Toward production of clean energy commodities: commodities: - - PowerPoint PPT Presentation
A Green Resources Company Toward production of clean energy commodities: commodities: uranium & battery metals www.u3o8corp.com 3 8 March, 2017 Power Storage Rare Earths Nuclear Energy Yttrium & Uranium Vanadium, Nickel TSX:
A Green Resources Company
3 8
www.u3o8corp.com March, 2017
Nuclear Energy Power Storage Rare Earths
Uranium
TSX: UWE | OTCQB: UWEFF Vanadium, Nickel & Phosphate
Yttrium & Neodymium
A Green Resources Company
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 bj t t i k d t i ti t i f hi h b d th t l f U3O8 C i l di b t t li it d t th i t f l i 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, nd e reliance sho ld not be placed on FLS These FLS are made as of the date hereof and U3O8 Corp ass mes no obligation to pdate or re ise them to reflect 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
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 Mineral Resource 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 press releases 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 and 27Mlb at 590ppm V2O5. See May 20, 2011 – “Laguna Salada Project, Chubut Province, Argentina, NI 43-101 Technical Report on Laguna Salada: Initial Resource Estimate”. 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 – “Preliminary Economic 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 see the 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 would bl th t b l ifi d i l Mi l t i l d h t d t t d i i bilit Th i t i t
2
enable them to be classified as mineral reserves. Mineral resources are not mineral reserves and have not demonstrated economic viability. There is no certainty that the results of the PEAs will be realized. Potential quantity and grades are conceptual in nature. There has been insufficient exploration to define a mineral resource 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 at www.u3o8corp.com.
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Cities Towns / Industrial Complexes
Nickel, Vanadium, Phosphate
To fuel nuclear power plants
Small
3
TSX: UWE | OTCQB: UWEFF
Large Nuclear Reactors Small Modular Reactors
High-efficiency generators & motors
A Green Resources Company
Note - PEA estimates are preliminary in nature, as is the revenue projected to be derived from each commodity. The PEAs
4
include resources that are not reserves that do not have demonstrated economic viability. There is no certainty of the results
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Guyana
Estimated Cash Cost of Uranium Production Estimated Capital Cost Priority
y Colombia
BERLIN, Colombia
Resource Type Million pounds
Indicated 1.5 US$0/pound of uranium net of by- products US$441 million 2 Inferred 19.9 LAGUNA SALADA A ti
Argentina
LAGUNA SALADA, Argentina Indicated 6.3 US$22/pound of uranium, net of by- product vanadium US$136 million 1 Inferred 3.8
g
KURUPUNG, Guyana Indicated 8.3 Rough estimate: US$45/pound Not yet estimated 3 Inferred 7.9
5 TSX: UWE | OTCQB: UWEFF 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
A Green Resources Company
Date of Commercial Operation 1974 1984 2015 Construction starts 2017 Construction starts 2019 Capacity (MWe net) 335 600635 692 800 1,150 Type Siemens Candu-6 Siemens Candu-6 Hualong One Life extensions 10-years to 2027 25-years to 2040 7% output increase p
5 Research reactors operating in Argentina 5 Research reactors operating in Argentina 5 Research reactors built by Argentine reactor construction company INVAP elsewhere in the world CAREM Small Modular Reactor:
6
TSX: UWE | OTCQB: UWEFF
CAREM Small Modular Reactor:
A Green Resources Company
14,000
10 000 12,000
GWh)
Refurbished Embalse reactor expected to come back on-line in mid-2018. Expected to contribute to full-year’s it t ti 2019 Refurbished Embalse reactor expected to come back on-line in mid-2018. Forecast to contribute to full-year’s it t ti 2019 6 000 8,000 10,000
Produced (G
capacity starting 2019. capacity starting 2019. 4,000 6,000
Electricity P
2,000 7
TSX: UWE | OTCQB: UWEFF
Source of data: CNEA, IAEA
A Green Resources Company
Reactor Design Reactor Construction Enrichment & Fuel Rod Spent Fuel St Uranium Production Nuclear energy industry overseen by ARN (Nuclear Regulatory Authority) Construction Fuel-Rod Manufacture Storage
CNEA/INVAP INVAP
Production
DIOXITEC & CONUAR NA-SA1 CNEA2
Australia’s only nuclear
Laguna Salada Deposit –
CNEA2
Nuclear fuel rod cluster Australia s only nuclear reactor – the OPAL research facility
Deposit U3O8 Corp. Cerro Solo Deposit – State through CNEA
INVAP to build medical isotope facility in
Spent fuel in dry storage in concrete casks - CNEA
8
TSX: UWE | OTCQB: UWEFF
p y USA for Coqui Pharma
1 Short-term storage at nuclear power plants operated by NA-SA; 2 Long-term storage in dry casks by CNEA.
A Green Resources Company
Migrating Trench Advances
Mined area restored to
Removing the Gravel Cover
Gravel that’s been mined, washed & replaced Gravel – averages 8m thick
Gravel – averages 8m thick Impermeable shale
Excavation up to 3m/10’ deep
Mining Uranium-Vanadium – bearing gravel
9 TSX: UWE | OTCQB: UWEFF
A Green Resources Company
15cm 6 inches
Simple, continuous Gravel is sieved No blasting, no crushing p , Semi-desert Washed Gravel is replaced, recontoured & replanted with indigenous shrubs
g, g Washed removed prior to mining
Transplantation trials 9% of the gravel is fine silt that is processed. Metallurgical test Residual silt U i & Washing soda, baking soda
10
work aiming to concentrate the uranium in a smaller %
Uranium & Vanadium
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Location of exploration results reported i J 2017
potential in gravel plain in Jan, 2017 potential in La Susana, La Rosada(1) discoveries & (grey area) discoveries & anomalous radon area
11
Concessions under JV option agreement are outlined in black
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Laguna Salada Deposit: Estimated Cash Cost of Production with Grade of Fine Component of Gravel
$35 $40 $45
Cash cost Year 10
$25 $30 $35
(US$ per po
Average life of mine cash cost of production US$21.62/lb of U3O8
$10 $15 $20
Year 1 Objective of current exploration to find higher-grade uranium-vanadium
$0 $5 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
um
Uranium Grade (ppm U O ) Uranium Grade (ppm U3O8)
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TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Spot & Long-term Uranium Price (US$/lb) 11-year low;
production cost through:
3O8 (US$/lb)
Fukushima
resources;
ium Price U3
g p
Urani
Laguna Salada 10-year
Source: of data Ux Consulting Company LLC, Cantor Fitzgerald
Laguna Salada 10 year average cash cost of production US$22/lb Aim is to reduce estimated cash cost
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TSX: UWE | OTCQB: UWEFF
estimated cash cost
A Green Resources Company
Demand starts to outstrip supply in 2020/2021
Projected Demand Scenarios O8 Projected Demand Scenarios
Proposed Laguna Salada production
bs/year U3O Secondary Primary Supply Ml Secondary Supply
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Source: Dundee Securities
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TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Uranium Requirements of Nuclear Utilities as of Q3, 2016
uranium bought by utilities under contract
um U3O8 Fukushima
under contract.
Demand” is the amount of uranium that is either going
to have to be bought in the
under new contracts.
Million po
Source: of graphic: Ux Consulting Company LLC, Cantor Fitzgerald
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TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Next Steps: 1. Trial mining & pilot plant test work to produce yellowcake as proof of concept;
BUDGET TOWARDS POTENTIAL PRODUCTION
(US$)
Resource expansion &
2. Resource growth since economics are strongly geared to deposit size.
p upgrade to Measured & Indicated $3.0M Metallurgy & pilot plant $1.5M Social, environmental & $1 0M Conceptual Timeline Year 1 Year 2 Year 3 Resource expansion & upgrade Environmental (EIA) Metallurgy & pilot plant permitting $1.0M Feasibility study (FS) $1.5M Budget to Construction Decision $7.0M Metallurgy & pilot plant Mining & Environ. permit Permit to produce yellowcake Feasibility study (FS) CAPEX (in 2014 US$) CAPEX after forex adjustment (in 2015 US$) $136M / $117M
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
Construction
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y g
TSX: UWE | OTCQB: UWEFF
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A Green Resources Company
BERLIN, Colombia NI 43-101 Vanadium Nickel Phosphate
Colombia
NI 43-101 Resource category Vanadium Nickel Phosphate Million pounds Million pounds Million Tonnes Indicated 6 3.1 0.05 Inferred 91 42.1 0.8 LAGUNA SALADA, Argentina NI 43-101 Resource Vanadium (Mlb) Indicated 57
Argentina
Indicated 57 Inferred 27
181 million pounds Vanadium (V2O5) 45 illi d Ni k l g 45 million pounds Nickel 850,000 tonnes Phosphate (P2O5)
17 TSX: UWE | OTCQB: UWEFF WARNING – 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
A Green Resources Company
apacity
5.00 6.00
storage ca
1.00 2.00 3.00 4.00
0.00 Manganese Lithium
Li-ion Battery Type Chemistry Abrev. Lithium Iron LiF PO LFP
Cobalt Lithium
l per kWh o
3.00 4.00 5.00 6.00
Phosphate LiFePO4 LFP Lithium Vanadium Phosphate Li3V2(PO4)3 LVP Lithium Manganese Oxide LiMn2O4 LMO
Kg of metal
0.00 1.00 2.00
Lithium Cobalt Oxide LiCoO2 LCO Lithium Nickel Cobalt Aluminium Oxide LiNiCoAlO2 NCA 18
K
Source of data: batteryuniversity.com
TSX: UWE | OTCQB: UWEFF
Lithium Nickel Managanese Cobalt Oxide LiNiMnCoO2 NMC
A Green Resources Company
600
500
kg)
Subaru G4e, BYD
300 400
nergy (Wh/k
Nissan Leaf, GM, Tesla, Panasonic
200
Specific En
Chevy Volt, BMW i3 BYD e- buses
100
Lead Acid NiCad Nickel Metal Lithium Lithium Iron Lithium NMC Lithium NCA Lithium
Car battery
Lead Acid NiCad Nickel Metal Hydride Lithium Titanite Lithium Iron Phosphate Lithium Manganese Oxide NMC Lithium Cobalt Oxide NCA Lithium Vanadium Phosphate
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Source of data: batteryuniversity.com
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
150
125
h)
Boston Power
75 100
Hours (GWh
Tesla-Panasonic
50
Gigawatt H
LG Chem Foxcom BYD
25
G
Current Supply 2013 2014 2015 2016 2017 2018 2019 2020 2021
20
From Dundee Capital Markets (June 13, 2016) from data from Benchmark Mineral Intelligence & Avicienne, Albrecht, 2016
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
– long duration lower power output
Energy-Centric Power-Centric V5+ V3+
V4+ V2+ V V
250
NCA Lithium Ion battery has 5X energy storage capacity of a VRB VRBs can withstand 20X the charge/discharge cycles as the best Lithium Ion battery
Vanadium
naturally in 4 different
200,000 10,000
47
21
different charge states TSX: UWE | OTCQB: UWEFF
10,000
VRB Lithium Iron Phosphate VRB NCA
A Green Resources Company
UniEnergy System Features:
stabilization (can’t be miniturized); stabilization (can t be miniturized);
200,000 cycles (max for Lithium Ion batteries is 7,000 cycles); E cellent safet (non flamable)
600kW & 2.2MWh DC AC
Cost Guidance
= US$0.10/kWh over 15,000 cycles; y g y ;
maintains its intrinsic value;
capacity – other battery types likely to constitute 70%;
(Imery) = US$0.07/kWh over 15,000 cycles
capacity
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TSX: UWE | OTCQB: UWEFF p
China: 200MW/800MWh
A Green Resources Company
140,000
100 000 120,000 Vanadium required for
Vanadium demand for batteries
80,000 100,000 Li-Ion Batteries Vanadium required for Redox Flow Batteries Steel Chemicals
40,000 60,000 Steel, Chemicals Supply
Source of data: Camelot Ferroalloys Inc, Vanitec
20,000
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TSX: UWE | OTCQB: UWEFF 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
A Green Resources Company
$6 00 $7.00 $8.00
$4 00 $5.00 $6.00
$2.00 $3.00 $4.00 $0.00 $1.00 $
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TSX: UWE | OTCQB: UWEFF
Source of data: www.assetmacro.com 2010 2011 2012 2013 2014 2015 2016 2017
Strategically Located in Uruguay, Brazil, Argentina Strategically Located in Uruguay, Brazil, Argentina
Brazil Properties
Nascent Need for Local Frac Sand Supply
Oil & gas production from the Vaca
Uruguay Properties
Vaca Muerta
Muerta is just starting
to develop the giant Vaca Muerta shale in Argentina
Rio Rio Grande Grande Port Port
in Argentina
be 800,000 tonnes per year in 2016/2017. Current local production only 6,000t per ear
Favoured route to the
Argentine Properties San Antonio San Antonio Port Port
In Shale
year
imported from Brazil, China & USA Our properties near key shale basins
route to the Vaca Muerta Rail
Comodoro Comodoro Port Port
San Jorge Shale
Shale
p p y & infrastructure (road, rail & ports)
TSX: UWE | OTCQB: UWEFF
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A Green Resources Company
$350 Berlin Deposit, Colombia
After-tax Net Present Value of U3O8 Corp.’s projects (NPV at 7.5% Discount Rate (US$ Million) )
% $200 $250 $300 p Laguna Salada Project, Argentina alue at 7.5% S$M)
$142 $198 $255
$100 $150 $200 C t M k t Present Va unt rate (US
$3 $31 $59 $56 $85 $142
$50 $0 $50 Current Market capitalization of U3O8 Corp. er-Tax Net discou Combined NPV of
=$229M =$314M =$145M =$60M Afte Projects (7.5% discount rate)
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TSX: UWE | OTCQB: UWEFF
NPVs based on PEAs – see cautionary statements on slide 2
A Green Resources Company
$250
After-tax Net Present Value of U3O8 Corp.’s projects (NPV at 10% Discount Rate (US$ Million) )
% $150 $200 Berlin Deposit, Colombia Laguna Salada Project, Argentina Value at 10% S$M)
$112 $159
$50 $100 $ Current Market Present V unt rate (US
$22 $47
$19 $66
$0 $50 =$134M =$206M =$62M capitalization of U3O8 Corp. er-Tax Net discou Combined NPV of Projects (10%
$35 $40 $50 $60 $70 Aft j ( discount rate)
27
TSX: UWE | OTCQB: UWEFF
NPVs based on PEAs – see cautionary statements on slide 2
A Green Resources Company
$2.50
Enterprise Value per Pound of Uranium Resources
250
NI 43-101 Compliant Resources
$1.50 $2.00 $
b
150 200
rce (Mlbs)
$0.50 $1.00 $
US$/l
50 100
nium Resour
$0.00 $0.50 Denison Fission Energy Energy Mega NexGen Berkeley Azarga um Res. UEX Kivalliq Western aramide O8 Corp Pele Mtn nerman Plateau Goviex Forsys Goviex nerman NexGen Plateau Forsys Denison aramide Fission Western Berkeley UEX Energy Pele Mtn O8 Corp um Res. Kivalliq EnCore Azarga Mega
Uran
D Toro Vimy N B Uraniu W La U3O P Bann Bann N D La W B Vimy P U3O Uraniu
28
TSX: UWE | OTCQB: UWEFF
political risk has not improved dramatically in Argentina
Source Data: Dundee Corp. & Cantor Fitzgerald
A Green Resources Company
Director Experience & Key Areas of Expertise Role on the Board
B
(FDN) gold deposit in Ecuador. FDN was sold to Kinross Gold for $1.3B R i i t f PDAC’ Th Li d l I t ti l Di A d 2008
E Barron
C t bl
by Newmont;
l t d ith lti billi d ll k t
C t Constable
explorer to a producer with a multi-billion dollar market cap;
Franklin
Franklin
Was market strategist at Sprott where he co wrote the widely followed monthly note “Markets at a Glace” with Eric Sprott;
Marcet
copper deposit & its subsequent sale to Yamana Gold for $1.6B;
fi t h d k l d li
pp p q
gold mine in Uraguay
first-hand knowledge - lives in Argentina
Milmeister
perspective
p gy
Spencer
See “Management” slide
29
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Name Experience & Key Areas of Expertise Management Role
Led the exploration teams that:
Spencer
p
23 billion pounds of copper + 4 Moz gold in Mirador, Panantza & San Carlos porphyries
President & CEO
Ross
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 gold
CFO Executive VP
Bastias
Executive VP – based in Argentina Mr Elpidio
Chief Operating Officer
Reis
p ( )
techniques for very low grade ore.
Officer – based in Brazil
VP Exploration based in Bastias
– based in Argentina
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TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Share Capital U3O8 Corp. Shareholder Base
Market cap
(at $0.035)
$11.4M 52wk range: $0.02 - $0.05 Average daily volume (3-mth): 1.90 million I tit ti l Basic shares o/s 329M Options o/s 20M Warrants o/s 118M
8%
Insiders Institutional 24% Insiders 65% Other Sh h ld Warrants o/s 118M Fully diluted 467M Insiders 11% Shareholders
Top Shareholders:
Dr Keith Barron – founder & director; Dr Keith Barron founder & director; Delaware Street Capital JMM Partners; Alpha North Asset Management.
31
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
~3 years to potential production
~4 to 5 years to potential production y p p y p p Immediate goal – double uranium resource to 20Mlb & upgrade to Measured & Indicated $3.0M Metallurgy & pilot plant $1 5M Met tests & refine flowsheet $1.0M Double resource to 50Mlb target & show 70-75Mlb potential $23M Metallurgy & pilot plant $1.5M Social, environmental & permitting $1.0M Feasibility study $1.5M TOTAL to reach mine decision in 2 yrs $7 0M Resource upgrade, environmental, permitting, feasibility study $20M TOTAL to reach mine decision $44M Capex $441M TOTAL to reach mine decision in 2 yrs $7.0M Capex Capex (forex-adjusted) $136M $117M
Development strategy: Project is Development strategies:
Capex $441M
Development strategy: Project is
sufficiently simple for U3O8 Corp. to put into production or JV with producer & keep minority stake to receive cash flow Streaming agreements or royalties on by products (phosphate, vanadium, nickel, rare earths)
Recommended work & budgets based on PEAs that are preliminary in nature. Resources are not reserves & do not have demonstrated economic viability. No
32
g p y y 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.
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Richard Spencer, President & CEO richard@u3o8corp.com (416) 868-1491 www.u3o8corp.com
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TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Operable Under construction On Order Total
Life extension
reactors Closures planned in the short- reactors term
Pre-Fukushima 443 62 156 661 Feb 2017 449 59 166 674 159 23
Projected Supply
Feb 2017 449 59 166 674 159 23
China 43%
34
Source: Word Nuclear Association, World Nuclear News, Dundee Securities, Timeless Uranium
34
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
160
300
100 120 140 Output (GW)
USA’s nuclear output: ~100GW
200 250
pacity (GW)
India’s nuclear energy plan shows that India’s build is also exponential, comparable with China’s
40 60 80 ar Energy O
100 150
r Energy Cap
comparable with China s
20
1969 1981 1986 1992 1994 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032
Nuclea
50
1969 1984 1992 1998 2001 2004 2007 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040 2043 2046 2049
Nuclear
& f /
35
& water purification / desalination.
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Low cash cost
36
TSX: UWE | OTCQB: UWEFF TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Argentina’s only NI 43-101 uranium resource on which a PEA has been l d 10Mlb uranium resource, Vanadium by-product, completed Simple Geology 10 year mine life Flat-lying in soft gravel E l ti h d fi d t i Simple Mining Clear resource-growth potential Exploration has defined extensions to the deposit Free-digging “migrating trench” Simple Processing Screening to remove pebbles & concentrate uranium – followed by standard alkaline leach In-country uranium-enrichment Continuous real-time environmental restoration Shrubs moved from leading edge of the trench replanted on trailing edge Pilcaniyeu located ~450km from
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In-country uranium-enrichment facility Pilcaniyeu located 450km from Laguna Salada
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
PEA Highlights (base case, in US$ at US$60/lb U3O8)
U i V di Annual production Uranium Vanadium 0.6Mlb 0.96Mlb Revenue $223M $53M P i i l Fi i l M t i P T Aft T 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% 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 IRR 24% 18%
Increasing resource size & production rate has been modelled and shows a very significant improvement to
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
38
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.)
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
TSX: UWE | OTCQB: UWEFF
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A Green Resources Company
Argentina requires 0.4Mlbs per year to operate its three reactors – currently imports 100% of its fuel requirement potential for off-take agreement;
leach and Athabasca Basin deposits.
plant equipment was quoted could reduce Capex by ~15%. plant equipment was quoted could reduce Capex by 15%.
39
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
TSX: UWE | OTCQB: UWEFF
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A Green Resources Company
TSX: UWE | OTCQB: UWEFF 40
A Green Resources Company
Berlin:
sedimentary rocks - contains a rare mix of nickel, vanadium, rare earths and other metals;
resource is from 3km of a 10.5km uranium- phosphate – bearing trend there is room for resource growth to 70-75 million pounds of resource growth to 70-75 million pounds of uranium;
that this mix of commodities can be cost- effectively extracted from the rock;
d i f t t
navigable by barge to the Caribbean Sea;
p p p g y railway that it being refurbished;
the uranium-phosphate rock would be processed
41
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
li ti i 3 thi k
Mineralized layer
layer;
Sandstone Shale
footprint;
replaced in backfill of underground excavations;
the steep areas combined with room and pillar in the flat areas.
42
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TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Current resources defined in compliance with NI 43-101 (0.04% U3O8 cut-off grade)
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
10.5k
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)
km Mineral
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 ( illi ) Zinc Silver
lized Tren
(million) Grade (Mlbs) Grade (Moz) 0.6 0.30% 4.4 2.8ppm 0.1 8.1 0.30% 45 3.4ppm% 0.9
d
43
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Main uses of commodities:
Neodymium 1% Moly, Zinc 3%
Uranium: Nuclear energy Phosphate: Fertilizer, batteries Nickel: Stainless steel, batteries, fertilizer
Yttrium 6% 1% 3%
Vanadium: Steel alloys, batteries Yttrium: Lazers, electronics, monitors Neodymium: Magnets high-efficiency motors
Uranium 35% Nickel Vanadium 9%
Neodymium: Magnets, high efficiency motors Base metals: Steel alloys, fertilizer, Zn-Ce flow batteries, galvanizing, alloys
15% Phosphate 31%
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1 PEA estimates are preliminary in nature. Includes resources that are not reserves & do not have demonstrated economic
TSX: UWE | OTCQB: UWEFF
A Green Resources Company
Berlin contains 3 micronutrients used in
Ni Mo
speciality fertilizers
Zn
Rare Earth Elements: Rare Earth Elements:
supermagnets in motors & generators;
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TSX: UWE | OTCQB: UWEFF
in screens an lazer technology
A Green Resources Company
Projected Base Case – PEA Highlights (US$60/lb U3O8), reported in US$
Annual uranium production 1 2Mlb
Annual uranium production 1.2Mlb Mine life 15 years Cumulative free cash flow $982M Pay-back period 4.6 years y y Initial capex $360M Sustaining capital $40M Contingency $41M Total capex (incl. 10% contingency) $441M
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%
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TSX: UWE | OTCQB: UWEFF
A Green Resources Company
10.5km
resource potential
Mineraliz
Green unit contains uranium &
potential already identified by drilling zed Trend
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
47 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
A Green Resources Company
extraction of metals and phosphate (eg. Use of membrane systems to separate the metals);
Elements (Neodymium & Yttrium) Include other REEs such as Elements (Neodymium & Yttrium). Include other REEs such as Dysprosium & Europium in revenue stream;
processing plant.
the deposit are strongly geared to deposit size.
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 48
48
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