UrAmerica in Chubut, Argentina - Discovering Uranium in Latin America

ARGENTINA - CHUBUT

Uranium Chubut

The Chubut Province is located in Patagonia, Southern Argentina. Our exploration permits are situated 350km SW of Chubut’s Capital City within the San Jorge Basin.

Chubut Province in Argentina

Operations take place in an extensive plateau at an average high of 800m. The region is easily accessed by National Road #25

Our detected anomalies follow a similar geological model to the one identified at CNEA's (National Comission of Atomic Energy) Cerro Solo Deposit.

The San Jorge Basin (see image below), covering approx. 180.000km2, contains Jurassic and Cretaceous continental sediments, hosting important oil, gas, uranium, silver & copper deposits.

CNEA’s Cerro Solo Deposit hosts an estimated 15.4M lbs U3O8, at a grade of 4,700ppm U3O8. The mineralized layers are hosted by fluvial sandstones and conglomerates belonging to the Los Adobes Formation of the Cretaceous–age Chubut Group.

Cerro Solo was a blind discovery during the 1960s. However, the project was not taken further at that time. In the region, two small sized uranium deposits were mined in the 1970’s: Los Adobes and Cerro Condor, both adjacent to UrAmerica’s licensed areas.

The CNEA recently announced their intention to begin open pit mining at Cerro Solo in 2012. They have been drilling there since 2009, presumably to increase confidence in the existing resource in order to complete a feasibility study prior to commencing mining operations.

San Jorge Basin - Chubut - Argentina

UrAmerica in Chubut

UrAmerica controls 48 exploration permits in the San Jorge Basin.

19 wholly owned permits, covering over 140,000ha scattered throughout the San Jorge Basin
3 permits through a JV with Pacific Bay, covering over 30,000ha near the Cerro Solo Deposit
26 permits through a JV with Patagonia Resources Ltd (ex-Urex), covering over 130,000ha surrounding the Cerro Solo Deposit & Los Adobes Open Pit

UrAmerica’s permits (yellow) vs.

other companies (green)

Chubut – Argentina

Paso de Indios is where our regional operational and technical office is located, 366km southwest from Chubut's Capital City. The town`s Mayor and the local Community have a Pro-Mining Attitude.

The Cerro Solo area is a sparsely vegetated, remote landscape of gently rolling topography. The area has very few local inhabitants and its sole activity is sheep herding. There is easy year round access to the project area, which is considered to be an ideal location for a mining project.

The Governor of Chubut, Mario Das Neves, also expressed in March, during the 2010 Provincial Legislative Chamber's session opening, a pro-mining attitude for the Province`s Central Plateau:

"We must develop the exploitation of mineral resources"

"It is essential to establish, in the Central Plateau area,politics that secure production and work"

"We need to take advantage of all resources, in order to generate more jobs. Motive enough to apply these state policies"

In 2009, Pan American Silver Corp. invested U$S 630M in acquiring & developing Aquiline Resources' Navidad Project in Chubut's Central Plateau. The Company is currently exploring the area and plans to invest another U$S 16.5 million in exploration programs, while advancing on the Navidad Project feasability study, which is to be completed by 2011. When operational, the silver mine will be one of the largest in the world.

Our permits lay outside the restricted mining area in the Chubut Province

UrAmerica’s permits, which lay outside the

restricted mining area in the Chubut Province

(Provincial Law N°XVII-90)

In most licensed areas Uranium anomalies where detected by radiometric surveys, geochemical sampling, trenching and/or first pass drilling. All permits have the environmental licenses approved by the provincial authority and the areas are ready to be drilled.

On the Chubut permits, UrAmerica has already executed 5 exploration campaigns to date.

Geological models have been developed by examining and mapping the local geology
Satellite imaging has been conducted to narrow down prospective areas
Extensive field work (i.e. airborne radiometric surveying, geochemical sampling, and analysis)

In addition, results from existing trenches and boreholes have been thoroughly analyzed.