Toward production of clean energy commodities: uranium ... · 12/10/2017 · Type Siemens Candu-6...
Transcript of Toward production of clean energy commodities: uranium ... · 12/10/2017 · Type Siemens Candu-6...
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A Green Resources Company
Toward production of clean energy commodities:commodities:
uranium & battery metals
www.u3o8corp.comJanuary, 2017
Nuclear Energy Power Storage Fertilizer
Uranium Vanadium PhosphateTSX: UWE | OTCQB: UWEFF Vanadium & Nickel 1
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Forward-Looking Statements & DisclaimerA 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 iare 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 economicconditions, industry conditions, geopolitical risks, volatility of commodity prices, assumptions used in resource estimates, economic analysis and financialprojections, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, timingand 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 jointventure 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 thatthe 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 reflectundue 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 U3O8Corp. Comparisons of U3O8 Corp’s resource and exploration targets with other uranium deposits are conceptual in nature, and have not been independentlyverified 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 wouldbl 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
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enable 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.
TSX: UWE | OTCQB: UWEFF
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U3O8 Corp. StrategyA Green Resources Company
To create shareholder value through:• The discovery & development of deposits of uranium and “battery
commodities” that have potential for low-cost production; and• Short permitting timelines
while working with local communities to create a safe workplace, stimulating sustainable development, maintaining water quality and minimizing our environmental impact and carbon footprint
TSX: UWE | OTCQB: UWEFF 3
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U3O8 Corp. BoardA Green Resources Company
Director Experience & Key Areas of Expertise Role on the Board
Dr. Keith B
• 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
R i i t f PDAC’ Th Li d l I t ti l Di A d 2008
• Founder of U3O8 Corp.• Minefinder
EBarron • Recipient of PDAC’s Thayer Lindsley International Discovery Award – 2008• Northern Miner’s Mining Man of the Year – 2008
• Entrepenuer• Major shareholder
Mr. David C t bl
• 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
l t d ith lti billi d ll k t• Chairman
C tConstable 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
• 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
• Investment banking• Corporate strategyFranklin Was market strategist at Sprott where he co wrote the widely followed monthly note
“Markets at a Glace” with Eric Sprott;• 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;
• Entrepeneur• Mine developer• LatAm perspective – has fi t h d k l d li
pp p q• Was president of Waymar Resources, which merged with Orosur Mining that operates a gold mine in Uraguay
first-hand knowledge - lives in Argentina
Mr. Darin Milmeister
• Founder & Managing Partner of Extract Capital, a resource-focused fund;• Formerly Principal of Delware Street Capital, a long/short fund focused on commodities;
• Resource fund perspective• Corporate strategyp gy
Dr. Richard Spencer See “Management” slide
• Minefinder• Deep LatAm experience
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U3O8 Corp. ManagementA Green Resources Company
Name Experience & Key Areas of Expertise Management Role
Led the exploration teams that:
Dr. Richard Spencer
p• 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 gold
CFO
Executive VPDr. 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• M.Sc in Mineral Exploration from Queens University, Ontario & an MBA • Business Development Director of Rio Tinto – Brazil (1988-2001);
Chief Operating OfficerMr. Elpidio
Reis
p ( )• 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.
Officer – based in
Brazil
Mr. Gabriel • Completed MSc in Mineral Exploration at Queens University, Ontario VP Explorationbased inBastias • Led the team that discovered U3O8 Corp.’s Laguna Salada uranium-vanadium project in Argentina. – based in Argentina
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U3O8 Corp. Core ComponentsA Green Resources Company
p p& Estimate of % Revenue that would be derived from each
U3O8 CorpU3O8 Corp
Project Uranium Battery Commodities
Phosphate (fertilizer & b tt i )
Rare Earth
El t
Other metals TotalCommodities batteries) Elements metals
Laguna Salada,
Argentina86% Vanadium 14% 100%Argentina
Berlin, Colombia 35%
Vanadium & Nickel 24% 31% 7% 3% 100%
Note - PEA estimates are preliminary in nature, as is the revenue projected to be derived from each commodity. The PEAs
Frac sand: U3O8 Corp has a 39% holding in South American Silica
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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
TSX: UWE | OTCQB: UWEFF
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U3O8 Corp. Uranium Resource: 48 million pounds
A Green Resources Company
Uranium Resource: 48 million pounds
Guyana
Estimated Cash Cost of Uranium
Production
Estimated Capital
CostPriority
yColombia
BERLIN, Colombia
Resource Type Million pounds
Indicated 1.5 US$0/pound of uranium net of by-
products
US$441 million 2Inferred 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 1Inferred 3.8g
KURUPUNG, GuyanaIndicated 8.3 Rough estimate:
US$45/poundNot yet
estimated 3Inferred 7.9
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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
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Nuclear in ArgentinaGenerates up to 8% of electricity
A Green Resources Company
Generates up to 8% of electricity
Reactor Atucha I Embalse Atucha II Atucha III “No 5”
Large Nuclear Power Plants:eacto tuc a ba se tuc a tuc a o 5
Date of CommercialOperation 1974 1984 2015
Constructionstarts 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 202725-years to 2040
7% output increasep
Small Reactors:5 Research reactors operating in Argentina5 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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CAREM Small Modular Reactor:• 25MW prototype under construction, 100MW & 200MW units designed
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Nuclear in Argentina – the opportunity
A Green Resources Company
the opportunity
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
CNEA2Australia’s only nuclearLaguna Salada
Deposit – CNEA2Nuclear 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
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p yUSA for Coqui Pharma 1 Short-term storage at nuclear power
plants operated by NA-SA;2 Long-term storage in dry casks by CNEA.
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Laguna SaladaSimple mining - real-time restoration
A Green Resources Company
p g
Migrating Trench Advances
Mined area restored to original landscape
Removing the Gravel Cover
Gravel that’s been mined, washed & replaced
Gravel – averages 8m thickGravel – averages 8m thick
Impermeable shale
Excavation up to 3m/10’ deep
Mining Uranium-Vanadium – bearing gravel
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Uranium Spot MarketA Green Resources Company
Spot Uranium Price (US$/lb)
• Spot price at 11-year low;• Can’t control the market;• Can control estimated 3O
8 (U
S$/lb
)
Fukushima
production cost through:• Finding higher-grade
resources;L iiu
m P
rice
U3
• Lowering opex; • Lowering capex.Ur
ani
Laguna Salada 10-yearSource: of data Ux Consulting Company LLC
Laguna Salada 10 year average cash cost of production US$22/lb Aim is to reduce
estimated cash cost
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estimated cash cost
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Laguna Salada Project:Impact of Higher Grades on Production Cost Estimates
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
$35 of productio(U
S$ per poAverage life of mine cash cost of production US$21.62/lb of U3O8
$10
$15
$20
on of Uraniu
ound)
Year 1
Objective of current exploration to find higher-grade uranium-vanadium
$0
$5
05001,0001,5002,0002,5003,0003,5004,000
um
Uranium Grade (ppm U O )Uranium Grade (ppm U3O8)
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Laguna Salada Project:Resource growth potential
A Green Resources Company
g pU3O8’s Concession
Block Outlined in Green
Location of current
exploration20-25Mlb >25Mlb potential in gravel plain
explorationpotential in La
Susana, La Rosada(1)
discoveries &(grey area)
discoveries & anomalous radon area
10MlbCurrent NI
43 101
10Mlb NI 43-101 Uranium Resource43-101
uranium resource
20-25Mlb potential in in La Susana, La Rosada discoveries >25Mlb - potential in rest of pland package
> 55Mlb potential20km
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Concessions under JV option agreement are outlined in black
TSX: UWE | OTCQB: UWEFF
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Laguna SaladaOperational Simplicity
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
Mining Beneficnmen
tg, g
Washedremoved prior to mining
ciation
ExtractionEnv
iron
Transplantation trials 9% of the gravel is fine silt that is processed. Metallurgical test
Residual silt
U i &
Washing soda, baking soda
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work aiming to concentrate the
uranium in a smaller % of fine material
Uranium & Vanadium
TSX: UWE | OTCQB: UWEFF
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Uranium Market SummaryA Green Resources Company
Global Uranium Demand Scenarios vs. Global Total SupplyDemand starts to outstrip supply in 2020/2021
Projected Demand Scenarios
O8
Projected Demand Scenarios
Proposed Laguna Salada production
bs/y
ear U
3O
Secondary
Primary Supply
Ml Secondary
Supply
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Source: Dundee Securities
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Laguna Salada DepositTimeline & budget to mine decision
A Green Resources Company
Timeline & budget to mine decision
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.• Projected 2 years to construction decision• Projected 1 year for construction
pupgrade 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 forexadjustment (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 16
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Lithium Ion Battery CommoditiesA Green Resources Company
y
apac
ity
6.00 6.00 6.00Metal content per in various Lithium-Ion batteries (kg/kWh)
stor
age
ca
1 002.003.004.005.00 NMC
2.003.004.005.00 LFP
1 002.003.004.005.00 LMO
of e
nerg
y s
0.001.00
0.001.00
Phosphate Iron Lithium0.001.00
Manganese Lithium
Li-ion Battery Type Chemistry Abrev.
l per
kW
h o
3.004.005.006.00
NCA
3.004.005.006.00
LCOLithium Titanite Li4Ti5O12 LTO
Lithium Iron Phosphate LiFePO4 LFP
Lithium Manganese Oxide LiMn2O4 LMO
Kg
of m
etal
0.001.002.00
0.001.002.00
Cobalt Lithium
OxideLithium Nickel Managanese Cobalt Oxide
LiNiMnCoO2 NMC
Lithium Cobalt Oxide LiCoO2 LCO
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K
Source of data: batteryuniversity.com TSX: UWE | OTCQB: UWEFF
Lithium Nickel Cobalt Aluminium Oxide LiNiCoAlO2 NCA
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Battery Commodities A Green Resources Company
BERLIN, Colombia
NI 43-101 Vanadium Nickel PhosphateColombia NI 43-101 Resource category
Vanadium Nickel PhosphateMillionpounds Million pounds
Million Tonnes
Indicated 6 3.1 0.05Inferred 91 42.1 0.8
LAGUNA SALADA, Argentina
NI 43-101 Resource
Vanadium(Mlb)
Indicated 57
Argentina
Indicated 57Inferred 27
181 million pounds Vanadium (V2O5)
45 illi d Ni k lg 45 million pounds Nickel
850,000 tonnes Phosphate (P2O5)
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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
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Battery CommoditiesVanadium Redox Flow Batteries (“VRB”)
A Green Resources Company
Vanadium Redox Flow Batteries ( VRB )
Vanadium Redox Batteries – long duration lower power outputEnergy-CentricPower-Centric
V5+ V3+Flow Batteries
V4+ V2+V V• Safe & non-flammable;• Can be charged almost instantaneously;• Almost unlimited energy capacity – just need bigger
tanks for more storage;
4+3+
2+
Vanadium occurs naturally in 4 different
tanks for more storage;• Electrolyte liquid does not degrade over time – has
residual value at end of battery life;• Optimal for long-duration power delivery (>2 ½ hrs);
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5+
2+ different charge states
Optimal for long duration power delivery ( 2 ½ hrs);• Vanadium represents ~40% of the cost.
TSX: UWE | OTCQB: UWEFF
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Battery CommoditiesVanadium Market
A Green Resources Company
Vanadium Market
Vanadium market slipping into deficit140,000
es)
100 000
120,000
Vanadium required for Vanadium demand for batteries
um (t
onne
80,000
100,000 Li-Ion Batteries
Vanadium required for Redox Flow Batteries
Steel Chemicals
Vana
diu
40,000
60,000Steel, Chemicals
Supply
Source of data: Camelot Ferroalloys
Inc, Vanitec
0
20,000
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02011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Battery CommoditiesVanadium Market
A Green Resources Company
Vanadium Market
Vanadium Pentoxide (V2O5) PriceUp 90% in EuropeUp 90% in Europe
b)Price
ce (U
S$/lb
e (Yuan/toPr
iconne)
Up 90%
Source of data:
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Argus Metal Forum, Nov 1st, 2016
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Strategically Located in Uruguay, Brazil, ArgentinaStrategically Located in Uruguay, Brazil, Argentina
Brazil Properties Nascent Need for Local Frac Sand Supply
Oil & gas production from the VacaUruguay Properties
Vaca Muerta
• 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
Rio Rio Grande Grande
PortPortin Argentina
• Frac sand / proppant market expected to be 800,000 tonnes per year in 2016/2017. Current local production only 6,000t per ear
Favouredroute to the
Argentine Properties
San Antonio San Antonio PortPort
In Shale
year
• Almost all of Argentina’s frac sand imported from Brazil, China & USA
Our properties near key shale basins
route to the Vaca Muerta Rail
Comodoro Comodoro PortPort
San Jorge Shale
Shale p p y& infrastructure (road, rail & ports)
TSX: UWE | OTCQB: UWEFF 22
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Corporate ValuationAfter-tax net present value of projects
A Green Resources Company
$350Berlin Deposit, Colombia
p p jAfter-tax Net Present Value of U3O8 Corp.’s projects
(NPV at 7.5% Discount Rate (US$ Million) )
%
$200
$250
$300p
Laguna Salada Project, Argentina
alue
at 7
.5%
S$M
)
$142
$198
$255
$100
$150
$200
C t M k tPre
sent
Va
unt r
ate
(US
-$40 -$25 $3$31 $59$56
$85$142
$50
$0
$50Current Market capitalization of
U3O8 Corp.
er-T
ax N
et
disc
o u
Combined NPV of
-$100
-$50
$35 $40 $50 $60 $70=$229M =$314M=$145M=$60MA
fte Projects (7.5% discount rate)
Uranium Price (US$/lb)
23TSX: UWE | OTCQB: UWEFFNPVs based on PEAs – see cautionary statements on slide 2
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Corporate ValuationAfter-tax net present value of projects
A Green Resources Company
$250
p p j
After-tax Net Present Value of U3O8 Corp.’s projects (NPV at 10% Discount Rate (US$ Million) )
%
$150
$200Berlin Deposit, Colombia
Laguna Salada Project, Argentina
Valu
e at
10%
S$M
)
$112
$159
$50
$100
$
Current Market Pres
ent V
unt r
ate
(US
-$42 -$29-$4 $22
$47
-$4
$19$66
-$50
$0
$50
=$134M =$206M=$62M
capitalization of U3O8 Corp.
er-T
ax N
et
disc
o u
Combined NPV of Projects (10%
-$100
-$50$35 $40 $50 $60 $70Aft
j (discount rate)
Uranium Price (US$/lb)
24TSX: UWE | OTCQB: UWEFFNPVs based on PEAs – see cautionary statements on slide 2
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Corporate ValuationComparison with peers
A Green Resources Company
$2.50
Enterprise Value per Pound of Uranium Resources250
NI 43-101 Compliant Resources
p p
$1.50
$2.00
$
b
150
200
rce
(Mlb
s)
$0.50
$1.00
$
US$
/l
50
100
nium
Res
our
$0.00
$0.50
Den
ison
Fiss
ion
Ener
gyEn
ergy
Meg
aN
exG
enB
erke
ley
Aza
rga
um R
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Kiv
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ide
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Gov
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ys
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EXEn
ergy
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Cor
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.K
ival
liqEn
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aM
ega
Ura
n
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Vi
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Ura
niu W La
U3O P
Ban
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Ban
n N D La W B
Vim
y PU
3OU
rani
u
• U3O8 Corp. is undervalued relative to peers – has low enterprise value• U3O8 Corp. value per pound of resources is low relative to its peers – still trading as if
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political risk has not improved dramatically in Argentina
Source Data: Dundee Corp. & Cantor Fitzgerald
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U3O8 Corp. Capital StructureA Green Resources Company
p p
Share CapitalU3O8 Corp. Shareholder Base
Market cap(at $0.035) $11.1M
52wk range: $0.02 - $0.04
Average volume (3-mth): 585,000I tit ti l
Basic shares o/s 324M
Options o/s 20M
Warrants o/s 129M
8% Insiders
Institutional 24%
Insiders65% Other
Sh h ld Warrants o/s 129M
Fully diluted 473M
Insiders 11%
Shareholders
Top Shareholders:Dr Keith Barron – founder & director;Dr Keith Barron founder & director;Delaware Street CapitalJMM Partners;Alpha North Asset Management.
26TSX: UWE | OTCQB: UWEFF
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Corporate Strategy:Sequential Project Development
A Green Resources Company
Laguna Salada, Argentina~3 years to potential production
Berlin Project, Colombia~4 to 5 years to potential productiony 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 $1.0MDouble 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 $441MTOTAL to reach mine decision in 2 yrs $7.0MCapexCapex (forex-adjusted)
$136M$117M
Development strategy: Project is
Development strategies:• JV with producer & keep minority stake
• Streaming agreements or royalties on by-
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 byproducts (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
27
g p y ycertainty 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 27
-
A Green Resources Company
Richard Spencer, President & [email protected]
(416) 868-1491www.u3o8corp.com
APPENDIX FOLLOWS
28TSX: UWE | OTCQB: UWEFF
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Uranium Market DriversUnprecedented Nuclear Reactor Build
A Green Resources Company
Unprecedented Nuclear Reactor Build
Operable Under constructionOn
Order TotalLife extension
of existing reactors
Closures planned in the short-reactors term
Pre-Fukushima 443 62 156 661
Dec 2016 447 60 168 675 159 23Projected Supply
Dec 2016 447 60 168 675 159 23
447 518China 43%
447 518
Reactors by 2024
Operable Reactors today, up from 439
29
Reactors by 2024at Dec 2015Source: Word Nuclear Association, World Nuclear News, Dundee Securities, Timeless Uranium 29TSX: UWE | OTCQB: UWEFF
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Uranium Market DriversChinese & Indian Nuclear – long-term growth
A Green Resources Company
160
Chinese actual & planned nuclear energy output (GW) 300
Indian actual & planned nuclear energy output (GW)
100
120
140
Out
put (
GW
)
Chi ’ l
USA’s nuclear output: ~100GW 200
250
paci
ty (G
W)
India’s nuclear energy plan shows that India’s build is also exponential, comparable with China’s
40
60
80
ar E
nerg
y O China’s nuclear
build is exponential 100
150
r Ene
rgy
Cap comparable with China s
0
20
1969
1981
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1994
1998
2000
2002
2004
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2020
2022
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2026
2028
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2032
Nuc
lea
0
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1969
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2028
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2043
2046
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Nuc
lear
• China- world’s 2nd largest economy;• Air polution non-carbon power sources;• Water polution symbiosis between nuclear
& f /
• India - world’s 7th largest economy;• 7% average GDP growth rate in last 20 years;• 1/3 of popluation doesn’t have electricity;
30
& water purification / desalination. • 2/3 electricity provided by coal;• Per capita electricity use to double by 2020.
TSX: UWE | OTCQB: UWEFF
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Laguna Salada Project, Argentina:Project status & pathway to production
A Green Resources Company
Discovery
Initial (10Mlb) NI43-101 uranium resource
Landmark agreement with Provincial govt
Initial (10Mlb) NI43 101 uranium resource
PEA focus on projected cash cost $22/lb
Increase resource to 20-25Mlbs
Trial Mining Pilot processing plant
PEA – focus on projected cash cost
Next Steps
Low cash cost of production
Trial Mining Pilot processing plant
Feasibility Study
Construction decision
p
Construction decision
31TSX: UWE | OTCQB: UWEFFTSX: UWE | OTCQB: UWEFF
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Laguna Salada DepositOverview
A Green Resources Company
Overview
Argentina’s only NI 43-101 uranium resource on which a PEA has been
l d
10Mlb uranium resource,Vanadium by-product,
completed
Simple Geology
10 year mine life
Flat-lying in soft gravel
E l ti h d fi d t i
Simple Mining
Clear resource-growth potential Exploration has defined extensions to the deposit
Free-digging “migrating trench”
Simple ProcessingScreening to remove pebbles &
concentrate uranium – followed by standard alkaline leach
In-country uranium-enrichment
Continuous real-time environmental restoration
Shrubs moved from leading edge of the trench replanted on trailing edge
Pilcaniyeu located ~450km from
32
In-country uranium-enrichment facility
Pilcaniyeu located 450km from Laguna Salada
TSX: UWE | OTCQB: UWEFF
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Laguna Salada ProjectPEA Highlights
A Green Resources Company
PEA shows potential for low-cost, near-term productionPEA Highlights
PEA Highlights (base case, in US$ at US$60/lb U3O8)U i V di
Annual productionUranium Vanadium0.6Mlb 0.96Mlb
Revenue $223M $53M
P i i l Fi i l M t i P T Aft TPrincipal Financial Metrics Pre-Tax After-TaxNPV discount rate 7.5% 10% 7.5% 10%NPV (incl royalties due to State) $55M $43M $31M $22MIRR 24% 18%
Cash cost of production, capex, mine life & payback periodMine life 10 yearsLife 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/lbAverage uranium cash cost of production over 2½ year payback1 $16.14/lbTotal capital (incl. sustaining & 20% contingency) $136M
33
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 2TSX: UWE | OTCQB: UWEFF 33
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Laguna Salada DepositPEA Summary
A Green Resources Company
PEA Summary 1st independent PEA completed on a uranium deposit in Argentina; Study completed by Tenova (Bateman) >100 years of experience; Resource: Resource:
10Mlbs uranium (6.4Mlbs recoverable); 84Mlbs vanadium (10Mlbs recoverable);
Projected average annual production 0 6Mlb uranium over 10 year mine life: 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%.plant equipment was quoted could reduce Capex by 15%.
34
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 34
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Berlin Project, Colombia:Project status & pathway to production
A Green Resources Company
j p y p
Highest-value project in U3O8 Corp’s portfolio with one of the lowest projected uranium extraction costs in the industryp j y
Built on discovery by Cogema (Areva)
Initial (21Mlb) NI43-101 uranium resourceInitial (21Mlb) NI43 101 uranium resource
Having confirmed low potential production cost in PEA PEA – focus on projected cash cost
Pilot processing plant
Next Next StepStep
Test alternative extraction techniques
Increase resource to 50Mlb threshold
Feasibility Study
TSX: UWE | OTCQB: UWEFF 35
Construction decision
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Berlin:Introduction
A Green Resources Company
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 ofresource 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; G d i f t t 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
COLOMBIA
p p p g yrailway 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
36
on site to remove the contained metals.
TSX: UWE | OTCQB: UWEFF 36
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Berlin DepositCross Section
A Green Resources Company
Cross Section
Mi li ti i 3 thi k
West East
Mineralized layer Mineralization in 3m thick layer; Remarkable continuity; Underground mining
SandstoneShale
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.
3737TSX: UWE | OTCQB: UWEFF
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Berlin Project, ColombiaMulti-commodity Resource
A Green Resources Company
Current resources defined in compliance with NI 43-101 (0.04% U3O8 cut-off grade) on southern 3km of a 10 5km mineralized trend
TrenTren
on southern 3km of a 10.5km mineralized trend
Tonnes (million)
Uranium Phosphate Vanadium YttriumGrade (Mlb) Grade (Mt) Grade (Mlb) Grade (t)
0.6 0.11% 1.5 8.4% 0.05 0.4% 6.0 461ppm 294
4km
ched Are
ched Are
10.5k
8.1 0.11% 19.9 9.4% 0.8 0.5% 91.0 500ppm 4,066
Tonnes (million)
Neodymium Nickel Molybdenum RheniumGrade (t) Grade (Mlb) Grade (Mlb) Grade (t)
Drill
Drill3
eaea
km M
ineral
0.6 110ppm 70 0.2% 3.1 570ppm 0.8 6ppm 48.1 100ppm 813 0.2% 42.1 620ppm 11.0 7ppm 55
Tonnes ( illi )
Zinc Silver
led Area
led Area
.5kmlized Tren
(million) Grade (Mlbs) Grade (Moz)0.6 0.30% 4.4 2.8ppm 0.18.1 0.30% 45 3.4ppm% 0.9
Current resource in
southern 3km of 10.5km trend
3kmd
38TSX: UWE | OTCQB: UWEFF
10.5km trend m
-
Berlin ProjectPEA: commodities produced,
A Green Resources Company
% of revenue generated by each commodity
Main uses of commodities:Neodymium
1%Moly, Zinc
3% Uranium: Nuclear energyPhosphate: Fertilizer, batteries
Nickel: Stainless steel, batteries, fertilizer
Yttrium6%
1% 3% Revenue: US$2.8B
Vanadium: Steel alloys, batteriesYttrium: Lazers, electronics, monitors
Neodymium: Magnets high-efficiency motors
Uranium35%
Nickel
Vanadium9%
Neodymium: Magnets, high efficiency motorsBase metals: Steel alloys, fertilizer, Zn-Ceflow batteries, galvanizing, alloys
15%
Phosphate31%
Metals & Phosphate extracted in a single metallurgical process – iron sulphate leach – was the principal process used at Elliot Lake
39
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
TSX: UWE | OTCQB: UWEFF
p p p p
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Berlin Project’s Other Commodities:“Clean Energy & Agriculture Commodities”
A Green Resources Company
Clean Energy & Agriculture Commodities
Battery Commodities: NickelBattery Commodities: Nickel, Vanadium, Phosphate
Ph h t f f tiliPhosphate for fertilizer
Berlin contains 3 micronutrients used in Ni
Mo
speciality fertilizersZn
Rare Earth Elements:Rare Earth Elements:• Neodymium for supermagnets in motors & generators;• Yttrium for red phosphors
40TSX: UWE | OTCQB: UWEFF
in screens an lazertechnology
-
Berlin Deposit:PEA Highlights
A Green Resources Company
Potential to be a large, very low-cost uranium producerProjected Base Case – PEA Highlights (US$60/lb U3O8), reported in US$
Annual uranium production 1 2Mlb
PEA Highlights
Annual uranium production 1.2Mlb
Mine life 15 years
Cumulative free cash flow $982M
Pay-back period 4.6 yearsy y
Initial capex $360M
Sustaining capital $40M
Contingency $41M
Total capex (incl. 10% contingency) $441M
Principal Financial Metrics Pre-Tax After-TaxNPV discount rate 7.5% 10% 7.5% 10%NPV (incl royalties due to State) $338M $223M $198M $112MIRR 19% 15%
$1.8Billion of by-product revenues would cover the $1.6Billion
41TSX: UWE | OTCQB: UWEFF1. Projections based on Berlin PEA – see cautionary statements on slide 2
operating cost (cost of mining & extraction)1
-
Berlin ProjectDrilling has shown Resource Growth Potential
A Green Resources Company
N >25Mlbpotential
21Mlb NI 43-101 Uranium Resource
4kmpotential identified
by trenching
U a u esou ce 25-30Mlb potentialexploration-drilled area >25Mlb – northern area –potential indicated by
10.5km
25-30Mlb resource potential
trenchingpotential indicated by trenching> 70-75Mlb potential
Mineraliz
3.5kmGreen unit contains uranium &
other minerals
potential already
identified by drilling
zed Trend
3km
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
21MlbCurrent
NI 43-101
42
exploration to define a mineral resource on these targets & it is uncertain if further exploration will increase the current deposit – see slide 2.
NI 43 101 uranium resource
TSX: UWE | OTCQB: UWEFF
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Berlin DepositPotential to Improve Project’s Economics
A Green Resources Company
Potential to Improve Project s Economics
Potential to reduce operating (Opex) and capital costs (Capex): Test work on the effectiveness of alternative techniques for the 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 asElements (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.
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
4343
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