Geophysical Test Work Proves Highly Successful on U3O8 Corp.’s Laguna Salada Uranium-Vanadium Deposit
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Press release
Geophysical Test Work Proves Highly Successful on U3O8 Corp.’s Laguna
Salada Uranium-Vanadium Deposit
Toronto, Ontario – May 31, 2018 – U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) (“U3O8 Corp.” or the
“Company”) reports that geophysical test work showed that electrical tomography (“ET”) proved
successful as a means of delineat ing channels at the base of the gr avel layer in its Laguna Salada
Deposit (“Deposit” or “Project”) in Argentina. Grav el-filled channels contain generally higher uranium-
vanadium grades and this test work proved that ET can be used to detect the location and depth of
channels beneath younger cover.
Geophysical Test Work
The National Instrument 43-101 resource at Laguna Salada was based principally on a one-metre thick
layer of uranium-vanadium-bearing gravel that ext ends from surface to a maximum depth of only three
metres. However, exploration t hat was undertaken after the resource estimate had been completed,
revealed that the mineralization extends downward in channels below the average level of the gravel
base. These extensions not only increase the contai ned volume of mineralization, but contain 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 (see press release dated February 7, 2017).
The Company’s initial exploration was in areas where the gravel is exposed on surface and thus yields
strong radiometric anomalies that were easily locat ed in the field with a hand-held scintillometer. In
adjacent areas where the mineralized gravel is covered by barren grav el, the radioactivity is masked and
exploration for the deeper layer has been done through trenching, which is time consuming and
expensive. Using vertical ET profiling, the Company has successfully located completely buried gravel-
filled channels that correspond with relatively high gr ades from prior drilling. The ET profile shown in
Figure 1 shows subtle depressions that define the base of the gravel-filled channels that are anywhere
from 100 to 400 metres wide. These channels can be projected in the third dimension to yield a map that
outlines a network of channels that have a similar geom etry to present-day braided rivers. This is
consistent with the origin of the gravel at Laguna Sa lada: it developed in a very extensive gravel plain
formed from the erosion of the Andes mountains.
This test work has proven that ET is highly effectiv e as a tool to identify gravel-filled channels. Although
the all-in cost of the survey was approximately US $3,500 per line kilometre ET would ideally be used to
define the depth, location and orientation of channel feat ures so that further resource expansion through
trenching and/or drilling could be undertaken more efficiently and mo re cost-effectively. Even where
channels are too deep for any contained uranium-vana dium to have potential to be commercially
extracted, their location still provides valuable informat ion that could be used to trace them into areas
where they are less deeply buried – where they would constitute exploration targets.
Details of the Geophysical Survey
The trial was undertaken on five parallel lines spaced at approximately 200 metre intervals covering 7.6
kilometres. An array of 10 dipoles were used at a spacing of 15 metres between dipoles. The survey
was conducted by an independent, Argentine-based consulting company.
Technical Information & Cautionary Note
A PEA is preliminary in nature and includes infe rred mineral resources that are considered too
speculative geologically to have the economic considerat ions applied to them that would enable them to
be categorized as mineral reserves, and there is no ce rtainty that the results of the PEA assessment will
be realized.
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Dr. Richard Spencer, P.Geo., CGeol., President a nd 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.
Figure 1: Electrical tomography (ET) profile of line 2 (l ocation shown in Figure 1) . Warm colours (red to
yellow) are areas of high resistivity corresponding with the gravel and cool colours are the lower resistivity
of the underlying mudstone of the Sa lamanca Formation. The base of the gravel corresponds with the
base of the yellow layer on this profile.
Figure 2. a. Contour map of the elevat ion of the base of the gravel def ined by electrical tomography
adjacent to the resource area at Laguna Salada. Lower elevations ar e in black and blue contour lines
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while higher-elevation areas are delineated in red and yellow contours. Pale green overlay shows the
location of principal channels. Coloured rectangles are U 3O8 values in trenches excavated in the
Company’s prior exploration at Laguna Salada. b. Present-day braided stream in a gravel plain similar to
that in which the Laguna Salada region developed.
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 surf ace, free-digging uranium -
vanadium deposit has low production-cost potential; and
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.
Additional Information
For further information, please c ontact Richard Spencer, President & CEO, U3O8 Corp. Tel.: (416) 868-
1491, or by e-mail: [email protected]
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 Pres entation accessible on the homepage of our website
http://www.u3o8corp.com.
Forward-Looking Statements
This news release includes certain “forward looking statements” related with t he 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, plan s, expectations or intensions for the future, and include,
but not limited to, statements with resp ect 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 di strict in Guyana, (d) im pact 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 Co rp., (iv) economic, political and industry market conditions
will be favourable, and (v) financial markets and the market fo r 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 s peculative nature associated with
exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project
parameters as plans evolve, (6) competit ive developments, (7) avail ability of future financin g, (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. R eaders are cautioned that t he assumptions used in the
preparation of such information, although considered reas onable at the time of pr eparation, may prove to be
imprecise and, as such, undue reliance should not be pl aced 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
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Salada Uranium-Vanadium Deposit, Chubut Province, Argenti na” and the January 18, 2013 technical report titled
“U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia.”