TORONTO, ONTARIO — (Marketwire) — 01/18/12 — U3O8 Corp. (TSX VENTURE: UWE), a Canadian-based company focused on exploration and resource expansion of uranium and associated commodities in South America, reports a maiden National Instrument 43-101 („NI 43-101“) resource estimate on its Berlin Project in Colombia. The resource was prepared by Coffey Mining Pty Ltd based on 82 bore holes for 18,685 metres („m“) drilled on the southern three kilometres („km“) of the 10.5km mineralized trend at Berlin.
At a cut-off grade of 0.04% U3O8, the uranium resource is:
Contained in the same mineralized layer as the uranium resource, are resources of:
„U3O8 Corp. is pleased to report an initial NI 43-101 resource of such significant size for a suite of commodities that our recently announced metallurgical tests prove can be efficiently extracted from the mineralized rock,“ said Dr. Richard Spencer, President and CEO of U3O8 Corp. „Our resource drilling has shown that the mineralized unit at Berlin is remarkably continuous over the southernmost 3km of the project. Our path forward is simple: we intend to continue drilling with two rigs – one aimed at exploration drilling to test the additional 7.5km of strike to the north of the resource area that has never been drilled, but where our trenching has encountered similar mineralization. The second rig will focus on expanding the Berlin resource. In addition, we plan to commence a scoping study in 2012.“
Table 1 – Uranium Resource Estimate Summary
A summary of the uranium resource estimated on the southern 3km of the 10.5km mineralized trend in the Berlin Project at various U3O8 cut-off grades is detailed below, which estimate is effective as of January 17, 2012. The recommended cut-off grade of 0.04% U3O8 has been used for the reported uranium resource. Figure 1 shows the area from which the resource was estimated relative to the extent of the whole mineralized trend at Berlin.
Table 2 – Resource Estimate Summary for Phosphate, Vanadium and Other Metals
A summary of the initial Inferred Resource estimate for other commodities in the southern 3km of the 10.5km mineralized trend in the Berlin Project at a cut-off grade of 0.04% (400ppm) U3O8 is shown below.
Mineralization and Nature of Resource
The mineralized layer in the Berlin Project occurs in a canoe-shaped fold that, in cross-section, has an asymmetric „U“-shape. The mineralized interval lies near the interface between carbonate or sandstone host-rocks and an overlying, black shale unit. Uranium mineralization constitutes a clearly defined, continuous, tabular unit. The tight constraint of uranium to this unit results in minimal change in the size of the resource at various uranium cut-off grades. For example, doubling the cut-off grade from 0.04% to 0.08% U3O8 results in a decrease in the resource of only 3% (Table 1).
Resource Growth Potential of Other Commodities
Mineralization in other commodities such as vanadium, phosphate and yttrium occur in the uranium-bearing layer as well as in the overlying rock – so these other commodities generally occur in a thicker layer that contains the more confined uranium-bearing layer. The average thickness of the uranium-bearing layer is 3m. This feature of the mineralization means that there is a strong possibility of increasing the resource of the other commodities at Berlin once mining and processing cost parameters have been more definitively established. These costs will initially be estimated in a scoping study, and thereafter, the cut-off value used for resource estimation is likely to be based on a dollar rock-value instead of a specific uranium grade as was used in the current resource estimate.
Details of the Resource Estimate
A technical report prepared in accordance with NI 43-101 of the Canadian Administrators, containing the Mineral Resource set forth above, will be filed on SEDAR shortly, and not later than 45 days from the issuance of this news release.
The information that relates to the Mineral Resource is based on information compiled by Neil Inwood. Mr. Inwood is a Member of The Australasian Institute of Mining and Metallurgy, is employed by Coffey Mining Pty Ltd, and visited the Berlin site in May 2011. Mr. Inwood has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Mineral Resources and Reserves“ and as a „Qualified Person“ for purposes of NI 43-101. The disclosure contained in this news release relating to the Mineral Resource set forth above has been prepared under the supervision of, and verified by, Mr. Inwood and is included herein with his consent.
All other scientific and technical information contained in this news release has been prepared under the supervision of, and verified by Dr. Richard Spencer, P. Geo, President & CEO of U3O8 Corp., a „Qualified Person“ within the meaning of NI 43-101.
About U3O8 Corp.
U3O8 Corp.is a Toronto-based exploration company focused on explorationand resource expansion of uranium and associated commodities in South America – a promising new frontier for exploration and development. U3O8 Corp. has one of the most advanced portfolios of uranium projects in the region comprising NI 43-101 compliant resources in Guyana, Argentina and Colombia.
For further information on U3O8 Corp-s Berlin Project, refer to the technical report entitled „Review of Historic Exploration Data from the Uraniferous Black Shales of the Berlin Project and Chaparral Concession, Colombia: A guide to future exploration“ prepared by Richard Spencer and Richard Cleath dated March 23, 2010 and available at . Additional information on U3O8 Corp. is available on the company-s web site at .
Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements 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, the timing of laboratory results and preparation of technical reports, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that the Berlin Project will add to U3O8 Corp-s resource base in the short-term, or at all. 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.
To view Figure 1, please visit the following link: .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: U3O8 Corp. Nancy Chan-Palmateer Vice President, Investor Relations (416) 868-1491
U3O8 Corp. Richard Spencer President & CEO (416) 868-1491
