The Project is owned 10% by UEX and 90% by JCU (Canada) Exploration Company Limited ("JCU"). UEX holds an option to earn up to a 70% interest in the Project.
Hole CB-92 intersected high grade uranium mineralization that averaged 4.27% eU3O8 over 10.2 m (494.65-504.85 m), confirming the location and high grade characteristics of the Paul Bay Deposit.
This intersection included a higher grade core of 13.24% eU3O8 over 3.1 m that in turn contained an interval of 21.69% eU3O8 over 1.7 m, supports that the Christie Lake Deposits have the potential to host high grade uranium.
The eU3O8 grade, otherwise known as the radiometric equivalent uranium grade, was estimated in-situ within the drill hole using calibrated down-hole radiometric gamma probes. The estimation of uranium grades using down-hole probe radioactivity is industry standard practice and used by Athabasca Basin uranium producers to calculate equivalent grades in both mine and exploration settings.
Hole CB-90A intersected uranium mineralization that averaged 0.38% eU3O8 over 9.1 m (535.05-544.15 m) including 2.94% eU3O8 over 0.6 m. Due to greater than expected drill hole deviation, this hole intersected the Paul Bay Deposit much farther to the east than was originally intended.
Hole CB-91B encountered only minor uranium mineralization when the hole deviated in a different direction than hole CB-90A and missed its target by approximately 50 m to the west.
Samples have been collected for assay analysis to confirm these equivalent grades. The samples will be analyzed at the Geoanalytical Laboratory at the Saskatchewan Research Council in Saskatoon, Saskatchewan.
The objectives of the current exploration program at Christie Lake are to confirm the location of the historic mineralization at the Paul Bay and Ken Pen Deposits and to extend them in the down-dip direction where they appear to be open for expansion. The depth of the unconformity in the Paul Bay Deposit area is approximately 425 m.
UEX currently holds a 10% interest in the Christie Lake Project and is working under an option agreement to earn up to a 70% interest. The Project is located approximately 9 km northeast and along strike of Cameco’s McArthur River Mine, the world’s largest uranium producer.
The P2 Fault, the controlling structure for all of the McArthur River deposits, continues to the northeast beyond the mine. UEX believes that through a series of en-echelon steps the northeast strike extension of the P2 Fault not only crosses the Project but also controls the two known uranium deposits on Christie Lake, the Paul Bay and Ken Pen Deposits.
The Paul Bay and Ken Pen Deposits are estimated to host a combined 20.87 million pounds of U3O8 at an average grade of 3.22% U3O8 and were discovered in 1989 and 1993 respectively. This is a historic resource estimation which does not use resource classifications consistent with NI 43-101.
The historical resource estimate was presented in an internal report titled Christie Lake Project, Geological Resource Estimate completed by PNC Tono Geoscience Center, Resource Analysis Group, dated September 12, 1997.
The historical resource was calculated using a 3 D block model using block sizes of 2 m by 2 m by 2 m, and block grades interpolated using the inverse distance squared method over a circular search radius of 25 m and 1 m height.
Specific gravities for each deposit were averaged from specific gravity measures of individual samples collected for assay. UEX plans to complete additional infill drilling on the deposits during the option earn-in period to upgrade these historic resources to indicated and inferred.
