UEX targets resource estimates for Horseshoe, Raven in new year

With the release of assays from 23 more holes from its Hidden Bay project in Saskatchewan’s Athabasca basin, UEX Corp. (UEX-T, UEXCF-O) is one step closer to upgrading a historic resource at its Horseshoe deposit.

The highlight of the infill and stepout drilling, part of the summer/fall 2007 program, was a 31.7-metre interval grading 0.75% U₃0₈ in hole HU-134, including 6.1 metres of 3% U₃0₈ (the second-best hole at the deposit to date. Other highlights included: 15.4 metres of 0.73% U₃0₈ in hole HU-113; 65 metres of 0.16% U₃0₈ in hole HU-117; and 23.1 metres of 0.65% U₃0₈ in hole HU-126.

The intersections are close to true width, the company says, as the continuity of mineralization between the vertical to steeply drilled holes, as well as drill core axis angles, indicate that the holes cut the shallow-dipping mineralization at a high angle.

UEX expects a National Instrument 43-101-compliant resource estimate to be completed at Horseshoe this year, after it receives assay results from the remaining 44 holes drilled at the deposit last year. The company says a resource for the Raven deposit, also part of Hidden Bay, should be ready sometime this summer.

Together, the deposits saw nearly 40,000 metres of drilling last year.

In a statement, company president and CEO Stephen Sorensen said the results support UEX’s belief that a historic resource of 13.2 million lbs. U₃0₈ at the deposit is low. The company is particularly optimistic that it can improve on the resource grade.

Sorensen also noted the advantages of having projects located in the Athabasca basin — where infrastructure is well developed.

“When one takes into account the costs and time associated with permitting and building the infrastructure required to take a deposit to production, it is in this context that I wish to emphasize that not all pounds (of uranium oxide) are created equal – we like where we are.”

Along with the Raven deposit, UEX recently identified Horseshoe as a priority for the company at Hidden Bay over the smaller West Bear deposit. West Bear hosts a recently updated indicated resource of 73,000 tonnes averaging 1.004% U₃0₈ at a cutoff of 0.15% uranium oxide.

Hidden Bay will see about 45,000 metres of drilling this year, starting in January. Drilling is planned to define mineralization at Horseshoe and Raven, test historic holes, and test gravity and resisitivity targets associated with areas of clay alteration in historic holes.

Mineralization at Horseshoe consists of shallow-dipping zones of hematization with disseminated and veinlet-hosted pitchblende-boltwoodite-uranophane, found in folded arkosic quartzite gneiss.

UEX shares climbed as high as $7.32 on the results, settling down in early afternoon trading to $6.97, a 5.5% gain.