U3O8 Corp. Announces Definition of Additional, Higher-Grade Uranium-Vanadium Layers at Laguna Salada, Argentina.
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Press release
U3O8 Corp. Announces Definition of Additional, Higher-Grade Uranium-Vanadium Layers
at Laguna Salada, Argentina.
Toronto, Ontario – February 7, 2017 – U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) (“U3O8 Corp.” or
the “Company”) announces that, building on the recent discovery of high er-grade uranium -vanadium
mineralization at La Rosada, similar channels have been delineated in , and beneath, the lowermost
gravel layer at Laguna Salada. These levels are in addition to the layer of mineralization on which the
resource estimate1 was based and may represent significant resource growth potential at Laguna Salada.
“By applying what we have learned from the discovery of high er-grade uranium -vanadium in the La
Rosada area, announced in the last few weeks, our exploration team has identified similar high er-grade
layers at the base of the gravel , and beneath the gravel, at Laguna Salada,” said Dr. Richard Spencer,
CEO of U3O8 Corp. “The identification of higher-grade potential provides an opportunity to further reduce
estimated production cost s for the Laguna Salada Deposit . In addition, it opens up new targets for
shallow uranium-vanadium mineralization in soft gravel, sand and s ilt that can be inexpensively explored
through trenching.”
Assay Results
Table 1. Summary assay results fr om composite panel samples from trenches at the base of the
unconsolidated gravel, sand and silt layers at Laguna Salada . The extent to which Laguna Salada
gravel can be beneficiated, as per Preliminary Economic Assessment (PEA )2 is also shown for
reference.
1 May 20, 2011 technical report: “Laguna Salada Project, Chubut Province, Argentina, NI 43 -101 Technical
Report on Laguna Salada: Initial Resource Estimate”.
2 September 18, 2014 technical report: “Preliminary Economic Assessment of the Laguna Salada Uranium
Vanadium Deposit, Chubut Province, Argentina.”
U3O8
(ppm)
V2O5
(ppm)
From (m) To (m)
Bulk
sample
(ppm)
Bulk
sample
(ppm)
High Value 749 0.8 1.05 0.3 5,302 3,793
Low Value 3818 0.9 1.9 1.0 107 474
0.7 421 807
4,636 3,227
High Value 3659 0.7 1.35 0.7 1,196 1,518
Low Value 10136 2.6 4.1 1.5 125 388
0.5 353 1,144
High Value 3377 0.5 0.6 0.1 2,328 1,267
Low Value 3669 1.15 1.65 0.5 103 1,114
0.7 408 1,531
Estimated grade of fine-
grained component of
gravel after removal of
pebbles. (Data from PEA)
Gravel
Average of 16 samples
Sand
Average of 17 samples
Silt
Sample
Sample Data
Depth Below Surface
True
Thickness
(m)
Average of 69 samples
Sample
No Material
Assay Data
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Uranium-Vanadium – Bearing Layers at the Base of the Gravel at Laguna Salada
Uranium-Vanadium at Laguna Salada constitutes a “caliche ” deposit – where uranium and vanadium
precipitated as a result of intense evaporation in a semi -desert environment. Mineralization is
concentrated in a layer that is parallel to the surface from which evaporation occurred. Over 90% of the
trenches that were used to estimate the resource at Laguna Salada are from a layer of mineralization
that is parallel to the surface at shallow depth – constituting typical caliche -style mineralization in the
gravel plain.
Trenches excavated at the ed ge of the plain, where the upper part of the gravel has been removed by
erosion, exposed high er-grade mineralization at the base of the gravel. This was considered to be part
of the layer of caliche mineralization that simply draped the topography from whi ch evaporation
occurred – and was modelled as a single layer in the initial resource estimate at Laguna Salada.
Exploration of the La Rosada area (press releases made on Jan 11 th and 19 th, 2017 – the latter with
video footage of the mineralization in the trenches) revealed, not only well mineralized gravel, but also
an underlying, mineralized sand layer and mineralized volcanic material. With the La Rosada
discoveries as a model, the exploration team revisited the lower part of the gravel at Laguna Salada and
recognized a very similar situation that can be summarized as follows (Figure 1):
Higher-grade uranium -vanadium at the base of the gravel occurs in an elongate zone that
extends from northwest to southeast over at least 6 kilometres. The mineralized gravel
averages 0.7 metres thick with an average grade of 0.04% (421ppm) U 3O8 and 0.08%
(807ppm) V 2O5 over an area of 4 square kilometres, approximately half of which is included in
the current resource estimate. Test work on Laguna Salada gravel has show n that removal of
the pebbles and coarse sand by sieving results in an 11 -times increase in uranium grade and a
4-times increase in vanadium grade in the fine material that would be fed to a processing plant.
Screening of gravel with these grades would th erefore generate a fine -grained feed with an
estimated grade of approximately 0.46% U3O8 and 0.32% V2O5;
Underlying the gravel in some parts of the northwestern margin of the Laguna Salada Deposit is
an unconsolidated sand layer very similar to that observ ed at La Rosada. The miner alized part
of the sand layer averages 0.5 metres thick and has an average grade of 353ppm U 3O8 and
0.11% (1,144ppm) V 2O5 over an area of approximately 4 square kilometres. The beneficiation
characteristics – the extent to which grades can be increased in the fine -grained fraction by
sieving – are currently being investigated; and
Underlying either unconsolidated gravel or sand is a fine -grained silty unit, the mineralized
component of which has an average grade of 408ppm U 3O8 and 0.15% (1,531ppm) V2O5 over a
true thickness of 0.7 metres. The beneficiation characteristics of the silty layer, which may be
weathered volcanic rock similar to that observed at La Rosada, are unknown at this time and
will be tested in due course.
There is a possibility that each of these three layers represents a zone of mineralization in its own right
that is separate and distinct from the true “caliche” mineralization located in the upper part of the gravel
on which the resource estimate is based.
Exploration Targets
Several target areas have been identified for exploration for additional higher-grade resource potential:
Target 1 (Figure 1): Infill trenching of the high er-grade zone in the basal gravel on the
northwestern margin of the Laguna Salada Deposit is required so that this layer may be
incorporated into a resource estimate in its own right. This exploration would be done with a
back-actor excavator in areas where the base of the gravel lies close to surface;
Target 2: A prime exploration target lies along trend of the high -grade zone immediately to the
north and south of the current resource area; and
Target 3: It is suspected that the elongate zone of high -grade uranium-vanadium defined on
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the western margin of the current resource area at Laguna Salada lies in a gravel -filled
channel. If this proves to be the case, other sub-parallel channels are likely to be located at the
base of the gravel plain. The base of the gravel lies at a depth of 8 metres beneath the surface
of the mesa -like plain and would require drilling with the Company’s vibrosonic rig. The main
targets for additional high er-grade channels at the base of the gravel lie beneath the current
resource area as well as beneath the gravel pain that lies immediately north of the resource
area.
Figure 1. Map showing the location of the gravel plain that contains the Laguna Salada resource
(footprint shown in blue), the La Rosada exploration area, and the area that has been covered with
a radon cup survey. The target areas for additional higher -grade channels in the lower part of the
gravel are shown in red.
Sample Preparation and Assay
Channel samples were taken on the walls of each trench, bagged and delivered to the ALS Chemex’
preparation facility in Mendoza, Argentina. Each sample was riffle -split. O ne sub -sample was jaw-
crushed to <2mm and then riffle -split again and a 250 gram sub -sample pulverized to 75 µm for
shipment to ALS Peru for assay by ICP (method ICP-MEMS61) after four-acid digestion.
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Technical Information
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 associated
commodities in South America. Potential by-products from uranium production include commodities used
in the energy storage industry – in the manufacture of batteries - such as nickel, vanadium and
phosphate. The C ompany’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 nea r 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 resou rce 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: www.facebook.com/u3o8corp, Twitter:
www.twitter.com/u3o8corp and Youtube: www.youtube.com/u3o8corp
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 o n expected capital and operating
expenditures, and (e) the price and market for uranium. These statements are based on assumptions,
including that: (i) a ctual 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, (ii i) 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 limit ed 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 estimate s, 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. in cluding those
factors set out in the “Risk Factors” in our Annual Information Form available on SEDAR at
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www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of pr eparation, 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 PEA s, 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 Assessm ent on the Berlin
Deposit, Colombia.”
For further information, please contact:
Richard Spencer
President & CEO
U3O8 Corp.
Tel.: (416) 868-1491