Sedimentary Mineralized Gravels
- Advanced Stage Project – A preliminary economic assessment, published in September 2014, established an annual production of 0.6m lbs of U3O8 and 1m lbs of V2O5 at cash cost of production US$21.63 per pound of U3O8, net of a vanadium by-product credit
- Uranium and Vanadium Resources with Growth Potential – An initial resource estimate for uranium and vanadium was published in May 2011 with exploration in other areas showing potential for expansion
- Nuclear Friendly Country – According to the World Nuclear Association, Argentina currently generates 5% of its electricity from three nuclear reactors and has in country uranium conversion and enrichment capabilities
- Familiar Project and Jurisdiction – Management and advisors to the company have hands on experience with the project and operating in-country
1. The recommended cut-off grades for the two mineralized areas, taking into account their distinct beneficiation characteristics, are: 25ppm U3O8 for Guanaco and 100ppm U3O8 for Lago Seco.
May 2011 technical report: "Laguna Salada Project, Chubut Province, Argentina: NI 43-101 Technical Report: Initial Resource Estimate", which is available at www.u3o8corp.com and on SEDAR at www.sedar.com.
This resource is a historical estimate under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and a qualified person has not done sufficient work to classify the historical estimate as current mineral resources. As a result, the historical estimate is not being treated as a current mineral resource.
The property is located about 270km southwest of the provincial capital, Rawson and approximately 230km from the main commercial port city of Comodoro Rivadavia. Reconnaissance work on Laguna Salada was first conducted in 2007 with the aim of confirming anomalies detected in a 1978 airborne radiometric survey undertaken by Comision Nacional de Energia Atomica, Argentina's National Nuclear Authority ("CNEA").
The CNEA recognized that the uranium mineralization is related to "caliches" – partial cementation of the host by calcium carbonates. "Caliche"- and "Calcrete"-type deposits are surficial uranium deposits found in semi-desert environments. Caliche-type deposits differ in that they typically occur in unconsolidated clastic sediments such as gravel, as opposed to cemented sediments in the case of Calcrete-type uranium deposits. Examples of surficial uranium deposits are Lake Maitland in Western Australia and Langer Heinrich in Namibia. Laguna Salada is similar to the free-digging Tubas Red Sand Deposit in Namibia.
Uranium-vanadium mineralisation at Laguna Salada is contained in flat-topped mesas that are approximately 10m higher than the surrounding plain, on the north bank of the Rio Chico, one of the principal rivers in the region that flows northeast into the Rio Chubut. Mineralisation at Laguna Salada occurs in a tabular, gently undulating layer that contains yellow-green uranium-vanadium minerals at shallow depth in unconsolidated, sandy gravel. The mineralised layer lies beneath shallow soil and typically a barren cap of gravel on the top of the mesas.
There has been over $15m spent on the project by U3O8 Corp. with an initial resource estimate published in May 2011 and a preliminary economic assessment published in September 2014. Argentina currently generates 5% of its electricity from three nuclear reactors and has domestic Uranium conversion and enrichment capabilities.