Positive Beneficiation Test Results from the Channel Sands in U3O8 Corp.’s Laguna Salada Uranium-Vanadium Deposit
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Press Release
Positive Beneficiation Test Results from the Channel Sands in U3O8 Corp.’s
Laguna Salada Uranium-Vanadium Deposit
Toronto, Ontario – June 27, 2018 – U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) (“U3O8 Corp.” or the
“Company”) reports that beneficiation test work on soft, channel-fill s ands discovered adjacent to the
Laguna Salada Deposit (“Deposit” or “Project”, see press release dated January 19, 2017), proved highly
successful on two fronts. Firstly, the test work confirmed that uran ium and vanadium can be significantly
pre-concentrated through scrubbing and screening. Seco ndly, this simple and cost-effective process is
also effective at rejecting minerals that consume the reagents used to leach the metals.
Dr. Richard Spencer, U3O8 Corp.’s President & CEO commented, “Today’s results underline the
economic potential of the channel sands: in com parison with the gravel on which the preliminary
economic assessment (“PEA”) was based, a higher proportion of the sands’ uranium, and a substantially
higher proportion of their vanadium, is captured in the fine-grained material that would then be leached to
extract these metals. The fundamentals of the vana dium market are good with strong demand from the
construction steel industry and rapidly growing demand for vanadium as a battery metal.”
These results represent the second step in a three- step plan to evaluate the economic potential of the
sands:
• the first was to ensure that channels contai ning the sands can be detected through electrical
tomography – and results of that test work, reported last month (see press release dated May 31,
2018), confirm that this geophysical technique works very well at Laguna Salada;
• the second, to which today’s results relate, wa s to confirm that urani um and vanadium could be
pre-concentrated to increase grade and potentially reduce operational costs, and these positive
results confirm this; and
• the final step is for uranium and vanadium to be leached from the beneficiated sand in the lab –
which simulates the metal extraction process and provides detailed data that are critical to
production cost estimates.
Beneficiation Test
The aim of this test work was to retain the maximum amount of uranium and vanadium while minimizing
estimated operating costs by reducing the mass of material that needs to be processed, and by excluding
as much gypsum as possible. Gypsum (calcium sulphate) competes for, and consumes, the reagents
that are used to extract uranium and vanadium.
The sand used for the test was extracted from beneath a gravel layer exposed in trenches at a depth of 2-
to 3-metres below surface. The channels that c ontain the sand are 100 metres to 400 metres wide and
therefore represent a target of significant size fo r further exploration. T he grade of the raw sand was
1,085 parts per million (“ppm”) uranium (in comparis on to the resource grade of 60 ppm) and 610 ppm
vanadium. The sample was shipped to Australia where the sand was scrubbed in a rotating drum for two
minutes to break up any aggregated material and was run through a set of vibrating stacked screens.
The size fractions were analysed for uranium, vanadium and sulphur (gypsum) content.
Discussion of Results
The results show that 50% of the uranium and 38% of its vanadium is concentrated into the finest
component of the sand (less than 0.01mm diameter gr ains), constituting 19% of the original mass.
Although this result partially achieves the aim of the test – to minimize the volume of sand that would be
processed further while maximizing its uranium and v anadium content – the high proportion of metals
rejected along with the coarser component of the sand would severely reduce potential revenue.
Consequently, selecting a coarser grain size would maximize estimated revenue and minimize estimated
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processing costs. For example, screening the sand at 0.5mm eliminates 94% of the sand’s gypsum while
capturing 88% of the sand’s uranium and 76% of its vanadium in only 67% of its original mass.
The results of this test work show that the sand has a very different beneficiation profile from the gravel
on which the Project’s positive PEA was based, as follows:
• 76% of the sand’s vanadium cont ent is captured by screening at 0.5mm (“-0.5mm”), that would
be further processed to extract its vanadium. Th is compares with only 33% of the gravel’s
vanadium being captured in the fine component of the gravel as modelled in the PEA;
• The -0.5mm fraction contains 88% of the orig inal sand’s uranium content that would undergo
further processing for uranium extraction. This compares with 82% of the gravel’s uranium
content being captured for extraction in material modelled in the PEA; and
• The -0.5mm fraction contains 6% of the raw s and’s gypsum. This compares with 20% of the
raw gravel’s gypsum content remaining in the fine material that would be leached to extract
uranium and vanadium as per the PEA. A lower gypsum content would reduce the amount of
reagent required to effectively leach uranium and vanadium.
Technical Information & Cautionary Note
The two technical reports to with this press release makes reference are:
May 20, 2011 technical report: “Laguna Salada Project, Chubut Province, Argentina, NI 43-101 Technical Report
on Laguna Salada: Initial Resource Estimate”; and
September 18, 2014 technical report: “Preliminary Economic Assessment of the Laguna Salada Uranium Vanadium
Deposit, Chubut Province, Argentina.”
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.
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.
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.
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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, and (c) the price and market for uranium. Thes e statements are based on
assumptions, including that: (i) actual results of our explor ation, resource goals, meta llurgical 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 uran ium will improve for junior resource companies in the
short-term. Such statements are subject to risks and uncerta inties that may cause act ual 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
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.”