UEX Corp. completes preliminary feasibility study on West Bear deposit

A preliminary feasibility study has upgraded UEX Corp.’s (UEX-T) previously released resource estimate for its West Bear uranium deposit in the centre of the eastern Athabasca uranium district to a probable reserve of 1.49 million lbs. U₃0₈ grading 0.94% U₃0₈ at a cut-off of 0.18%U₃0₈, which represents 96% of the mineral resource.

The deposit is amenable to open cast mining in a shallow pit, the company says, and metallurgical testing has demonstrated overall uranium recoveries of about 95%.

West Bear is in the southernmost portion of the Hidden Bay project that also contains UEX Corp.’s Horseshoe and Raven deposits to the northeast. Horseshoe and Raven are 4km southwest of Cameco Corp.’s (CCO-T, CCJ-N) Rabbit Lake mill facility. Areva’s McClean Lake property is 4 km northeast of the Horseshoe deposit and about 22 km northwest of the Raven deposit.

The combined National Instrument 43-101 compliant resource estimate at a 0.05% U₃O₈ cut-off for the Horseshoe, Raven and West Bear deposits is 36.62 million lbs. U₃O₈ with an average grade of 0.16% U₃0₈ in the indicated category and 2.72 million lbs. U₃0₈ with an average grade of 0.111% U₃0₈ in the inferred category.

Those resources include a previously released National Instrument 43-101 estimate for West Bear of 1.585 million lbs. U₃0₈ grading 0.843% U₃0₈ at a 0.04% U₃0₈ cut-off.

At a base case uranium price of $77.73 per lb. U₃0₈, the net present value would stand at $23.4 million with an internal rate of return of 118%.

Potentially economic material would be mined from an open pit and transported off-site to an existing processing facility for custom milling.

Capital costs are estimated to be about $20.8 million and mine closure costs are estimated at $8.75 million. Working capital requirements will run to about $0.5 million per month over the life of the operation.

UEX Corp. acquired the Hidden Bay project in 2002.

UEX closed up 2¢or 1.9% at $1.10 per share. Over the last year the uranium junior has traded in a range of 65¢-$1.80per share.