(“UrAmerica” or “the company”)
Exploration update and Appointment of Executive Chairman
The following highlights summarize advances and achievements of the last 18 months:
- Consolidated the largest uranium-prospective land position within the San Jorge Basin in the Province of Chubut which includes licenses adjacent to Argentina’s National Atomic Energy Commission’s (CNEA) Cerro Solo Deposit.
- UrAmerica have drilled over 24,000 meters in 18 months to May 2013, which provided data for a Mineral Resource Estimate (‘MRE’) totaling 27.9 million tonnes (Mts) with an average grade of 310 ppm eU3O8 for a contained 19.1 million lbs (Mlbs) of eU3O8 using a cut- off grade of 200 ppm. The resource is hosted by the Graben, Plateau West and Plateau East deposits, within sub-horizontal layers between 40 metres and 140 metres below surface and between 1 and 15 metres in thickness.
- All boreholes were drilled by the Reverse Circulation (RC) method. The MRE is based upon uranium grades determined from down-hole gamma probe data (equivalent U3O8, or eU3O8). Laboratory analysis of the RC samples was undertaken to support the equivalent grades.
- Historically 55,000 meters were drilled to define CNEA´s neighboring Cerro Solo Deposit, which hosts a historic resource of 10.1 Mlbs U3O8.
- From December 2011 to May 2013, for each meter of drilling, over 600 lbs of eU3O8 were added to the resource which reflects the continuity of the mineralization and the technical strength of the geological team.
- The prospective (‘Los Adobes’) paleochannel within UrA’s Project Area covers 3,800km2. Only 85km2 has been drill-tested to date (2.5% of the total). This provides exciting potential to grow resources in the near future with initial targets already identified:
- At Plateau West, a tabular deposit of exceptional continuity has been identified that remains open to the south west (RC_12_0073 intersected 8 metres grading 275 ppm eU3O8)
- At Ganso ‘first pass’ drill hole RC_12_0130 intersected 3 intervals of uranium mineralization, the best having an assay grade of 7 metres (true thickness) grading 668 ppm U3O8 from a depth of 131.5 metres. This mineralisation is interpreted to be on the edge of a roll front system.
- At Contreras, based on mapping and trenching, UrA geologists have an exploration target of between 6Mts to 20Mts grading between 70 to 200ppm U3O8, between 0 and 20 meters depth.
- UrAmerica is testing the use of advanced soil geochemical methods to detect buried mineralization, if successful this will allow large areas of the paleochannel to be assessed rapidly and cost-effectively.
- A diamond core drilling campaign of 7 to 10 holes is planned to allow geological observation to be made and to provide samples for analysis to provide additional support to the eU3O8 grades, which is required if the current Inferred Resource is to be upgraded.
- An RC drilling programme to follow up on RC_12_0130 at Ganso.
- UrAmerica will assess the potential application of In Situ Recovery (ISR) which is a widely used method for the recovery of uranium from sandstone-hosted uranium deposits. The method involves the pumping of a lixiviant through a borehole, which circulates through the host-rock dissolving uranium; the solution is then extracted via a second borehole. Approximately 75% of the current resource is below the groundwater table which is a key requirement for ISR application.
Appointment of Executive Chairman:
Following the successfully 2012/13 drill campaign UrAmerica is pleased to announce that Mr. Neil Herbert, Non-Executive Chairman and Director in the company since 2008, has been appointed as Executive Chairman. He has considerable experience in managing and investing in the resource sector, he was Finance Director of pan African uranium explorer UraMin Inc until its acquisition in 2007 for $2.5bn and was until May 2013 Co-Chairman and Managing Director of investment company Polo Resources Limited with its track record of successful investment in the uranium sector. His new role, working alongside CEO Omar Adra, will enhance the management team as UrAmerica evaluates options for development of its projects in the San Jorge Basin.
Chief Executive Officer Omar Adra said ‘UrAmerica has made tremendous progress over the last 18 months, achieving significant results in a cost efficient manner. The company is now focused on evaluating the potential for in situ recovery while continuing to evaluate further high grade exploration targets. As we enter this important stage of development against a challenging set of circumstances for the sector as a whole I am very pleased to welcome Neil Herbert, with his considerable experience, into our executive team.’
Table 1 Mineral Resource Estimate, dated June 7th 2013.
Qualified Person Statement:
The scientific and technical information in this release has been reviewed and approved by Mr. Andrew Pedley a Qualified Person under the terms of National Instrument 43-101. Mr. Pedley has verified the data disclosed in this press release. Mr. Pedley is a registered professional scientist with the South African Council for Natural Scientific Professions.
For further information contact UrAmerica Limited at:
Tel: (54) 11 4804 2115
This press release contains forward-looking statements and information within the meaning of applicable securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that UrAmerica expects or anticipates will or may occur in the future, including statements as to the potential success of any current and future exploration, UrAmerica’s ability to discover and develop a world class uranium deposit in the Chubut Province, Argentina, the benefits to Provincial and Local communities, the Joint Venture Company’s ability to achieve positive feasibility in respect of a deposit, and the timely meeting of certain pre-determined milestones. When used in this press release, the words “potential”, “indicate”, “expect”, “intend”, “hopes”, “believe”, “may”, “will”, ”if” and similar expressions are intended to identify forward-looking statements and forwardlooking information. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of UrAmerica to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, the risks and hazards associated with the business of mineral exploration, development and mining, the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, changes in national and local government, legislation, taxation, controls or regulations and political or economic developments in Argentina, risks concerning UrAmerica’s title to properties; potential effects on UrAmerica’s operations of environmental regulations in Argentina; risks due to legal proceedings; risks relating to political and economic instability Argentina. Although UrAmerica has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Except as required by law, UrAmerica assumes no obligation to publicly update any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.