TORONTO, Jan. 19, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE, OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") announces uranium and vanadium assays from exploration
trenching of soft gravel and sand in the La Rosada area, which the
Company considers to be an extension of the Laguna Salada
Deposit.
"Last week we reported that our focus on exploration for
higher-grade extensions to the Laguna Salada Deposit had led to the
discovery of uranium and vanadium in a layer adjacent to, and
beneath, gravel in the La Rosada area," said Dr. Richard Spencer, CEO of U3O8 Corp. "That was an
unexpected bonus because our target was uranium and vanadium in the
gravel itself, which is an extension of the layer that contains the
Laguna Salada Deposit 50 kilometres to the south. Assay results
from the gravel at La Rosada, reported in today's release, have
grades similar to the very highest-grade material in the Laguna
Salada resource. In addition, the assay results show that
uranium in La Rosada gravels can be efficiently concentrated into
the fine-grained component of the gravel with the removal of
pebbles and coarse sand by screening. The higher grade, as
well as the efficiency of concentration of uranium from La Rosada
gravels, has the potential to lower estimated production costs for
the Laguna Salada Deposit."
Assay Results
Table 1. Summary assay results from composite panel
samples from trenches in unconsolidated gravel and sand in the La
Rosada area.
Sample
Data
|
Assay
Data
|
Sample
No
|
Material
|
From
(metres)
|
To
(metres)
|
True
Thickness
(metres)
|
U3O8
(ppm)
|
V2O5
(ppm)
|
Bulk
sample
|
In Fine
(<0.15mm)
Component
After Screening
|
Bulk
sample
|
In Fine
(<0.15mm)
Component
After Screening
|
16828
|
Gravel
|
0.3
|
0.6
|
0.3
|
106
|
1,304
|
234
|
801
|
16834
|
0.3
|
0.7
|
0.4
|
5,475
|
20,764
|
1,963
|
7,568
|
16839
|
0.4
|
0.7
|
0.3
|
701
|
1,114
|
1,326
|
1,191
|
16841
|
0.4
|
1.2
|
0.8
|
154
|
2,844
|
322
|
1,358
|
16889
|
0.7
|
1.7
|
1.0
|
133
|
570
|
140
|
623
|
Average: Mineralized
Gravel
|
0.55
|
1,314
|
5,319
|
797
|
2,308
|
16829
|
Sand
|
0.6
|
1.5
|
0.9
|
2,800
|
3,155
|
1,432
|
1,573
|
16831
|
0.7
|
1.5
|
0.8
|
501
|
1,113
|
705
|
1,380
|
16832
|
0.4
|
1.0
|
0.6
|
597
|
675
|
669
|
736
|
16833
|
1.0
|
1.4
|
0.4
|
493
|
1,031
|
1,054
|
1,375
|
16835
|
0.7
|
1.3
|
0.6
|
388
|
722
|
254
|
396
|
16836
|
0.4
|
1.0
|
0.6
|
138
|
349
|
263
|
415
|
16837
|
0.8
|
1.2
|
0.4
|
195
|
533
|
234
|
399
|
16842
|
1.2
|
2.2
|
1.0
|
699
|
1,239
|
841
|
1,117
|
Average: Mineralized
Area of Sand Layer
|
0.7
|
726
|
1,102
|
681
|
924
|
16830
|
Sand
|
0.6
|
1.6
|
1.0
|
76
|
134
|
952
|
970
|
16874
|
1.4
|
2.5
|
1.1
|
13
|
193
|
103
|
579
|
16894
|
0.4
|
1.2
|
0.8
|
59
|
114
|
167
|
270
|
Combined Grade &
Thickness of Sand and Overlying Gravel in Trenches Where Both
Layers are Mineralized:
|
16828
&16829
|
Gravel & Sand
Layers
|
0.3
|
1.5
|
1.2
|
2,197
|
2,692
|
1,360
|
1,380
|
16834 &
16835
|
0.3
|
0.7
|
1.0
|
2,422
|
5,732
|
938
|
2,194
|
16841 &
16842
|
0.4
|
2.2
|
1.8
|
154
|
1,640
|
1,326
|
1,177
|
Average of
Mineralized Gravel and Mineralized Sand Where They Occur in the
Same Trench
|
1.3
|
1,591
|
3,355
|
1,208
|
1,584
|
Uranium-Vanadium – Bearing Gravel and Sand
Gravel at La Rosada and Laguna Salada have similar general
characteristics. At Laguna Salada, however, the gravel forms a
tabular sheet deposited in an outwash plain while at La Rosada,
gravel occupies northeast- to east-trending channels that are about
150 metres wide, and the one that has been most extensively
explored is at least 2 kilometres long (Figure 1). Similar
northeast- to east-orientated trends of radiation measured in radon
cups in the area south of La Rosada may be indicative of similar
mineralized channels in that area. The channel-constrained
distribution of gravel is a feature that La Rosada has in common
with the Langer Heinrich Deposit in Namibia.
A sand layer that lies beneath the gravel at La Rosada may also
have been preserved in channel features. The sand layer is
extremely friable, and very significantly, is well mineralized in
some areas where it has been exposed in exploration trenches.
The sand layer has characteristics that are similar to the
unconsolidated sands that host the Tubas Uranium Deposit in
Namibia and represents a target in
its own right at La Rosada.
Uranium-vanadium – bearing rhyolitic volcanic tuff, assay
results from which were reported on January
11, 2017, lie adjacent to and beneath the sand layer at La
Rosada.
Beneficiation
The key to the Laguna Salada Deposit is the ease with which the
powdery uranium-vanadium mineral, carnotite, can be washed off sand
grains and pebbles, concentrating in the fine-grained
material. Gravel at La Rosada shows similar characteristics
with carnotite forming a friable coating on pebbles and sand grains
– a YouTube video available via this link shows the nature of the
gravel and its mineralization at La Rosada.
The "Bulk Sample" column in Table 1 above provides the overall
grade of uranium and vanadium in the gravel and sand samples from
La Rosada. This grade is derived from a large sample in which
all the material, including the barren pebbles and sand grains,
have been crushed and assayed with the uranium-vanadium – bearing
material that coats the grains. These grades provide the raw
data that are necessary for future resource estimation.
The grade of the fine component, composed of grains less than
0.15 millimetres in diameter, that was separated from the pebbles
and sand by sieving, has an average grade of 0.5% (5,319ppm)
U3O8, with a sample that spiked to 2%
U3O8 (20,764ppm, Table 1). The average
grade of vanadium of the fine material is 0.23% (2,308ppm)
V2O5. The average thickness of the gravel is
0.5 metres, with mineralization starting from 0.3 to 0.7 metres
below surface. Only the fine component of the gravel would be
processed for uranium and vanadium extraction.
Results from the unconsolidated sand layer that lies beneath the
gravel at La Rosada show that its uranium and vanadium are also
concentrated into the fine material by washing and sieving the
sand. The average grade of the sand is 726ppm
U3O8 while the fine component has a grade of
1,102ppm (0.1%) U3O8. Vanadium assays average
681ppm in the raw sand and 924ppm V2O5 in the
fine component. The average thickness of the sand layer is 0.7
metres.
Where gravel and sand are mineralized in the same trench, the
combined average thickness of the uranium-vanadium – bearing layer
is 1.3 metres with an average grade, in the fine material, of 0.33%
(3,355ppm) U3O8 and 0.16% (1,584ppm)
V2O5.
Estimated Cash Cost of Production at Laguna Salada
The Preliminary Economic Assessment ("PEA")1 modeled
mining of the richest areas of the Laguna Salada Deposit followed
by successively lower-grade areas so that the capital cost of the
Project could be paid off as quickly as possible. Using the
data available at the time of the PEA, this approach resulted in an
estimated cash cost of production of US$11.62 per pound of uranium in year one, rising
to average US$21.62 per pound over
the life of the mine modeled in the PEA (Figure 2). This
graphic shows the relationship between uranium grade and estimated
cash cost of production by year established in the PEA on the
Laguna Salada Deposit.
Focus of Further Work
The next steps in the drive to lower estimated production costs
for the broader Laguna Salada Project are as follows:
- A link between mineralization in the tuff and the overlying
gravel observed at La Rosada has led to a better understanding of
higher uranium-vanadium grades found at the base of the gravel at
Laguna Salada. With the insight gained from La Rosada, it is
considered likely that higher-grade mineralization at the base,
where the gravel rests on tuff, represents a second, deeper layer
of mineralization that adds further, higher-grade resource
potential at Laguna Salada2 that will be
explored with trenching and vibrosonic drilling in due
course;
- Continued exploration of higher-grade mineralization in gravel,
sand and volcanic tuff in the La Rosada area with the aim of
identifying areas that could be cost-effectively included in a
future resource estimate; and
- Metallurgical test work to determine the efficiency of the
U-pgrade© processing method to concentrate uranium and vanadium
into a smaller mass than is currently being achieved with
screening. With the identification of the uranium-vanadium –
bearing sand at La Rosada, the planned test work was delayed in
order to incorporate this new style of mineralization. Initial
results are now expected in Q2.
Sample Preparation and Assay
Panel samples were taken on the walls of each trench, bagged and
delivered to ACME's preparation facility in Mendoza,
Argentina. Each sample was riffle-split. One sub-sample
was crushed, split and pulverized to 75µm and a split of 250 grams
sent for assay to provide an assay value for the raw gravel and
sand to provide data for resource estimation purposes. A
second set of sub-samples was wet-screened through successively
finer mesh starting at 2mm, through 550 micrometres ("µm"), 180µm
and finally at 150µm. Each size fraction was dried in ovens
at 60°C and each fraction was sent to ACME's analytical facility in
Vancouver, Canada, for analysis by
ICP-ES and ICP-MS after four-acid digestion.
Technical Information
Dr. Richard Spencer, P.Geo.,
CGeol., President and CEO of U3O8 Corp. and a Qualified Person as
defined by National Instrument 43-101, has approved the technical
information in this news release relating to the Laguna Salada
Deposit and the related PEA.
About U3O8 Corp.
U3O8 Corp. is focused on exploration and development of deposits
of uranium and associated commodities in South America.
Potential by-products from uranium production include commodities
used in the energy storage industry – in the manufacture of
batteries - such as nickel, vanadium and phosphate. The
Company's mineral resources estimates were made in accordance with
National Instrument 43-101, and are contained in three
deposits:
- Laguna Salada Deposit, Argentina – a PEA shows this near surface,
free-digging uranium - vanadium deposit has low production-cost
potential;
- Berlin Deposit, Colombia – a PEA shows that Berlin also has low-cost uranium production
potential due to revenue that would be generated from by-products
of phosphate, vanadium, nickel, rare earths (yttrium and neodymium)
and other metals that occur within the deposit; and
- Kurupung Deposit, Guyana – a uranium resource has been
estimated in four veins within a uranium-zirconium vein system.
Resources have been estimated on four veins, while consistent
mineralization of the same type has been intersected in scout
drilling of an additional six veins, while yet other veins require
first-time exploration drilling.
Information on U3O8 Corp., its resources and technical reports
are available at www.u3o8corp.com and on SEDAR at
www.sedar.com. Follow U3O8 Corp. on
Facebook: www.facebook.com/u3o8corp,
Twitter: www.twitter.com/u3o8corp and Youtube:
www.youtube.com/u3o8corp.
Forward-Looking Statements
This news release includes certain "forward looking
statements" related with the development plans, economic potential
and growth targets of U3O8 Corp's projects. Forward-looking
statements consist of statements that are not purely historical,
including statements regarding beliefs, plans, expectations or
intensions for the future, and include, but not limited to,
statements with respect to: (a) the low-cost and near-term
development of Laguna Salada, (b) the Laguna Salada and Berlin
PEAs, (c) the potential of the Kurupung district in Guyana, (d)
impact of the U- pgradeTM process on expected
capital and operating expenditures, and (e) the price and market
for uranium. These statements are based on assumptions, including
that: (i) actual results of our exploration, resource goals,
metallurgical testing, economic studies and development activities
will continue to be positive and proceed as planned, and
assumptions in the Laguna Salada and Berlin PEAs prove to be
accurate, (ii) a joint venture will be formed with the provincial
petroleum and mining company on the Argentina project, (iii)
requisite regulatory and governmental approvals will be received on
a timely basis on terms acceptable to U3O8 Corp., (iv) economic,
political and industry market conditions will be favourable, and
(v) financial markets and the market for uranium will improve for
junior resource companies in the short-term. Such statements are
subject to risks and uncertainties that may cause actual results,
performance or developments to differ materially from those
contained in such statements, including, but not limited to: (1)
changes in general economic and financial market conditions, (2)
changes in demand and prices for minerals, (3) the Company's
ability to establish appropriate joint venture partnerships, (4)
litigation, regulatory, and legislative developments, dependence on
regulatory approvals, and changes in environmental compliance
requirements, community support and the political and economic
climate, (5) the inherent uncertainties and speculative nature
associated with exploration results, resource estimates, potential
resource growth, future metallurgical test results, changes in
project parameters as plans evolve, (6) competitive developments,
(7) availability of future financing, (8) exploration risks, and
other factors beyond the control of U3O8 Corp. including those
factors set out in the "Risk Factors" in our Annual Information
Form available on SEDAR at www.sedar.com. Readers are cautioned
that the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be
placed on forward-looking statements. U3O8 Corp. assumes no
obligation to update such information, except as may be required by
law. For more information on the above-noted PEAs, refer to the
September 18, 2014 technical report titled "Preliminary Economic
Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut
Province, Argentina" and the January 18, 2013 technical report
titled "U3O8 Corp. Preliminary Economic Assessment on the Berlin
Deposit, Colombia."
________________________
1 September 18, 2014 technical report:
"Preliminary Economic Assessment of the Laguna Salada Uranium
Vanadium Deposit, Chubut Province, Argentina."
2 May 20, 2011
technical report: "Laguna Salada Project, Chubut Province,
Argentina, NI 43-101 Technical
Report on Laguna Salada: Initial Resource
Estimate".
SOURCE U3O8 Corp.