Toronto, Ontario--(Newsfile Corp. - March 22, 2019) - U3O8 Corp. (TSX: UWE) (OTCQB: UWEFF) ("U3O8 Corp." or
the "Company") is pleased to report positive results of additional test work aimed at simplifying the process of extracting
uranium and vanadium from a large sample of gravel from its wholly-owned Laguna Salada deposit in Argentina.
After a thorough review of the preliminary economic assessment ("PEA") undertaken on the Laguna Salada Deposit, Mr. Marsh
concluded that there is significant room for improvement and simplification of the flowsheet and processing plant design
incorporated in the PEA. Mr. Marsh planned a test work program to evaluate the effectiveness of these concepts on a bulk sample of
gravel from Laguna Salada. The test work was conducted to evaluate alternative ways of removing sulphate from the gravel proved
positive. Mr. David Marsh, director of U3O8 Corp. was formerly General Manager - Technical Project Development at Paladin Energy,
and was intimately involved in the design, construction and operation of two uranium production plants in Africa.
David Marsh commented, "Recent test work shows that our simplified process removes as much sulphate from the Laguna Salada
gravel as the very much more complex process modelled in the PEA. These results suggest that the flowsheet for processing the
Laguna Salada gravel can be significantly simplified, likely resulting in reductions in capital cost since expensive dewatering
circuits would be eliminated or reduced in size".
Laguna Salada gravels contain a sulphate-bearing mineral called gypsum, that competes for the reagents that are used to extract
the uranium and vanadium. The more efficiently the gypsum can be removed from the gravel, the lower the estimated cost of
production of uranium and vanadium. Approximately 40% of the operating cost estimated in the PEA relates to removing sulphate from
the gravel. Therefore, simplification of the process, or improved efficiency, of the removal of sulphate has a potentially large
impact on estimated uranium and vanadium production costs.
Results of Test Work
The test work reported on here involved the following three steps:
- The sample on which the test work was conducted was dug from within a few metres of surface on the gravel plain at Laguna
Salada. The soft gravel was excavated with an excavator and was shipped to a the Australian Nuclear Science and Technology
Organization ("ANSTO") laboratory, a statutory body of the Australian government, where it was washed with water in a rotating
barrel for 5 minutes, which proved sufficient to remove the uranium-vanadium - bearing fine material from the barren
pebbles;
- The fine material was then sieved through successively finer screens. Material that passed through a screen with 0.85mm
apertures removed 57% of the gypsum originally contained in the gravel. Only 25% of the gravel passed through the 0.85mm mesh,
along with 89% of the gravel's uranium and 46% of its vanadium; and
- Additional sulphate was removed from the uranium-vanadium - bearing material by mixing it with simulated site water - water
made to have a similar composition to that available from the lake at Laguna Salada. This water dissolved 45% of the remaining
gypsum. The screening described in step 2, followed by washing the fine component of the gravel with water, removed 78% of the
gypsum originally contained in the gravel.
The rejection of 78% of the gypsum achieved in these tests was from the component of the gravel that passed through a screen
with 0.85mm apertures. This compares with 75% gypsum rejection through a very much finer screen that had apertures of only 0.075mm
- the result that was used to develop part of the process flow sheet for the PEA. These new results show that a similar proportion
of the gypsum can be removed from the gravel by a process that is very much simpler than the one modelled in the PEA, which should
lead to reductions in both operating and capital cost estimates for the Project.
Further test work is now focused on identifying a simpler and cheaper process (compared to those in the PEA) for the production
of separate uranium and vanadium products. Recent processes developed and proven elsewhere offer the potential for, not only a
simpler separation process, but also a means to recover and recycle significant volumes of expensive leach reagents.
Technical Information & Cautionary Note
The technical report referred to in this press release is entitled:
September 18, 2014 technical report: "Preliminary Economic Assessment of the Laguna Salada Uranium Vanadium Deposit, Chubut
Province, Argentina." The report is available on www.sedar.com and
www.u3o8corp.com.
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 battery commodities in South America. Battery
commodities that occur with uranium resources include vanadium, nickel, zinc and phosphate. The Company's mineral resources
estimates were made in accordance with National Instrument 43-101, and are contained in the following deposits:
- Laguna Salada Deposit, Argentina - a PEA shows that this near surface, free-digging uranium-vanadium deposit has low
production-cost potential; and
- 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.
Additional Information
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.
For further information, please contact:
Carolina Diaz at carolina@u3o8corp.com or phone (416) 868-1491 or Richard Spencer,
President & CEO, U3O8 Corp., Tel: (647) 292-0225 richard@u3o8corp.com
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 and (d) 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) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iii)
economic, political and industry market conditions will be favourable, and (iv) 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."
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43588
