UEX UEX Corporation

Trading Symbol: UEX-TSX

VANCOUVER, Nov. 27, 2013 /CNW/ - UEX Corporation ("UEX") is pleased to announce the final drilling results from the 2013 exploration program at the Shea Creek Project ("Shea Creek"). Shea Creek hosts the Kianna, Anne, Colette and 58B deposits (see Figure 1) and is one of eight 49%-owned Western Athabasca Projects joint-ventured with AREVA Resources Canada Inc. ("AREVA"), the project operator.

Two concurrent drilling programs were conducted during 2013.  Newly reported drilling results are tabulated in Tables 1 and 2, and include results from:

• Drilling in the Kianna Deposit area, including one drill hole located in the Kianna North area ("Kianna North") and seven holes located in the Kianna East area ("Kianna East"). These drill holes were part of a $2.0 million supplemental drilling program for which UEX was responsible for 100% of the costs.
• Property scale exploration, including five drill holes that tested the Saskatoon Lake East Conductor ("SLEC") located approximately one kilometre east of the Anne and Kianna deposits (see Figure 1); four of these holes intersected the graphitic conductor.  In addition, five holes were drilled to test the prospective Saskatoon Lake Conductor ("SLC") south of the Anne Deposit ("Anne") (see Figure 1).  UEX was responsible for funding $1.27 million of this $2.6 million drilling program.

The results from this program will help guide future exploration targeting as we continue to gain more knowledge of the extensive Shea Creek mineralizing system.

Drilling Results - Kianna North

One new directional drill hole, SHE-135-17, expanded the eastern extension of basement-hosted mineralization in the Kianna North area (see Figure 2). Results from this drill hole include:

SHE-135-17:

(UC) 0.33% eU₃O₈ over 9.4 metres;
(B) 0.80% eU₃O₈ over 31.5 metres, including:
4.05% eU₃O₈ over 4.1 metres.

This area remains highly prospective for open northern and eastern extensions of basement mineralization, and for potential new zones where previous drill holes have intersected mineralization outside of the resource area.

Drilling Results - Kianna East

The Kianna East Zone is a mineralized body discovered in 2012 that dips shallowly to the southwest and lies to the east of, and below, the main zone of Kianna basement mineralization. Directional drill holes SHE-135-16 and SHE-142-3 expanded the Kianna East zone to the northwest and south, respectively (see Figure 3).  Mineralization remains open in these directions and to the east.

Highlights from these drill holes include:

SHE-135-16:

Upper Kianna East Zone (B) 0.73% eU₃O₈ over 1.9 metres and
Kianna East Zone  (B) 0.48% eU₃O₈ over 3.0 metres;

SHE-142-3:

Kianna East Zone (B) 0.99% eU₃O₈ over 5.3 metres, including:
3.21%  eU₃O₈ over 1.5 metres.

Several directional holes (SHE-142-4, SHE-142-4A, SHE-142-4B and SHE-142-4C) which were planned to further test the northwestern extension of the Kianna East mineralized zone were not successfully completed due to strongly fractured and brecciated ground conditions.  Although SHE-142-4 did not reach target depth, basement mineralization consisting of disseminated pitchblende associated with dravite veinlets grading 0.243% eU₃O₈ over 1.2 metres was encountered from 905.9 to 907.1 metres, suggesting potential for further mineralization to the northwest of the Kianna East zone.

Drilling Results - Saskatoon Lake East Conductor ("SLEC")

Five drill holes (SHE-144 and SHE-145 series) were completed to test the SLEC electromagnetic trend which lies approximately one kilometre to the east-northeast of the Saskatoon Lake Conductor that is associated with the Kianna and Anne deposits (see Figure 1).  The SLEC may represent the up-dip continuation to the east of the graphitic unit which controls the position of the Kianna East Zone mineralization.  The drill holes confirmed the presence and location of the SLEC and, although no mineralization was intersected, established a new target area for parallel mineralization to the trend of deposits at Shea Creek.  The occurrence of the Kianna East Zone along this graphitic unit suggests that hydrothermal activity associated with mineralization was active along this conductor, and future exploration will target prospective structural sites along its length.

Drilling Results - Anne South

The 2013 drilling program in the Anne South area (see Figure 1) was designed to test targets along the SLC south of Anne, in an area of sparse previous drilling, where previous drill holes intersected anomalous mineralization and favourable clay alteration. The new drill holes encountered favourable graphitic structural zones in the basement and have confirmed that the SLC continues over one kilometre south of the Anne Deposit.  These graphitic intersections support our geophysical interpretation of the 33-kilometre long SLC.  Minor mineralization was intersected in some of these holes as shown in Table 2.

A second graphitic unit was intersected in drill hole SHE-143-1 below the SLC, as was also encountered below the Kianna East Zone 1.3 kilometres to the north.  This graphitic intersection is interpreted to be the down dip continuation of the SLEC in this area, suggesting a significant strike length and dip extent to the SLEC.

Further information regarding UEX's projects, including maps, is available on UEX's website at www.uex-corporation.com.

To view Figure 1 (Northern Shea Creek Area - 2013 Drilling Programs), Figure 2 (2013 Kianna North Drill Results: SHE-135-17 with Updated Wireframe Models) and Figure 3 (2013 Kianna East Drill Results: SHE-135-16, SHE-142 and SHE-142-1 to SHE-142-4 with Updated Wireframe Models) please access this news release on UEX's website at www.uex-corporation.com.

Qualified Persons and Data Acquisition

Technical information in this news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration, David Rhys, P.Geo., UEX Advisory Board member and Erwin Koning, P.Geo., AREVA's Technical Advisor, Exploration, who are each Qualified Persons as defined by National Instrument 43-101.

Equivalent uranium grades (eU₃O₈) reported here were obtained using a DHT27-STD gamma probe which collects continuous readings along the length of the drill hole.  Probe results are calibrated using an algorithm calculated from the comparison of probe results against geochemical analyses in previous drill holes in the Shea Creek area.  True widths of mineralized intervals have not yet been determined.  All intervals are also analyzed geochemically at the SRC Geoanalytical Laboratories in Saskatoon, SK to support the probe data.

About UEX

UEX is a Canadian uranium exploration and development company actively involved in 16 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 eight joint-ventured with AREVA and one joint venture with AREVA and JCU (Canada) Exploration Company, Limited, which are operated by AREVA.  The 16 projects, totaling 264,363 hectares (653,255 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts 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%-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 $9.4 million.

UEX's two major projects have mineral resource estimates as follows:

UEX Corporation - Indicated Mineral Resources ^{(1) (2) (3)}

UEX Corporation - Inferred Mineral Resources ^{(1) (2) (3)}

Notes:

Forward-Looking Information

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.

TABLE 1

2013 Shea Creek Drill Results - Kianna East and Kianna North

Results are reported with a grade of greater than 0.1% eU₃O₈ and a grade-thickness product of greater than 0.2

*   Previously reported hole - (see UEX news release dated August 6, 2013)
** No probing - lost hole

† UC  - Unconformity mineralization
B  - Basement mineralization

Note: Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.

TABLE 2

2013 Shea Creek Drill Results - Anne South, East of Anne and East of Kianna

Results are reported with a grade of greater than 0.1% eU₃O₈ and a grade-thickness product of greater than 0.2

* Previously reported hole - (see UEX news release dated August 6, 2013)

† UC  - Unconformity mineralization
B  - Basement mineralization

Note: Uranium grades are calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined. 

SOURCE UEX Corporation