Cogema-UEX cut more high-grade at Shea Creek

Vancouver — Final results are in from 2005 spring-summer drilling by Cogema Resources, a subsidiary of French energy giant Areva (ARVCF-O), on its western Athabasca Basin Shea Creek joint venture, with UEX (UEX-T, UEXCF-O), delivering more high-grade uranium values over significant widths.

Hole SHE-114-11 intersected 37.7 metres grading 5.4% U3O8, including 4 metres of 25.5% U3O8, below the unconformity in the basement rocks. The hole also encountered a 13.7-metre interval of sandstone-hosted mineralization averaging 5.8% U3O8, including 17.1% U3O8 over 3.5 metres.

Drilling of the 63B area at Shea Creek is defining two settings of high-grade uranium mineralization:

– significant U3O8 mineralization hosted in sandstones, typically situated 20 to 40 metres above the basement unconformity; and

– high-grade U3O8 in the basement rocks, generally 100-150 metres below the unconformity.

UEX President and CEO Stephen Sorensen called the basement intersection of 5.4% U3O8 over 37.7 metres in SHE-114-11 “spectacular,” and said that, to his knowledge, it was “the best interval of deep, basement-hosted, high-grade uranium . . . intersected in the Athabasca Basin.”

Hole 11, drilled from pilot hole SHE-114, cut high-grade mineralized sandstone between 678.5 and 692.2 metres depth. Most of the sandstone-hosted mineralization occurs within a zone of strong alteration and desilicification just above the unconformity. The deeper, structurally controlled, basement-hosted mineralization was intersected from 816.1 to 853.8 metres, at a depth of 102 metres below the unconformity in strongly altered, faulted and brecciated felsic gneiss.

The 63B area is situated about 600 metres northwest of the Anne deposit and about 1,600 metres southeast of the Colette deposit, in a previously sparsely tested section of the Shea Creek corridor. Numerous drill holes in the area have encountered elevated uranium values well above the unconformity, indicating a potentially strong mineralizing system.

The program used a navigational drilling system (Navi-drilling), allowing a number of directional cuts from an initial pilot hole. The technology uses a drill bit that can be steered, allowing several target intersections or unconformity impacts. Two directional-capable rigs have been active on the project.

In early 2004, UEX entered an agreement with Cogema to earn a 49% interest in 10 western Athabasca Basin uranium projects, including Shea Creek. UEX is funding $30 million in exploration over 11 years, having recently earned a 12.25% interest. A further 36.75% can be acquired for additional spending of $22.5 million. Cogema retains operatorship on the projects.

UEX was formed by Pioneer Metals (PSM-T, PNMTF-O) and Cameco (CCO-T, CCJ-N) in 2002 to explore uranium deposits in the Athabasca Basin. Pioneer transferred its uranium portfolio to UEX for 46.5 million shares, subsequently redistributed to shareholders. Cameco transferred its advanced-stage Hidden Bay project in exchange for 31 million shares, making it the largest stakeholder in the company, currently at about 24%.