Huemul was Argentina´s first producing Uranium mine and operated between 1955 and 1975, recording approximately 500,000 pounds of historical U3O8 production before it closed in 1976.
Consolidated Uranium to Acquire the Past Producing Huemul Uranium-Vanadium-Copper Project. (Credit: Kefentse Molotsane on Unsplash)
Consolidated Uranium Inc. (“CUR”, the “Company”, “Consolidated Uranium”) (TSXV: CUR) (OTCQX: CURUF) is pleased to announce that it has entered into two purchase agreements to acquire 100% of the Huemul-Agua Botada Uranium-Vanadium-Copper Mine (“Huemul”) and surrounding prospective ground totalling ~27,350 hectares located in the Malargüe department of southern Mendoza province, Argentina (Figure 1) (collectively referred to as the “Huemul Project”). Huemul was Argentina´s first producing Uranium mine and operated between 1955 and 1975, recording approximately 500,000 pounds of historical U3O8 production before it closed in 1976.1
Highlights
Adds Second Argentine Project in Mining Friendly Region – CUR has been actively working in Argentina since the acquisition of the Laguna Salada project in late 2021. Beyond the technical merits of Huemul, its location in the mining friendly Malargüe department of Mendoza province was an important consideration in making the acquisition.
Leverages Existing In-Country Expertise – The CUR team in Argentina boasts decades of experience operating in the country exploring for and developing various commodities, including uranium. The team conducted numerous technical due diligence site visits and stands ready to move quickly to advance the project once required approvals and permissions are granted.
Transaction Consolidates Large Land Package for the First Time – The Huemul area, including the historic mine area, was the subject of exploration by several different owners in the past. This will be the first time the entire package has been held in a single hand opening the potential for a more regional exploration approach.
High Uranium, and Copper Grades Previously Recovered – The Huemul mine historically recorded approximately 500,000 pounds of U3O8, ~175,000 pounds of V2O5 and 5.2 million pounds of Cu production from approximately 130,000 tonnes of ore averaging 0.21% U3O8, 0.11% V2O5 and 2.00% Cu by flotation at a concentration plant.
Robust Near Mine and Regional Exploration Potential – The down-plunge and along-strike extensions of mineralization at the Huemul mine and Aguas Botada zones are underexplored and merit additional exploration work. In addition, the target geological sequence is present and mineralized at surface over large areas across the project. Gently dipping conglomerate units hosting the mined ore at Huemul extend southwards from the historic mine workings and are traceable over at least 15 kilometers. Within this target stratigraphic package, strong Uranium-Vanadium-Copper geochemical anomalies, with broad corresponding Uranium and Thorium radiometric anomalies, have been defined by a previous exploration company. These anomalies have never been drilled.
Multiple Critical Minerals Present – Uranium, copper and vanadium are considered critical minerals by many countries based on their importance for the transition towards more environmentally friendly “green” energy.
Argentina Needs Uranium – With three reactors currently generating approximately 7% of the country’s electricity, a fourth under construction and a history of producing, converting and enriching its own uranium, CUR believes exploring for developing uranium mines in Argentina has strong merit and may ultimately garner support by all levels of government.
Philip Williams, Chairman and CEO of CUR, commented, “Argentina is often overlooked in the CUR portfolio but is a country that presents significant opportunities. Few jurisdictions that have such a strong commitment to nuclear power also have the proven geological potential to provide domestically sourced uranium. In this regard it is very similar to the dynamics unfolding in the U.S. uranium industry, however, the level of competition in Argentina is nearly non-existent, providing a tremendous opportunity to CUR. The Huemul Project, with its history of uranium mining and large, consolidated land package positions CUR to be one of the leading Uranium explorer-developers in Argentina’s Neuquén basin, which could rival the large historic Uranium producing basins located in the western U.S. and Kazakhstan. Huemul was Argentina´s first producing Uranium mine and we believe that its location in the emerging mining-friendly department of Malargüe, as well as its vanadium and copper potential, represents an exciting opportunity for the Company.”