Clear path to uranium resource build-up
U3O8 Corp. has an advanced uranium portfolio with a strong growth profile, comprising three mineral resources defined in compliance with in Colombia, Argentina and Guyana in South America – a promising new frontier for uranium exploration and development. A preliminary economic assessment (“PEA”) shows our Colombian deposit could be a very low cash cost uranium producer thanks to revenue from by-products of phosphate, vanadium, rare earths and other metals with potential to grow to considerable size. A PEA on the near surface Argentinean deposit shows that this project could be a potential near-term, low-cost uranium producer.
Berlin Project – Colombia
Mineral Resources1 – The Berlin Project in Caldas Province is a sediment-hosted uranium deposit that also contains vanadium, phosphate, nickel plus rare earths and other elements. Positive initial metallurgical results show that we can efficiently extract the suite of commodities from the Berlin rock. A PEA on the Berlin Deposit shows that by-product revenues are projected to cover the cost of uranium production. The PEA is based on a uranium resource from only three kilometres (“km”) of a 10.5km mineralized trend – and our exploration suggests that there is an exploration target of an additional 50-55mlb on the remaining 7.5km of the trend, which should further enhance the economics of the project.
1 Berlin Project – exploration on other mineralized areas suggest that there is an additional exploration target of 20-27Mt at a grade of 0.09% to 0.11% U3O8 (~50-55mlb) on the remaining 7.5km of the trend. Laguna Salada – based on exploration results on other mineralized areas, there is an additional exploration target of 56-113Mt at a grade of 50ppm to 60ppm U3O8 (~10-15mlb) identified in the district to date. Potential quantity and grades are conceptual in nature. There has been insufficient exploration to define mineral resources beyond the current deposits. It is uncertain if further exploration will result in additional mineral resources on these properties. (see Disclaimer)
3 Historic resources at Cerro Solo and Sierra Pintada (see Disclaimer)
Mineral Resource1 – The Laguna Salada Project in Chubut Province has a surficial uranium-vanadium deposit on which a PEA shows that this project could be simple to move into production in a relatively short timeframe using low-cost mining and processing methods. Mineralization is free-digging and lies at surface to three metres depth contained within unconsolidated gravel. Simple screening increases uranium and vanadium grades by 7-11x, leading to head grades of 850-870ppm for uranium. Alkaline leaching recovered 90-94% of the uranium and 32-51% of the vanadium. There is an exploration target of 10-15mlb in addition to the current uranium resource on other mineralizes areas identified to date in the region.
Exploration Upside – An extensive land position near Argentina’s two largest known uranium deposits3 (Cerro Solo deposit – a historic resource of 10mlb at 0.15% U3O8 and Sierra Pintada – a historic resource of 30mlb at 0.12% U3O8) offers exploration upside, including significant sandstone-hosted uranium intersected in the Cerro Solo Area, near the State’s Cerro Solo deposit.
Mineral Resource – Uranium in the Kurupung Batholith is geologically similar to albitite-hosted uranium deposits2 worldwide that typically host resources in the 60 to 130mlb range. We are growing our pipeline of uranium-bearing structures with the potential to add to our current resource defined in compliance with NI 43-101 and show that the Kurupung system could be of comparable size to peer deposits.
Exploration Upside – Our exploration in the Roraima Basin is identifying key features typically associated with unconformity-related uranium in Canada’s Athabasca Basin, which accounts for 20% of the world’s uranium production4. Roraima targets share characteristics of Athabasca-type uranium in terms of their structure, alteration patterns and enrichment in pathfinder metals.
2 Albitite-hosted deposits worldwide (see Disclaimer)
4 Source: World Nuclear Association