U3O8 Corp. (TSX: UWE), (OTCQB: UWEFF) (“U3O8 Corp.” or the “Company”) highlights the production schedule from the Preliminary Economic Assessment (“PEA”) on its Laguna Salada Deposit, in which almost twice as much vanadium would be produced as uranium.
Richard Spencer, President & CEO of U3O8 Corp, said:
“Vanadium prices have risen strongly in response to a supply shortfall that has been developing in the vanadium market. The trigger for the recent sharp price increase was a change in policy in China that resulted in restricted access to vanadium slag and higher local production costs, coming on the back of increasing vanadium consumption, notably from the steel and battery industries.
Based on a vanadium pentoxide price of US$5.50 per pound, the 0.8mlb to 1.2mlb vanadium production per year estimated in the PEA would contribute 12% of the Laguna Salada Project’s revenue. Vanadium pentoxide is now trading at over US$12 per pound. In addition, Argentina paid an average of US$58 per pound for imported uranium last year, only marginally below the US$60 per pound price used in the economic analysis in the PEA”.
The mining schedule defined in the PEA on Laguna Salada starts with production from the richest part of the Deposit so that revenue would be maximized so that the capital required to develop the Project would be paid back as quickly as possible – in two and a half years as per the current PEA.