TORONTO, Jan. 11, 2017 /CNW/ - 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 gravel at La Rosada, an area that lies within the
larger Laguna Salada Project in Patagonia, Argentina.
"Our focus is squarely on reducing estimated production 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 risen 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 results from
mineralized gravel at La Rosada will be released in the next few
weeks."
Figure 1. Map showing the location of the La Rosada
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).
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.
Target
Area
|
Sample
No
|
From
(m)
|
To
(m)
|
True
Thickness (m)
|
Assay
Data
|
U3O8
(ppm)
|
V2O5
(ppm)
|
PALA
|
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
|
12
ZONE
|
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
|
PESCADO
NORTE
|
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 Pescado 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
|
Mineralized Zones
Uranium-vanadium is exposed in rhyolitic tuff where 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 Pala 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%
U3O8. 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%
U3O8. Vanadium grades are relatively
constant at 0.1% V2O5 across the three areas
of mineralized tuff.
The mineralization encountered to date shows lateral continuity
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 adjacent
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 mineralized layer in
the tuff derives from feeder structures deeper in the tuff – a
possibility that will be investigated by drilling as available
exploration funding permits.
Beneficiation
Beneficiation characteristics of the gravel at Laguna Salada are
good, resulting 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 within a
flat sheet lying within three metres of surface, mining could
commence at any chosen location. 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 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).
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 reducing estimated
production costs for the broader Laguna Salada Project through
exploration for additional 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 considered 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-vanadium 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 crushed, split and pulverized to
75µm and a split of 250 grams sent for assay at ACME's analytical
facility in Vancouver, Canada, for
analysis by ICP-ES and ICP-MS after four-acid digestion.
QA-QC procedures 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 development 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 surface,
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 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 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, 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 project, (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 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 exploration results, resource estimates, potential
resource growth, future metallurgical test results, changes in
project parameters as plans evolve, (6) competitive developments,
(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 forward-looking statements. U3O8 Corp. assumes no
obligation to update such information, except as may 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 Deposit, Chubut
Province, Argentina" and the January 18, 2013 technical report
titled "U3O8 Corp. Preliminary Economic Assessment on the Berlin
Deposit, Colombia."
__________________________
1 September 18, 2014
technical report: "Preliminary Economic Assessment of the Laguna
Salada Uranium Vanadium Deposit, Chubut Province, Argentina."
SOURCE U3O8 Corp.