U3O8 Corp. Advancing Strategy for Near-Term Development to Meet Argentina’s Growing Need for Domestic Uranium Supply
May 16, 2013 (Source: Marketwire) —
Recent Calypso Acquisition Sets Up Longer-Term Pipeline for Further Growth
U3O8 Corp. (TSX:UWE)(OTCQX:UWEFF), a Canadian-based company focused on exploration and resource expansion of uranium and associated commodities in South America, outlines its growth strategy in Argentina, which aims to position U3O8 Corp’s Laguna Salada Deposit, defined in accordance with National Instrument 43-101 (“NI 43-101”), as a potential low-cost, near-term producer while setting up a pipeline of projects for sequential exploration.
U3O8 Corp’s Argentina strategy comprises:
Near-term production potential: Given its simplicity, Laguna Salada in Chubut Province could be positioned for potentially near-term production using low-cost mining and processing techniques that would comply with stringent environmental requirements in Chubut’s mining legislation. This NI 43-101 deposit lies within three metres of surface in soft gravel that requires no blasting or crushing. A preliminary economic assessment (“PEA”) is anticipated in late 2013, and envisages continuous surface mining whereby the gravel is scooped into a cylindrical, rotating screen to separate the pebbles from the mineralized fines. The pebbles would be returned to the excavated area, contoured to recreate the original topography, seeded and reclaimed while mining continues in the adjacent area. The fine-grained mineralized material would be leached with an alkaline solution to extract the uranium and vanadium.
Another key step in the development of Laguna Salada is expected to be reported on shortly. In addition, other discoveries in U3O8 Corp’s concessions in the Laguna Salada region offer further resource expansion potential.
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Longer-term pipeline: U3O8 Corp. has been building strategic holdings in other, longer-term projects in Argentina including an enviable land position ajoining the country’s largest known uranium deposits (the state-owned Cerro Solo and Sierra Pintada Deposits). U3O8 Corp’s land position has been further strengthened with properties held by Calypso Uranium Corp. (“Calypso”), which was recently acquired in a friendly transaction:
- Cerro Solo District, Chubut Province – U3O8 Corp. holds exploration concessions adjacent to the Cerro Solo Deposit1 that is currently being drilled by the Argentine State (Figure 1). We see the Cerro Solo region as the next development opportunity after Laguna Salada, and have, therefore, positioned U3O8 Corp. as a key player in the anticipated consolidation of this emerging uranium district. Cameco is reported to be drilling with a joint venture partner in the Cerro Solo district.
- Sierra Pintada, Mendoza Province – Calypso’s concessions dove-tail with U3O8 Corp’s land position so that we now control the property extensions to the State’s past-producing Sierra Pintada Deposit1 -Argentina’s largest uranium deposit (Figure 2).
- Huemel District, Mendoza Province – Calypso also added exploration ground over and enclosing the State’s Huemel Deposit (Figure 3), a historic mine that produced uranium, copper and vanadium.
Argentina – A Growing Nuclear Country and Regional Leader (Figure 4)
With Laguna Salada as one of the most advanced projects in Argentina followed by a strong pipeline to drive further growth, U3O8 Corp. is well placed to contribute to domestic uranium production to reduce Argentina’s 100% reliance on imported nuclear fuel. With two fully operating reactors, a third reactor currently being tested and scheduled to be in commercial production by the end of the year, and a fourth reactor out to tender, Argentina represents a sizeable market for locally produced uranium. In addition, with Brazil’s third reactor reported to be reliant on imported fuel, and Argentina having signed nuclear cooperation agreements with China, the United Arab Emirates and South Korea, there is significant export potential for Argentine uranium. And Argentina’s nuclear ledership in South America is reflected in its research centres, medical isotope and enrichment facilities and small modular reactor design.
- The Cerro Solo Deposit in Chubut Province has a 20 million pound (“Mlb”) resource at 0.20% U3O8 and the Sierra Pintada Deposit in Mendoza Province has a 22Mlb resource at 0.10% U3O8, which are both owned by the National Atomic Energy Commission of Argentina (CNEA) (Source: CNEA, IAEA Redbook 2011).
The Cerro Solo and Sierra Pintada Deposits are considered historic resources and do not conform to NI 43-101. They may vary materially from NI 43-101 estimates and should not be relied upon. U3O8 Corp. has not verified these historic resources and is not treating the historic estimates as current mineral resources. However, U3O8 Corp. believes the historic resources are relevant and offer fair descriptions of the projects’ known mineralization.
Dr. Richard Spencer, P. Geo., U3O8 Corp’s President & CEO and a Qualified Person as defined by NI 43-101, has supervised the preparation of, and verified the technical information contained in this press release.
About U3O8 Corp.
U3O8 Corp. is an advanced exploration company focused on exploration and resource expansion of uranium and associated commodities in South America. From 2010 to 2012, U3O8 Corp’s uranium resources grew 7-fold with three NI 43-101 deposits defined in Colombia, Argentina and Guyana comprising of:
- Berlin Deposit, Colombia – a recent PEA shows Berlin could be a zero cash cost uranium producer thanks to revenue from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals occurring in the same deposit;
- Laguna Salada Deposit, Argentina – a near surface, free-digging uranium, vanadium deposit that is potentially amenable to low-cost mining and processing methods; and
- Kurupung Deposit, Guyana – an initial uranium deposit in a large emerging uranium district.
Additional information on U3O8 Corp., its mineral resources and NI 43-101 technical reports are available at www.u3o8corp.com. Follow U3O8 Corp. on: Facebook: www.facebook.com/u3o8corp, Twitter: www.twitter.com/u3o8corp, Youtube: www.youtube.com/u3o8corp.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, the PEA will be achieved on the Berlin Project and positive economics will be reported in a Laguna Salada PEA, currency fluctuations, legislative change, and the uncertainty of obtaining additional financing, exploration risk and that the Calypso properties will result in a mineral resource. 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.
To view Figure 1, please click the following link: http://media3.marketwire.com/docs/uwe0516a.pdf.
To view Figure 2, please click the following link: http://media3.marketwire.com/docs/uwe0516b.pdf.
To view Figure 3, please click the following link: http://media3.marketwire.com/docs/uwe0516c.pdf.
To view Figure 4, please click the following link: http://media3.marketwire.com/docs/uwe0516d.pdf.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>