Shea Creek deposits   Geology of the Shea Creek uranium   G l        f h Sh C      k    ideposits: an expanding uranium di...
Shea Creek deposits                        Forward-Looking StatementsThis presentation contains “forward-looking statement...
Location and setting                        Shea Creek deposits                     Shea Creek Located in the western Ath...
Shea Creek deposits                        Cluff         Location and infrastructure                        Lake          ...
Shea Creek deposits                                                                  History Project first systematically...
Shea Creek deposits                   Resources based on drilling to Dec. 31, 2009 May, 2010 N.I. 43-101 complaint resourc...
Shea Creek deposits           Geological setting       Property underlain by 400        to 800 m of Athabasca        sand...
Shea Creek deposits North property geology Deposits associated with the  NNW trending, moderate  WSW dipping Saskatoon  L...
Shea Creek deposits                         Saskatoon Lake                     conductor cross section,                   ...
Pre-Athabasca Deformation                     Shea Creek deposits                                                 F2 folds...
Shea Creek deposits                                                  Graphitic, concordant faults Concordant, west-southw...
Shea Creek deposits                              Reverse displacement along                               R3 structure + ...
Shea Creek deposits Uranium mineralization Mi  Mineralization outlined t         li ti     tli d to  date along a 3 km st...
Shea Creek deposits                                       Shea Creek deposits display                                     ...
Shea Creek deposits                                                  Unconformity mineralization                          ...
Shea Creek depositsBleached sandstone,    SHE-115-3 intercept     Illite d     Illit dominated              i t d
Shea Creek deposits                                                  Basement mineralization                             ...
Shea Creek deposits                                                         Perched mineralization                        ...
Shea Creek depositsAnne and Kianna     deposits:plan map showing l          h i   deposit settingand unconformity   y grad...
Shea Creek deposits    Anne section 6750N          looking NNW Unconformity  mineralization with  basement zone “roots” o...
Shea Creek deposits Anne section 6875N       looking NNW Thick, high grade zones  of discordant basement  mineralization ...
Shea Creek deposits    Kianna section      looking      l ki west  t Stacked  mineralization –  perched,  unconformity an...
Shea Creek depositsKianna wireframe model: view northeast
Colette south section                Shea Creek deposits8670N, view NNW             Area shows stacking o                 ...
Shea Creek deposits                                             Exploration potential: North Colette-Douglas River        ...
Shea Creek deposits             Property scale targets58B       Outside immediate area of        deposits, SLC is unteste...
Warning: forward looking statements! Shea Creek deposits                               Conclusions: a growing district Cl...
Shea Creek deposits                                AcknowledgementsThanks to the AREVA team for its ongoingdiscoveries, di...
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Geology of the Shea Creek uranium deposits: an expanding uranium district in the western Athabasca Basin

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Geology of the Shea Creek uranium deposits: an expanding uranium district in the western Athabasca Basin

  1. 1. Shea Creek deposits Geology of the Shea Creek uranium G l f h Sh C k ideposits: an expanding uranium district in the Western Athabasca Basin David Rhys, Sierd Eriks and Luke van der Meer UEX Corporation Saskatchewan Geological Survey Open House, Nov. 29, 2010
  2. 2. Shea Creek deposits Forward-Looking StatementsThis presentation contains “forward-looking statements” that are based on UEX’s currentexpectations, estimates, forecasts and projections. These forward-looking statementsinclude statements regarding UEX’s resource estimates, outlook for our future operations,plans and timing for the commencement or advancement of exploration activities on ourproperties, and other expectations, intention and plans that are not historical fact. Thewords “estimates”, “projects”, “expects”, “intends”, “believes”, “plans”, or their negatives orother comparable words and phrases are intended to identify forward-looking statements. forward lookingSuch forward-looking statements are based on certain factors and assumptions and aresubject to risks, uncertainties and other factors that could cause actual results to differmaterially from future results expressed or implied by such forward-looking statements.Important factors that could cause actual results to differ materially from UEX’s expectationsincludei l d uncertainties relating t i t t i ti l ti to interpretation of d ill results and geology, additional d illi t ti f drill lt d l dditi l drillingresults, continuity and grade of deposits, public acceptance of uranium as an energy source,fluctuations in uranium prices and currency exchange rates, changes in environmental andother laws affecting uranium exploration and mining, and other risks and uncertaintiesdisclosed in UEX’s Annual Information Form and other filings with the securities commission gon SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking statements made in this presentation are qualified by this cautionary statement andthere can be no assurance that actual results or developments anticipated by UEX will berealized. For the reasons set forth above, investors should not place undue reliance on suchforward-looking statements.forward looking statements Except as required by applicable law UEX disclaims any law,intention or obligation to update or revise forward-looking information, whether as a resultof new information, future events or otherwise.
  3. 3. Location and setting Shea Creek deposits Shea Creek Located in the western Athabasca Basin just south of the former Cluff Lake mine site Most advanced of ten western Athabasca projects that are jointly owned by UEX Corp. (49%) and AREVA Resources Canada
  4. 4. Shea Creek deposits Cluff Location and infrastructure Lake deposits  Project is 13 km south of AREVA’s past producing Cluff James Lake mine complex, which Douglas River Creek produced 64 million pounds of Project Project U3O8 between 1980 and 2002 Erica  Exploration operated byProject AREVA and run out of the Cluff Shea Lake Camp Creek  Contiguous with the UEX- Project AREVA (49%-51% owned) Douglas River and Erica g projects  Road accessible with all weather highway 955 running Nikita through center of property; Project airstrip at Cluff Lake
  5. 5. Shea Creek deposits History Project first systematically explored during the early 1990’s by Amok and COGEMA (predecessors to AREVA) with airborne and ground EM surveys, surveys identifying the NNW trending Saskatoon Lake Conductor (SLC) In 1992, second drill hole to test the SLC intersected low grade uranium mineralization SE of th A i i li ti f the Anne d deposit. F ll it Follow up d illi t drilling to the northwest intersected the Anne deposit and subsequently Colette. Between 1994 and 2000, COGEMA drilled 156 holes mainly at Anne and Colette. No drilling between 2001 and 2003 due to low U price. In 2004, UEX signed an option agreement to earn 49% from AREVA by funding $30 million in exploration. Between 2004 and 2010, more y g p than 200 drill holes were completed which defined additional mineralization, and led to the discovery and ongoing definition of the Kianna and 58B deposits. UEX fully earned its 49% interest in the project in December, 2007
  6. 6. Shea Creek deposits Resources based on drilling to Dec. 31, 2009 May, 2010 N.I. 43-101 complaint resources for the Kianna, Anne andColette deposits estimated by K. Palmer, P. Geo. of Golder Associates:At a cut-off grade of 0.30% U3O8 :Indicated = 1,872,600 tonnes at 1.54% U3O8 (63.57 million pounds U3O8Inferred = 1,068,900 tonnes at 1.04% U3O8 (24.53 million p , , ( pounds U3O8)- At this cutoff, this is the largest pre-development resource in the AthabascaBasinAt a higher cut-off grade of 1.50% U3O8 :Indicated = 509,500 tonnes at 3.78% U3O8 (42.57 million pounds U3O8Inferred = 188,700 tonnes at 2.83% U3O8 (11.77 million pounds U3O8)The resources exclude results of the 2010 drilling that include expansion ofthe Kianna deposit and identification of the 58B deposit. Mineralization isstill open in many areas – resources are growing and exploration potential isexceptional
  7. 7. Shea Creek deposits Geological setting  Property underlain by 400 to 800 m of Athabasca sandstone cover  Underlying basement is Archean to Proterozoic Lloyd Domain granitic and Careen Lake pelitic gneiss  Deposits lie immediately58B south of the Carswell meteorite impact structure; no local effects  Beatty River shear zone dominant structure in area; pre-Athabasca mylonite with second and third order structures to north; t t t th probable Hudsonian age
  8. 8. Shea Creek deposits North property geology Deposits associated with the NNW trending, moderate WSW dipping Saskatoon Lake Conductor L k C d t (“SLC”) that th t is surrounded by felsic granitic gneiss Th SLC i 30 t 60 m thi k The is to thick and comprises pelitic gneisses which are graphite- rich and faulted (R3) in lower portions, as well as interlayered garnetiferous granitic gneiss Granitic gneiss in SLC dated at 1930-1910 Ma (Brouand et al 2002) al., SLC offset by NE trending pre-Athabasca mylonites
  9. 9. Shea Creek deposits Saskatoon Lake conductor cross section, view north Granitic gneiss SHE-095-3, 788 to 791.5 mGraphitic, pyritic p , py pelitic gneissHole SHE-061A,766.3 to 764.7 m Garnetite : SHE-038A, 742.2 m - 752.1 m
  10. 10. Pre-Athabasca Deformation Shea Creek deposits F2 folds SHE-121-2, 800 to 803.3 m history Syn-metamorphic deformation during the 1950-1900 Ma Taltson orogeny comprises southwest di i S1 gneissosity, th t dipping i it overprinted down-dip verging minor F2 folds and S2. May lie on the overturned lower limb of a regional D2 anticline Mylonite in felsic M l it i f l i gneiss i SHE-122-1, 898.5 Retrograde steeply dipping, northeast trending mylonitic shear zones (D3) up to several meters wide associated with right l t id i t d ith i ht lateral displacements of the SLC. These are pre-Athabasca shear zones subsidiary to the Beatty River Shear zone Spatially associated with sheeted EW trending q g quartz veinlets +/- dravite, and , locally remobilized by late faults, clay alteration associated with uranium Mylonite cuts S2: SHE-114-5, 960.6 m
  11. 11. Shea Creek deposits Graphitic, concordant faults Concordant, west-southwest dipping shear zones with pressure solution fabrics, carbonaceous cataclastic breccia and late clay gouge developed along lower, most graphitic portions of the SLC forming the R3 fault. Reverse shear sense indicators; probable both pre-Athabasca and post- Athabasca displacements. Early displacement may have been coeval with mylonites. y Fluid flow and sericite-clay alteration coeval with shear zone activity Oblique fabrics imply reverse kinematics R3 shear zone, SHE-114-2, 738.5 to 740.3 m SHE-123-6, 771.4 m
  12. 12. Shea Creek deposits  Reverse displacement along R3 structure + remobilized mylonites offsets unconformity approximately 30 to 50 m  Interaction of reverse faults re erse fa lts and earlier NE trending mylonites where they intersect: sites for uraniumUnconformity elevation map
  13. 13. Shea Creek deposits Uranium mineralization Mi Mineralization outlined t li ti tli d to date along a 3 km strike length of the Saskatoon Lake conductor Four deposits currently known: Anne, Kianna, 58B and Colette Mineralization comprises unconformity, basement and perched mineralization styles Unconformity mineralization traced continuously over >1 km from SE Anne to Kianna Many areas open, gaps in testing between Kianna, 58B and Colette Open to NW (Douglas Project) and SE
  14. 14. Shea Creek deposits Shea Creek deposits display the full range of stacked mineralization styles seen in the Athabasca Basin:  Unconformity mineralization (UC) is developed along and east of the Saskatoon Lake th S k t L k Conductor  Basement mineralization (UB) d developed mainly i l d i l in footwall of conductor  Alteration plume developed above: may contain multiple alteration fronts and perched mineralization (UP)  Low concentrations of Ni As Ni-As- Shea Creek schematic cross section Co : “basement signature”,looking NNW showing typical features local high Au (up to 56 g/t Au)
  15. 15. Shea Creek deposits Unconformity mineralization  Most extensive style, pancake-like zone straddle the unconformity, replacing basalSHE-115-3, 744-746 m: Kianna deposit sandstone and upper basement  In highest grade areas occurs as nodules and massive pitchblende +/- coffinite aggregates in red-orange hematite-clay matrix  Fragments and also matrix replacement in chlorite-dravite-clay matrix sandstone breccia SHE-95-3, 721 m: Anne deposit  Syn-faulting timing suggested by textures y g g gg y SHE-114-3, 749.2 to 749.4 m: pressure solution fabrics along R3 fault overprint mineralized chlorite- dravite breccia SHE-102-01, samples from 718-721 m
  16. 16. Shea Creek depositsBleached sandstone, SHE-115-3 intercept Illite d Illit dominated i t d
  17. 17. Shea Creek deposits Basement mineralization  Developed mainly in granitic gneiss in the footwall of the SLC in areas of intense clay- chlorite alteration, may exploit earlier faults  Intercepts so far up to 200 m below the unconformitySHE-096-03, 761 -764 m  Mineralization in east-west to ENE trending, steep to moderate north dipping veins, and in WSW dipping concordant zones along faults, lithologies: intercepts form W plunging oreshoots  Pitchblende + hematite +/- coffinite veins and disseminationsSHE-115-11, 862.2-865.3 m Equal Area ( (Schmidt) ) NSHE-123-02, 786.7 m, Kianna South SHE-115-06, 877.5 m, Kianna Axial N = 96
  18. 18. Shea Creek deposits Perched mineralization  Flat-lying lenses of mineralization in Athabasca sandstone “perched” up to 60 m above th unconformity; l b the f it least t voluminous style of mineralization but may be very high grade  Often stacked above areas of basement mineralization and thickest unconformitySHE-114-5, 680 .1 to 687.7 m = 27.7% U3O8 mineralization  Occur in clay-chlorite alteration often above chlorite breccias, alternate with hematite and pyrite redox fronts in sandstone  Often occur along up dip projection of basement-hosted faults into the Pyrite replacing hematite in redox sandstone column front spatially associated with perched mineralization
  19. 19. Shea Creek depositsAnne and Kianna deposits:plan map showing l h i deposit settingand unconformity y grade-thickness contours
  20. 20. Shea Creek deposits Anne section 6750N looking NNW Unconformity mineralization with basement zone “roots” of concordant mineralization Fragments of sandstone locally occur in basement breccia mineralization up to 50 m below unconformity: faults open and permeable into basement Perched mineralization at up dip projection of R3 fault
  21. 21. Shea Creek deposits Anne section 6875N looking NNW Thick, high grade zones of discordant basement mineralization extend downward from the unconformity mineralization and join j concordant basement mineralization below in granite gneiss
  22. 22. Shea Creek deposits Kianna section looking l ki west t Stacked mineralization – perched, unconformity and basement EW trending, steeply dipping basement mineralization exploits corridor of pre-mineral mylonites to depths of >200 m below unconformity b l f it Additional mineralization recently indentified in new zones to the north
  23. 23. Shea Creek depositsKianna wireframe model: view northeast
  24. 24. Colette south section Shea Creek deposits8670N, view NNW Area shows stacking o ea s o s stac g of unconformity, perched and open basement mineralization
  25. 25. Shea Creek deposits Exploration potential: North Colette-Douglas River Vertical exagerration x2.5 Athabasca sandstone DGS-10 intercept DGS 10 i t t Colette 58B 0.53% eU3O8/3.7 m Basement Kianna 1 to >10 ppm U >20% chlorite (modal XRD in clay-sized fraction) y ) Long section looking NE along Shea Creek trend: Plan map: little drilling north Chlorite + anomalous U plume extends to >500 m of Colette Deposit onabove Colette and Douglas projects (Robbins, 1997) Douglas project
  26. 26. Shea Creek deposits Property scale targets58B  Outside immediate area of deposits, SLC is untested or only very sparsely tested, with only 23 widely spaced holes along >20 km of strike length  Anomalous radioactivity and prospective alteration in several drill holes  Parallel conductors to west and east  Near deposit upside: e.g. Geotechnical holes 100 m west G and 150 m east of Kianna intersected unconformity mineralization (0 63% eU3O8/0 7 (0.63% /0.7 m) and 3 m of dravite-rich breccia, respectively
  27. 27. Warning: forward looking statements! Shea Creek deposits Conclusions: a growing district Cluff Lake and Shea Creek form a significant and growing western Athabasca uranium district Most production historically at Cluff from basement style mineralization – suggests further potential at Shea Mineralization open in many areas, both in basement and at p y unconformity, including new zones in the basement north of Kianna, and open basement mineralization down dip in south Colette from 2007 intercepts such as 3.23% U3O8 over 8.0 metres in drill hole SHE-111-06. 5+ km of Shea Creek trend along the SLC on Douglas River property nearly completely untested, 400 m of strike length between Kianna and 58B tested by only one drill hole, and >10 km south southeast of Anne y y tested by only a few drill holes (including the Shea “discovery hole” SHE- 02 = 0.73% U3O8/0.7 m) : significant exploration upside Parallel conductors with alteration, resistivity lows (e.g. Klark Lake) $7.9 million budget for 2011 exploration at Shea and $9.7 million total for West Athabasca – should be an exciting year
  28. 28. Shea Creek deposits AcknowledgementsThanks to the AREVA team for its ongoingdiscoveries, discussions and contributions. In particular John Robbins Sheldon Robbins, Modeland, Erwin Koning and Jeff CarrollLeo Horn, Kevin Palmer and Dan Bald in Horn Ke in Baldwin also have contributed significantly We also thank the management and directors of both companies for their continued support of the project

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