In its third quarter results statement, the pre-revenue uranium exploration company revealed it finished September with C$7.92mln in cash and cash equivalents.
As might be expected of a company at the stage of development, it is currently loss-making – the loss before tax widened to C$1,99mln in the third quarter from C$1.23mln a year earlier – so the management commentary was largely focused on drilling activities, which have gone well so far.
UEX is involved in fifteen uranium projects located in the Athabasca Basin, the world’s richest uranium district, and the focus in the third quarter was on the Christie Lake project.
“In October, the final hole at Paul Bay unexpectedly encountered very high grade uranium within a segment of the deposit where historical drill intersections were very widely spaced. The identification of one and possibly two ultra-high grade zones is very positive for the growth of the project,” UEX said in its results statement.
“With this new understanding, we are poised to discover more high grade zones in 2017 along the remainder of the 1.5 km long mineralized trend northeast of Paul Bay and Ken Pen,” it added.
In the company’s view, the first six holes drilled at Ken Pen have only just “scratched the surface”. The exploration team is excited about the possibility of discovering additional unconformity-style mineralization as a complement to the basement-hosted potential that initially attracted UEX to the project.
“We are eagerly looking forward to the re-start of the drilling program in early January 2017,” declared Roger Lemaitre, president and chief executive officer of UEX.
Prior to that resumption, the UEX team is busy modelling, interpreting and selecting targets for the winter drilling program, with the intention of including the data from the program in the NI 43-101 resource report, expected to be completed in the second quarter of next year.
The company also gave a sneak preview of a scoping study on its wholly-owned Horseshoe-Raven deposits following the success of its heap leach test. The purpose of that test was to determine whether heap leach extraction methods would prove economical, and UEX said preliminary results from the scoping study are encouraging.
“The uranium price environment has been challenging this quarter, with the spot price testing 12-year lows. Improving economics at the Horseshoe-Raven Deposits with heap leach extracting has the potential to elevate the value of these assets significantly. We believe that focusing our exploration efforts in the world’s highest-grade uranium corridor, where two successful mines continue to operate even in this challenging price environment, will be rewarding,” LeMaitre said.
Story by ProactiveInvestors