora Deposits in preparation for our maiden NI-43-101
resource.
With the completion of the summer program, UEX has now met our
work obligations under the Christie Lake Option Agreement to earn
our 60% interest in Project, which we expect will be finalized
shortly. We are encouraged that the unconformity expression of the
Yalowega Trend continues to yield uranium mineralization and
follow-up drilling will be required between Ken Pen and
Ōrora. While the Trend remains unexplored along strike to the
southwest of the Paul Bay Deposit, UEX has yet to test the
basement-hosted uranium potential northeast of Ken Pen, one of the
key recognized exploration targets identified by UEX during the
acquisition of the Christie Lake Project, nor have we had the
opportunity to test for Ōrora-like targets up-dip of known
mineralization on the B Trend immediately west of the existing
deposits.
-Roger Lemaitre, President & CEO
Index Rebalancing
UEX believes it is appropriate to inform
investors that the Global X Uranium Exchange Traded Fund (“Global
X”) has completed a rebalancing of its fund in respect to its
holdings in UEX. Because of changes to the underlying index
used by Global X to include larger companies in various nuclear
fuel cycle industries, Global X has been systematically rebalancing
holdings in all uranium mining and development companies, including
UEX. As a result, Global X’s position in UEX has decreased
from approximately 38,299,040 shares in UEX ( approximately 11.0%
of total UEX shares outstanding) on March 31, 2018 to 4,590,205
shares (approximately 1.2% of total UEX shares outstanding) on
October 24, 2018.
About the Christie Lake Project
UEX currently holds a 45% interest in the
Christie Lake Project and is working under an option agreement to
earn up to a 70% interest. The Project is located
approximately 9 km northeast and along strike of Cameco’s McArthur
River Mine, the world’s largest uranium producer. The P2
Fault, the controlling structure for all of the McArthur River
deposits, continues to the northeast beyond the mine. UEX
believes that through a series of en-echelon steps the northeast
strike extension of the P2 Fault not only crosses the Project but
also controls the three known uranium deposits on Christie Lake,
the Ōrora, Paul Bay and Ken Pen Deposits.
The Paul Bay and Ken Pen Deposits are estimated
to host a combined 20.87 million pounds of U3O8 at an average grade
of 3.22% U3O8 and were discovered in 1989 and 1993
respectively. This is a historic resource estimation which
does not use resource classifications consistent with NI
43-101. The historical resource estimate was presented in an
internal report titled Christie Lake Project, Geological Resource
Estimate completed by PNC Tono Geoscience Center, Resource Analysis
Group, dated September 12, 1997. The historical resource was
calculated using a 3 D block model using block sizes of 2 m by 2 m
by 2 m, and block grades interpolated using the inverse distance
squared method over a circular search radius of 25 m and 1 m
height. Specific gravities for each deposit were averaged
from specific gravity measures of individual samples collected for
assay. UEX plans to complete additional infill drilling on
the deposits during the option earn-in period to upgrade these
historic resources to indicated and inferred. A qualified
person has not done sufficient work to classify the historic
estimate as current mineral resources or mineral reserves.
UEX is not treating the historic estimate as current mineral
reserves or mineral resources and the reader is advised not to rely
upon this historical estimate as a resource estimate.
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 eighteen
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 Deposit and the West Bear Uranium Deposit.
The eighteen 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.
About JCU
JCU is a private company that is actively
engaged in the exploration and development in Canada. JCU is
owned by three Japanese companies. Amongst these, Overseas
Uranium Resources Development Co., Ltd. (“OURD”) acts as the
manager of JCU. JCU has partnerships with UEX, Orano, Cameco,
Denison and others on uranium exploration and development projects
in the Athabasca Basin of Northern Saskatchewan including
Millennium and Wheeler River and the Kiggavik project in the Thelon
Basin in Nunavut.
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 WBU
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/80c0ad8c-b93f-4e99-8c97-51b2328b64a2
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