TORONTO (miningweekly.com) – Canada-based uranium project developer U3O8 Corp this week outlined its strategy for Argentina, saying it believed the Laguna Salada deposit was a potential low-cost, near-term producer, and setting up a pipeline of projects for sequential exploration, to eventually supply the growing uranium demand in the country.

U3O8 said that, given its simplicity, Laguna Salada, in Chubut province, could be positioned for potentially near-term production using low-cost mining and processing techniques that would comply with stringent environmental requirements as set out in Chubut's mining legislation.

This National Instrument 43-101-compliant deposit was only 3 m below the surface, in soft gravel that required no blasting or crushing.

A preliminary economic assessment was expected to be completed late this year, and was based on continuous surface mining, whereby the gravel would be scooped into a cylindrical, rotating screen to separate the pebbles from the mineralised fines.

The pebbles would then be returned to the excavated area, which would be contoured to recreate the original topography, seeded and reclaimed, while mining continued in the adjacent area.

The fine-grained mineralised material would be leached with an alkaline solution to extract the uranium and vanadium.

U3O8 added that its other concessions in the Laguna Salada region offered greater resource expansion potential.

Over the long term, U3O8 had been building strategic holdings in other, longer-term projects in Argentina, including a substantial land position next to the country's largest known uranium deposits, the State-owned Cerro Solo and Sierra Pintada deposits. U3O8’s land position was, earlier this month, further strengthened through the acquisition of Calypso Uranium and its properties.

With Laguna Salada being one of the most advanced projects in Argentina, and a strong project pipeline to drive further growth, U3O8 said it was well placed to contribute to domestic uranium production to reduce Argentina’s 100% reliance on imported nuclear fuel.

Argentina had two operational nuclear reactors, a third reactor that was currently being tested and was scheduled to be in commercial production by the end of the year, and a fourth reactor out to tender.

Neighbouring Brazil's third reactor was also believed to be dependent on imported fuel and, with Argentina having signed nuclear cooperation agreements with China, the United Arab Emirates and South Korea, there was significant export potential for Argentine uranium.

Argentina's nuclear leadership in South America was also reflected in its research centres, medical isotope and enrichment facilities and small modular reactor design.

The company’s shares closed 6.67% higher on Friday at C$0.16 apiece on the TSX.