Uragold Provides Update to Purevap™ Process, Roncevaux Program, Beauce Gold Spinout, Name Change and Upcoming AGM
May 4, 2016 (Source) — Uragold (TSX VENTURE:UBR)(FRANKFURT:UGE)(OTC PINK:URAGD) would like to inform its shareholders that PyroGenesis Canada Inc. (“PyroGenesis”) has advised Uragold that the PUREVAP™ Quartz Vaporization Reactor (QVR) validation program, now in its beneficiation stage, will take slightly longer than originally anticipated.
The reason for the delay is not significant and was due to the failure of an off-the-shelf electrode. PyroGenesis has already redesigned a custom electrode and fabricating it this week.
Uragold expects testing to recommence by the middle of May and expects to receive samples from PyroGenesis within 2 weeks of recommencement barring any further such delays. At that time, Uragold will be shipping the samples to the independent laboratory for analysis. Generally speaking, Uragold anticipates receiving such results within two weeks but reminds investors the exact timeline is beyond its control.
Pierre Carabin, Director of Engineering of PyroGenesis stated: “Over the last month, 5 tests have been performed on the Purevap™ QVR system. In the first test, the functionality of the furnace was verified and we confirmed its ability to operate at high temperature. In the second test, operated at low power, we demonstrated for the first time, the production of silicon metal.” (Uragold April 19, 2016 Press Release)
Mr. Carabin then stated: “The next 3 tests were aimed at beneficiation part of the process. During these high power tests, unexpected mechanical failure of one of the off-the-shelf electrodes occurred. PyroGenesis has applied its know-how of plasma systems to redesign a custom electrode. A new electrode was designed and is being fabricated during the course of this week. The furnace will be back in operation by the middle of May at which point the testing program will resume.”
Bernard Tourillon, Chairman and CEO of Uragold stated “The extreme operating temperatures of the PUREVAP™ QVR process make for a very challenging environment (see Picture 1) but combining the recently announced breakthrough of making Silicon Metal with the proven leadership of PyroGenesis in developing and commercializing plasma processes makes this delay nothing more than a generally acceptable technical delay for such a testing program.”
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Tourillon added “Events such as this are not uncommon when developing a new process but the following recent statement made by PyroGenesis CEO, P. Peter Pascali is the last word – ‘We look forward to the final results of our testing program and advancing to the pilot stage with Uragold.’
To this end, results achieved thus far justify that Uragold now move forward with a spring exploration campaign program on our Roncevaux Quartz Property in order to delineate a resource. This is the first step required for the preparation of a Preliminary Economic Assessment (“PEA”) of Roncevaux as the feed material for the PyroGenesis’ PUREVAP™ QVR process.
ANTICIPATED TIMELINE FOR TESTING AND RESULTS
Having validated that the process works within the first 2 weeks of the program, the dynamic test protocols, which called for a first series of metallurgical tests to be completed at different operational settings in order to achieve the transformation of Uragold Quartz into Solar Grade Purity Si, should restart in the middle of May 2016.
The High Purity Silicon Metal produced by the reactor during this second stage tests will be sent to an independent laboratory for ICP – MS “Mass Spectrometry” analysis for final validation. Uragold anticipates a turnaround of about 2 weeks to get the analysis results.
ADDITIONAL FUND RAISING
Further to the company’s last press release announcing the raising of $520,000 from various instrument exercises, Uragold is pleased to report that, for the period April 26 – May 2 2016, $ 141,923.60 additional capital was raised through the exercise of 1,670,333 warrants.
BEAUCE GOLD SPIN OUT TO UNLOCK GREATER VALUE FOR CURRENT SHAREHOLDERS
On December 1, 2015, the Company first announced its intention to spin out its Beauce Gold Project for the purposes of unlocking greater shareholder value by separating the Company’s Silicon Metal and gold initiatives. Since that decision, the price of gold has risen $USD 250 (23.8%) per ounce from $1,050 to $1,300. The continued price appreciation in gold and gold exploration companies in 2016 gives management even greater confidence in the efficacy of this decision.
UPCOMING AGM – JUNE 22, 2016
Uragold wishes to inform shareholders that our AGM will be on June 22, 2016 at 10:00 AM. The meeting will be held at the offices of McCarthy Tétrault, 25th floor, 1000 Rue de la Gauchetière W, Montreal, Quebec, in the MTL/QC conference room. We invite all of our shareholders to attend, meet management, vote on agenda items and discuss the company’s milestones, as well as, future plans.
Other then the standard auditors and directors’ nominations, the other key subjects to be discussed and approved by shareholders will be:
- Approving the signature of the letter of intent and financing through convertible debenture private placements with Stone River Capital LLC (Stone River) or other entity defined by Stone River;
- Considering, if deemed appropriate, passing a resolution approving and authorizing the creation of a control person in connection with and resulting from the issuances of convertibles debentures and the conversions thereof;
- Considering, if deemed appropriate, passing a resolution approving the Spin out of its Gold assets into a separate company whereby the Corporation will transfer into a new company (Newco) all its gold assets including all gold properties, all gold claims and all interest or participation therein (gold assets) and returning to its shareholders 80% of the shares received from Newco in payment for all gold assets sold and transferred;
- Considering, if deemed appropriate, passing a special resolution approving the change of the name of the Corporation to Canada Silicon Resources Inc. or such other name that could be acceptable to the Director of Corporate Affairs of Industry Canada and the Directors;
Uragold Bay Resources is a TSX-V listed junior exploration company planning to become a vertically integrated and diversified High Value Specialty Materials Company. Uragold has announced plans to spin out its Beauce Gold Project – the largest placer gold deposit in eastern North America. Our Business model is focused on developing unique projects that can generate high yield returns and significant free cash flow within a short time line.
High Value Specialty Materials
In September 2015, PyroGenesis announced that it had filed for a provisional patent for the PUREVAP™ Quartz Vaporization Reactor (QVR) process, which it noted was able to produce silicon, at a lower cost, while generating less CO2 emissions than current processes.
On April 19, 2016, PyroGenesis announced that early test results of the PUREVAP™ QVR process have demonstrated that it can transform high purity quartz into silicon metal. The PUREVAP™ QVR validation program his now in its second stage whereby the operational parameters of the reactor are adjusted in order to achieve the transformation of Uragold Quartz into Solar Grade Purity Si.
Uragold, with its worldwide exclusive usage of PyroGenesis’ PUREVAP™ QVR, is endeavouring to become a vertically integrated Silicon Metal (98.5% Si), High Purity Silicon Metal (99.99% Si), Solar Grade Silicon Metal (6N Purity / 99.9999% Si) and/or Higher (9N Purity / 99.9999999% Si) producer.
The PUREVAP™ QVR process’s big advantage is its one step direct transformation of Quartz into High Purity Silicon Metal Solar Grade Silicon Metal and/or Higher Purity product, thereby potentially allowing Uragold to manufacture high value material for the same operating cost presently being paid by traditional producers to make Metallurgical Grade Si (98.5% Si) using the traditional arc furnace approach.
The Science Behind PyroGenesis PUREVAP™ QVR Process Is Solid:
- Plasma arc based process can and has transformed High Purity Quartz into Mg Si.
- Plasma arc based process can and is being used to purify Mg Si into higher value materials such as Sg Si.
- Finally, refining Mg Si using an electron-beam furnace in a high vacuum-processing environment has proven the concept of the elimination of elements whose vapor pressures are higher than that of silicon.
What is unique and ground breaking is the combination of these three proven processes into one step.
A Green And Clean Company
Uragold, with its worldwide exclusive usage of PyroGenesis’ PUREVAP™ QVR will also be implementing a process to make Sg Si, which is estimated to generate 14.1 kg CO2 eq/Kg SG Si, versus the 54.0 kg CO2 eq/Kg SG Si of emissions generated by the Siemens process (90% of the present production process). This represents 75% fewer greenhouse gas emissions, which is justified by elimination of the emissions emanating from the use of chemicals, as well as, energy consumption from the additional purification step.
High Purity Quartz Properties
Uragold is also the largest holder of High Purity Quartz properties in Quebec, with over 3,500 Ha under claims. Despite the abundance of quartz, very few deposits are suitable for high purity applications. High Purity Quartz supplies are tightening, prices are rising, and exponential growth is forecast. Quartz from the Roncevaux property successfully passed rigorous testing protocols of a major silicon metal producer confirming that our material is highly suited for their silicon metal production.
About Our Beauce Gold Project – Preparing To Be Spun Out To Unlock Value
The Beauce Gold Project is a unique, historically prolific gold field located in the municipality of Saint-Simon-les-Mines in the Beauce region of Southern Quebec. Comprising of a block of 37 claims 100% owned by Uragold Bay Resources, the project area hosts a six (6) km long unconsolidated gold bearing sedimentary units (a lower saprolite and an upper brown diamictite) holding the largest placer gold deposit in eastern North America. The gold in saprolite indicates a close proximity to a bedrock source of gold providing significant potential for further exploration discoveries.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Company’s current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company’s on-going filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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