uranium & battery metals www.u3o8corp.com September, 2017 - - PowerPoint PPT Presentation
A Green Resources Company Toward production of clean energy commodities: uranium & battery metals www.u3o8corp.com September, 2017 Power Storage Rare Earths Nuclear Energy Yttrium & Uranium Vanadium, Nickel Neodymium &
www.u3o8corp.com September, 2017
Uranium
Nuclear Energy Power Storage Rare Earths
A Green Resources Company
Vanadium, Nickel & Phosphate
Yttrium & Neodymium
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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
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 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.
A Green Resources Company
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A Green Resources Company
Off-grid / Micro-grid
Traditional Large Nuclear Reactors Small Modular Reactors
Regional Electricity/Transmission Grid
Nickel, Vanadium, Phosphate, Zinc
Cities Towns / Industrial Complexes
To fuel nuclear power plants
High-efficiency generators & motors TSX: UWE | OTCQB: UWEFF
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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
A Green Resources Company
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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
Guyana Colombia Argentina
Estimated Cash Cost of Uranium Production Estimated Capital Cost Priority 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, Argentina Indicated 6.3 US$22/pound of uranium, net of by- product vanadium US$136 million 1 Inferred 3.8 KURUPUNG, Guyana Indicated 8.3 Rough estimate: US$45/pound Not yet estimated 3 Inferred 7.9 TSX: UWE | OTCQB: UWEFF
Will generate 9% of electricity when Embalse reactor is back on stream
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A Green Resources Company
Reactor Atucha I Embalse Atucha II Atucha III “No 5”
Date of Commercial Operation 1974 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 extensions 10-years to 2027 30-years to 2048 6% output increase Construction contract signed May, 2017
5 Research reactors operating in Argentina 5 Research reactors built by Argentine reactor construction company INVAP elsewhere in the world CAREM Small Modular Reactor:
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A Green Resources Company
Source of data: CNEA, IAEA
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5,000 10,000 15,000 20,000 25,000 30,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Electricity Production (GWh)
Electricity Generation from Nuclear in Argentina: actual & planned
Reactor 4 Reactor 5 Refurbished Embalse reactor ramps up to full production
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A Green Resources Company
Reactor Design Reactor Construction Enrichment & Fuel-Rod Manufacture Spent Fuel Storage
CNEA/INVAP INVAP
Uranium Production
DIOXITEC & CONUAR NA-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
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9 Migrating Trench Advances
Mined area restored to
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
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Simple, continuous Gravel is sieved Semi-desert Washed Gravel is replaced, recontoured & replanted with indigenous shrubs removed prior to mining Transplantation trials 9% of the gravel is fine silt that is processed. Metallurgical test work aiming to concentrate the uranium in a smaller %
Residual silt Uranium & Vanadium
15cm 6 inches
Washing soda, baking soda
No blasting, no crushing
A Green Resources Company
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U3O8’s Concession Block Outlined in Green
Current NI 43-101 uranium resource
potential in gravel plain (grey area)
Resource
Susana, La Rosada discoveries
land package
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A Green Resources Company
Location of exploration results reported in Jan, 2017
potential in La Susana, La Rosada(1) discoveries & anomalous radon area
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$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Cash cost of production of Uranium (US$ per pound)
Uranium Grade (ppm U3O8)
Laguna Salada Deposit: 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
Higher Grades lead to lower Production Cost Estimates
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A Green Resources Company
Year 1 Year 10 Objective of current exploration to find higher-grade uranium-vanadium TSX: UWE | OTCQB: UWEFF
$0 $20 $40 $60 $80 $100 $120 $140 $160
Contract Price
13 13
Uranium Price U3O8 (US$/lb)
A Green Resources Company
Source: of data Ux Consulting Company LLC, Cantor Fitzgerald
11-year low;
estimated production cost through:
grade resources;
Spot & Long-term Uranium Price (US$/lb)
Fukushima TSX: UWE | OTCQB: UWEFF
Spot Price
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Source: Eight Capital
Global Uranium Demand Scenarios vs. Global Total Supply
Primary Supply
Proposed Laguna Salada production
Mlbs/year U3O8
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A Green Resources Company
Secondary Supply
Demand starts to outstrip supply in 2021/2022
TSX: UWE | OTCQB: UWEFF Projected Demand Scenarios Projected Demand Scenarios
Timeline & budget to mine decision
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BUDGET TOWARDS POTENTIAL PRODUCTION
(US$)
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
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
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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
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A Green Resources Company
Kg of metal per kWh of energy storage capacity
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
Li-ion Battery Type Chemistry Abrev. Lithium Iron Phosphate LiFePO4 LFP Lithium Vanadium Phosphate Li3V2(PO4)3 LVP Lithium Manganese Oxide LiMn2O4 LMO Lithium Cobalt Oxide LiCoO2 LCO Lithium Nickel Cobalt Aluminium Oxide LiNiCoAlO2 NCA Lithium Nickel Managanese Cobalt Oxide LiNiMnCoO2 NMC
LVP
Cobalt Lithium
LCO NMC
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100 200 300 400 500 600
Lead Acid NiCad Nickel Metal Hydride Lithium Titanite Lithium Iron Phosphate Lithium Manganese Oxide NMC Lithium Cobalt Oxide NCA Lithium Vanadium Phosphate
Specific Energy (Wh/kg)
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A Green Resources Company
Source of data: batteryuniversity.com
Nissan Leaf, GM, Chevy Volt, BMW i3 BYD e- buses Tesla, Panasonic Subaru G4e, BYD Car battery
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25 50 75 100 125 150
2013 2014 2015 2016 2017 2018 2019 2020 2021
Gigawatt Hours (GWh)
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A Green Resources Company
From Dundee Capital Markets (June 13, 2016) from data from Benchmark Mineral Intelligence & Avicienne, Albrecht, 2016
Current Supply LG Chem Foxcom Tesla-Panasonic BYD Boston Power TSX: UWE | OTCQB: UWEFF
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A Green Resources Company
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Lithium Ion Lead Acid
1 hr 5 hrs 10 hrs
10MW 10kW 1MW
Rated Output
Battery Duration
5+ 4+ 3+ 2+
Vanadium
naturally in 4 different charge states
V5+ V4+ V3+
+ve electrode
electrode
V2+
current Membrane
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A Green Resources Company
600kW & 2.2MWh DC AC UniEnergy System Cost Guidance
= US$0.10/kWh over 15,000 cycles;
(Imery) = US$0.07/kWh over 15,000 cycles
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:
homes for 8 hours; VRB selected for:
battery’s life. VRB VRB VRB VRB
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A Green Resources Company
Vanadium (tonnes)
Source of data: Camelot Ferroalloys Inc, Vanitec
20,000 40,000 60,000 80,000 100,000 120,000 140,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Vanadium required for Li-Ion Batteries Vanadium required for Redox Flow Batteries Steel, Chemicals Supply
Vanadium demand for batteries
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A Green Resources Company
Source of data: www.assetmacro.com
TSX: UWE | OTCQB: UWEFF
$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 2010 2011 2012 2013 2014 2015 2016 2017 2018
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A Green Resources Company
TSX: UWE | OTCQB: UWEFF
100 200 300 400 500 600
Specific Energy (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
rechargeable
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
Muerta is just starting
to develop the giant Vaca Muerta shale in Argentina
be 800,000 tonnes per year in 2017. Current local production only 6,000t per year
imported from Brazil, China & USA Our properties near key shale basins & infrastructure (road, rail & ports)
Favoured route to the Vaca Muerta
Rail
Brazil Properties Uruguay Properties Argentine Properties
Vaca Muerta
San Antonio Port Comodoro Port Rio Grande Port
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TSX: UWE | OTCQB: UWEFF
$3 $31 $59 $56 $85 $142 $198 $255
$0 $50 $100 $150 $200 $250 $300 $350
$35 $40 $50 $60 $70
Berlin Deposit, Colombia Laguna Salada Project, Argentina
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=$229M =$314M
After-tax Net Present Value of U3O8 Corp.’s projects (NPV at 7.5% Discount Rate (US$ Million) ) =$145M
NPVs based on PEAs – see cautionary statements on slide 2
Current Market capitalization of U3O8 Corp. =$60M After-Tax Net Present Value at 7.5% discount rate (US$M) Combined NPV of Projects (7.5% discount rate)
Uranium Price (US$/lb)
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
$22 $47
$19 $66 $112 $159
$0 $50 $100 $150 $200 $250 $35 $40 $50 $60 $70 Berlin Deposit, Colombia Laguna Salada Project, Argentina
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=$134M =$206M
After-tax Net Present Value of U3O8 Corp.’s projects (NPV at 10% Discount Rate (US$ Million) ) =$62M
NPVs based on PEAs – see cautionary statements on slide 2
Current Market capitalization of U3O8 Corp. After-Tax Net Present Value at 10% discount rate (US$M) Combined NPV of Projects (10% discount rate)
Uranium Price (US$/lb)
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 Denison Fission Toro Energy Vimy Energy Mega NexGen Berkeley Azarga Uranium Res. UEX Kivalliq Western Laramide U3O8 Corp Pele Mtn Bannerman Plateau Goviex Forsys
US$/lb Enterprise Value per Pound of Uranium Resources
50 100 150 200 250 Goviex Bannerman NexGen Plateau Forsys Denison Laramide Fission Western Berkeley UEX Vimy Energy Pele Mtn U3O8 Corp Uranium Res. Kivalliq EnCore Azarga Mega
Uranium Resource (Mlbs) NI 43-101 Compliant Resources
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political risk has not improved dramatically in Argentina
Source Data: Dundee Corp. & Cantor Fitzgerald
A Green Resources Company
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Director Experience & Key Areas of Expertise Role on the Board
Barron
(FDN) gold deposit in Ecuador. FDN was sold to Kinross Gold for $1.3B
Constable
Newmont;
to a producer with a multi-billion dollar market cap;
Franklin
“Markets at a Glance” with Eric Sprott
Marcet
deposit & its subsequent sale to Yamana Gold for $1.6B;
gold mine in Uraguay
first-hand knowledge - lives in Argentina
Marsh
alkaline leach uranium plant at Langer Heinrich and acid leach uranium plant at Kayelekera;
Spencer
See “Management” slide
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A Green Resources Company
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Name Experience & Key Areas of Expertise Management Role
Spencer
Led the exploration teams that:
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
Bastias
Executive VP – based in Argentina
Reis
techniques for very low grade ore.
Chief Operating Officer – based in Brazil
Bastias
VP Exploration – based in Argentina
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A Green Resources Company
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Share Capital
Market cap (at $0.025) $8.6M 52wk range: $0.02 - $0.05 Average daily volume (3-mth): 248,000 Basic shares o/s 347M Options o/s 15M Warrants o/s 96M Fully diluted 458M
U3O8 Corp. Shareholder Base
8%
Insiders
A Green Resources Company
Largest Shareholders:
Dr Keith Barron – founder & director; Delaware Street Capital; JMM Partners; Alpha North Asset Management.
84% Other Shareholders 9% Institutional 7% Insiders
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Share Capital after Consolidation
Market cap
(at $0.025)
$8.6M Average daily volume (3-mth): 12,000 Basic shares o/s 17.4M Options o/s 0.75M Warrants o/s 4.8M Fully diluted 22.9M
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Laguna Salada, Argentina
~3 years to potential production
Berlin Project, Colombia
~4 to 5 years to potential production
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:
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 richard@u3o8corp.com (416) 868-1491 www.u3o8corp.com
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A Green Resources Company
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Projected Supply
China 43%
Operable Under construction On Order Total
Life extension
reactors Closures planned in the short- term
Pre-Fukushima 443 62 156 661 July 2017 449 62 176 687 159 28
Source: Word Nuclear Association, World Nuclear News, Dundee Securities, Timeless Uranium
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A Green Resources Company
TSX: UWE | OTCQB: UWEFF
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20 40 60 80 100 120 140 160
1969 1981 1986 1992 1994 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032
Nuclear Energy Output (GW)
China’s nuclear build is exponential
USA’s nuclear output: ~100GW
& water purification / desalination.
Chinese actual & planned nuclear energy output (GW)
50 100 150 200 250 300
1969 1984 1992 1998 2001 2004 2007 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040 2043 2046 2049
Nuclear Energy Capacity (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
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Next Steps
Low cash cost
A Green Resources Company
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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
TSX: UWE | OTCQB: UWEFF
PEA shows potential for low-cost, near-term production
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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) $136M
1 Projected uranium cash cost, net of vanadium credit & incl. 3% NSR to the Provincial
Government.. Laguna Salada PEA – see cautionary statements on slide 2
PEA Highlights (base case, in US$ at US$60/lb U3O8)
Annual production Uranium 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
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TSX: UWE | OTCQB: UWEFF
➢ 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%.
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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
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Next Step
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
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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:
navigable by barge to the Caribbean Sea;
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
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
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Sandstone
Mineralized layer
Shale
➢ Mineralization in 3m thick
layer; ➢ Remarkable continuity; ➢ Underground mining
➢ 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.
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A Green Resources Company
TSX: UWE | OTCQB: UWEFF
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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 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 Company
10.5km Mineralized Trend
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1 PEA estimates are preliminary in nature. Includes resources that are not reserves & do not have demonstrated economic
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
Uranium 35% Phosphate 31% Nickel 15% Vanadium 9% Yttrium 6% Neodymium 1% Moly, Zinc 3%
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
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Battery Commodities: Nickel, Vanadium, Phosphate Phosphate for fertilizer
Berlin contains 3 micronutrients used in speciality fertilizers
Ni Zn
Mo
Rare Earth Elements:
supermagnets in motors & generators;
in screens an lazer technology
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
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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
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
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
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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 &
resource potential already identified by drilling
Uranium Resource ➢ 25-30Mlb potential exploration-drilled area ➢ >25Mlb – northern area – potential indicated by trenching
10.5km Mineralized Trend
A Green Resources Company
TSX: UWE | OTCQB: UWEFF
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➢ 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
➢ 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.
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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