Positive economics confirmed on Colombia deposit
To date, U3O8 Corp’s infill drilling has defined a maiden NI 43-101 Indicated resource of 1.5mlb uranium as well as Inferred resources of 19.9mlb of uranium, 0.8 million tonnes of phosphate, 97mlb of vanadium plus other commodities on just the southern 3km of the property. Initial metallurgical results returned excellent recoveries of 97% for uranium, 99% for phosphate, 66% for vanadium, 86% for yttrium and 66% for nickel – which would contribute over 90% of the revenue at Berlin. A preliminary economic assessment (PEA) shows that uranium could be produced for $0/lb cash cost at Berlin thanks to revenue from the by-products – this could make Berlin one of the lowest cost uranium producers.
The PEA on Berlin has been based on only the initial uranium deposit, and project economics should be enhanced from this base case as the size of the deposit increases through further resource drilling along the remainder of the entire 10.5km mineralized trend. Exploration drilling has shown similar grades extend over a further 3.3km beyond the current resource and this area is ready for resource drilling. Trenching shows that the remaining 4.2km of the Berlin trend is mineralized and this portion has yet to be drilled.
Mineralization at Berlin is contained within a fine-grained sandstone layer that lies at the contact between the sandstone and organic-rich black mudstone.
Geological Map of the 10.5km Mineralized
Trend at the Berlin Project, Colombia