TORONTO, Feb. 7, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") announces that, building on the recent discovery of
higher-grade uranium-vanadium mineralization at La Rosada, similar
channels have been delineated in, and beneath, the lowermost gravel
layer at Laguna Salada. These levels are in addition to the
layer of mineralization on which the resource estimate1
was based and may represent significant resource growth potential
at Laguna Salada.
"By applying what we have learned from the discovery of
higher-grade uranium-vanadium in the La Rosada area, announced in
the last few weeks, our exploration team has identified similar
higher-grade layers at the base of the gravel, and beneath the
gravel, at Laguna Salada," said Dr. Richard
Spencer, CEO of U3O8 Corp. "The identification of
higher-grade potential provides an opportunity to further reduce
estimated production costs for the Laguna Salada Deposit. In
addition, it opens up new targets for shallow uranium-vanadium
mineralization in soft gravel, sand and silt that can be
inexpensively explored through trenching."
Assay Results
Table 1. Summary assay results from composite panel
samples from trenches at the base of the unconsolidated gravel,
sand and silt layers at Laguna Salada. The extent to which
Laguna Salada gravel can be beneficiated, as per Preliminary
Economic Assessment (PEA)2 is also shown for
reference.
Sample
|
Sample
No
|
Material
|
Sample
Data
|
Assay
Data
|
Depth Below
Surface
|
True
Thickness
(m)
|
U3O8
|
V2O5
|
From
(m)
|
To
(m)
|
Bulk
sample
(ppm)
|
Bulk
sample
(ppm)
|
High Value
|
749
|
Gravel
|
0.8
|
1.05
|
0.3
|
5,302
|
3,793
|
Low Value
|
3818
|
0.9
|
1.9
|
1.0
|
107
|
474
|
Average of 69
samples
|
|
0.7
|
421
|
807
|
Estimated grade of
fine-
grained component of
gravel after removal of
pebbles. (Data from PEA)
|
|
|
|
4,636
|
3,227
|
|
|
|
|
|
|
|
|
High Value
|
3659
|
Sand
|
0.7
|
1.35
|
0.7
|
1,196
|
1,518
|
Low Value
|
10136
|
2.6
|
4.1
|
1.5
|
125
|
388
|
Average of 16
samples
|
|
0.5
|
353
|
1,144
|
|
|
|
|
|
|
|
|
High Value
|
3377
|
Silt
|
0.5
|
0.6
|
0.1
|
2,328
|
1,267
|
Low Value
|
3669
|
1.15
|
1.65
|
0.5
|
103
|
1,114
|
Average of 17
samples
|
|
0.7
|
408
|
1,531
|
____________________________
1 May 20, 2011
technical report: "Laguna Salada Project, Chubut Province,
Argentina, NI 43-101 Technical
Report on Laguna Salada: Initial Resource Estimate".
2 September 18, 2014
technical report: "Preliminary Economic Assessment of the Laguna
Salada Uranium Vanadium Deposit, Chubut Province, Argentina."
Uranium-Vanadium – Bearing Layers at the Base of the Gravel
at Laguna Salada
Uranium-Vanadium at Laguna Salada constitutes a "caliche"
deposit – where uranium and vanadium precipitated as a result of
intense evaporation in a semi-desert environment.
Mineralization is concentrated in a layer that is parallel to the
surface from which evaporation occurred. Over 90% of the
trenches that were used to estimate the resource at Laguna Salada
are from a layer of mineralization that is parallel to the surface
at shallow depth – constituting typical caliche-style
mineralization in the gravel plain.
Trenches excavated at the edge of the plain, where the upper
part of the gravel has been removed by erosion, exposed
higher-grade mineralization at the base of the gravel. This was
considered to be part of the layer of caliche mineralization that
simply draped the topography from which evaporation occurred – and
was modelled as a single layer in the initial resource estimate at
Laguna Salada.
Exploration of the La Rosada area (press releases made on
Jan 11th and
19th, 2017 – the latter with video footage of the
mineralization in the trenches) revealed, not only well mineralized
gravel, but also an underlying, mineralized sand layer and
mineralized volcanic material. With the La Rosada discoveries
as a model, the exploration team revisited the lower part of the
gravel at Laguna Salada and recognized a very similar situation
that can be summarized as follows (Figure 1):
- Higher-grade uranium-vanadium at the base of the gravel occurs
in an elongate zone that extends from northwest to southeast over
at least 6 kilometres. The mineralized gravel averages 0.7 metres
thick with an average grade of 0.04% (421ppm)
U3O8 and 0.08% (807ppm)
V2O5 over an area of 4 square kilometres,
approximately half of which is included in the current resource
estimate. Test work on Laguna Salada gravel has shown that removal
of the pebbles and coarse sand by sieving results in an 11-times
increase in uranium grade and a 4-times increase in vanadium grade
in the fine material that would be fed to a processing plant.
Screening of gravel with these grades would therefore generate a
fine-grained feed with an estimated grade of approximately 0.46%
U3O8 and 0.32%
V2O5;
- Underlying the gravel in some parts of the northwestern margin
of the Laguna Salada Deposit is an unconsolidated sand layer very
similar to that observed at La Rosada. The mineralized part of the
sand layer averages 0.5 metres thick and has an average grade of
353ppm U3O8 and 0.11% (1,144ppm)
V2O5 over an area of approximately 4 square
kilometres. The beneficiation characteristics – the extent to which
grades can be increased in the fine-grained fraction by sieving –
are currently being investigated; and
- Underlying either unconsolidated gravel or sand is a
fine-grained silty unit, the mineralized component of which has an
average grade of 408ppm U3O8 and 0.15%
(1,531ppm) V2O5 over a true thickness of 0.7
metres. The beneficiation characteristics of the silty layer, which
may be weathered volcanic rock similar to that observed at La
Rosada, are unknown at this time and will be tested in due
course.
There is a possibility that each of these three layers
represents a zone of mineralization in its own right that is
separate and distinct from the true "caliche" mineralization
located in the upper part of the gravel on which the resource
estimate is based.
Exploration Targets
Several target areas have been identified for exploration for
additional higher-grade resource potential:
- Target 1 (Figure 1): Infill trenching of the higher-grade zone
in the basal gravel on the northwestern margin of the Laguna Salada
Deposit is required so that this layer may be incorporated into a
resource estimate in its own right. This exploration would be done
with a back-actor excavator in areas where the base of the gravel
lies close to surface;
- Target 2: A prime exploration target lies along trend of the
high-grade zone immediately to the north and south of the current
resource area; and
- Target 3: It is suspected that the elongate zone of high-grade
uranium-vanadium defined on the western margin of the current
resource area at Laguna Salada lies in a gravel-filled channel. If
this proves to be the case, other sub-parallel channels are likely
to be located at the base of the gravel plain. The base of the
gravel lies at a depth of 8 metres beneath the surface of the
mesa-like plain and would require drilling with the Company's
vibrosonic rig. The main targets for additional higher-grade
channels at the base of the gravel lie beneath the current resource
area as well as beneath the gravel pain that lies immediately north
of the resource area.
Sample Preparation and Assay
Channel samples were taken on the walls of each trench, bagged
and delivered to the ALS Chemex' preparation facility in Mendoza,
Argentina. Each sample was riffle-split. One sub-sample
was jaw-crushed to <2mm and then riffle-split again and a 250
gram sub-sample pulverized to 75µm for shipment to ALS Peru for
assay by ICP (method ICP-MEMS61) 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."
SOURCE U3O8 Corp.