toward production of clean energy commodities: uranium ...€¦ · economic assessment of laguna...
TRANSCRIPT
www.u3o8corp.com
April, 2018
Uranium
Nuclear Energy Power Storage Rare Earths
Toward production of clean energy
commodities:
uranium & battery metals
A Green Resources Company
Vanadium, Nickel
& Phosphate
Yttrium &
NeodymiumTSX: UWE | OTCQB: UWEFF
2
QP for Technical Disclosure – All scientific and technical disclosure contained herein has been prepared and approved by Dr.Richard Spencer, U3O8 Corp’s President and CEO and a “qualified person” within the meaning of NI 43-101.
Certain statements contained herein constitute forward-looking statements (“FLS”) that involve substantial known and unknown risks and uncertainties. These FLS
are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic
conditions, industry conditions, geopolitical risks, volatility of commodity prices, assumptions used in resource estimates, economic analysis and financial
projections, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, timing
and outcome of the preliminary economic assessment (“PEA”) and that a mine will be achieved on the Laguna Salada Project or the Berlin Deposit, that a joint
venture will be formed with the Chubut provincial resource company, that the frac sand property will be developed as anticipated and silica potential is realized,
currency fluctuations, the uncertainty of obtaining additional financing and exploration risk, and dependence upon regulatory approvals. 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 FLS. These FLS are made as of the date hereof and U3O8 Corp. assumes no obligation to update or revise them to reflect
new events or circumstances. Industry and peer information has been drawn from publicly available sources and have not been independently verified by U3O8
Corp. Comparisons of U3O8 Corp’s resource and exploration targets with other uranium deposits are conceptual in nature, and have not been independently
verified by U3O8 Corp. and information regarding these peer deposits are drawn from publicly available information.
Kurupung Project, Guyana – resource of 8.4Mlb indicated at 0.09% U3O8 and 7.7Mlb inferred at 0.08% U3O8. See June 26, 2012 – “Technical Review and MineralResource Estimates of the Aricheng C and Aricheng West Structures, Kurupung Uranium Project, Mazaruni District, Guyana for U3O8 Corp.” and January 14, 2009– “A Technical Review of the Aricheng North and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and Prometheus Resources (Guyana) Inc.”Scout drilling suggests that the Kurupung may contain an additional exploration target of 6-11Mt at a grade of 0.08% to 0.10% U3O8 (~14-19Mlb) – see pressreleases dated June 10, 2008, October 15, 2009, November 18, 2009, March 16, 2010, April 20, 2011 and June 8, 2011.
Laguna Salada Project, Argentina – resources of 6.3Mlb indicated at 60ppm U3O8 and 3.8Mlb inferred at 85ppm U3O8; and 57Mlb indicated at 550ppm V2O5 and27Mlb at 590ppm V2O5. See May 20, 2011 – “Laguna Salada Project, Chubut Province, Argentina, NI 43-101 Technical Report on Laguna Salada: Initial ResourceEstimate”. Based on exploration results on other mineralized areas, there is an additional exploration target of 56-113Mt at a grade of 50ppm to 60ppm U3O8 (~10-15Mlb) – see press releases dated December, 4, 2013 and November 12, 2013. For the Laguna Salada PEA, see the September 18, 2014 – “PreliminaryEconomic Assessment of Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina”.
Berlin Project, Colombia – resources of 1.5Mlb indicated at 0.11% U3O8 and 19.9Mlb inferred at 0.11% U3O8 ; plus a phosphate inferred resource of 0.8Mt at 9.3%P2O5 and vanadium inferred resource of 97mlb at 0.50% V2O5 defined on only the southern 3km of the 10.5km mineralized trend at Berlin. See March 2, 2012 –“Berlin Project, Colombia – National Instrument NI 43-101 Report”. Based on exploration on other mineralized areas, there is an additional exploration target of 20-27Mt at a grade of 0.09% to 0.11% U3O8 (~50-55Mlb) on the remaining 7.5km of the trend – see press release dated September 20, 2012. For the Berlin PEA seethe January 31, 2013 – “Berlin Project, Colombia - Preliminary Economic Assessment, NI 43-101 Report”.
PEAs are preliminary in nature as they include inferred mineral resources that are considered too speculative geologically for economic consideration that wouldenable them to be classified as mineral reserves. Mineral resources are not mineral reserves and have not demonstrated economic viability. There is no certaintythat the results of the PEAs will be realized. Potential quantity and grades are conceptual in nature. There has been insufficient exploration to define a mineralresource on the above exploration targets, and it is uncertain if further exploration will increase the mineral resources on the company’s projects in Guyana,Argentina and Colombia. Information on U3O8 Corp., its projects and technical reports in compliance with NI 43-101 are available on the company’s web site atwww.u3o8corp.com.
Forward-Looking Statements & DisclaimerA Green Resources Company
TSX: UWE | OTCQB: UWEFF
3
U3O8 Corp:
Commodities for clean energy
A Green Resources Company
1. UraniumTo fuel large nuclear
power plants
2. Battery
Commodities
3. Rare
Earths High-efficiency
generators &
motors
TSX: UWE | OTCQB: UWEFF
To fuel small modular
reactors (SMRs)
Nickel,
Vanadium,
Phosphate,
Zinc
U3O8 Corp. Core Components& Estimate of % Revenue that would be derived from each
4
Note - PEA estimates are preliminary in nature, as is the revenue projected to be derived from each commodity. The PEAs
include resources that are not reserves that do not have demonstrated economic viability. There is no certainty of the results
of the PEA being realized - see slide 2
A Green Resources Company
U3O8 Corp
Project UraniumBattery
Commodities
Rare Earth
Elements
Other
MetalsTotal
Laguna Salada,
Argentina86% Vanadium 14% 100%
Berlin,
Colombia35%
Vanadium 9%
7% 1% 100%
Nickel 15%
Phosphate 31%
Zinc 2%
Sub-total 57%
U3O8 Corp has a 39% holding in South American Silica
TSX: UWE | OTCQB: UWEFF
U3O8 Corp. Uranium Resource: 48 million pounds
5
A Green Resources Company
Note – Projected cash costs are based on PEAs that are preliminary in nature as they include resource
estimates that are not mineral reserves and do not have demonstrated economic viability – see slide 2
GuyanaColombia
Argentina
Estimated Cash
Cost of Uranium
Production
Estimated
Capital
Cost
Priority
BERLIN, Colombia
Resource TypeMillion
pounds
Indicated 1.5 US$0/pound of
uranium net of by-
products
US$441
million2
Inferred 19.9
LAGUNA SALADA, Argentina
Indicated 6.3 US$22/pound of
uranium, net of by-
product vanadium
US$136
million1
Inferred 3.8
KURUPUNG, Guyana
Indicated 8.3 Rough estimate:
US$45/pound
Not yet
estimated3
Inferred 7.9
TSX: UWE | OTCQB: UWEFF
Nuclear in ArgentinaWill generate 9% of electricity when
Embalse reactor is back on stream
6
A Green Resources Company
Reactor Atucha I Embalse Atucha II Atucha III “No 5”
Date of Commercial
Operation1974 1984 2015
Construction
starts 2018
Construction
starts 2020
Capacity (MWe net) 335 600635 692 800 1,150
Type Siemens Candu-6 Siemens Candu-6 Hualong One
Life extensions10-years to
2027
30-years to 2048
6% output increase
Construction contract signed
May, 2017
Large Nuclear Power Plants: 2 operating reactors, one being refurbished
Small Reactors:
5 Research reactors operating in Argentina
5 Research reactors built by Argentine reactor construction company INVAP elsewhere
in the world
CAREM Small Modular Reactor:
• 25MW prototype under construction, 100MW & 200MW units designed
TSX: UWE | OTCQB: UWEFF
Nuclear Energy in Argentina:
77
A Green Resources Company
Source of data: CNEA, IAEA
TSX: UWE | OTCQB: UWEFF
0
5,000
10,000
15,000
20,000
25,000
30,000
19
90
19
91
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19
94
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95
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00
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Ele
ctr
icit
y P
rod
uc
tio
n (
GW
h)
Electricity Generation from Nuclear in Argentina: actual & planned
Reactor 4
Reactor 5
Refurbished Embalse reactor
ramps up to full production
Nuclear in Argentina – the opportunity
8
A Green Resources Company
Reactor Design Reactor
ConstructionEnrichment &
Fuel-Rod
Manufacture
Spent Fuel
Storage
CNEA/INVAP INVAP
Uranium
Production
DIOXITEC &
CONUARNA-SA1
CNEA2
INVAP to build medical isotope facility in
USA for Coqui Pharma
Spent fuel in dry storage in
concrete casks - CNEA
Nuclear fuel rod
cluster
1 Short-term storage at nuclear power
plants operated by NA-SA;
2 Long-term storage in dry casks by CNEA.
Nuclear energy industry overseen by ARN (Nuclear Regulatory Authority)
Australia’s only nuclear
reactor – the OPAL research
facility
Laguna Salada
Deposit –
U3O8 Corp.
Cerro Solo
Deposit – State
through CNEA
TSX: UWE | OTCQB: UWEFF
Ivana Deposit –
Blue Sky
Uranium Corp.
Laguna SaladaSimple mining - real-time environmental restoration
9
Migrating Trench Advances
Mined area
restored to
original landscape
Excavation up to
3m/10’ deep
A Green Resources Company
Gravel – averages 8m thick
Gravel that’s been mined,
washed & replaced
Removing the Gravel Cover
Mining Uranium-Vanadium – bearing gravel
Gravel – averages 8m thick
Impermeable shale
TSX: UWE | OTCQB: UWEFF
10
Gravel is sievedWashed
Only fine
material
sent for
processing
No blasting, no crushing
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Laguna SaladaOperational Simplicity
11
Only 9% of the gravel
is processed for
uranium & vanadium
extraction.
Extraction of Uranium &
Vanadium is with household
products -
Baking powder & baking soda
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Laguna SaladaSimple Processing
Laguna Salada Project:Resource growth potential
U3O8’s Concession
Block Outlined in
Green
10MlbCurrent NI
43-101
uranium
resource
>25Mlb potential in
gravel plain
(grey area)
➢ 10Mlb NI 43-101 Uranium
Resource
➢ 20-25Mlb potential in in La
Susana, La Rosada discoveries
➢ >25Mlb - potential in rest of
land package
> 55Mlb potential20km
12
A Green Resources Company
Location of
exploration
results reported
in Jan, 201720-25Mlb potential in La
Susana, La
Rosada(1)
discoveries &
anomalous
radon area
TSX: UWE | OTCQB: UWEFF
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
05001,0001,5002,0002,5003,0003,5004,000
Ca
sh
co
st o
f pro
du
ctio
n o
f Ura
niu
m(U
S$
pe
r po
un
d)
Uranium Grade (ppm U3O8)
Estimated Cash-Cost of Production with Grade of Fine Component of Gravel
Average life of mine cash cost of production US$21.62/lb of U3O8
Laguna Salada Project:Higher Grades lead to lower Production Cost Estimates
13
A Green Resources Company
Year 1
Year 10
Objective of current exploration - to find
additional higher-grade uranium-vanadium
TSX: UWE | OTCQB: UWEFF
$0
$20
$40
$60
$80
$100
$120
$140
$160
Ura
niu
m P
ric
e (
US
$/l
b)
Uranium Price Chart
Spot Price
Long Term Price
Argentine ImportationPrice
Uranium Commodity Price
1414
A Green Resources Company
Source: of data Ux Consulting Company LLC, Cantor Fitzgerald
TSX: UWE | OTCQB: UWEFF
Fukushima
Uranium Market Summary
15Source: TradeTech
15
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Producers making deep
production cuts – led by
Cameco and Kazatomprom.
Total U3O8 supply in 2017 was
~200Mlbs so:
• 2018: supply cut to ~
169Mlbs (15.5% from 2017)
• 2019: further cut to ~
167Mlbs (1%);
• 2020: further cut to ~
165Mlbs (1%)-6
Mlb
s -12M
lbs
-31M
lbs
-33M
lbs
-35M
lbs
Uranium Market Summary
16
Source: Cantor Fitzgerald
Global Uranium Demand Scenarios vs. Global Total Supply
Supply cuts put market into deficit in 2018
Primary Supply
Proposed Laguna Salada production
Mlb
s/y
ea
r U
3O
8
16
A Green Resources Company
Secondary Supply
TSX: UWE | OTCQB: UWEFF
Laguna Salada DepositTimeline & budget to mine decision
17
BUDGET TOWARDS
POTENTIAL PRODUCTION(US$)
Resource expansion &
upgrade to Measured &
Indicated
$3.0M
Metallurgy & pilot plant $1.5M
Social, environmental &
permitting$1.0M
Feasibility study (FS) $1.5M
Budget to Construction
Decision$7.0M
CAPEX (in 2014 US$)
CAPEX after forex
adjustment (in 2015 US$)
$136M
/
$117M
Next Steps:
1. Trial mining & pilot plant test work to produce yellowcake as proof of concept;
2. Reduce production cost estimates by finding additional higher grade gravel and
optimizing metallurgy.
Recommended work program, timing & budget based on PEA that is preliminary in nature.
Includes resources that are not reserves & do not have demonstrated economic viability.
No certainty of the PEA being realized – see slide 2
Conceptual Timeline Year 1 Year 2 Year 3
Resource expansion & upgrade
Environmental (EIA)
Metallurgy & pilot plant
Mining & Environ. permit
Permit to produce yellowcake
Feasibility study (FS)
Construction
A Green Resources Company
• Projected 2 years to construction decision
• Projected additional 1 year for construction
TSX: UWE | OTCQB: UWEFF
Battery Commodities
18
A Green Resources Company
Note – Projected cash costs are based on PEAs that are preliminary in nature as
they include resource estimates that are not mineral reserves and do not have
demonstrated economic viability – see slide 2
Colombia
Argentina
BERLIN, Colombia
NI 43-101
Resource
category
Vanadium Nickel Phosphate Zinc
Million
pounds
Million
pounds
Million
Tonnes
Million
Pounds
Indicated 6 3.1 0.05 4.4
Inferred 91 42.1 0.8 45
LAGUNA SALADA,
Argentina
NI 43-101
Resource
Vanadium
(Mlb)
Indicated 57
Inferred 27
TSX: UWE | OTCQB: UWEFF
19
Lithium Ion Battery Commodities
A Green Resources CompanyK
g o
f m
eta
l p
er
kW
h o
f en
erg
y s
tora
ge c
ap
acit
y
Source of data: batteryuniversity.com
0.00
1.00
2.00
3.00
4.00
5.00
6.00
NCA
0.00
1.00
2.00
3.00
4.00
5.00
6.00
LFP LMO
Metal content per kWh in various Lithium-Ion batteries (kg/kWh)
Li-ion Battery Type Chemistry Abrev.
Lithium Iron
PhosphateLiFePO4 LFP
Lithium Vanadium
PhosphateLi3V2(PO4)3 LVP
Lithium Manganese
OxideLiMn2O4 LMO
Lithium Cobalt
OxideLiCoO2 LCO
Lithium Nickel
Cobalt Aluminium
Oxide
LiNiCoAlO2 NCA
Lithium Nickel
Managanese Cobalt
Oxide
LiNiMnCoO2 NMC
LVP
Cobalt Lithium
LCO
NMC
TSX: UWE | OTCQB: UWEFF
0
100
200
300
400
500
600
Lead Acid NiCad Nickel MetalHydride
LithiumTitanite
Lithium IronPhosphate
LithiumManganese
Oxide
NMC LithiumCobaltOxide
NCA LithiumVanadiumPhosphate
Sp
ec
ific
En
erg
y (
Wh
/kg
)
20
Lithium Ion Battery Commodities
A Green Resources Company
Source of data: batteryuniversity.com
Comparison of Specific Energy or Capacity of Battery Types
Lithium-Ion Batteries
Nissan Leaf,
GM,
Chevy Volt,
BMW i3
BYD e-
buses
Tesla,
Panasonic
Subaru G4e,
BYD
Car
battery
TSX: UWE | OTCQB: UWEFF
0
25
50
75
100
125
150
2013 2014 2015 2016 2017 2018 2019 2020 2021
Gig
aw
att
Ho
urs
(G
Wh
)
21
Lithium Ion Battery Commodities
A Green Resources Company
From Dundee Capital Markets (June 13, 2016) from data from
Benchmark Mineral Intelligence & Avicienne, Albrecht, 2016
Demand Estimate vs Supply Ramp-up from Megafactories
Current Supply
LG Chem
Foxcom
Tesla-Panasonic
BYD
Boston Power
TSX: UWE | OTCQB: UWEFF
22
Battery CommoditiesVanadium Redox Flow Batteries (“VRB”)
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Flow Batteries
Lithium
Ion Lead Acid
1 hr 5 hrs 10 hrs
10MW
10kW
1MW
Rate
dO
utp
ut
Battery Duration
5+
4+3+
2+
Vanadium
occurs
naturally in 4
different
charge states
+ve -ve
V5+
V4+
V3+
+ve
electrode
-ve
electrode
V2+
cu
rren
t
Membrane
23
Battery CommoditiesVanadium Redox Batteries – Industrial e-Storage
A Green Resources Company
600kW & 2.2MWh
DC AC
UniEnergy System
Cost Guidance
• US$500/kWh (UniEnergy Technologies)
= US$0.10/kWh over 15,000 cycles;
• US$300/kWh with recycled Vanadium
(Imery)
= US$0.07/kWh over 15,000 cycles
• Footprint: 20MW/acre or 50MW/hectare
• UET system cost estimate: US$0.05c/kWh
TSX: UWE | OTCQB: UWEFF
VRB
=Typical large
reactor (1,000MW)
Only 5 of these
VRBs would be
needed to store
the entire
electricity output of
a typical large
reactor
Largest battery in world is a VRB:
• 200MW / 800MWh;
• Sufficient to power 100,000 typical western
homes for 8 hours;
VRB selected for:
• Reliability – no significant loss of capacity
over battery life;
• >20 year life;
• Electrolyte is fully recyclable at end of the
battery’s life.
VRB
VRB
VRB
VRB
24
Battery CommoditiesVanadium
A Green Resources Company
Vanadium Pentoxide (V2O5) Price
Source of data: www.assetmacro.com, Camelot
Ferroalloys Inc., VanitecTSX: UWE | OTCQB: UWEFF
Pri
ce (
US
$/l
b)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Vanadium required for Li-IonBatteries
Vanadium required for RedoxFlow Batteries
Steel, Chemicals
Supply
Vanadium Pentoxide (V2O5)
Supply/Demand
Van
ad
ium
(to
nn
es)
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
1-J
an-1
0
1-J
ul-1
0
1-J
an-1
1
1-J
ul-1
1
1-J
an-1
2
1-J
ul-1
2
1-J
an-1
3
1-J
ul-1
3
1-J
an-1
4
1-J
ul-1
4
1-J
an-1
5
1-J
ul-1
5
1-J
an-1
6
1-J
ul-1
6
1-J
an-1
7
1-J
ul-1
7
1-J
an-1
8
25
Battery CommoditiesZinc-Air Batteries
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
0
100
200
300
400
500
600
Sp
ecif
ic E
nerg
y (
Wh
/kg
)
Specific Energy: Li-Ion vs Zinc-Air
Zinc + Air → Zinc Oxide & Energy (1.6 volts)
Reverse to refuel: Zinc Oxide + Energy → Zinc + Air
• Simple
• Inexpensive
• Safe
• Refillable, but not
rechargeable
• Breakthrough (Aug
2017) on recharging
using iron-nickel-
cobalt catalyst
Strategically Located in Uruguay, Brazil, Argentina
San Jorge
Shale
In
Shale
Nascent Need for Local Frac Sand
Supply
• Oil & gas production from the Vaca
Muerta is just starting
• Foreign oil majors investing >$9B so far
to develop the giant Vaca Muerta shale
in Argentina
• Frac sand / proppant market expected to
be 800,000 tonnes per year in 2017.
Current local production only 6,000t per
year
• Almost all of Argentina’s frac sand
imported from Brazil, China & USA
Our properties near key shale basins
& infrastructure (road, rail & ports)
Rail
Brazil Properties
Uruguay Properties
Argentine
Properties
Vaca Muerta
San Antonio
Port
Comodoro
Port
Rio
Grande
Port
26TSX: UWE | OTCQB: UWEFF
Favoured
route to the
Vaca Muerta
Director Experience & Key Areas of Expertise Role on the Board
Dr. Keith
Barron
• Founded Aurelian Resources & discovered the 13 million ounce (“Moz”) Fruta del Norte
(FDN) gold deposit in Ecuador. FDN was sold to Kinross Gold for $1.3B
• Recipient of PDAC’s Thayer Lindsley International Discovery Award – 2008
• Northern Miner’s Mining Man of the Year – 2008
• Founder of U3O8 Corp.
• Minefinder
• Entrepenuer
• Major shareholder
Mr. David
Constable
• Was VP- Investor Relations (IR) with Australia’s Normandy Mining until it was acquired by
Newmont;
• VP-IR at FNX during the discovery in Sudbury that took the company from junior explorer
to a producer with a multi-billion dollar market cap;
• Served on the board of Aquiline Resources until it was sold to Pan American Silver;
• Holds a ICD.D designation from Institute of Canadian Directors
• Chairman
• Corporate governance
Mr. David
Franklin
• Co-founder & MD of WoodsWater Capital LP, a resource-focused private equity firm
• Formerly CEO of Sprott Private Wealth;
• Was market strategist at Sprott where he co-wrote the widely-followed monthly note
“Markets at a Glance” with Eric Sprott
• Investment banking
• Corporate strategy
Mr. Pablo
Marcet
• Member of Board of Directors of Barrick Gold;
• Participated in start-up of the giant Escondida copper mine in Chile;
• As president of Northern Orion, oversaw project development of the Agua Rica gold-copper
deposit & its subsequent sale to Yamana Gold for $1.6B;
• Was president of Waymar Resources, which merged with Orosur Mining that operates a
gold mine in Uruguay
• Entrepeneur
• Mine developer
• LatAm perspective – has
first-hand knowledge - lives
in Argentina
Mr. David
Marsh
• Extensively experienced metallurgist – was instrumental in installation of Paladin Energy’s
alkaline leach uranium plant at Langer Heinrich and acid leach uranium plant at Kayelekera;
• Expertise in metal extraction from multi-commodity deposits
• Technical expertise
• Corporate strategy
Dr. Richard
SpencerSee “Management” slide
• Minefinder
• Deep LatAm experience
U3O8 Corp. Board
27
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Name Experience & Key Areas of ExpertiseManagement
Role
Dr. Richard
Spencer
Led the exploration teams that:
• Discovered the 3.3 million ounce Quimsacocha / Loma Larga gold deposit in Ecuador (+23Moz silver);
• Increased gold reserves at Las Cristinas in Venezuela by 65% from 10Moz to 17Moz;
• Grass roots discoveries of copper porphyries in Ecuador – resources are:
23 billion pounds of copper + 4 Moz gold in Mirador, Panantza & San Carlos porphyries
President &
CEO
Mr. John
Ross
• As CFO of IAMGOLD Corp., was the first to introduce the gold “money policy” – converted the
company’s cash to gold at an average price of US$287/oz as an ultracontrarian when the majors were
still hedged and when the Bank of England was selling the country’s goldCFO
Dr. Hugo
Bastias
• Instrumental in the discovery of the 7.5Moz Veladero gold deposit – now a Barrick mine in Argentina;
• Instrumental in U3O8 Corp.’s uranium discoveries in Colombia & Argentina.
Executive VP
– based in
Argentina
Mr. Elpidio
Reis
• M.Sc in Mineral Exploration from Queens University, Ontario & an MBA
• Business Development Director of Rio Tinto – Brazil (1988-2001);
• Was General Manager of Braziron Ltd;
• Instrumental in the development of the 10Moz Morro do Ouro mine – developing processing
techniques for very low grade ore.
Chief Operating
Officer
– based in
Brazil
Mr. Gabriel
Bastias
• Completed MSc in Mineral Exploration at Queens University, Ontario
• Led the team that discovered U3O8 Corp.’s Laguna Salada uranium-vanadium project in Argentina.
VP Exploration
– based in
Argentina
U3O8 Corp. Management
28
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
29
U3O8 Corp. Capital Structure
8%
Insiders
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Share Capital after Consolidation
Market cap(at $0.47)
C$9M
Average daily volume (3-mth): 39K
Basic shares o/s 19,851,095
Warrants o/s 6,644,387
Options o/s 829,750
Fully diluted 27,325,232
U3O8 Corp. Shareholder Base
Largest Shareholders:Dr Keith Barron – founder & director;
Delaware Street Capital;
Extract Capital;
JMM Partners;
Alpha North Asset Management.
9%
19%
72%
Insiders
Institutions
OtherShareholders
30
Laguna Salada, Argentina~3 years to potential production
Berlin Project, Colombia~4 to 5 years to potential production
Corporate Strategy:Sequential Project Development
Immediate goal – double uranium
resource to 20Mlb & upgrade to
Measured & Indicated
$3.0M
Metallurgy & pilot plant $1.5M
Social, environmental & permitting $1.0M
Feasibility study $1.5M
TOTAL to reach mine decision in 2 yrs $7.0M
Capex
Capex (forex-adjusted)
$136M
$117M
Development strategy: Project is
sufficiently simple for U3O8 Corp. to put into
production or JV with producer & keep
minority stake to receive cash flow
Development strategies:
• JV with producer & keep minority stake
• Streaming agreements or royalties on by-
products (phosphate, vanadium, nickel, rare
earths)
Met tests & refine flowsheet $1.0M
Double resource to 50Mlb target &
show 70-75Mlb potential$23M
Resource upgrade, environmental,
permitting, feasibility study$20M
TOTAL to reach mine decision $44M
Capex $441M
Recommended work & budgets based on PEAs that are preliminary in nature. Resources are not reserves & do not have demonstrated economic viability. No
certainty of the PEAs being realized . Conceptual cumulative targets based on mineral resources & exploration results: Colombia – potential 32-34Mt at 0.09% to
0.11% U3O8 (~70-75Mlb) & Argentina – potential150-225Mt at 50ppm to 60ppm U3O8 (~20-25Mlb). Potential quantity & grades are conceptual in nature. There
has been insufficient exploration to define mineral resources on the targets. It is uncertain if further exploration will increase the mineral resources on the
company’s projects.– see slide 2.
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Richard Spencer, President & CEO
(416) 868-1491
www.u3o8corp.com
31
APPENDIX FOLLOWS
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Uranium Market DriversUnprecedented Nuclear Reactor Build
32
Projected Supply
China 43%
449518
Reactors by 2024
Operable Reactors
today, up from 439
at Dec 2015
OperableUnder
construction
On
OrderTotal
Life extension
of existing
reactors
Closures
planned in
the short-
term
Pre-Fukushima 443 62 156 661
March 2018 449 61 176 674 159 28
Source: Word Nuclear Association, World Nuclear
News, Dundee Securities, Timeless Uranium 32
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Uranium Market DriversChinese & Indian Nuclear – long-term growth
33
0
20
40
60
80
100
120
140
160
19
69
19
81
19
86
19
92
19
94
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
32
Nu
cle
ar
En
erg
y O
utp
ut
(GW
)
China’s nuclear
build is
exponential
USA’s nuclear output: ~100GW
• China- world’s 2nd largest economy;
• Air polution non-carbon power sources;
• Water polution symbiosis between nuclear
& water purification / desalination.
• India - world’s 7th largest economy;
• 7% average GDP growth rate in last 20 years;
• 1/3 of popluation doesn’t have electricity;
• 2/3 electricity provided by coal;
• Per capita electricity use to double by 2020.
Chinese actual & planned nuclear
energy output (GW)
0
50
100
150
200
250
300
19
69
19
84
19
92
19
98
20
01
20
04
20
07
20
10
20
13
20
16
20
19
20
22
20
25
20
28
20
31
20
34
20
37
20
40
20
43
20
46
20
49
Nu
cle
ar
En
erg
y C
ap
ac
ity (
GW
)
India’s nuclear energy plan
shows that India’s build is
also exponential,
comparable with China’s
Indian actual & planned nuclear
energy output (GW)
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Laguna Salada Project, Argentina:Project status & pathway to production
34
Landmark agreement with Provincial govt
Discovery
Initial (10Mlb) NI43-101 uranium resource
Increase resource to 20-25Mlbs
Trial Mining Pilot processing plant
Feasibility Study
Construction decision
PEA – focus on projected cash cost
Next
Steps
$22/lb Low cash cost
of production
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
Laguna Salada DepositOverview
35
Argentina’s only NI 43-101 uranium
resource on which a PEA has been
completed
Simple Geology
Simple Mining
Simple Processing
In-country uranium-enrichment
facility
Continuous real-time
environmental restoration
Clear resource-growth potential
10Mlb uranium resource,
Vanadium by-product,
10 year mine life
Flat-lying in soft gravel
Exploration has defined extensions
to the deposit
Free-digging “migrating trench”
Screening to remove pebbles &
concentrate uranium – followed by
standard alkaline leach
Shrubs moved from leading edge of
the trench replanted on trailing edge
Pilcaniyeu located ~450km from
Laguna Salada
A Green Resources Company
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PEA shows potential for low-cost, near-term production
36
Increasing resource size & production rate has been modelled and shows a very significant improvement to
the project’s economics. (This analysis was done internally by U3O8 Corp. and can’t be shown because it
has not been verified by an external NI43-101 - compliant study.)
Cash cost of production, capex, mine life & payback period
Mine life 10 years
Life of Mine average uranium cash cost of production1 $21.62/lb
Average uranium cash cost of production over 2½ year payback1 $16.14/lb
Total capital (incl. sustaining & 20% contingency) $136M
1 Projected uranium cash cost, net of vanadium credit & incl. 3% NSR to the Provincial
Government.. Laguna Salada PEA – see cautionary statements on slide 2
Laguna Salada Project
PEA Highlights
PEA Highlights (base case, in US$ at US$60/lb U3O8)
Annual productionUranium Vanadium
0.6Mlb 0.96Mlb
Revenue $223M $53M
Principal Financial Metrics Pre-Tax After-Tax
NPV discount rate 7.5% 10% 7.5% 10%
NPV (incl royalties due to State) $55M $43M $31M $22M
IRR 24% 18%
A Green Resources Company
36TSX: UWE | OTCQB: UWEFF
Laguna Salada DepositPEA Summary
➢ 1st independent PEA completed on a uranium deposit in Argentina;
➢ Study completed by Tenova (Bateman) >100 years of experience;
➢ Resource:
➢ 10Mlbs uranium (6.4Mlbs recoverable);
➢ 84Mlbs vanadium (10Mlbs recoverable);
➢ Projected average annual production 0.6Mlb uranium over 10 year mine life:
Argentina requires 0.4Mlbs per year to operate its three reactors – currently
imports 100% of its fuel requirement potential for off-take agreement;
➢ 1Mlb/annum vanadium production;
➢ Focus of the PEA was cash-cost of production:
➢ US$21.62/lb average over the life of the mine;
➢ US$16.14/lb during the 2½ year payback period;
➢ Demonstrates potential for production cost that is competitive with in situ
leach and Athabasca Basin deposits.
➢ Capex: $136M incl 20% contingency. US$ strength against currencies in which
plant equipment was quoted could reduce Capex by ~15%.
37
1 Projected uranium cash cost, net of vanadium credit & includes a 3% NSR to the Provincial Government. The PEA is preliminary in nature.
Includes resources that are not reserves & do not have demonstrated economic viability. No certainty of the PEA being realized. – see slide 2
A Green Resources Company
37TSX: UWE | OTCQB: UWEFF
Berlin Project, Colombia:Project status & pathway to production
Highest-value project in U3O8 Corp’s portfolio with one of the lowest
projected uranium extraction costs in the industry
38
Built on discovery by Cogema (Areva)
Initial (21Mlb) NI43-101 uranium resource
Having confirmed low potential production cost in PEA
Increase resource to 50Mlb threshold
Pilot processing plant
Feasibility Study
Construction decision
PEA – focus on projected cash cost
Next
StepTest alternative extraction techniques
A Green Resources Company
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39
Berlin:Introduction
Berlin:
➢ A uranium-bearing phosphate layer in
sedimentary rocks - contains a rare mix of
nickel, vanadium, rare earths and other metals;
➢ The current 21 million pound uranium
resource is from 3km of a 10.5km uranium-
phosphate – bearing trend there is room for
resource growth to 70-75 million pounds of
uranium;
➢ Extensive metallurgical test work has shown
that this mix of commodities can be cost-
effectively extracted from the rock;
➢ Good infrastructure:
• located 12km from a hydroelectric plant;
• 60km from the Magdalena river that is
navigable by barge to the Caribbean Sea;
• 60km from principal paved highway and a
railway that it being refurbished;
➢ Local community is supportive of the project;
➢ Mining would be by underground methods and
the uranium-phosphate rock would be processed
on site to remove the contained metals.
COLOMBIA
A Green Resources Company
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Berlin DepositCross Section
40
Sandstone
Mineralized layer
Shale
➢ Mineralization in 3m thick
layer;
➢ Remarkable continuity;
➢ Underground mining
operation;
➢ Minimal mine
footprint;
➢ Waste would be
replaced in backfill of
underground
excavations;
➢ Cut and fill mining in
the steep areas
combined with room
and pillar in the flat
areas.
West East
40
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
41
Berlin Project, ColombiaMulti-commodity Resource
Current resources defined in compliance with NI 43-101 (0.04% U3O8 cut-off grade)
on southern 3km of a 10.5km mineralized trend
Tonnes
(million)
Uranium Phosphate Vanadium Yttrium
Grade (Mlb) Grade (Mt) Grade (Mlb) Grade (t)
0.6 0.11% 1.5 8.4% 0.05 0.4% 6.0 461ppm 294
8.1 0.11% 19.9 9.4% 0.8 0.5% 91.0 500ppm 4,066
Tonnes
(million)
Neodymium Nickel Molybdenum Rhenium
Grade (t) Grade (Mlb) Grade (Mlb) Grade (t)
0.6 110ppm 70 0.2% 3.1 570ppm 0.8 6ppm 4
8.1 100ppm 813 0.2% 42.1 620ppm 11.0 7ppm 55
Tonnes
(million)
Zinc Silver
Grade (Mlbs) Grade (Moz)
0.6 0.30% 4.4 2.8ppm 0.1
8.1 0.30% 45 3.4ppm% 0.9
Current
resource in
southern 3km of
10.5km trend
A Green Resources CompanyD
rilled
Are
a
4km
3.5
km
3km
Tre
nc
he
d A
rea
10
.5k
m M
ine
raliz
ed
Tre
nd
TSX: UWE | OTCQB: UWEFF
42
Berlin ProjectPEA: commodities produced,
% of revenue generated by each commodity
1 PEA estimates are preliminary in nature. Includes resources that are not reserves & do not have demonstrated economic
viability. No certainty of the PEA being realized. INTERNAL DISCUSSION PURPOSES – see slide 2
Uranium: Nuclear energy
Vanadium: Steel alloys, batteries
Main uses of commodities:
Phosphate: Fertilizer, batteries
Yttrium: Lazers, electronics, monitors
Neodymium: Magnets, high-efficiency motors
Nickel: Stainless steel, batteries, fertilizer
Base metals: Steel alloys, fertilizer, Zn-Ce
flow batteries, galvanizing, alloys
Uranium35%
Phosphate31%
Nickel15%
Vanadium9%
Yttrium6%
Neodymium1%
Moly, Zinc3%
Metals & Phosphate extracted in a single metallurgical process
– iron sulphate leach – was the principal process used at Elliot Lake
A Green Resources Company
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43
Berlin Project’s Other Commodities:
“Clean Energy & Agriculture Commodities”
Battery Commodities: Nickel,
Vanadium, Phosphate
Phosphate for fertilizer
Berlin contains 3
micronutrients used in
speciality fertilizers
Ni
Zn
Mo
Rare Earth Elements:• Neodymium for
supermagnets in motors &
generators;
• Yttrium for red phosphors
in screens an lazer
technology
A Green Resources Company
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44
Potential to be a large, very low-cost uranium producer
Projected Base Case – PEA Highlights (US$60/lb U3O8), reported in US$
Annual uranium production 1.2Mlb
Mine life 15 years
Cumulative free cash flow $982M
Pay-back period 4.6 years
Initial capex $360M
Sustaining capital $40M
Contingency $41M
Total capex (incl. 10% contingency) $441M
Berlin Deposit:PEA Highlights
1. Projections based on Berlin PEA – see cautionary statements on slide 2
Principal Financial Metrics Pre-Tax After-Tax
NPV discount rate 7.5% 10% 7.5% 10%
NPV (incl royalties due to State) $338M $223M $198M $112M
IRR 19% 15%
$1.8Billion of by-product revenues would cover the $1.6Billion
operating cost (cost of mining & extraction)1
A Green Resources Company
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45
3km
3.5km
N
Berlin ProjectDrilling has shown Resource Growth Potential
1Target based on mineral resources & exploration
results for potential 32-34Mt at 0.09% to 0.11%
U3O8 (~70-75Mlb) Potential quantity & grades are
conceptual in nature. There has been insufficient
exploration to define a mineral resource on these
targets & it is uncertain if further exploration will
increase the current deposit – see slide 2.
Green unit contains uranium &
other minerals
4km
25-30Mlb resource
potential
already
identified by
drilling
>25Mlbpotential
identified
by
trenching
➢ 21Mlb NI 43-101
Uranium Resource
➢ 25-30Mlb potential
exploration-drilled area
➢ >25Mlb – northern area –
potential indicated by
trenching
> 70-75Mlb potential
21MlbCurrent
NI 43-101
uranium
resource
10.5
km
Min
era
lized
Tre
nd
A Green Resources Company
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Berlin DepositPotential to Improve Project’s Economics
46
➢ Potential to reduce operating (Opex) and capital costs (Capex):
➢ Test work on the effectiveness of alternative techniques for the
extraction of metals and phosphate (eg. Use of membrane systems
to separate the metals);
➢ Potential to increase revenue:
➢ Removal of carbonate to reduce reagent consumption (lower
operating costs);
➢ Current PEA only considers revenue stream from two Rare Earth
Elements (Neodymium & Yttrium). Include other REEs such as
Dysprosium & Europium in revenue stream;
➢ Reduce electricity cost by capturing excess heat generated by the
processing plant.
➢ Increase the uranium resource – the target is 70-75Mlbs1. Economics of
the deposit are strongly geared to deposit size.
46
A Green Resources Company
1Target based on mineral resources & exploration results for potential 32-34Mt at 0.09% to 0.11% U3O8 (~70-75Mlb)
Potential quantity & grades are conceptual in nature. There has been insufficient exploration to define a mineral
resource on these targets & it is uncertain if further exploration will increase the current deposit – see slide 2.
TSX: UWE | OTCQB: UWEFF