(TheNewswire)
Saskatoon, Saskatchewan – TheNewswire - September 1, 2022 – UEX Corporation (“UEX” or the “Company”), a wholly-owned subsidiaryof Uranium Energy Corporation (NYSE:UEC), provides additional information relating to the technicalreport titled “Independent Technical Report on the West BearProject, Saskatchewan” dated July 25, 2022 for the Company’s 100%owned West Bear property filed on SEDAR and announced by news releaseon August 8, 2022 (“2022 Technical Report”). The 2022 TechnicalReport includes a new mineral resource estimate for the West Bearproperty.
The mineral resource estimate disclosed inthe 2022 Technical Report totalled 295,000 tonnes containing 3.763million pounds cobalt (Co) at an average grade of 0.58% Co, and 3.164million pounds nickel (Ni) at an average grade 0.49% Ni as anindicated mineral resource using a cut-off grade of 0.14% cobaltequivalent (CoEq.), as set out in Table 1 below.
Table 1 – West BearDeposit Mineral Resource Estimates
Category | Grade | Contained Metal | ||||
Quantity (Tonnes) | Cobalt (%) | Nickel (%) | Cobalt | Nickel | ||
Indicated | 295,000 | 0.58 | 0.49 | 3,763 | 3,164 |
*Mineral resources are not mineralreserves and have not demonstrated economic viability. There is nocertainty that all or any part of the mineral resource will beconverted into mineral reserve. All figures are rounded to reflect therelative accuracy of the estimates. Resources were estimated using acut-off grade of 0.14% CoEq and consider metal prices of US$32.84 perpound cobalt and US$ 11.64 per pound nickel. Cobalt equivalent(“CoEq”) grades have been calculated using the following factorCoEq% = Co% + (Ni%*0.38).
The material differences in the totalresources estimated between the 2022 Technical Report and the previoustechnical report on the West Bear property titled “2019 TechnicalReport on the West Bear Project, Saskatchewan” dated and filed onSEDAR on April 30, 2020 (“2020 Technical Report”) is primarily theresult of a significant change to the cut-off grade used by theauthors to estimate mineral resources in the 2022 Technical Report. The determination of the CoEq cut-off grade was increased to 0.14%in the 2022 Technical Report. In addition to increasing the cut-offgrade, the 2022 Technical Report uses a different equation forestimating cobalt equivalent grades due to the slight decrease incobalt prices and a significant increase in nickel prices between 2020and 2022.
The cut-off grade used in the 2022Technical Report was determined using a conceptual pit model. The2020 Technical Report utilized the same cut-off grade used in the 2018technical report titled “Technical Report for the West BearCobalt-Nickel Project, Saskatchewan Canada", prepared bySebastien Bernie, P.Geo. and Chantal Jolette, P.Geo, with an effectivedate of July 6, 2018, filed August 7, 2018 (“2018 TechnicalReport”). The 2020 Technical Report was prepared by QualifiedPersons (“QPs”) who were not independent. As the 2020 TechnicalReport reported a greater than 100% change in the mineral resourceestimate as compared to the 2018 Report, this required that the 2020Technical Report be prepared by QPs who were independent. To correct this, the Company filed the2022 Technical Report which was prepared by independent QPs, whichresulted in the change to the mineral resource estimate describedbelow.
The material differences between the 2022Technical Report and the 2020 Technical Report are summarized in thetable below:
Material Differences | August 8, 2022 Technical Report | April 30, 2020 Technical Report |
Cut-Off Grade | Used 0.14% Co (eq) where: Co (eq) = Co% + (Ni% x 0.38) Cobalt Price = US$32.84/lb Nickel Price =US$11.64/lb | Used 0.023% Co (eq) where: Co (eq) = Co% + (Ni% x 0.2) Cobalt Price = US$35.00/lb Nickel Price =US$7.00/lb |
Total Resources Estimated (100% of mineralresources were classified as Indicated Resources) | ||
Resource Tonnage | 295,000 t | 1,223,000 t |
Cobalt Grade (Co%) | 0.58% | 0.19% |
Contained Cobalt (lbs) | 3,763,000 lbs | 5,122,000 lbs |
Nickel Grade (Ni%) | 0.49% | 0.21% |
Contained Nickel (lbs) | 3,164,000 lbs | 5,662,000 lbs |
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QualifiedPersons and Data Acquisition
The 2022 Technical Report was prepared by Mr. Hatley, P.Eng. of Hatley Engineering , and Mr.Fred Brown, P.Geo., who are considered to beindependent Qualified Persons under National Instrument 43-101- Standards of Disclosure forMineral Projects (“NI 43-101”). Mr. Hatley and Mr. Brownhave each reviewed and approved the technicalinformation in relation to the 2022 Technical Report in this release. The technical information in this news releasehas been reviewed and approved by Roger Lemaitre, P.Eng., P.Geo.,UEX’s President, who is considered to be a Qualified Person asdefined by NI 43-101.
FORFURTHER INFORMATION PLEASE CONTACT
Roger Lemaitre
President & CEO
(306) 979-3849
Forward-Looking Information
This news release containsstatements that constitute "forward-looking information" forthe purposes of Canadian securities laws. Such statements are based onUEX's current expectations, estimates, forecasts and projections. Suchforward-looking information includes statements regarding UEX's drillhole results, uranium, cobalt and nickel prices, outlook for ourfuture operations, plans and timing for exploration activities, andother expectations, intentions and plans that are not historical fact.Such forward-looking information is based on certain factors andassumptions and is subject to risks, uncertainties and other factorsthat could cause actual results to differ materially from futureresults expressed or implied by such forward-looking information.Important factors that could cause actual results to differ materiallyfrom UEX's expectations include uncertainties relating to the,interpretation of drill results and geology, assay confirmation,additional drilling results, continuity and grade of deposits,fluctuations in uranium, cobalt and nickel prices and currencyexchange rates, changes in environmental and other laws affectinguranium, cobalt and nickel exploration and mining and other risks anduncertainties disclosed in UEX's Annual Information Form and otherfilings with the applicable Canadian securities commissions on SEDAR.Many of these factors are beyond the control of UEX. Consequently, allforward-looking information contained in this news release isqualified by this cautionary statement and there can be no assurancethat actual results or developments anticipated by UEX will berealized. For the reasons set forth above, investors should not placeundue reliance on such forward-looking information. Except as requiredby applicable law, UEX disclaims any intention or obligation to updateor revise forward-looking information, whether as a result of newinformation, future events or otherwise.
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