U3O8 Corp. Discovers New Style of Uranium-Vanadium at La Rosada, Laguna Salada District, Argentina.
401 Bay Street T: 416-868-1491
Suite 2702 www.u3o8corp.com
Toronto, ON M5H 2Y4 TSX: UWE
Canada OCTQB: UWEFF
Press release
U3O8 Corp. Discovers New Style of Uranium-Vanadium at La Rosada, Laguna Salada
District, Argentina.
Toronto, Ontario – January 11, 2017 – U3O8 Corp. (TSX: UWE, OTCQB: UWEFF) (“U3O8 Corp.” or the
“Company”) announces assays from a second type of uranium - vanadium mineralization that occurs in
addition to the typical mineralized gr avel at La Rosada, an area that lies within the larger Laguna Salada
Project in Patagonia, Argentina.
“Our focus is squarely on reducing estimated produ ction costs at the Laguna Salada Deposit,” said Dr
Richard Spencer, CEO of U3O8 Corp. “One way of achieving that goal is by delineating additional higher
grade material - and our exploration team has ri sen to that challenge by finding high-grade uranium-
vanadium in friable volcanic rocks – a type of mineralization that occurs in addition to the gravel-hosted
mineralization typical of the Laguna Salada district. Trenching over the last couple of months has shown
that uranium-vanadium in the volcanic rock constitutes a target in its own right, adding to the potential of
the La Rosada target. Assay resu lts from mineralized gravel at La Rosada will be released in the next
few weeks.”
Figure 1. Map showing the location of the La Rosad a exploration area relative to the footprint of
the Laguna Salada resource and the gravel plain in which the mineralization occurs (inset map).
The main map shows the location of mineralized tuff (pale blue) and gravel (green).
Gravel plain shown
in grey shade
Area shown
in main map
Laguna Salada
resource footprint
La Susana
mineralized gravel
Radon cup survey area
showing anomalies in red La Pala
12 Zone
Pescado North
2
Assay Results
Table 1. Summary assay results for composite panel samples from the walls of trenches
excavated in rhyolitic tuff (volcanic rock) from the La Rosada area. Results from tuff from a prior
press release made on November 12, 2013, before the significance of this mineralization was
appreciated, are included (shaded grey) for completeness.
U3O8 (ppm) V 2O5 (ppm)
16876 0.2 1.1 0.9 3,927 1,340
16878 0.5 1.5 1.0 2,331 872
16884 0.3 1.1 0.8 3,125 1,047
Average grade of mineralized zone at La Pala 0.9 3,128 1,086
16881 0.3 1.0 0.7 66 103
16875 0.2 1.0 0.8 106 141
16887 0.7 2.5 1.8 40 84
16936 0.4 1.1 0.7 76 107
16938 0.4 2.1 1.7 76 338
16854 0.3 1.3 1.0 8,927 3,008
16864 0.7 1.4 0.7 935 571
16867 0.2 1.2 1.0 2,706 1,015
16870 0.9 1.9 1.0 3,051 1,289
16895 0.4 1.4 1.0 405 253
16899 0.4 1.7 1.3 1,172 333
16902 0.4 1.2 0.8 459 265
Average grade of mineralized area at 12 Zone 1.0 2,522 962
16856 1.2 2.2 1.0 243 290
16860 1.5 2.5 1.0 66 201
16862 0.8 1.3 0.5 39 299
16904 0.5 1.2 0.7 209 384
21127 0.4 1.0 0.6 97 289
21139 0.3 0.7 0.4 199 278
23012 0.4 1.0 0.6 200 444
21131 0 0.6 0.6 913 377
21134 0 0.9 0.9 861 439
8780 0.5 0.9 0.4 1,730 623
8784 0.1 0.8 0.7 1,956 890
8772 0.2 0.3 0.1 7,933 2,644
Average grade of mineralized zone at Pes cado Norte 0.5 2,679 995
16906 0.3 1.1 0.8 109 105
16908 0.3 1.1 0.8 215 246
8778 0.1 0.3 0.2 173 96
8787 0.2 0.5 0.3 157 162
Assa y Da ta
Target Area Sample No From (m) To (m) True
Thickness (m)
PESCADO
NORTE
PALA
12 ZONE
3
Mineralized Zones
Uranium-vanadium is exposed in rhyolitic tuff wh ere the overlying gravel has been eroded at La
Rosada. The three zones of mineralization identified to date have a high proportion of carbonate where
the tuff has been altered and weathered to form a soft, friable layer that starts anywhere from surface to
a depth of 1.5 metres.
The average thickness of mineralization in the La Pa la zone is 0.9 metres with an average grade of
3,128ppm (0.31%) U3O8, with grades ranging between 0.23% and 0.39% U3O8 (Table 1). Mineralization
in the 12 Zone averages one metre thick with an average grade of 2,522ppm (0.25%) with a grade
range of 0.04% to 0.9% U 3O8. The layer of mineralization at Pescado Norte is thinner, averaging 0.5
metres with an average grade of 2,679ppm (0.27%) and a grade range of 0.09% to 0.79% U 3O8.
Vanadium grades are relatively constant at 0.1% V2O5 across the three areas of mineralized tuff.
The mineralization encountered to date shows lateral c ontinuity over a combined area of approximately
0.4 square kilometres.
Mineralization in the tuff at Pescado Norte lies in a northeast-trending zone that is aligned with, and may
form the extension of, a mineralized channel in the ad jacent gravel. The alignment raises the question
as to whether there is a link between mineralization in the volcanic rocks and the adjacent gravel.
There is a possibility that the horizontal mineralize d layer in the tuff derive s from feeder structures
deeper in the tuff – a possibility that will be investi gated by drilling as avail able exploration funding
permits.
Beneficiation
Beneficiation characteristics of the gravel at Laguna Salada are good, re sulting in concentration of 82%
of the gravel’s uranium into fine-grained material that constitutes just 9% of the gravel’s original weight1,
because the barren pebbles and coarse sand can be so easily removed by sieving. Beneficiation of the
tuff, which does not contain pebbles, is likely to be less efficient at concentrating the mineralization;
however, this assumption will be confirmed with test work in due course.
Estimated Cash Cost of Production at Laguna Salada (from the PEA)
Since the mineralization at Laguna Salada is contained with in a flat sheet lying within three metres of
surface, mining could commence at any chosen lo cation. The Preliminary Economic Assessment
“PEA”) modeled mining of the richest areas of the Laguna Salada Deposit followed by successively
lower-grade areas so that the capital cost of the Proj ect could be paid off as quickly as possible. Using
the data available at the time of the PEA, this approach resulted in an estimated cash cost of production
of US$11.62 per pound of uranium in year one, ri sing to average US$21.62 per pound over the life of
the mine modeled in the PEA (Figure 2).
1 September 18, 2014 technical report: “Preliminary Economic Assessment of the Laguna Salada Uranium
Vanadium Deposit, Chubut Province, Argentina.”
4
Figure 2. Estimated cash cost of production of uranium by year at Laguna Salada plotted
against the average grade of the fine component of the gravel – the material that would be
processed each year - as per data in the Laguna Salada PEA.
Work Plan
The short-term work plan focuses on ways of redu cing estimated production costs for the broader
Laguna Salada Project throug h exploration for additi onal higher-grade material as well as through
refining and improving the efficiency of processing techniques.
Higher-grade targets in the La Rosada area include:
The mineralized rhyolitic tuff that is consi dered as a target in its own right, and on which
exploration is planned to continue; and
Mineralization in the adjacent gravel, which will be more fully described in a press release
shortly.
In addition, a possible link between mineralization in the tuff and the overlying gravel at La Rosada has
led to a better understanding of higher uranium-vanadiu m grades found at the base of the gravel where
it lies on tuff in the Laguna Salada resource area – a concept that will be discussed with associated
results in a future press release.
Metallurgical test work to determine the efficiency of the U-pgrade © processing method to concentrate
uranium and vanadium into a smaller mass than is currently being achieved with screening, constitutes
a key step before pilot plant work can commence.
Sample Preparation and Assay
Panel samples were taken on the walls of each trench, bagged and delivered to ACME’s preparation
facility in Mendoza, Argentina. Each sample was cr ushed, split and pulverized to 75µm and a split of
5
250 grams sent for assay at ACME’s analytical faci lity in Vancouver, Canada, for analysis by ICP-ES
and ICP-MS after four-acid digestion. QA-QC proc edures were as described in the Laguna Salada
PEA.
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 developm ent 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 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;
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 resource 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 lookin g 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 st atements 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 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, re source goals, metallurgical testing, economic studies
and development activities will continue to be posit ive 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 proj ect, (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, a nd (v) financial markets and the market for uranium
will improve for junior resource companies in the sh ort-term. Such statements are subject to risks and
uncertainties that may cause actual results, perform ance 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 speculative nature associated with
6
exploration results, resource estimates, potential re source growth, fu ture metallurgical test results,
changes in project parameters as pl ans evolve, (6) competitive developm ents, (7) availability of future
financing, (8) exploration risks, and other factor s 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. 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 forw ard-looking statements. U3O8 Corp. assumes no
obligation to update such information, except as ma y be required by law. For more information on the
above-noted PEAs, refer to the S eptember 18, 2014 techni cal report titled “P reliminary Economic
Assessment of the Laguna Salada Uranium-Vanadi um Deposit, Chubut Province, Argentina” and the
January 18, 2013 technical report titled “U3O8 Corp . Preliminary Economic Assessment on the Berlin
Deposit, Colombia.”
For further information, please contact:
Richard Spencer
President & CEO
U3O8 Corp.
Tel.: (416) 868-1491