UEX delivers hot uranium hole from Hidden Bay (October 30, 2006)

Vancouver — Drilling by UEX (UEX-T, UEXCF-O) on its Raven-Horseshoe deposit, situated on the Hidden Bay property in Saskatchewan’s Athabasca basin, intersected the highest-grade uranium values encountered to date on the project.

Hole HU-16 cut 12.35 metres (from 201.5 metres depth) grading 4.53% U3O8 hosted in basement rocks on the Horseshoe zone. The intercept includes 3.4 metres of 10.3% U3O8 and an even higher-grade 0.6-metre section averaging 22.17% U3O8.

UEX’s 16-hole phase-2 drill program was designed to increase drill density over previous programs to enable a National Instrument (NI) 43-101 resource estimate for the Raven-Horseshoe deposit. With its latest batch of results, the company has begun a 3-dimensional digital modelling study of the mineralization in addition to an environmental baseline study.

The 570-sq.-km Hidden Bay project is situated in the Wollaston Lake uranium district, near the Rabbit Lake uranium mine and milling complex operated by Cameco (CCO-T, CCJ-N) and the McClean Lake mine operated by Areva Resources Canada, a subsidiary of French energy giant Areva (ARVCF-O).

A historical resource estimate (not NI 43-101-compliant) by Gulf Minerals at Raven-Horseshoe reviewed 6.7 million tonnes grading 0.16% U3O8 (about 23 million contained pounds U3O8).

Mineralization in the latest drilling occurs in a pair of shallow, southeast-dipping, sub-zones of hematite-clay-pitchblende alteration that strike towards the northeast. Both sub-zones remain open to the northeast and have a minimum strike of 140 metres. The deposit is situated about 5 km southeast from the edge of the Athabasca Group sandstones and is within competent basement rocks, similar to Cameco’s Eagle Point deposit at Rabbit Lake located 17 km northeast, which allows for underground ramp access and conventional mining techniques should an economic resource be defined.

UEX reports drilling has only tested 250 metres of the 1,100-metre strike length of the Raven zone, and 375 metres of the 800-metre strike at Horseshoe as defined by Gulf Minerals.