Western Uranium Announces Joint Venture at Sage Mine

Western Uranium Corporation (CSE:WUC,OTCQX:WSTRF) announced it has signed alLetter agreement with Battery Mineral Resource Nevada, a wholly-owned subsidiary of Battery Mineral Resources to form a joint venture for vanadium development at the Sage Mine Project.

According to the company vanadium grades in excess of 1.50 percent at the Sage Mine represent some of the highest in the world.

Western Uranium Corporation is a Colorado-based uranium and vanadium conventional mining company focused on low cost near-term production of uranium and vanadium in the western United States and development and application of ablation mining technology.

As quoted from the press release:

The Sage Mine project is located within the Uravan Mineral Belt and comprised of 94 unpatented mining claims in Utah and Colorado, USA. Sage Mine’s last production was in 1990. A technical report on the Sage Mine project entitled “Technical Report on Sage Plain Project”  was prepared for Colorado Plateau Partners LLC. The Report, which is dated December 16, 2011, was prepared in accordance with the National Instrument 43-101, Standards of Disclosure for Mineral projects (“NI 43-101”). The report was prepared by Douglas C. Peters  as a “qualified person” as such term is defined under NI 43-101.

The Report provided historic resource estimates of about 4.8 million pounds of vanadium at an average grade of 1.72 percent and about 580,000 pounds of uranium at an average grade of 0.21 percent; an approximately 8:1 ratio of vanadium to uranium. Moreover, the report disclosed ultra-high vanadium grades in the Sage Mine deposit at 1.67 percent, 2.54 percent, and 1.80percent, respectively for the formerly classified measured, indicated, and inferred resources.

Under the Agreement, BMR will underwrite the cost of scoping, engineering and technical studies during the due diligence period to prepare for commencing pre-production work for resumption of production. Subsequent to the due diligence work program, BMR has the option to enter into a definitive Joint Venture Agreement which will trigger an additional buy-in payment to Western. Thereafter BMR and Western will divide joint venture expenditures 50/50 and divide vanadium offtake 65/35 and uranium offtake 10/90. The higher percentage of vanadium offtake for BMR aligns with its rechargeable battery and energy storage mandate.

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