TSX: UEX   $0.20
U3O8     SPOT: $26.70 US/lb     LONG TERM: $31.25 US/lb
TSX: UEX   $0.20
FRANKFURT: UXO
OTCQX: UEXCF
U3O8     SPOT: $26.70 US/lb     LONG TERM: $31.25 US/lb

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The 100% owned West Bear Cobalt-Nickel Deposit was discovered by UEX Corporation (“UEX” or the “Company”) during the exploration programs that defined, evaluated and tested the area surrounding the West Bear Uranium Deposit (“WBU Deposit”) between 2002 and 2005.  The West Bear Co-Ni Deposit is a shallow, open-pit amenable and very high-grade cobalt-nickel deposit that remains open in all directions for expansion.  It ranges from 15 – 85 m in vertical depth and is hosted in very soft clay-altered rocks that extend into the basement below the unconformity.   To date, UEX has been able to define cobalt resources at West Bear at an impressively low discovery cost of approximately 50¢ per pound.  

The West Bear Co-Ni Deposit is located in the heart of Saskatchewan’s eastern Athabasca Uranium District, immediately east of the WBU deposit in Canada’s Athabasca Basin.  While the Athabasca Basin is known for its uranium endowment and production, cobalt is commonly found in the same geological environments.   The 7,206-hectare West Bear Property, which contains the West Bear Co-Ni Prospect and the WBU Deposit, was originally part of the Hidden Bay Property that was rolled into UEX by Cameco during UEX’s formation in 2001 as a spin-out from Pioneer Metals and Cameco Corporation.

The West Bear Co-Ni Deposit is high grade, contains over 3.1 million pounds of cobalt and 1.9 million pounds of nickel and excellent potential at relatively low risk remains yet to expand the deposit in every direction.  Highlights from the 2018 winter exploration program include drill holes WBC-012 which intersected 4.90% Co and 2.08% Ni over 8.0 m (from 77.0 to 85.0 m) and WBC-001 that encountered 2.00% Co and 1.26% Ni over 10.5 m (from 46.0 to 56.5 m).

In December 2017, UEX Corporation formed a 100% wholly-owned subsidiary, CoEX Metals Corporation (“CoEX”), which is tasked with the exploration and development of the West Bear Project. UEX is evaluating opportunities to unlock the value of the West Bear Property for shareholders.

CoEX Metals Corporation logo

The West Bear Project is located within the Eastern Athabasca Basin of northern Saskatchewan approximately 30 km southwest of Cameco’s Rabbit Lake Mill and 10 km west of provincial highway 905 and existing power lines.  The Project contains two known mineral deposits, the West Bear Cobalt-Nickel Deposit and the West Bear Uranium Deposit (“WBU Deposit”), both of which have mineral resource estimates complaint with the Canadian Securities Administrators’ NI 43-101 policy.

The property lies at the eastern edge of the Athabasca Basin, and is covered by 0 to 25 m of sandstone that overlies classic Wollaston Domain basement rocks consisting of metamorphosed and deformed pelites, semipelites, arkose, quartzites, and graphite-bearing pelitic rocks.  The core of the West Bear Project is underlain by a quartzite-arkose dome rimmed by strongly graphitic pelites.  Intense brittle fault structures have been developed in the graphitic pelites adjacent to the quartzite dome.

In addition to the West Bear Co-Ni Deposit and the WBU Deposit, the Property hosts several mineral occurrences and showings including the West Bear Uranium Deposit (“WBU Deposit”), the Pebble Hill Uranium Occurrence, the Mitchel Lake Uranium Occurrences, and the Umphreville Uranium Occurrence.  The WBU Deposit has been the subject of several NI-43-101 resource reports and a pre-feasibility study commissioned by UEX (insert link to the technical reports).

Exploration on different portions of the property commenced in the 1970’s by several explorers including Gulf Minerals, Noranda, and the Conwest Exploration Joint Venture that continued through the 1980’s and led to the discovery of the WBU Deposit and nearby uranium showings.  Historical exploration efforts focused exclusively on discovering classic unconformity uranium deposits of the Cigar Lake-style, which meant that drill holes tested the intersection of graphitic pelites with the unconformity surface. Exploration drill holes rarely penetrated more than 15 m below the unconformity surface. Despite the large number of historical holes drilled in the West Bear area, the vast majority of these holes failed to test the West Bear Fault structure below its intersection with the Athabasca Basin unconformity where the West Bear Co-Ni Deposit is located. 

The West Bear Co-Ni Deposit is located just east of the WBU Deposit within the intensely clay-altered West Bear Fault.  Cobalt mineralization consists of disseminated skutterudite and predominately located at the base of the very strongly clay-altered West Bear Fault package that in turn is located at the bottom of the graphitic rock sequence.  As currently defined, mineralization ranges from 15-85 m in vertical depth over a strike length of 250 m and remains open in all directions.  Wherever UEX has encountered cobalt mineralization, high nickel concentrations are most often present. For more details of the West Bear Co-Ni Deposit including an estimate of the contained resources, please review the latest technical report filed on SEDAR and on our website accessible from this link.

The WBU Deposit has been defined over a strike length of 530 m, ranges in width between 20 m and 70 m, ranges in thickness from 0.1 m to over 15 m and is located at vertical depths between 15 m to 35 m.  The WBU Deposit is a classic cigar-shaped body similar to the Cigar Lake and McClean Lake deposits and is hosted at and above the intersection of faulted graphitic metapelites with the unconformity with the overlying Athabasca Group sandstone.  For more details of the WBU Deposit including an estimate of the contained resources, please review the latest technical report filed on SEDAR and on our website accessible from this link.

Cobalt and Nickel Resources

Mineral Resource Statement*, West Bear Cobalt-Nickel Project, Saskatchewan
     
Grade
   
Contained Metal
Category
Quantity
Tonnes
Cobalt
(%)
Nickel
(%)
 
Cobalt
('000 lb)
Nickel
('000 lb)
Inferred
390,000
0.37
0.22
 
3,172
1,928

1. The mineral resource estimates follow the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards.

2. The West Bear Co-Ni Deposit mineral resources are documented in the technical report entitled: “Technical Report for the West Bear Cobalt-Nickel Project, Saskatchewan, Canada” (the “West Bear Co-Ni Report”)and was prepared by SRK Consulting (Canada) Inc. by Mr. Sébastien Bernier, P.Geo., and by Ms. Chantal Jolette, P.Geo. of Analytical Solutions Ltd., each of whom is considered a “Qualified Person” for the purposes of NI 43-101.  The West Bear Co-Ni Report is dated August 7, 2018 and has an effective date of July 6, 2018.

3. The West Bear Co-Ni Deposit mineral resources were determined using a cut-off grade of 0.023 percent cobalt equivalent (“CoEq”), using the equation CoEq = Co + (Ni x 0.2) , considering metal prices of US$35.00 per pound of cobalt and US$7.00 per pound of nickel, and assuming metal recovery of 90 percent for cobalt and 90 percent for nickel..  Only mineralization located within a conceptual open pit was included in the final resource estimate.

The current mineral resource includes the results from 53 drill holes totaling 5,774 metres drilled by UEX in 2003, 2005 and 2018 targeting mineralization between 18 m and 85 m from surface.

Mineral resources are not mineral reserves and have not demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserve.

Uranium Resources

The current technical report, “Preliminary Assessment Technical Report on the Horseshoe and Raven Deposits, Hidden Bay Project, Saskatchewan, Canada” (the “Preliminary Assessment Technical Report”, the “PA” or the “Horseshoe-Raven Report”), prepared by SRK Consulting (Canada) Inc. (“SRK Consulting”) and G. Doerksen, P.Eng., L. Melis, P.Eng., M. Liskowich, P.Geo., B. Murphy, FSAIMM, K. Palmer, P.Geo. and Dino Pilotto, P.Eng., with an effective date of February 15, 2011 was filed on SEDAR at www.sedar.com on February 23, 2011.Details for the mineral resource estimates at a cut-off grade of 0.05% U3O8 as follows:

Deposit
 
Indicated Resources
(at 0.05% U3O8 Cut-Off) 
 
Inferred Resources
(at 0.05% U3O8 Cut-Off) 
 
Tonnes 
Grade
(wt% U3O8)
 
U3O8
(lbs) 
 
UEX Share (lbs) 
 
Tonnes 
Grade
(wt% U3O8)
 
U3O8
(lbs) 
 
UEX Share
(lbs) 
Horseshoe-Raven (100% interest)                
  Horseshoe
5,119,700
0.203
22,895,000
22,895,000
287,000
0.166
1,049,000
1,049,000
  Raven
5,173,900
0.107
12,149,000
12,149,000
822,200
0.092
1,669,000
1,669,000
Total - Horseshoe-Raven
10,293,600
0.154
35,044,000
35,044,000
1,109,200
0.111
2,715,000
2,715,000
West Bear (100% interest)
 
 
 
 
 
 
 
 
  West Bear Uranium
78,900
0.908
1,579,000
1,579,000
-  
-  
-  
-  

1. The mineral resource estimates follow the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards.

2. The Horseshoe, Raven, and West Bear mineral resources were estimated at a cut off of 0.05% U3O8, and are documented in the “Preliminary Assessment Technical Report on the Horseshoe and Raven Deposits, Hidden Bay Project, Saskatchewan, Canada” (The Preliminary Assessment Technical Report”, the “PA” or the Horseshoe-Raven Report”) with an effective date of February 15, 2011 which was filed on SEDAR at www.sedar.com on February 23, 2011.

3. Certain amounts presented in the Hidden Bay N.I. 43-101 report have been rounded for presentation purposes. This rounding may impact the footing of certain amounts included in the tables above.

The PA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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