U3O8 Corp. Reports the Start of Geophysical Test Work on its Laguna Salada Uranium-Vanadium Deposit
U3O8 Corp. Reports the Start of Geophysical Test Work on its Laguna Salada
Uranium-Vanadium Deposit
TORONTO, Jan. 30, 2018 /CNW/ - U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the
"Company") reports that a trial has commenced to test the effectiveness of geophysics to detect channe ls
at the base of the gravel layer at its Laguna Salada Deposit ("Deposit" or "Property") in
Argentina. Exploration elsewhere on the Property has shown that channels contain higher-grade
uranium-vanadium mineralization that could further improve the positive economics of the Deposit.
Geophysics Program
The NI43-101 resource at Laguna Salada was based pr incipally on a one-metre thick layer of uranium-
vanadium bearing gravel that extends from surface to a maximum depth of only three
metres. Exploration that was completed following the resource estimate, revealed a second layer in
which uranium and vanadium are confined to channels at the base of the gravel. The second layer
contains generally higher uranium-vanadium grades that may result in the estimated cash-cost of
production being even lower than for the near-surfa ce material on which the preliminary economic
assessment ("PEA") was based (Figure 1).
Figure 1: Laguna Salada Production Cost
Trials are underway to determine the effectiveness of Electrical Resistivity to detect these buried
channels. The test work is being done in an area within the Laguna Salada Deposit where drilling
detected channels that contain higher-grade mineralization. The test work is expected to be completed in
mid-February, and if successful, a more extensive geophysical program will be considered to provide
specific targets for exploration by pitting with an excavator.
Update on Proof of Concept Work
Having studied the test work on which the PEA was based, and after spending three weeks in Argentina,
Mr. John Rae has selected and ordered the equipment required to separate the fine-grained uranium-
vanadium from the pebbles in Laguna Salada gravel. John Rae is a mining engineer who has 40 years of
experience in the extraction of various commodities from gravel. The proof of concept test work will
continue through the first quarter of 2018 and results will be reported as they become available.
Russian Uranium Producer to Explore in Chubut Provi nce
A Russian State-owned uranium production company ha s announced that it plans to spend up to US$250
million in exploration for, and development of, uranium deposits that are amenable to in situ leach
extraction in Chubut Province in southern Argentina . U3O8 Corp. holds approximately 40,000 square
kilometres (approximately 15,000 square miles) of e xploration concessions in the area that is being
targeted for this type of sandstone-hosted mineralization that typically lies at approximately 100-150
metres depth in the target area.
Despite the potential of the sandstone-hosted miner alization, U3O8 Corp. prioritized exploration at
Laguna Salada where resource definition in the shallow-lying mineralization can be done more cost-
effectively. In addition, Laguna Salada – style mi neralization contains vanadium – a fundamentally
important by-product both in terms of strengthening the economics of the Deposit, and in providing a key
commodity for construction steel and for industrial-scale vanadium redox batteries. The vanadium pric e
has risen strongly over the last past year in response to a shortage of supply in the international
vanadium market (Figure 2).
Figure 2: Uranium & Vanadium Battery Commodities
Technical Information & Cautionary Note
A PEA is preliminary in nature and includes inferre d mineral resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that the results of the PEA assessment w ill
be realized.
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 developmen t 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 est imates were made in accordance with National
Instrument 43-101, and are contained in three deposits:
• Laguna Salada Deposit, Argentina – a PEA shows this near surface, free-digging uran ium -
vanadium deposit has low production-cost potential;
• Berlin Deposit, Colombia – a PEA shows that Berlin also has low-cost uraniu m production
potential due to revenue that would be generated fr om 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 ve ins 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: 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 mo dular reactor that represents a prime export
opportunity, are available in the Company's Corporate Presentation accessible on the homepage of our
website http://www.u3o8corp.com .
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 Lag una 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 uran ium. 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 proje ct, (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
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 materiall y
from those contained in such statements, including, but not limited to: (1) changes in general economi c
and financial market conditions, (2) changes in dem and 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 cl imate, (5) the inherent uncertainties and speculative
nature associated with exploration results, resource estimates, potential resource growth, future
metallurgical test results, changes in project parameters as plans evolve, (6) competitive development s,
(7) availability of future financing, (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. 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 for ward-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 September 18, 2014 technical report titled "Preliminary Economic
Assessment of the Laguna Salada Uranium-Vanadium De posit, Chubut Province, Argentina" and the
January 18, 2013 technical report titled "U3O8 Corp. Preliminary Economic Assessment on the Berlin
Deposit, Colombia."
SOURCE U3O8 Corp.
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For further information: please contact Richard Spencer, President & CEO, U3O8 Corp., Tel.: (416)
868-1491, or by e-mail: [email protected]
CO: U3O8 Corp.
CNW 07:55e 30-JAN-18