TORONTO, March 15, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") notes that Argentina
produced a 7,677 gigawatt-hours ("GWh") of electricity from its two
operating nuclear reactors in 2016 (Figure 1), according to CNEA
(Argentine National Atomic Energy Commission). This
represents 5.6% of Argentina's
electricity production, generated by the Atucha I and Atucha II
nuclear reactors. When the Embalse power plant comes back to
full production in mid-2018, the three reactors will generate
approximately 9% of the country's electricity. The Embalse
reactor is currently off-line for refurbishment so that it can
operate for another 30 years at a 6% higher power output. The
Embalse reactor also produces about one third of the world's
Cobalt-60 isotope requirements, principally for diagnostic
medicine.
The growing nuclear power output will increase yellowcake demand
in Argentina from approximately
310,000 pounds per year to 650,000 pounds per year. Annual
production from the Laguna Salada Deposit would start at one
million pounds in year one and would average approximately 600,000
pounds of U3O8 per year over a ten-year mine
life, according to the mining schedule modeled in the preliminary
economic assessment ("PEA")1. The latest publicly
available data show that Argentina, which currently imports its entire
uranium requirement, paid an average price of US$78 per pound in 2015. The estimated cash
cost of production defined in the PEA on Laguna Salada starts at
US$11.66 per pound of uranium in year
one and averages US$21.62 per pound
over the planned ten-year mine-life. (In compliance with
NI 43-101, 2.3(3)(a), readers are alerted that the PEA includes
inferred mineral resources that are considered too speculative
geologically to have economic considerations applied to them that
would enable them to be categorized as mineral reserves and there
is no certainty that the results of the PEA will be realized.
In addition, in compliance with NI 43-101, 3.4., readers are
alerted that the PEA includes results of an economic analysis on
mineral resources and that mineral resources are not mineral
reserves and do not have demonstrated economic
viability).
At a conference in Vienna, the
Undersecretary of Nuclear Energy in Argentina commented that Argentina plans to capture about 20% of the
international small modular reactor ("SMR") market with its CAREM
design. A 25 megawatt ("MW") prototype is under construction
in Argentina and is designed
principally for smaller, off-grid, outlying communities and for
industries that have a high-intensity power requirement such as
desalination plants for the production of fresh water from
seawater. An up-scaled model that has a capacity of 120MW,
the first of which is planned to be deployed in Formosa Province, Argentina, is expected to have wide appeal in
the international market. This is the first time the
Argentine government has publicly provided guidance on its market
penetration target for Argentine SMRs. The Undersecretary
estimated that the export of SMRs could contribute US$3 billion per year to the economy – that would
represent 0.5% of Argentina's
GDP.
U3O8 Corp.'s CEO will be making a presentation entitled "The
role of the Laguna Salada Uranium-Vanadium Deposit in further
development of the nuclear industry in Argentina," at the Latin American Nuclear
Industry Summit on March 15-16, 2017,
in Buenos Aires, Argentina.
Technical Information
Dr. Richard Spencer, P.Geo.,
C.Geol., 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.
SOURCE U3O8 Corp.