RE:RE:Halted I hope it is good news
U3O8 clarifies Laguna Salada technical disclosure
2015-04-24 11:14 ET - News Release
Mr. Richard Spencer reports
U3O8 CORP. CLARIFIES TECHNICAL DISCLOSURE
As a result of a review by the Investment Industry Regulatory Organization of Canada (IIROC), U3O8 Corp. is issuing the following clarifications to the technical disclosures made in the press release titled "U3O8 Corp. establishes local partnership on concessions adjoining the Laguna Salada deposit in Argentina," issued on April 23, 2015.
Clarification of uranium resource target:
U3O8 Corp's previous disclosure regarding the "doubling in size of the Laguna Salada Deposit" was conceptual and omitted the appropriate disclosure and the basis for the conceptual target, and did not provide the adequate cautionary language required by National Instrument 43-101 ("NI 43-101").
U3O8 Corp. clarifies that the Laguna Salada Project and adjoining new concessions under the option agreement have the potential to contain a cumulative conceptual uranium target of 150-225 million tonnes at 50ppm to 60ppm U3O8 (~20-25 million pounds) based on the current NI 43-101 uranium resource estimate and exploration results of other mineralized areas identified in the district to date. For information on the current NI 43-101 resource, refer to the September 18, 2014 technical report titled: Preliminary Economic Assessment of the Laguna Salada Uranium Vanadium Deposit, Chubut Province, Argentina available on the Company's web site at www.u3o8corp.com and on SEDAR at www.sedar.com.
The potential quantity and grades of the target are conceptual in nature. There has been insufficient exploration to define an expanded mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Retraction of economic analyses:
U3O8 Corp's previous disclosure represented that based on the current preliminary economic assessment ("PEA") that "doubling the deposit's size and plant throughput would increase the project's net present value ("NPV") by about 230% to US$184 million" on the Laguna Salada Project. The Company retracts the referenced economic analyses, which was based on the conceptual target described above. This disclosure does not meet the requirements of NI 43-101 as results of an economic analysis must be based on a PEA, preliminary feasibility study or feasibility study. The Company further cautions that such statement should not be relied on andthat the current Laguna Salada PEA is preliminary in nature. The PEA includes inferred mineral resources that are considered too speculative geologically for economic consideration that would enable them to be classified as mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the Laguna Salada PEA will be realized.
Clarification of comparison of cash cost:
U3O8 Corp's previous disclosure represented that the cash cost of production of approximately US$22 per pound of uranium defined in the recently completed PEA, would place the Laguna Salada Deposit among the uranium industry's lowest-cost producers. The Company wishes to retract such statement and cautions that such statement is premature for the Laguna Salada Project as it is only at the PEA stage and cannot be compared with established mining operations. U3O8 Corp. cautions that such statement should not be relied upon. Dr. Richard Spencer, P.Geo., President and CEO of U3O8 Corp. and a Qualified Person as defined by NI 43-101, has supervised the preparation of, and verified the technical information contained in this press release relating to the Laguna Salada Project and the PEA.
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