A preliminary economic assessment is expected in late 2013 to determine if Canada-based exploration company U3O8 Corp’s Laguna Salada deposit in Argentina’s Chubut province could potentially be positioned for near-term production using low-cost mining and processing techniques that nonetheless comply with the stringent environmental requirements in Chubut’s mining legislation.

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

The assessment envisages continuous surface mining whereby the gravel is scooped into a cylindrical, rotating screen to separate the pebbles from the mineralised fines.

U3O8 corp has outlined its growth strategy in Argentina and aims to position itself - in accordance with Canadian National Instrument 43-101 (NI 43-101) standards - as a potential low-cost, near-term producer, while setting up a pipeline of projects for sequential exploration.

U3O8 Corp’s Argentina strategy comprises near-term production potential.

U3O8 Corp president and CEO Richard Spencer says the NI 43-101-compliant deposit lies within 3 m of surface in soft gravel that requires no blasting or crushing.

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

Another key step in the development of Laguna Salada is expected to be reported on shortly. In addition, other discoveries in U3O8 Corp’s concessions in the Laguna Salada region offer further resource expansion potential.

U3O8 Corp has been building strategic holdings in other, longer-term projects in Argentina including a land position adjoining the country’s largest known uranium deposits, such as the State-owned Cerro Solo and Sierra Pintada deposits. U3O8 Corp’s land position has been further strengthened with properties held by Calypso Uranium Corp, which was recently acquired in a friendly transaction.

U3O8 Corp holds exploration concessions adjacent to the Cerro Solo deposit currently being drilled by the Argentine State.

“We see the Cerro Solo region as the next development opportunity after Laguna Salada, and have, therefore, positioned U3O8 Corp as a key player in the expected consolidation of this emerging uranium district. Uranium company Cameco is reported to be drilling with a joint venture partner in the Cerro Solo district. Calypso’s concessions dovetail with U3O8 Corp’s land position so that we now control the property extensions to the State’s past-producing Sierra Pintada deposit,” Spencer states.

The Calypso acquisition also added exploration ground over and enclosing the State’s Huemul deposit, a historic mine in Mendoza province that produced uranium, copper and vanadium.

Spencer adds that with Laguna Salada as one of the most advanced projects in Argentina, followed by a strong pipeline to drive further growth, U3O8 Corp is well placed to contribute to domestic uranium production to reduce Argentina’s 100% reliance on imported nuclear fuel.

With two fully operating reactors, a third reactor currently being tested and scheduled to be in commercial production by the end of the year, and a fourth reactor out to tender, Argentina represents a sizeable market for locally produced uranium.

In addition, with Brazil’s third reactor reported to be reliant on imported fuel, and Argentina having signed nuclear cooperation agreements with China, the United Arab Emirates and South Korea, there is significant export potential for Argentine uranium. Argentina’s nuclear leadership in South America is reflected in its research centres, medical isotope and enrichment facilities and small modular reactor design.