TORONTO, Jan. 30, 2018 /CNW/ - U3O8 Corp.
(TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") reports that a trial has commenced to test the
effectiveness of geophysics to detect channels at the base of the
gravel layer at its Laguna Salada Deposit ("Deposit" or "Property")
in Argentina. Exploration elsewhere on the Property has shown
that channels contain higher-grade uranium-vanadium mineralization
that could further improve the positive economics of the
Deposit.
Geophysics Program
The NI43-101 resource at Laguna
Salada was based principally on a one-metre thick layer of
uranium-vanadium bearing gravel that extends from surface to a
maximum depth of only three metres. Exploration that was
completed following the resource estimate, revealed a second layer
in which uranium and vanadium are confined to channels at the base
of the gravel. The second layer contains generally higher
uranium-vanadium grades that may result in the estimated cash-cost
of production being even lower than for the near-surface material
on which the preliminary economic assessment ("PEA") was based
(Figure 1).
Trials are underway to determine the effectiveness of Electrical
Resistivity to detect these buried channels. The test work is
being done in an area within the Laguna Salada Deposit where
drilling detected channels that contain higher-grade
mineralization. The test work is expected to be completed in
mid-February, and if successful, a more extensive geophysical
program will be considered to provide specific targets for
exploration by pitting with an excavator.
Update on Proof of Concept Work
Having studied the
test work on which the PEA was based, and after spending three
weeks in Argentina, Mr.
John Rae has selected and ordered
the equipment required to separate the fine-grained
uranium-vanadium from the pebbles in Laguna Salada gravel.
John Rae is a mining engineer who
has 40 years of experience in the extraction of various commodities
from gravel. The proof of concept test work will continue
through the first quarter of 2018 and results will be reported as
they become available.
Russian Uranium Producer to Explore in Chubut
Province
A Russian State-owned uranium production company
has announced that it plans to spend up to US$250 million in exploration for, and
development of, uranium deposits that are amenable to in situ leach
extraction in Chubut Province in southern Argentina. U3O8
Corp. holds approximately 40,000 square kilometres (approximately
15,000 square miles) of exploration concessions in the area that is
being targeted for this type of sandstone-hosted mineralization
that typically lies at approximately 100-150 metres depth in the
target area.
Despite the potential of the sandstone-hosted mineralization,
U3O8 Corp. prioritized exploration at Laguna Salada where resource
definition in the shallow-lying mineralization can be done more
cost-effectively. In addition, Laguna Salada – style
mineralization contains vanadium – a fundamentally important
by-product both in terms of strengthening the economics of the
Deposit, and in providing a key commodity for construction steel
and for industrial-scale vanadium redox batteries. The
vanadium price has risen strongly over the last past year in
response to a shortage of supply in the international vanadium
market (Figure 2).
Technical Information & Cautionary Note
A PEA is
preliminary in nature and includes inferred mineral resources that
are considered too speculative geologically to have the 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 assessment will be realized.
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 battery commodities in South America. Battery
commodities that occur with uranium resources include vanadium,
nickel, zinc 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:
http://www.facebook.com/u3o8corp, Twitter:
http://www.twitter.com/u3o8corp and YouTube:
http://www.youtube.com/u3o8corp.
Further details on U3O8 Corp.'s Laguna Salada Deposit and
Argentina's electricity generation
from large nuclear reactors, as well as its prototype small modular
reactor that represents a prime export opportunity, are available
in the Company's Corporate Presentation accessible on the homepage
of our website http://www.u3o8corp.com.
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.