U3O8 Corp. Defines A Clear Path Forward For The Laguna Salada Uranium-Vanadium Deposit

U3O8 Corp. Defines a Clear Path Forward for the Laguna Salada Uranium-Vanadium Deposit

07:55 EST Thursday, November 16, 2017 

TORONTO, Nov. 16, 2017 /CNW/ - U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) ("U3O8 Corp." or the "Company") is pleased to outline how the offer of a C$1 million line of credit by the Company's founder and director, Dr. Keith Barron, in addition to funds recently raised by the Company, will be used to undertake proof-of-concept work on its Laguna Salada uranium-vanadium deposit in Argentina.  The funds allow the Company to do specific test work that, if successful, is likely to significantly improve the economics of Laguna Salada by lowering operating and capital costs from those determined in the positive preliminary economic assessment ("PEA") undertaken in 2014.  

"I believe that there is a clear path for U3O8 Corp. to become a uranium and vanadium producer from the Laguna Salada Deposit," said Dr. Keith Barron.  "To help U3O8 Corp. achieve that goal, I have pledged to support the Company with a convertible debt facility of up to C$1 million to be paid back in shares in a maximum of three years.  I cannot think of a more concrete way to demonstrate my faith in the Company: I will finance the Company at a zero-interest rate and will only be repaid in shares in the future when the share price is likely to have strengthened on the back of successful proof-of-concept test work."  

"The monies will be used to finance proof-of-concept production tests.  In addition, I have released my Manager of Operations at the Potentate Sapphire Mine in Montana – where we process gravel to recover gemstones - to U3O8 Corp. on a temporary basis. John Rae is a Mining Engineer who will draw on his extensive experience to optimize the screening and washing of gravel at Laguna Salada to ensure that its mineralization is concentrated in the most cost-effective way.  This pilot-scale test work will use standard road-building and alluvial mining equipment sourced from local operators and repurposed in a cost-effective way.  U3O8 Corp.'s Director, David Marsh, who was instrumental in the design and operation of the uranium processing plant at the Langer Heinrich mine in Namibia, is refining plans for our test work program.  Dave is uniquely qualified to oversee and dynamically adapt the test work program as results become available."   

"I am bullish long-term on uranium and vanadium prices.  Cameco's announcement last week, to cut production from some of its biggest, highest-grade operations in Canada, unequivocally makes the point that the current low uranium price is unsustainable.  Cameco's production cut, combined with those from other producers like KazAtomProm, go a long way towards eliminating the current over-supply to the market and should be a key factor in strengthening the uranium commodity price.  However, until there is sustained strength in uranium equities, I will stand behind U3O8 Corp.  We will use the significant funds that may otherwise be spent on additional NI43-101 reports, to complete proof-of-concept test work.  Our CFO will carefully monitor the real costs of our proof-of-concept program and make them transparent to shareholders in our quarterly filings.  My personal goal is to fast-track the Laguna Salada Project to demonstrate that we can supply the current nuclear needs of Argentina, as well as the forecast requirements from the Argentine-designed and built small modular reactor."

For further details on Argentina's electricity generation from large nuclear reactors, as well as its prototype small modular reactor that represents a prime export opportunity, please see the Corporate Presentation accessible on the homepage of our website http://www.u3o8corp.com. 

Technical Information 

Cautionary Note: A PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA assessment will be realized.

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.