With properties in Colombia, Guyana and Argentina, U3O8 Corp. is focused solely in South America – a new frontier for uranium exploration. This junior exploration company has a dramatic growth profile that could see its uranium resources grow 10-fold to 60-75 million pounds by the end of 2011. In addition, it plans to undertake resource estimates of potential co-products including vanadium, phosphate and rare earths.
New Uranium Discoveries needed to fuel escalating nuclear power programs
Sources: World Nuclear Association, Cormark Securities, China Daily, Bloomberg
Above page taken from www.u3o8corp.com
In the face of a forecast shortfall in world uranium supply, new uranium discoveries will be needed to feed the global resurgence in nuclear power as the principal source of clean energy to meet rising energy demand. U3O8 Corp., a Canadian-based exploration company, is moving quickly to define uranium resources and related “green metals” in Colombia, Guyana and Argentina. Since joining U3O8 Corp. three years ago, Richard Spencer, CEO, has solidified the company’s focus in South America, and is aggressively advancing uranium discoveries with the potential to add considerable pounds in the ground in the next 12 months. About the variety of resources, Spencer says, “We have a suite of projects from compliant resources, significant historic resources to near-resource and discovery potential in Guyana, Colombia and Argentina.”
Source www.u3o8corp.com
TSX-V: UWE
Uranium Resource Upside
Source www.u3o8corp.com
Spencer says, “When I came on board, we were focused only in Guyana, where we continue to advance the Kurupung Project, which is emerging into a large mineralized system that could be of comparable size to peer deposits that typically contain 60-130 million pounds of uranium. We then went looking for other opportunities to diversify our portfolio, and recently added strong projects in Colombia and Argentina. We are comfortable in South America.” In fact, the U3O8 Corp’s board and management have extensive experience in making, advancing and financing mineral discoveries in South America.
Spencer continues, “Our view is that South America has the same geological potential as Africa, except that it hasn't been explored for uranium to the extent that Africa has. South America is where Africa was 10-15 years ago, and offers a favourable regulatory climate and great growth opportunities that can be acquired at reasonable value.” Nancy Chan-Palmateer, Vice President of Investor Relations concurs, “South America has good geological potential for uranium discoveries and is ripe for consolidation. We wanted to establish a dominant position in what we see as a new frontier for uranium and “electric metals”. And 2011 is certainly shaping up to be a year in which we should see rapid growth in our resource portfolio. We’re aiming to define 20-25 million pounds of uranium resources in each of Colombia, Guyana and Argentina this year while setting up for similar growth in 2012.”
from www.u3o8corp.com
Drill and trench locations of the southern part of the Berlin Project
Project In Focus
Currently, U3O8 Corp. has projects underway in three different countries. Spencer said, “The Berlin Project in Colombia offers the most near-term upside at this stage. A historic uranium resource of 38 million pounds had been estimated on the southernmost 4.4km of a 10.5km mineralized trend. Since acquiring the project in May 2010, everything we've done on the project has highlighted its potential.” The initial results of the uranium find at Berlin look promising. Spencer continued, “In addition to its uranium grade being potentially economic, the Berlin Project also comes with a mix of other exciting commodities including phosphate – one of the three principal components of agricultural fertilizer. Given that the project is located right on the edge of one of the main agricultural areas in Colombia, there is a potential market for the product right there.”
A cross section through the fold in the Berlin Project below
From www.u3o8corp.com
In addition to the uranium and phosphate, the Berlin Project has vanadium as well as yttrium – a heavy rare earth – rhenium and molybdenum. “Berlin’s multi-commodity profile makes for pretty high-value rock that we believe could constitute a big resource,” says Spencer, “We're excited about the mix of elements – their principal uses are in environmentally-friendly applications which support our focus on playing a role in the transition towards green energy.”
The Berlin Project has room for expansion as well. Chan-Palmateer said, “There is the potential to double the 38 million pound historic resource. Historic data shows that the northern part of the 10.5km mineralized trend is prospective.” Spencer says, “We plan a two-pronged approach. One will be infill drilling to start converting some of that historic resource into a NI 43-101 in 2011. At the same time, we’ll continue exploration drilling in the northern area to demonstrate that mineralization may extend the entire length of the trend and further increase the size potential of the system.”
From www.u3o8corp.com
U3O8 Corp’s aggressive exploration agenda requires funding. Spencer says, “Our exploration budget is about $15 million for 2011. With the recent $20 million financing, we’re funded for the next 12-18 months.”
As with any exploration project, there are also challenges. Spencer commented, “The challenge is ensuring the project is supported by the local communities. I'm delighted to say that the guys on the ground have done an outstanding job of sharing our exploration plans with the local communities, listening to feedback and acting appropriately to address that response by the communities.” Ensuring community support is one of U3O8 Corp's ongoing priorities.
Investors have many reasons to investigate U3O8 Corp. When talking about the position of U3O8 Corp., Spencer said, “There are a lot of uranium juniors out there. I think we can distinguish ourselves by the quality of our projects. I don’t think you’ll find too many juniors with our growth profile. Our target for the end of 2011 is to have at least 60 million pounds in NI 43-101. That’s 20-25 million pounds in Colombia, 20-25 million pounds in Guyana and 20-24 million pounds in Argentina. We believe these are all realistic goals.”
With an aggressive drilling plan, outstanding near-term resource potential and upswing in market demand, U3O8 Corp. is in the position to come to the forefront of South American exploration companies.
For more information:
http://www.u3o8corp.com
Corporate Office
8 King Street East, Suite 710
Toronto, ON M5C 1B5
Canada
Phone: 416-868-1491
Fax: 416-868-1497
Richard Spencer, President & CEO richard@u3o8corp.com
Nancy Chan-Palmateer, Vice President, Investor Relations nancy@u3o8corp.com