- Published: 29 September 2008
- Written by Editor
UEX reports N.I. 43-101 compliant mineral resource for Horseshoe Deposit containing 18.693 million pounds of U(3)O(8) in the indicated category, and 1.426 million pounds U(3)O(8) inferred at a 0.05% cut-off, with positive metallurgical results
UEX Corporation ("UEX") is pleased to announce that it has received a National Instrument 43-101 ("N.I. 43-101") compliant mineral resource estimate report from Golder Associates Ltd. ("Golder") of Saskatoon, SK, for UEX's Horseshoe Uranium Deposit. The Horseshoe Deposit ("Horseshoe") is located within UEX's 100%-owned Hidden Bay Project in the eastern Athabasca Basin uranium district of northern Saskatchewan, Canada. The September 2008 mineral resource estimate contains 3.578 million tonnes grading 0.237% U(3)O(8) in the indicated category containing 18.693 million pounds of U(3)O(8), and 0.311 million tonnes grading 0.208% U(3)O(8) in the inferred category containing 1.426 million pounds of U(3)O8 at a cut-off of 0.05% U(3)O(8).
Supporting technical reports will be filed on Sedar within 45 days of this news release.
The N.I. 43-101 compliant mineral resource represents a substantial increase in quantity of contained uranium, grade, and resource confidence level over the non-compliant historical mineral resources of 13.6 million pounds of U(3)O(8) at grades of 0.17% which were calculated in the 1970's by Gulf Resources Canada Ltd. ("Gulf"), a previous operator of the project. The improvements represent expansion of the total known area of the deposit well beyond the deposit limits interpreted by Gulf, establishment of greater continuity of mineralization between the widely-spaced historical Gulf drill holes, and identification of areas of higher grade mineralization within the deposit which were not tested by the historical drilling.
In addition to the resource calculation, UEX has recently received an interim report on ongoing metallurgical testwork at the Horseshoe and the adjacent Raven Deposits. The work, being supervised by Melis Engineering Ltd. of Saskatoon, Saskatchewan, incorporates initial results of the Phase II metallurgical testing which was performed on three HQ diameter metallurgical drill holes: two from Horseshoe and one from Raven. These tests indicate that uranium in both deposits is easily leached under relatively mild atmospheric leach conditions, producing leach extractions of 98%, and lacking any significant concentrations of deleterious elements.
"With its large size and potential to get larger, excellent metallurgy, close proximity to infrastructure and favourable ground conditions, Horseshoe is developing into a very attractive mining target, which we intend to advance rapidly towards feasibility," said Stephen Sorensen, President and CEO of UEX.
With approximately 93% of the Horseshoe mineral resource already in the indicated category, feasibility-level mining and economic assessment work can commence in parallel with upgrading the portions of the Horseshoe mineral resource that are currently in the inferred category to indicated through further infill drilling. In addition to the Horseshoe resource, UEX anticipates completing an N.I. 43-101 compliant mineral resource on the Raven Deposit in November.
"Because the total contained quantity of U(3)O(8) in the current Horseshoe resource on its own is close to the combined historical non-compliant resource at Raven and Horseshoe of 22.82 million pounds, we believe we are well advanced in reaching our objective of identifying 30 million pounds of U(3)O(8) in indicated status at our three Hidden Bay deposits in 2009," said Sorensen.
UEX is considering a few production options which include a toll milling arrangement with one of the operators of the two active uranium mills in the region, namely Cameco's Rabbit Lake mill less than 5 kilometres to the northeast, and AREVA Resources Canada Inc.'s ("AREVA") McClean Lake facilities located 12 kilometres to the northwest, or potentially constructing a stand-alone facility which could process ore from all of UEX's Hidden Bay deposits. In all scenarios, given the deposits' location in impermeable basement rocks, any open pits created by mining either deposit will be evaluated as tailings disposal facilities for UEX's deposits, and for other operators in the area.
Mineral Resource Calculation Details
The current Horseshoe mineral resource estimate was prepared by K. Palmer, P. Geo., of Golder Associates of Burnaby, BC. The mineral resource calculation utilized 272 diamond drill holes (86,100 metres from holes HU-001 to HU-256, and HO-01 to HO-16) drilled between 2005 and 2008, which test the deposit at 7.5 to 30 metre drill centers. The mineral resource estimate was calculated using a minimum cut-off grade of 0.05% U(3)O(8) utilizing a geostatistical block-model technique with ordinary kriging methods and the DATAMINE Studio 3 software package.
Details of the mineral resources at different cut-off levels are provided in Tables 1 and 2 below. Note that approximately 92.9% of the resource is in the indicated category at a 0.05% U(3)O(8) cut-off. At a cut-off of 0.20%, most of the contained U(3)O8 in the deposit is within areas averaging 0.433% U(3)O(8).
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Table 1
September 2008 Indicated Mineral Resources at Horseshoe
Tonnes and Grade at Various U(3)O(8) Cut-offs
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Cutoff Tonnes Dry Density U(3)O(8) (%) U(3)O(8) (lbs)
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0.05 3,577,700 2.48 0.237 18,693,000
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0.10 2,725,300 2.48 0.287 17,255,000
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0.15 1,944,100 2.48 0.353 15,116,000
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0.20 1,343,000 2.48 0.433 12,817,000
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0.25 945,500 2.48 0.521 10,866,000
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0.30 693,000 2.48 0.612 9,347,000
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0.35 525,400 2.48 0.704 8,154,000
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0.40 400,200 2.48 0.807 7,120,000
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Table 2
September 2008 Inferred Mineral Resources at Horseshoe
Tonnes and Grade at Various U(3)O(8) Cut-offs
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Cutoff Tonnes Dry Density U(3)O(8) (%) U(3)O(8) (lbs)
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0.05 311,200 2.37 0.208 1,426,000
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0.10 248,600 2.37 0.239 1,310,000
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0.15 180,600 2.43 0.282 1,124,000
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0.20 132,400 2.45 0.320 935,000
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0.25 83,900 2.47 0.376 695,000
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0.30 53,100 2.47 0.439 514,000
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0.35 33,000 2.47 0.512 372,000
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0.40 19,300 2.49 0.607 258,000
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Metallurgical Testing
Representative samples derived from composited drill core assay rejects from the Horseshoe deposit, and from three HQ diameter metallurgical holes from both the Horseshoe and Raven deposits have now undergone preliminary testing for leach and effluent treatment conditions, and grindability analysis under the direction of Melis Engineering Ltd. at SGS Lakefield Research Limited in Lakefield, Ontario.
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Metallurgical testing for the Horseshoe and Raven deposits comprised two
phases:
(i) initial Phase I testing in 2007 of four composites blended from
assay reject samples derived from definition drill holes in the
Horseshoe deposit, and representing different grade ranges from the
A and B West zones, and
(ii) Phase II comminution testwork, uranium leaching testwork, and
environmental data generation from three diamond drill holes drilled
at HQ (63.5 mm) diameter for metallurgical purposes, including two
in the Horseshoe deposit, and one in the Raven deposit during late
2007 and 2008, and still ongoing.
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Drill holes for the Phase II testwork were chosen in portions of the deposits to test areas both of representative uranium grade and mineralization style. Hole HU-156 was selected to test higher grade portions of the Horseshoe A zone in the nodular mineralization style, while hole HU-157 tested disseminated mineralization style in the Horseshoe BE zone. Hole RU-130 was drilled in western-central portions of the Raven deposit, and crossed typical areas of mineralization in two of the principal lithologic host lithologies within that deposit, intersecting 0.14% U(3)O(8) over 10.9 metres. Composited intervals (greater than)0.05% U(3)O(8) which occur in the drill holes that were subject to metallurgical testing are summarized in Table 3. A total of five composites representing high and low grade populations from holes HU-156 and HU-157 and mineralization from hole RU-130 were prepared.
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Table 3
Composited drill hole intersections from which Phase II metallurgical
samples were derived, composited to a minimum of 0.05% U(3)O(8).
The data is composited from ICP geochemical analysis of splits from
0.5 m metallurgical samples which were analyzed by SRC Analytical
Laboratories. Metallurgical samples also include some intervening
intervals below the 0.05% cutoff for compositing.
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Metallurgical Deposit Zone Drill From To (m) Length Grade
Composites hole (m) (m) %U(3)O(8)
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AH, AL Horseshoe A zone HU-156 168.8 187.0 18.2 1.01
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BEH, BEL Horseshoe BE zone HU-157 285.5 320.4 34.9 0.13
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RU-130 Raven Main RU-130 109.0 119.0 10.9 0.14
136.7 137.0 0.5 1.29
144.6 149.0 4.4 0.16
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Blended composites prepared for testing are listed in Table 4 below,
along with key elemental analyses.
Table 4
Summary of Horseshoe and Raven composite assays
All elements were analyzed at SGS Lakefield Research Ltd. by Total
Digestion (HF/HNO(3)/HClO(4) + HNO(3)) ICP except for As and Se which
were analyzed by Aqua Regia Digestion (3:1 HCl:HNO(3)) ICP
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Assay, %
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Composite U(3)O(8) As Fe Ni Mo Se
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A 0.414 0.0048 1.61 0.0045 0.0014 (less than)
0.0001
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B 0.297 0.0083 3.85 0.0060 0.0008 (less than)
0.0001
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HU16 4.07 0.0785 3.36 0.0175 0.0012 (less than)
0.0001
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Main 0.33 0.0063 2.66 0.0054 0.0015 (less than)
0.0001
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AH 2.18 0.014 4.20 0.0042 0.0025 (less than)
0.0030
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AL 0.38 0.0052 1.29 0.0036 0.0018 (less than)
0.0030
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BEH 0.31 0.0055 1.39 0.0042 0.0024 (less than)
0.0030
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BEL 0.054 (less than) 0.73 0.0034 0.0016 (less than)
0.0040 0.0030
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RU-130 0.21 (less than) 1.72 0.0084 0.0025 (less than)
0.0060 0.0030
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The elemental analyses of the composites show that Horseshoe is relatively low in deleterious elements such a arsenic, molybdenum, selenium and base metals; hence the Horseshoe zone should present minimal processing and environmental difficulties.
Leaching tests on composites from both testing phases indicate that the uranium in the Horseshoe and Raven zones is easily leached under relatively mild atmospheric leach conditions. On average, leach extractions of 98% can be achieved with a grind K80 of approximately 100 (micro)m, 12 hour leach retention time, free acid level of 10 g H(2)SO(4)/L representing acid additions of approximately 50 kg H(2)SO(4)/t, and a 475 mV redox/potential controlled with NaClO(3) at addition rates of 0.5 to 1 kg NaClO(3)/t. These excellent extraction levels are comparable to other metallurgically simple basement-hosted deposits in the region, including the nearby Eagle Point deposit.
Horseshoe mineralization comprises pitchblende and other uranium oxides and silicates without potentially deleterious nickel-arsenide minerals which may affect extraction and pose tailings disposal problems. Initial effluent treatment testwork indicates that regulatory discharge limits will be achievable. Tailings aging tests of waste raffinate and leach residue suggest that while molybdenum and residual uranium levels in the tailings supernatant increase upon aging, excess tailings water would be re-used and/or treated in the mill process and waste treatment circuits under normal operating conditions to potentially mitigate these effects. These results suggest that methods of treatment of waste and effluent generated by the processing of this mineralization would be comparable to those in use at operating mines in the area.
Nine composites were submitted for Bond ball mill work index (BWI) and SPI(R) determinations. The Raven-Horseshoe composites were categorized as medium in hardness from the perspective of SAG milling and moderately hard for ball mill grinding.
Advancing the Horseshoe and Raven Deposits
Exploration of the deposit areas continues with exploration drilling currently underway with plans to test additional historically-known areas of mineralization contained in the historical Gulf resource but outside the current resource area.
In progressing toward a feasibility study on the Horseshoe and Raven Deposits, environmental baseline studies were commenced by Golder in 2006, and Golder continues to collect biological, hydrogeological and other environmental data. During the 2007 and 2008 drilling programs, geotechnical studies of the area of the deposits also commenced, assessing rock properties and hydrogeology of the area of both the Horseshoe and Raven deposits. Further baseline and geotechnical studies are scheduled for 2009 following the input of more detailed information on the project design generated from the ongoing feasibility study. Any additional infill holes required to upgrade the Horseshoe and future Raven mineral resources to indicated status are planned for late 2008 and early 2009, pending recommendations derived from the mineral resource work. Based on these work plans, UEX plans to begin the feasibility study for the combined Horseshoe and Raven deposits in early 2009.
The feasibility study is being led by Golder to examine the most efficient methods and procedures for extracting the defined uranium resource, including the most appropriate road access and support infrastructure, mining methods and operating plans. As the feasibility study progresses, Golder will supervise the tendering of contracts for all aspects of a potential mining operation, and will perform cash flow analyses and projections in order to determine net present values and internal rates of return for Horseshoe at various uranium price levels.
The information in this document has been compiled and reviewed by D. Rhys, P. Geo., and the metallurgical component by B. Fielder, P.Eng., who are qualified persons as defined by N.I. 43-101.
About the Horseshoe and Raven Deposits
Mineralization at Horseshoe comprises shallow dipping zones of hematization with disseminated and veinlet pitchblende-boltwoodite-uranophane that are hosted by folded arkosic quartzite gneiss. Mineralization defined to date occurs in four dominant zones A1, A2, BW, BE, and multiple smaller zones which define two different styles comprised of: a) disseminated pitchblende-chlorite-hematite, and b) narrower, higher grade nodular and veinlet pitchblende in hematite-clay alteration. Within the resource area reported above, mineralization has been defined to date continuously over a strike length of approximately 600 m and a dip length of up to 300 m, occurring at depths of 100-420 m below surface. To view maps and cross sections of Raven and Horseshoe, please access UEX's website at www.uex-corporation.com under "Projects -Hidden Bay".
Horseshoe and the adjacent Raven Deposit are located less than 5 kilometres south of Cameco Corporation's Rabbit Lake operations, and 12 kilometres southeast of AREVA's McClean Lake operations. Both deposits are hosted by competent basement rocks that could be amenable to both open-pit and conventional underground ramp access mining methods, pending a positive feasibility study. Using widely spaced drill holes in 1980, Gulf estimated a total resource at Raven and Horseshoe of 6.7 million tonnes at an average grade of 0.16% U(3)O(8), representing approximately 22.82 million contained pounds of U(3)O(8) (13.2 million pounds grading 0.17% U(3)O(8) at Horseshoe, and 9.62 million pounds grading 0.14% U(3)O8 at Raven). These historical resource estimates were not calculated using current Canadian Institute of Mining, Metallurgy and Petroleum standards. As a result, they are not compliant with N.I. 43-101, and should not be relied upon.
About UEX
UEX is a Canadian uranium exploration and development company actively involved in 19 uranium projects, including seven that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, ten joint-ventured with AREVA and one under option from Japan-Canada Uranium Company, Limited, which are operated by AREVA. The 19 projects, totaling 385,452 hectares (952,450 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 23% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne and Colette Deposits at its Shea Creek Uranium Project, a joint venture with AREVA in the western Athabasca Basin, and the West Bear, Raven and Horseshoe Deposits located at its 100% owned Hidden Bay Project in the eastern Athabasca Basin. UEX's exploration and development budgets for 2008 are estimated at approximately $40 million, of which UEX will be responsible for approximately $30 million.
<< ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION Stephen H. Sorensen, President & C.E.O. >>
Forward-Looking Statements
This news release contains "forward-looking statements" that are based on UEX's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding UEX's outlook for our future operations, plans and timing for the commencement or advancement of exploration activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are 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 statements. Many of these factors are beyond the control of UEX. Consequently, all forward-looking statements made in this news release are 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 statements. UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
%SEDAR: 00017609E
SOURCE: UEX Corporation
UEX CORPORATION, SUITE 1007 - 808 NELSON STREET, VANCOUVER, B.C., CANADA, V6Z 2H2, PH: (604) 669-2349, FAX (604) 669-1240, Website: www.uex-corporation.com, email: This email address is being protected from spambots. You need JavaScript enabled to view it.
