UEX Signs LOI to Earn Up to 70 Percent of JCU's Advanced Christie Lake Uranium Project

UEX Corporation (TSX:UEX) announced that it has signed a letter of intent with JCU Exploration Company that will allow the company to earn up to 70 percent interest in JCU’s Christie Lake project.
As quoted in the press release:

The Christie Lake Project is located only 9 km northeast and along strike of Cameco’s McArthur River Uranium Mine, the world’s largest uranium producer (see Figure 1). 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 Uranium Deposits (see Figure 2).
The Paul Bay and Ken Pen Uranium 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. A qualified person has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves. UEX is not treating the historic estimate as current mineral reserves or mineral resources.)

Roger Lemaitre, president and CEO of UEX, commented:

By adding the Christie Lake Project to our portfolio, UEX now has a compelling trinity of advanced exploration projects in the world’s premier uranium region for mining and development. All three of these projects, Shea Creek, Hidden Bay and Christie Lake all have substantial uranium resources and have tremendous upside potential for resource growth. In many ways, the Christie Lake Project is at a very similar stage of development as was the Shea Creek Joint Venture when UEX signed its option agreement with AREVA back in 2003. Christie Lake currently has two known uranium deposits with on-strike and untested basement deposit extension potential, and possess an extensive trend of uranium-in-drill-hole showings that have yet to be followed up with additional drilling.

Click here to read the full UEX Corporation (TSX:UEX) press release.