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8/3/2019 U3O8 Corp. Presentation_may 27 11
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A Dominant South AmericanFocused Uranium Explorer
www.u3o8corp.comMay 27, 2011
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World Population
Energy use will continue to rise as China & India 1/3 of worlds population becomesmore developed Increasing demand for green energy to reduce carbon footprint.Where will that energy come from?
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Huge Need for EnergyThe East will drive rising energy use
World Energy Use by Country
USA
JapanFrance
S. Korea
China
400
300
200
100
India
Other Asia
China
India
Africa
Europe
Rest of
WorldSouth
America
NorthAmerica
InMillionsofBTU
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Wind = Kauai 550 Km2
Biomass = Rhode Island 4,002 Km2
Ethanol = New Jersey 22,608 Km2
Solar = Washington D.C. 177 Km2
Nuclear =
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Advancing Nuclear TechnologyThe East seeking uranium to feed
aggressive nuclear power buildup
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Escalating nuclear programs
Reactors build is being led by Asia:
439 operating, 62 under construction
484 planned or proposed Over 50% of planned/proposed in China, India & Russia
Chinas aggressive build:
11GWe 40Gwe by 2015 70GWe by 2020 27 under construction of 34 approved
Need ~50mlbs to start them up (35% of 2010 production)
Fuel for life: AREVA & Rosatom selling nuclear plants with life-time
fuel supplies Intensifying competition for uraniumsupply
Mini-reactors: Reduces infrastructure footprint
Compact (5x8ft), sealed units like mega-battery One powers about 20,000 homes (25MW electricity)
Secured underground, refueled every 8-10yrs
Costs US$35m, 2-3yr build
vs. conventional reactors at >US$3b, 5-7yr build
First install planned for 2016
Sources: World Nuclear Association, China Daily, Canaccord Genuity, Hyperion Power Generation; RBCCapital Markets, Asia Times
Small-Scale, Modular Nuclear Reactors will accelerate growth in nuclear power generation
Conventional NuclearReactors
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Strong Uranium Market OutlookSecurity of Supply
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Demand/supply gap ~180mlb uranium supply required for current reactor
fleet worldwide
75% from mined uranium; 25% from secondary supply
2013 US-Russia weapons to fuel (HEU) programexpires; secondary supply shortfall? (14% of total)
Growing competition for supply Asia aggressively seeking uranium supply
China long-term deals Cameco, AREVANew Japanese consortium
Russia trade deals with Australia, Namibia, Kazakhstan
Risk to mine supply Production shortfalls in 2010 at 2nd & 3rd largest mines
Sovereign risks:
Northern Territory in Australia withdraws supportfor Cameco/Paladin project
Coup in Niger
Technical risks Cigar Lake, Olympic Dam
Sources: World Nuclear Association, Cormark Securities,Dundee Securities, Merrill Lynch, Canaccord Genuity
New uranium discoveries becomingincreasingly important to fillprojected supply deficit
400
200
0
U3O8mlbs
Forecast Uranium Supply DeficitEmerging in 2014
Projected demand-lower case
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South AmericaNext Frontier for Uranium
Why South America?Potential:
Same prospectivity (geological) as Africa
Like Africa 10 yrs ago primed for uraniumexploration & development
Political: Favourable regulatory jurisdictions
Corporate:
Projects can be acquired at reasonable value
Fragmented market primed for consolidation
2009 World Uranium Production:South America??
Niger
Namibia
U3O8 Corp.projects
Africa produces 17% of worlds uranium,#4 and #6 in top producing countriesMajor deposits include Rossing, LangerHeinrich, Trekkopje
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Africa17%
Kazakhstan27%
Canada20%
Other14%
Australia16%
Russia
7%
Namibia10%
Niger 6%
Malawi &South Africa
1%
World Nuclear Association
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A Dominant South AmericanFocused Uranium Explorer
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GUYANA
NI 43-101resource
Advanced projects with potential to addsignificant NI 43-101 resources in near-term
Exploration upside
Favourable regulatory jurisdictions
Discovery-oriented, South American
experienced team
ARGENTINA
NI 43-101 resource
COLOMBIA
Multi-commodity
historic resourceA leading explorer focused on uranium& related metals in South America the next frontier
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Discovery-Orientated &
South American Experienced Team
9
Technical Experts
Dr. Alberto Belluco, Chief Geoscientist 55+ years S. American uranium experience incl. Argentinas Nuclear Atomic EnergyCommission & International Atomic Energy Commission
Michael Baker, Consulting Geologist image interpretation & structural specialist with 30+ years experience in 30 countries
John Goode, Consulting Metallurgist extensive uranium experience including work at Aurora Energy, Avalon, Denison
Phobe Hauff, Spectral International Inc. pre-eminent expert in spectral identification of alteration minerals
Dr. Boen Tan, Unconformity-Related Uranium Specialist 30+ years uranium experience; instrumental in discovery & developmentof Key Lake deposit in the Athabasca Basin
Stewart Taylor, B.Sc. Hons Geol. President, Mega Uranium
Pablo Marcet, M.Sc., B.Sc. President & CEO, Waymar Resources
Board of Directors
Dr. Keith Barron,B.Sc., Ph.D Founder, co-founded Aurelian Resources
Bryan Coates, CA CFO, Osisko Mining
David Constable, B.Sc., MBA, P.Geo retired VP, Quadra FNXSheldon Inwentash, CA Chair & CEO, Mega Uranium
Richard Patricio, LLB EVP, Mega Uranium
Management Team
Dr. Richard Spencer, B.Sc. Hons, Ph.D, P. Geo President & CEO
John Ross, CA CFO
Dr. Hugo Bastias VP (Argentina/Colombia)
Philip Williams, CFA VP Business Development
Nancy Chan-Palmateer VP Investor Relations
Global uranium exploration, resourcedevelopment, technical & financialmarkets expertise
Extensive South Americanknowledge & experience
Proven record of discoveries &development of large scale mines inSouth America
16moz gold discoveries in Ecuador& Argentina
2Blbs copper in EcuadorDevelopment of mines in Peru &
Guyana
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Capital Structure
U3O8 Corp. Shareholder Base
40% Others
14%Insiders
38%Institutions
8%LargeRetailHolders
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Share CapitalMarket cap(May 16, 2011 at $0.49)
$50m
Cash(Q1 2011)
$20m
Basic shares o/s 103m
Options o/s 6m
Warrants o/s* 27m
Fully diluted 136m* Right to accelerate expiry of 11.9m warrants at exercise price of $0.45 per
share if share price exceeds $0.70 for 20 consecutive trading days
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Historic Resource
Colombia: Berlin ProjectPotential for Large Multi-Commodity Resource
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38mlb at 0.13% U3O8 historic resource estimated
on only southern 4.4km of 10.5km trend Historic trench data shows entire 10.5km trend
is prospective
Project located between Colombias largestcities (Bogota & Medellin)
395 MW hydroelectric plant 12km away
60km from main highway
Port on Magdalena River 60km away
Railway line from port being refurbished
CaribbeanSea
Pacific
Historic resourceestimated on onlysouthern 4.4km of10.5km long trend
Drilling started insouth in Sept 2010,
now extendingnorthwards
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Results To Date:
Drilling confirms uranium below surface over 2.5kmand still drilling 10,000m drill program underway
Trenching shows mineralization continues northwardbeyond historic resource area
CROSS SECTION P1Mineralized
Unit
AverageWidth of
Mineralization
(metres)
Assay Values
U3O8
(%)
V2O5
(%)
PO4
(%)
Mo
(ppm)
Y2O3
(ppm)
Re
(ppm)
Ag
(ppm)
3.0 0.11 0.55 9.57 532 547 6.0 3.9
Average grades intersected in first 20 bore holes reported
Trench & Drill Program - Southern 4.4km Area
Historic Resource
Colombia: Berlin ProjectPotential for Large Multi-Commodity Resource
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350kg/tSulphuric Acid
92% Uraniumrecovery
~50% Vanadiumrecovery+
PhosphoricAcid+
Historic ResourceColombia: Berlin Project
Fundamental breakthrough?Rethinking historic metallurgical test results
Facts:
Most metals of potential economic interest in Berlin are in phosphate minerals (eg. apatite)
Proven process fertilizer companies routinely dissolve phosphate in sulphuric acid to makePhosphoric Acid for fertilizer
Same process expected to generate phosphoric acid + dissolved metals in Berlin Project
U3O8 Corp. metallurgical testing aims to:
1. Separate heavier phosphate minerals from lighter carbonate & quartz
Dense medium separation
Floatation (used by Arafura Resources on its Nolans Bore deposit)
2. Then dissolve smaller quantity of phosphate minerals in sulphuric acid lower acid consumption
Produces phosphoric acid that contains dissolved metals
Strip dissolved metals from the phosphoric acid
Historic met tests at Berlin: show that this process works
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Goals:
Convert historic resource into NI 43-101(southern area)
Define overall size of the Berlin project throughexploration drilling
2011 Plans:
10,000m drill program underway in southern area Continue exploration drilling into northern area
to show potential upside to historic resource
Prelim metallurgical results
Infill drilling for initial NI 43-101 of 20-25mlb
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Uranium Phosphate
Yttrium Vanadium
Vanadium & Molybdenum Uranium for nuclear power Phosphate for fertilizer Vanadium for industrial batteries Yttrium heavy rare earth - lasers Molybdenum, rhenium for steel
Historic Resource
Colombia: Berlin ProjectPotential for Large Multi-Commodity Resource
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NI 43-101 ResourceArgentina: Laguna Salada Project
Potentially Amenable to Low-Cost Mining
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Free-digging, near-surfaceuranium-vanadium
Uranium-vanadium within 3m from surface in soft gravel
Similar to Namibian & Australian deposits in semi-deserts
Results to Date:
Initial NI 43-101 uranium & vanadium resource
Simple & inexpensive sieving increases grades by 4-12x leading to head gradeof 550-580ppm for uranium
Acid leach tests yielded good recoveries
2011 Plans:
Grow resource by exploring extensions of Laguna Salada as wellother similar targets to increase to 20-24mlb in region
Metallurgical testing ongoing
NI 43-101Resource Class
Grade U3O8(ppm)
Grade V2O5(ppm)
U3O8(mlb)
V2O5(mlb)
Indicated 60 550 6.3 57.1
Inferred 85 590 3.8 26.9
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NI 43-101 Resource
Argentina: Laguna Salada ProjectCharacteristics of Caliche-Type
Uranium-Vanadium Systems
16
Low-Cost Exploration & Mining
Favourable topographySkim off top of mesas = negligible strip ratio
Unconsolidated gravel No blasting, no crushing
Cheap & efficient to explore
Beneficiation very effective & cheap
Grades increase by simple screening:12x in Guanaco (88% of contained U & 39% of contained V goes to fines): ~90% of resource4x in Laga Saco (96% of contained U & 61% of conained V goes to fines): ~10% of resourceFor uranium, would lead to head grade of 550-580ppm from free-digging, at surface mineralization
Typical of head grades of similar peer deposits elsewhere in the world such as Langer Heinrich, Namibia
Recovery acid leach effective for U & V
Extract vanadium as a saleable product important environmental factor
SampleArea
Screen Test % Metal RecoverySulphuric
AcidPer Tonne
U-VConcentrated in
% MaterialUranium Vanadium
Guanaco 8% 74% 86% 17kg
Lago Seco 26% 96% 71% 53kg
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LagunaSalada
Alberto
Picaso
Argentina: Next TargetSurficial Uranium Potential
17
Exploration of surficial uranium targets nowfocusing on Santa Cruz Province
Similar resource potential as Laguna Salada
Free-digging, near-surface mineralization
Initial exploration through excavation of
pit/trenches
Navidad Project(Pan American Silver)
Cerro Solo
State-owned uranium deposit
U3O8 Corps project near NI43-101 resource
U3O8 Corps next targets
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NI 43-101 ResourceGuyana: Kurupung Project
Similar to Deposits in Production or AwaitingPermitting in Other Parts of the World
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Geologically similar toalbitite-hosted depositsworldwide, which typicallycontain 60-130mlb of uraniumwithin multiple structures.
Kurupung Project hassimilar size potential
Michelin
Coles Hill
KurupungProject
Lagoa Real
Ukrainedeposits
Albitite-Hosted Uranium Deposits Occur Worldwide
Deposit Country Resource Grade Depth(m)
Status
U3O8 mlbs % U3O8
Kurupung Guyana 30-35* 0.09 200 Resource expansion
Lagoa Real Brazil 220 0.25 300 In production
Severinskoye Ukraine 130 0.10 700 Awaiting permitting
Michelin Canada 97 0.10 850 Awaiting permitting
Valhalla-Skal Australia 80 0.09 650 Awaiting permitting
Coles Hill U.S. 77 0.10 450 Awaiting permitting
Michurinskoye Ukraine 70 0.10 700 In production
Vatutinskoye Ukraine 66 0.10 500 In production
In production
Awaiting permit
Kurupung Project
*Conceptual targetincluding 7mlb NI 43-101resource
Valhalla
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NI 43-101 Resource
Guyana: Kurupung ProjectAricheng South compared with Michelin Deposit
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Michelin Deposit
1200m
U3O8 Corps Aricheng South
(shown at same scale & color scheme)
43-101 Resource: 3.7 million lbsU3O8 (Indicated)
0.8 million lbs U3O8 (Inferred)
Average grade: 0.09% (1.8 lbs/st) U3O8
Strike: 320 metres
Depth: 230 metres
Dip: ~ 60Aricheng South similarities with Michelin Deposit
Basement-hosted
Mineralization hosted in fault & shear-zonestructures with brecciation
Diagnostic alteration is albite classified as albitite-hosted uranium mineralization
U3O8 grade & distribution in clearly defined shoots
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NI43-101 Resource
Guyana: Kurupung ProjectClear Path Towards 50 Million Pounds U3O8
20
Goal: Show Kurupung could host 50mlbResults To Date:
Estimated 30-35mlb* conceptual resourceso far, all structures still open
Could grow resource by drilling deeper
Most uranium lies within demagnetized
faults (blue-green areas)
2011 Plans:
Scout drilling along trend to growconceptual resource to 40-50mlb
Infill drilling underway to increase currentNI 43-101 7mlb to 20-25mlb
Kurupung Emerging into Potentially Large Uranium District
Clusters of uranium-bearing structures outlinesignificant size potential of the Kurupung system
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ACCORI AREA
ARICHENG NORTHCOMPLEX
ARICHENG WEST
COMPLEX
*Includes 7mlb NI 43-101 resource
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Book-Ends for
Kurupung EconomicsMichelin vs. Coles Pre-Economic Assessment
PEER DEPOSITS MICHELIN COLES HILL
Total Contained U3O8 97mlb 77mlb
Depth 850m 450m
Average grade U3O8 0.09% 0.1%
Annual production 5.7mlb 2.0mlb
Life of mine 17 years 35 years
IRR 19.4% 36.3%
NPV $914m $404m
Discount rate 8% 7%
Pay-back period 4.7 years 2.5 years
Direct cash costs $28.57/lb$36.83/lb
($30/lb first 10yrs)
Initial capex$984m
(incl. $132m contigency)$203m
(incl. 25% contigency)
Recovery 87.5% 83%
L/T uranium price $75/lb $65/lb
Mining methodOpen pit to 175m
Underground to 850mOpen pit & Underground
Coles Hill project in Virginia
Michelin project in Labrador
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Growth ProfileNear-term potential for
significant pounds in the ground
A dominant South American Uranium Discovery Companywith growing resource portfolio aimed at:
2011 2012
ARGENTINALaguna Salada
NI 43-101 10mlbin Q1Explore next target
Grow NI 43-101 to20-24mlb
Potential budget: $2.0-$2.5m
GUYANAKurupungProject
Current NI 43-101 7mlbGrow size potential30-35mlb conceptual
Grow NI 43-101 to 20-25mlbShow 40-50mlb potential
Potential budget: $5m-6m
COLOMBIABerlin Project
Historic 38mlb
Prelim met resultsInfill drilling for NI 43-101
Initial NI 43-101 of20-25mlbShow growing size potential
Potential budget: $6m-7m
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Set up forsimilar growthprofile in 2012
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Richard Spencer, President & CEO
Nancy Chan-Palmateer, VP IR
(416) 868-1491
www.u3o8corp.com
23TSX-V: UWE