U3O8 Corp. Reports Uranium-Vanadium Grades from Unconsolidated Gravel and Sand at La Rosada, Laguna Salada District, Argentina.
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Press release
U3O8 Corp. Reports Uranium-Vanadium Grades from Unconsolidated Gravel and Sand at
La Rosada, Laguna Salada District, Argentina.
Toronto, Ontario – January 19, 2017 – U3O8 Corp. (TSX: UWE, OTCQB: UWEFF) (“U3O8 Corp.” or the
“Company”) announces uranium and vanadium assays from exploration trenching of soft gravel and sand
in the La Rosada area, which the Company considers to be an extension of the Laguna Salada Deposit.
“Last week we reported that our focus on explorat ion for higher-grade extensions to the Laguna Salada
Deposit had led to the discovery of uranium and vana dium in a layer adjacent to, and beneath, gravel in
the La Rosada area,” said Dr. Richard Spencer, CE O of U3O8 Corp. “That was an unexpected bonus
because our target was uranium and vanadium in the grav el itself, which is an extension of the layer that
contains the Laguna Salada Deposit 50 kilometres to the south. Assay results from the gravel at La
Rosada, reported in today’s release, have grades similar to the very highest-grade material in the Laguna
Salada resource. In addition, the assay results show that uranium in La Rosada gravels can be efficiently
concentrated into the fine-grained component of the gravel with the removal of pebbles and coarse sand
by screening. The higher grade, as well as the e fficiency of concentration of uranium from La Rosada
gravels, has the potential to lower estimated production costs for the Laguna Salada Deposit.”
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.
Gravel plain shown
in grey shade
Area shown
in main map
Radon cup survey area
showing anomalies in red
Laguna Salada
Project concessions
La Susana
mineralized gravel
Laguna Salada
resource footprint
Assay results reported
today are from this area
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Assay Results
Table 1. Summary assay results from composite panel samples from trenches in unconsolidated
gravel and sand in the La Rosada area.
Uranium-Vanadium – Bearing Gravel and Sand
Gravel at La Rosada and Laguna Salada have sim ilar general characteristics. At Laguna Salada,
however, the gravel forms a tabular sheet deposited in an outwash plain while at La Rosada, gravel
occupies northeast- to east-tr ending channels that are about 150 metres wide, and the one that has
been most extensively explored is at least 2 kilometr es long (Figure 1). Similar northeast- to east-
orientated trends of radiation measured in radon cups in the area south of La Rosada may be indicative
of similar mineralized channels in that area. The ch annel-constrained distribution of gravel is a feature
that La Rosada has in common with the Langer Heinrich Deposit in Namibia.
A sand layer that lies beneath the gravel at La Ro sada may also have been preserved in channel
Bulk
sample
In Fine
(<0.15mm)
Component
After Screening
Bulk
sample
In Fine
(<0.15mm)
Component
A fter Screening
16828 0.3 0.6 0.3 106 1,304 234 801
16834 0.3 0.7 0.4 5,475 20,764 1,963 7,568
16839 0.4 0.7 0.3 701 1,114 1,326 1,191
16841 0.4 1.2 0.8 154 2,844 322 1,358
16889 0.7 1.7 1.0 133 570 140 623
0.55 1,314 5,319 797 2,308
16829 0.6 1.5 0.9 2,800 3,155 1,432 1,573
16831 0.7 1.5 0.8 501 1,113 705 1,380
16832 0.4 1.0 0.6 597 675 669 736
16833 1.0 1.4 0.4 493 1,031 1,054 1,375
16835 0.7 1.3 0.6 388 722 254 396
16836 0.4 1.0 0.6 138 349 263 415
16837 0.8 1.2 0.4 195 533 234 399
16842 1.2 2.2 1.0 699 1,239 841 1,117
0.7 726 1,102 681 924
16830 0.6 1.6 1.0 76 134 952 970
16874 1.4 2.5 1.1 13 193 103 579
16894 0.4 1.2 0.8 59 114 167 270
Combined Grade & Thickness of Sand and Overlying Gravel in Trenches Where Both Layers are Mineralized:
16828
&16829 0.3 1.5 1.2 2,197 2,692 1,360 1,380
16834 &
16835 0.3 0.7 1.0 2,422 5,732 938 2,194
16841 &
16842 0.4 2.2 1.8 154 1,640 1,326 1,177
1.3 1,591 3,355 1,208 1,584Average of Mineralized Gravel and Mineralized
Sand Where They Occur in the Same Trench
Sample Data
Sample No Material From
(metres)
To
(metres)
True
Thickness
(metres)
Average: Mineralized Gravel
Average: Mineralized Area of Sand Layer
Gravel &
Sand
Layers
Sand
Gravel
Sand
U3O8 (ppm) V 2O5 (ppm)
Assay Data
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features. The sand layer is extremely friable, and ve ry significantly, is well mineralized in some areas
where it has been exposed in exploration trenches. The sand layer has characteristics that are similar
to the unconsolidated sands that host the Tubas Uranium Deposit in Namibia and represents a target in
its own right at La Rosada.
Uranium-vanadium – bearing rhyolitic volcanic tuff, assay results from which were reported on January
11, 2017, lie adjacent to and beneath the sand layer at La Rosada.
Beneficiation
The key to the Laguna Salada Deposit is the ease with which the powdery uranium-vanadium mineral,
carnotite, can be washed off sand grains and pebbles, concentrating in the fine-grained material.
Gravel at La Rosada shows similar characteristics with carnotite forming a friable coating on pebbles
and sand grains – a YouTube video available via this link shows the nature of the gravel and its
mineralization at La Rosada.
The “Bulk Sample” column in Table 1 above provides the overall grade of uranium and vanadium in the
gravel and sand samples from La Rosada. This grade is derived from a large sample in which all the
material, including the barren pebbles and sand grains, have been crushed and assayed with the
uranium-vanadium – bearing material that coats the grains. These grades provide the raw data that are
necessary for future resource estimation.
The grade of the fine component, composed of grains less than 0.15 millimetres in diameter, that was
separated from the pebbles and sand by sieving, has an average grade of 0.5% (5,319ppm) U3O8, with
a sample that spiked to 2% U 3O8 (20,764ppm, Table 1). The average grade of vanadium of the fine
material is 0.23% (2,308ppm) V 2O5. The average thickness of the gravel is 0.5 metres, with
mineralization starting from 0.3 to 0.7 metres below surface. Only the fine component of the gravel
would be processed for uranium and vanadium extraction.
Results from the unconsolidated sand layer that lie s beneath the gravel at La Rosada show that its
uranium and vanadium are also concentrated into the fine material by washing and sieving the sand.
The average grade of the sand is 726ppm U 3O8 while the fine component has a grade of 1,102ppm
(0.1%) U 3O8. Vanadium assays average 681ppm in the raw sand and 924ppm V 2O5 in the fine
component. The average thickness of the sand layer is 0.7 metres.
Where gravel and sand are mineralized in the same trench, the combined average thickness of the
uranium-vanadium – bearing layer is 1.3 metres with an average grade, in the fine material, of 0.33%
(3,355ppm) U3O8 and 0.16% (1,584ppm) V2O5.
Estimated Cash Cost of Production at Laguna Salada
The Preliminary Economi c Assessment (“PEA”)1 modeled mining of the richest areas of the Laguna
Salada Deposit followed by successively lower-grade ar eas so that the capital cost of the Project 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, rising
to average US$21.62 per pound over the life of the mine modeled in the PEA (Figure 2). This graphic
shows the relationship between uranium grade and estimated cash cost of production by year
established in the PEA on the Laguna Salada Deposit.
1 September 18, 2014 technical report: “Preliminary Economic Assessment of the Laguna Salada Uranium
Vanadium Deposit, Chubut Province, Argentina.”
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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 the PEA.
Focus of Further Work
The next steps in the drive to lower estimated pr oduction costs for the broader Laguna Salada Project
are as follows:
A link between mineralization in the tuff and the overlying gravel observed at La Rosada has led
to a better understanding of higher uranium-vanadium grades found at the base of the gravel at
Laguna Salada. With the insight gained from La Ro sada, it is considered likely that higher-
grade mineralization at the base, where the gravel rests on tu ff, represents a second, deeper
layer of mineralization that adds further, higher-grade resource potential at Laguna Salada2 that
will be explored with trenching and vibrosonic drilling in due course;
Continued exploration of higher-grade mineralizat ion in gravel, sand and volcanic tuff in the La
Rosada area with the aim of identifying areas that could be cost-effectively included in a future
resource estimate; and
Metallurgical test work to determine the effi ciency of the U-pgrade© processing method to
concentrate uranium and vanadium into a smalle r mass than is currently being achieved with
screening. With the identification of the ur anium-vanadium – bearing sand at La Rosada, the
planned test work was delayed in order to incorpor ate this new style of mineralization. Initial
results are now expected in Q2.
Sample Preparation and Assay
Panel samples were taken on the walls of each trench, bagged and delivered to ACME’s preparation
2 May 20, 2011 technical report: “Laguna Salada Project, Chubut Province, Argentina, NI 43-101 Technical
Report on Laguna Salada: Initial Resource Estimate”.
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facility in Mendoza, Argentina. Each sample was ri ffle-split. One sub-sample was crushed, split and
pulverized to 75µm and a split of 250 grams sent for assay to provide an assay value for the raw gravel
and sand to provide data for resource estimation purposes. A second set of sub-samples was wet-
screened through successively finer mesh starting at 2mm, through 550 micrometres (“µm”), 180µm and
finally at 150µm. Each size fraction was dried in ovens at 60°C and each fraction was sent to ACME’s
analytical facility in Vancouver, Canada, for analysis by ICP-ES and ICP-MS after four-acid digestion.
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
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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 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