Kuchling, and five other independent geoscience professionals report that all exploration, metallurgy, resource estimates, and the Preliminary Economic Assessment have been completed to be compliant with Canadian National Instrument 43-101 as set forth in CIM Standards on Resources and Reserves, Definitions and Guidelines. The PEA was initiated to provide an initial view of the potential economics of the Operation, and to provide management with guidance for the future exploration and development processes. The reader is cautioned that the PEA is preliminary in nature and is based solely on Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability and there is no certainty that the PEA will be realized.
The authors of the technical report conclude that:
ï‚· Based on the current level of exploration, the Ivana Deposit contains an inferred mineral resource of 28 Mt at a grade of 311 ppm U (0.037 % U3O8) and 107 ppm V (0.019% V2O5).
ï‚· Possible extensions to the mineralization at Ivana may be found outside of the current drilling pattern, which has not yet defined the final limits of the mineralized horizons, or in the discovery of satellite deposits nearby.
ï‚· Upgrading of the resource categories will be required to further advance the project.
ï‚· The Ivana Deposit demonstrates attributes well suited for a potential 13 year mining operation, including near-surface mineralization, favorable uranium grades, access to infrastructure and amenability to simple processing via pre-concentration and leaching.
ï‚· The surface mine will have a depth in the range of 20 to 30 metres with a strip ratio of 1.1:1. The sand and gravels will be free digging, negating the need for explosives at site.
ï‚· Concurrent backfilling of the mine with mine waste and LFCPP Reject will enhance progressive reclamation.
ï‚· The processing method takes advantage of pre-concentration using a simple scrubbing step to remove 77% of the waste. The remaining 23% of the material will undergo a leaching process to recover both uranium and vanadium.
ï‚· The project demonstrates positive economics at a range of uranium prices, based on the current technical assumptions; however, the economics are highly leveraged to the price of uranium.
ï‚· Vanadium recovery provides a by-product credit and approximately 10% of the project revenue stream.
ï‚· Based on results of exploration work carried out over parts of the Amarillo Grande Project outside of the Ivana Deposit since 2006, the potential for discovery of additional uranium-vanadium deposits elsewhere on the Project lands is considered high.
ï‚· Nuclear power generation is expanding in Argentina and hence a local supply source of uranium
will be a benefit to the country.
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