UEX studies West Bear

A threefold increase in grade over a historic resource has convinced uranium explorer UEX (UEX-T) to advance its West Bear uranium deposit on the Hidden Bay project in northern Saskatchewan’s Athabasca basin to the final feasibility stage.

A recently completed interim resource estimate by Cameco (CCO-T CCJ-N) pegs indicated resources at 45,600 tonnes grading 1.385% U3O8, or nearly 1.4 million contained lbs. The resource also contains 0.34% nickel, 0.11% cobalt, and 0.50% arsenic, with higher grades at the east end of the zone.

The resource estimate is based on 2,793 metres worth of sonic drilling in 101 holes. It employs a cutoff grade of 0.15% U3O8.Cameco completed the sonic drilling under an exploration management agreement with UEX. That agreement wrapped up at the end of 2005; UEX has since assumed management of exploration.

The new resources compares to Gulf Mineral’s historical (pre-NI 43-101) resource estimate of 131,000 tonnes averaging 0.44% U3O8.

The shallow, flat-lying deposit has been defined over 300 metres of strike, and ranges in width from 5 to 25 metres, and in thickness from 10 cm to 10.5 metres. It lies at depths between 13 to 31 metres. Around 70% of the resource is confined to a 100-metre section of the deposit.

Shares in UEX ended 30, or 6%, higher at a new 52-week high of $5.33 in Toronto following the news on Jan. 25.

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