TORONTO, March 30, 2017 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") announces that it has staked the old La Niquelina Mine,
a past small producer of uranium, cobalt and nickel, in
Salta Province, Argentina.
"The staking of an area of known uranium mineralization
represents a first step in expanding our portfolio of targets that
we believe to have potential for mineralization that can be
extracted at low cost," said Dr Richard
Spencer, President and CEO of U3O8 Corp. "The timing of the
expansion of our project base underlines our confidence that the
uranium market has bottomed. While our focus remains on
advancing our flagship Laguna Salada Project through the addition
of higher-grade zones and carefully focused metallurgical test work
that may result in lower operating cost estimates, La Niquelina
Mine is a perfect fit for U3O8 Corp: it strengthens our uranium
portfolio while adding a cobalt opportunity to our basket of
battery commodities that already includes nickel, vanadium and
phosphate. We plan to undertake comprehensive exploration of
the La Niquelina area using simple and low-cost field
techniques."
Mineralization and the La Niquelina Mine
Mineralization occurs in a system of six partially exposed veins
that extend over a distance of approximately 800 metres ("m") and
cut a sequence of inter-layered shale and sandstone host
rocks. The veins consist of quartz and siderite, an iron
carbonate mineral, and are between 1m and 1.5m thick.
Mineralization was discovered at La Niquelina in 1944, with
modest production from a small underground mine in the early
1950's. Workings were concentrated in three areas:
underground development totaled 180m on Levels 8 and 9 in the
central part of the vein system, 70m-90m on Levels 12, 13 and 14 in
the northeastern area, and 45m on Level 1 in the southwestern
area. Cobalt values are
reported to have ranged between 0.74% and 1.76%, and those of
nickel between 0.45% and 1.65%. No assay data are available for
uranium.
Mineralization is of the "five-element" vein type, of which
Cobalt, Ontario, is a prime
example. These systems typically contain silver, nickel,
cobalt, arsenic and bismuth or uranium. Although silver
grades were not reported in the historical literature, silver
minerals were observed in microscopic investigation of the veins at
La Niquelina. Metals in five–element vein systems are usually
predictably and conspicuously zoned. Uranium mineralization,
where present in these systems, is usually located at the core,
enclosed or overprinted by nickel-cobalt-silver, passing outward
into, or being overprinted by, lead-zinc minerals. Historic
reports of intense lead-zinc mineralization in some veins at La
Niquelina likely represent peripheral parts of the system, or
demarcate the edges of uranium-nickel-cobalt-silver
shoots.
Exploration Plan
Cognizant of the observation that five-element veins systems are
typically found in large districts in other parts of the world,
U3O8 Corp. has staked an exploration concession that is 4,600
hectares ("Ha") in extent, centred on the La Niquelina Mine.
The old mine buildings provide a centrally located base camp from
which exploration may be undertaken throughout the concession
area. Mineralization lies at an altitude of 4,550m-4,700m and
there is year-round access on the roads that were constructed for
the mine.
Our exploration concept is that the vein-breccias at La
Niquelina represent part of an extensive network that is bounded by
northwest-orientated shear zones, and that other parts of the
system have potential to be mineralized (Figure 1). The
occurrence of uranium in the La Niquelina vein system will be used
as a key exploration tool since the detection of radioactivity in
radiometric surveys provides a fast and cost-effective exploration
tool that provides results in real-time. Detection of natural
radioactivity will constitute the principal exploration method for
detecting extensions to the vein system beneath shallow
cover. Exposed sections of the vein-breccia system will be
sampled and assayed, as will parts of the underground workings that
can be safely accessed. Shallowly covered extensions of the
vein system would be trenched with an excavator. Systematic
sampling of the vein system at regular intervals is likely to
reveal metal zoning, a tool that can be used to vector towards
uranium-cobalt-nickel-silver cores of individual shoots, veins or
vein-breccia clusters.
Of particular interest from an exploration perspective is the
reported occurrence of veinlets and disseminations of
mineralization that extend along sandstone beds adjacent to the
veins. This observation suggests that there is potential for
mineralization to have spread laterally from the discrete veins
into the more permeable sandstone layers. Hence,
in addition to exploring the vein-breccia system, U3O8 Corp. will
be targeting flat-lying, potentially larger-tonnage, manto-type
mineralization in the sandstones.
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.
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.