UEX Corporate Presentation as at February 28, 2011

Transcription

Canada’s “Blue Chip”
Uranium Junior
TSX: UEX
International OTC Markets
UEXCF.PK
Frankfurt: UXO.F
Forward-Looking Statements
FORWARD-LOOKING INFORMATION AND STATEMENTS:
Certain statements and other information contained in this presentation may constitute “forward-looking information” within the meaning of applicable Canadian securities
legislation or constitute “forward-looking statements” within the meaning of applicable United States securities legislation. Such information and statements are based on
UEX's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding UEX‘s outlook for our future operations,
plans and timing for exploration activities, and other expectations, intentions and plans that are not historical fact. The words “estimates”, “projects”, “expects”, “intends”,
“believes”, “plans”, or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are
based on certain factors and assumptions and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results
expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties
relating to interpretation of drill results and geology, additional drilling results, continuity and grade of deposits, participation in joint ventures, reliance on other companies
as operators, public acceptance of uranium as an energy source, fluctuations in uranium prices and currency exchange rates, changes in environmental and other laws
affecting uranium exploration and mining, and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable securities
commissions in Canada. Many of these factors are beyond the control of UEX. Consequently, all forward-looking statements made herein are qualified by this cautionary
statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place
undue reliance on such forward-looking statements. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking
information, whether as a result of new information, future events or otherwise.
NOTICE TO U.S. PERSONS:
The information in this presentation has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United
States securities laws. Information, including scientific or technical information, has been prepared in accordance with National Instrument 43-101 - Standards of Disclosure
for Mineral Projects (“N.I. 43-101”). N.I. 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer
makes of scientific and technical information concerning mineral projects. Canadian standards, including N.I. 43-101, differ significantly from the requirements of the SEC.
For example, the terms “indicated mineral resources” and “inferred mineral resources” are used in this publication to comply with the reporting standards in Canada. While
those terms are recognized and required by Canadian regulations, the SEC does not recognize them. Under United States standards, mineralization may not be classified as a
“reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is
made. Readers should understand that “indicated mineral resources” and “inferred mineral resources” have a great amount of uncertainty as to their existence and as to
their economic and legal feasibility. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral
reserves. In accordance with Canadian rules, estimates of “inferred mineral resources” cannot form the basis of feasibility or other economic studies. In addition, the
definitions of proven and probable mineral reserves used in N.I. 43-101 differ from the definitions in the SEC Industry Guide 7. Disclosure of “contained pounds” is
permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute reserves as in place
tonnage and grade without reference to unit measures. Accordingly, information contained in this publication describing the Company's mineral properties may not be
comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and
the rules and regulations thereunder.
QUALIFIED PERSON:
Technical information in this presentation has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX’s Vice-President of Exploration and Roger Lemaitre, P.Eng., P.Geo.,
UEX’s President and CEO, who are Qualified Persons as defined by N.I. 43-101.
TSX: UEX
-2-
www.uex-corporation.com
Why Invest in UEX?
UEX has
pounds
in the
ground
and
tracks U
price…
Millions of Pounds of U3O8
69.84
Rapid
Growth
in
Nuclear
Power…
16.56
Indicated Resource (UEX’s share)
Inferred Resource (UEX’s share)
Analysts’ consensus share
price target for UEX
Looming
uranium
supply
deficit…
TSX: UEX
-3-
Our
valuation
compared
to recent
activity…
UEX Team
Strong
Management
Team
Graham Thody, CA
Director
Roger Lemaitre, P.Eng., P.Geo.
President, CEO & Director
Ed Boney, CA
CFO & Corporate Secretary
R. Sierd Eriks, P.Geo.
VP Exploration
Nan Lee, P.Eng.
VP Project Development
Developing World Class Uranium
Resources in Canada’s Athabasca Basin
Mark Eaton
Chairman of UEX & Director
Suraj Ahuja, M.Sc, P.Geo.
Director
Knowledgeable Management Advisory Board
Colin Macdonald, M.Sc
Director
Emmet McGrath, CA
Director
David Rhys, M.Sc, P.Geo.
Management Advisory Board
Experienced Board of Directors
TSX: UEX
-4-
Walter Segsworth, P.Eng.
Management Advisory Board
Corporate Summary
Shares
 Issued and outstanding
 Fully diluted
Options
Warrants
17,821,000
227,838,679
245,659,679
Weighted Average Exercise Price for Options
$ 0.93
Nil
 Share Price - May 15th
 Market Capitalization
 Daily Trading Volume (3 month average)
Significant shareholders
 Cameco Corporation
 Global X Uranium ETF
 Black Rock Investment Management
 Current/Retired Management & Directors
Cash position as at May 15, 2014 (estimated)
TSX: UEX
-5-
$ 0.415
$ 94,553,000
603,540
21.95%
5.92%
3.84%
1.53%
$ 7.3 million
UEX Share Price versus U3O8 Prices
Our share price
tracks the spot
price much like
a blue-chip
commodity
company
TSX: UEX
Beginning of Global
Financial Crisis
Fukushima
Disaster
-6-
Total Uranium Resources
N.I. 43-101 Mineral Resource Estimates
Millions of Pounds of U3O8 by Category and by Project
69.84
Millions of pounds of U3O8
40
16.56
35
36.62
30
33.22
25
20
15
13.84
10
5
0
2.72
Shea Creek (UEX's 49.1% share)
Shea Creek - Indicated Category
Shea Creek - Inferred Category
Hidden Bay - Indicated Category
Hidden Bay - Inferred Category
U3O8 (lbs)
Grade
U3O8
(%)
U3O8 (lbs)
Deposit
Tonnes
Grade
U3O8
(%)
U3O8
(lbs)
Grade
U3O8
(%)
Horseshoe
5,119,700
0.203
22,895,000
287,000
0.166
1,049,000
5,173,900
0.107
12,149,000
822,200
0.092
1,666,000
78,900
0.908
1,579,000
-
10,372,500
0.160
36,623,000
1,109,200
Deposit
Tonnes
Grade
U3O8
(%)
Kianna*
1,034,500
1.526
34,805,000
560,700
1.364
16,867,000
Anne*
564,000
1.992
24,760,000
134,900
0.880
2,617,000
Raven
Colette*
327,800
0.786
5,680,000
493,200
0.716
7,780,000
West Bear
58B*
141,600
0.774
2,471,000
83,400
0.505
928,000
2,067,900
1.484
67,663,000
1,272,200
1.005
28,192,000
Totals*
Hidden Bay
Tonnes
Totals
Tonnes
0.111
U3O8
(lbs)
2,715,000
* Joint venture with 49.1% UEX / 50.9% AREVA ownership
TSX: UEX
-7-
The Athabasca Uranium Advantage
 Saskatchewan is uranium mining friendly;
Canada is a politically stable environment
 Established uranium mining infrastructure
and labour force in the Athabasca Basin
 Canada’s Athabasca Basin contains the
highest grade uranium deposits worldwide
 Expanding uranium export markets: new
trade agreements with China and India
TSX: UEX
-8-
UEX Major Assets
TSX: UEX
-9-
Shea Creek Project – 49.1% owned
 Joint venture between UEX (49.1%) and
AREVA Resources Canada (50.9%)
Original
discovery
hole SHE-2
0.342% U3O8
over 0.4 m
 Hosts the second largest undeveloped
uranium resource in the Athabasca Basin.
 Four deposits are distributed along a strike
length of over 3 kilometres at the north end
of the 33-km long Saskatoon Lake Conductor.
 Year-round access by Provincial Highway 955.
 Brownfields
potential:
and
greenfields
exploration
 Existing lenses remain open for resource
expansion
 Drill-indicated mineralization still awaits
follow-up south of the Anne Deposit
 30 km of Saskatoon Lake Conductor still
to be explored
 Newly defined Saskatoon Lake East
Conductor has all the right elements
TSX: UEX
- 10 -
Shea Creek – High-Grade Mineralization
Colette Deposit
58B Deposit
Kianna Deposit
80% of
total
resource
Anne Deposit
Shea Creek Deposits
Wireframe Model
High-Grade Drilling Results
Colette
 SHE-111-06
(B) 23.9% U3O8 over 0.5 m
TSX: UEX
Kianna
Anne
 SHE-114-19
(P) 33.6% eU3O8 over 1.3 m
 SHE-087
(B) 34.7% U3O8 over 1.9 m
 SHE-115-10
(B) 24.3% U3O8 over 2.5 m
 SHE-096-03
(UC) 29.2% U3O8 over 3.4 m
 SHE-123-06
(UC) 32.3% U3O8 over 1.1 m
 SHE-099
(UC) 60.6% U3O8 over 1.2 m
- 11 -
Shea Creek – Kianna & Anne
ANNE
DEPOSIT
KIANNA
DEPOSIT
New Basement
Zone (2011)
New Basement Zone:
UPPER KIANNA
EAST (2012)
Kianna & Anne Deposits
Wireframe Model
The core deposits at Shea Creek are the contiguous Kianna and
Anne deposits which have a strike length of approximately 1 km
and represent > 80% of the total resource estimate at Shea Creek
New Basement Zone:
KIANNA EAST (2012)
Kianna & Anne - U3O8 Mineral Resources (1)
At a cut-off grade of 0.3%
At a cut-off grade of 1.0%
Indicated category: 48.3M lbs of U3O8
average grade of 3.18% U3O8
Inferred category: 14.4M lbs of U3O8
Indicated category: 59.6M lbs of U3O8
Inferred category: 19.5M lbs of U3O8
TSX: UEX
(1)
- 12 -
See “Total Resources” on page 7 for tonnes, % U3O8 grades and % U3O8 cut-off
Where Shea Creek Sits in the Basin
TSX: UEX
- 13 -
Kidd Creek
Totten
PCS
Triple 7
Creighton
LaRonde 4
Red Lake
Macassa
Dome
Shea Creek
Athabasca U
Depth of Canadian Mines & Deposits
0
-500
-1000
$1,063/t
$68/t
-1500
-2000
$95/t
The In-Situ value of
-2500 Shea Creek uranium is
equivalent to a 0.81 opt
-3000
Gold Project
-3500
TSX: UEX
$501/t
$209/t
In-situ value per tonne of each deposit is calculated from the following metal values – U3O8 at US$32.50/lb, gold at US$1300/oz, and potash at US$310/tonne using the
reported grade of resources at either the indicated resource or proven and probable reserve level, as shown on each owner/company’s website as of April 23, 2014. Insitu value per tonne is not necessarily a reflection of a deposits economic viability. Potash value calculated using grades at the Esterhazy Mine, a conventional mining
operation.
- 14 -
Hidden Bay Project – 100% UEX owned

Sixth largest undeveloped uranium resource in
the Athabasca Basin

Three known deposits:
 Horseshoe, Raven and West Bear.

Great potential for basement-type shallow
uranium deposits discoveries - underexplored
Horseshoe-Raven Camp

The N.I. 43-101 Preliminary Assessment Technical
Report recommended initiation of a pre-feasibility
study.

A base case scenario of US$60 per lb U3O8 would
yield estimated EBIT of C$246 million, a pre-tax NPV
of C$163 million and IRR of 42%(1)(2)
(1) These results are included in a technical report on the Hidden Bay property with an effective date of February 15, 2011 available online under UEX’s profile at www.sedar.com.
(2) Projects in the mining sector have experienced rising costs, including rising capital and operating costs, during the past few years. Rising capital and operating costs would, in the
absence of other changes, negatively impact EBIT, NPV and IRR which have been calculated based upon historical costs. Accordingly, readers should bear these factors in mind
when reading the PA and should not place undue reliance on the PA.
TSX: UEX
- 15 -
Raven & Horseshoe Deposits
 Focus is on advancing the Raven &
Horseshoe deposits at Horseshoe and
Raven through pre-feasibility and
ultimately to feasibility level.
 Located on the doorstep of two
operating uranium mills.


4 km from Cameco’s Rabbit Lake Mill
22 km from AREVA’s McLean Lake Mill
 July 2009 N.I. 43-101 mineral
resource estimate prepared by Golder
Associates Ltd. are shown in the table
below.
This resource is included in a technical report on the Hidden Bay
property with an effective date of February 15, 2011 available
online under UEX’s profile at www.sedar.com.
Indicated Resources at 0.05% U3O8 cut-off
Deposit
Tonnes
Horseshoe
5,119,700
0.203
22,895,000
287,000
0.166
1,049,000
Raven
5,173,900
0.107
12,149,000
822,200
0.092
1,666,000
Total
10,293,600
0.155
35,044,000
1,109,200
0.111
2,715,000
TSX: UEX
U3O8 (%)
U3O8 (lbs)
Inferred Resources at 0.05% U3O8 cut-off
- 16 -
Tonnes
U3O8 (%)
U3O8 (lbs)
UEX Other Athabasca Projects
$4-5 million to be spent on UEX Athabasca Projects in 2014
Drill-indicated
uranium to be
followed up
Geophysical
Targeting
Under Option
to Uracan –
newly
encountered U
Summer Resource
Expansion Drilling
Program
Winter drill
programs
TSX: UEX
- 17 -
Basement Deposit
Targeting Program
Basement Potential at Hidden Bay
• Pre-UEX holes at
Hidden Bay don’t
test the potential for
basement variants
of the unconformity
model.
Classic Unconformity Deposit
Sandstone
Alteration
Indicators
• Historic holes reveal
clues for basement
deposits.
< 50 m
Hangingwall Basement—02NEXT
• Hidden Bay is the
shallowest and most
prospective
basement terrain in
the Athabasca Basin
with sandstone
depths of 0-175 m.
TSX: UEX
< 25 m
Basement Targets
Eagle Point
Roughrider
PLS
Shea Creek
- 18 -
Why Invest in UEX?
UEX has
pounds
in the
ground
and
tracks U
price…
69.84
Rapid
Growth
in
Nuclear
Power…
16.56
Looming
uranium
supply
deficit…
TSX: UEX
- 19 -
Our
valuation
compared
to recent
activity…
Growing World Energy Demand
 Forecasting >66% increase in electricity consumption between 2013 and 2035(1)
 Driven primarily by electrification of the developing world.
(1) IEA
World Energy Outlook 2013
TSX: UEX
- 20 -
World Nuclear Power Generation
137
33
100
10
19
15
23
5
5
2
4
2
2
Nuclear = 17% of global
electricity generation
71 Reactors Under
Construction Worldwide
TSX: UEX
4
2
2
50
6
21
435 Reactors Operable
Worldwide
19
5
29
2
3
6
• Min 20% growth in total
operating reactors by 2030
• Each new reactors will
produce 24% more MWe
Sources: IAEA Energy, Electricity & Nuclear Power Estimates for the Period up to 2050
and World Nuclear Association (http://www.world-nuclear.org/info/reactors.html)
- 21 -
Benefits of Nuclear Generation
 Clean energy:
• lower life-cycle emissions than fossil fuels
 Reliability:
• efficient base-load power
 Economics:
• competitive with coal
 Power price stability:
• low fuel costs and low fuel price sensitivity
 Energy security:
• reduces energy dependence on politically less
stable regions
TSX: UEX
- 22 -
Why Invest in UEX?
UEX has
pounds
in the
ground
and
tracks U
price…
69.84
Rapid
Growth
in
Nuclear
Power…
16.56
Looming
uranium
supply
deficit…
TSX: UEX
- 23 -
Our
valuation
compared
to recent
activity…
U Supply-Demand Fundamentals
Suppliers
 Mine
shutdowns
 Delayed
Projects
 Reduced
exploration
expenditures
TSX: UEX
Utilities
 Shortterm
inventory
sales
 Security of
supply
- 24 -
Uranium Market Outlook
 Japanese reactor restarts expected to commence in 2014
 HEU deal representing 16% of supply terminated in 2013
 Low cost and stable supply source no longer available
 Larger than the largest U mine
 Higher uranium price is required
to meet growing global demand
 Producers now cutting back supply
 Large uranium producers making
bets on growth through
acquisition
 The 10-15 year timeframe to
bring new mines on line
TSX: UEX
- 25 -
Why Invest in UEX?
UEX has
pounds
in the
ground
and
tracks U
price…
69.84
Rapid
Growth
in
Nuclear
Power…
16.56
Looming
uranium
supply
deficit…
TSX: UEX
- 26 -
Our
valuation
compared
to recent
activity…
Market Capitalization per lb ($CAD)
Current share price
$ 0.415
UEX N.I. 43-101 - Indicated mineral resources - 69.8 million lbs(1)
- Inferred mineral resources - 16.5 million lbs(1)
Number of shares outstanding
227,838,679
Market capitalization per lb in the ground - $ 1.09 per lb
Consensus share price target (2)
$ 0.70
Market cap per lb (consensus share price target) - $ 1.85 per lb
Yeelirrie Deposit
(Australia)
(1)
(2)
TSX: UEX
Husab Deposit
(Namibia)
Millennium Deposit
(Athabasca Basin)
Mkuju River Deposit
(Tanzania)
Waterbury Lake
(Athabasca Basin)
Roughrider Deposit
(Athabasca Basin)
See “Total Resources” on page 7 for tonnes, % U3O8 grades and % U3O8 cut-off
Analysts’ consensus share price target for UEX - Dundee Securities $0.80 per share; Raymond James $0.60 per share
- 27 -
Range of
market
cap/lb
based
on
analyst
target
prices
Why Invest in UEX?
UEX has pounds in the ground and
tracks U price…
Rapid Growth in Nuclear Power…
The Nuclear Renaissance is well
underway – U demand is growing
Resource expansion potential
Brownfields and Greenfields targets
Basement targeting at Hidden Bay
Looming uranium supply deficit…
Our valuation compared to recent
activity…
Higher prices needed to incentivize
new supply, long time gap to develop
new primary supply
TSX: UEX
- 28 -
For more information:
UEX Corporation
Suite 1007 – 808 Nelson Street
Vancouver, BC V6Z 2H2
Investor and Media Inquiries Contact:
Roger Lemaitre, President & CEO
+1 (604) 669-2349
[email protected]
TSX: UEX
International OTC Markets
UEXCF.PK
Frankfurt: UXO.F
One More Thing…
• On June 7-8th I will be
participating in the a 200+
km ride from Toronto to
Niagara Falls
• The Ride supports the
Princess Margaret Cancer
Centre, one of the world’s
premier Cancer care and
research facilities
• If you would like to support
my Ride, please contact me
the following ways:
• Online at conquercancer.ca
• Call 1-877-699-BIKE [2453]
• Ask me for a donation form
Roger Lemaitre
Participant # 581881-9
TSX-UEX
- 30 -

UEX Corporate Presentation as at February 28, 2011

Transcription

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