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ANDY SCHECTMAN | Owning a Precious Metals IRA

Andy Schectman the President of Miles Franklin Precious Metals Investments sits down with Maurice Jackson of Proven and Probable to discuss the strategic advantages available to precious metals investors regarding tax loss selling, and the value proposition of owning precious metals IRA, which is redeemable in cash and or physical precious metals.

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Owning Precious Metals in an IRA

Original Source: https://www.streetwisereports.com/article/2018/12/10/owning-precious-metals-in-an-ira.html?utm_source=na_19081&utm_medium=recommended_article&utm_campaign=internal_recommended_article

Source: Maurice Jackson for Streetwise Reports  (12/10/18)

Maurice JacksonAndy Schectman of Miles Franklin Precious Metals Investments discusses with Maurice Jackson of Proven and Probable some benefits of holding precious metals in IRAs as well as some other tax advantages of precious metals.

Gold and Silver
Maurice Jackson: Welcome to Proven and Probable. Joining us is Andy Schectman, the president of Miles Franklin Precious Metals Investments.
In our previous interview, we addressed the value propositions and opportunity of a lifetime available right now in silver and platinum. Today, we will address two very important topics regarding tax law selling in precious metals RAs.
Mr. Schectman, before we begin, for first time listeners, who is Miles Franklin, and what type of services do we provide?
Andy Schectman: Thanks, Maurice. I’m going to address that in one second, I just want to say for your listeners, they ought to go back and listen to that last interview. I wouldn’t say something as sincere as I believe it to be the opportunity of a generation in silver right now and a strong opportunity in platinum. I really do believe that. And I know we’re not going to talk about that today, so I would really hope that your listeners would go and take advantage of listening to that. It’s as sincere as I can be.
Miles Franklin, Maurice, is a precious metals company, been in business now for 29 years in the state of Minnesota. We’ve never had a customer complaint, ever. We’re one of only 27 or 28 companies ever approved by the United States Mint. We maintained an A+ rating with the Better Business Bureau. And we have a reputation in this industry that is synonymous with honesty and integrity. And that’s exactly why I work with you, Maurice. I have you on my website. You’re a man of honor and that’s what we ascribe to be.
But the state of Minnesota does not care about our intentions or what we ascribe to be or our reputation in this federally non-regulated industry. And for over two years now, Minnesota is the only state in America to regulate the precious metals industry with a large surety bond and background checks of all our employees every single year, including principals, and compliance and continuing education that no one else has to abide by, unless they either reside in Minnesota as a precious metals company, or sell gold into the state as a precious metals company.
And what it really means in a federally non-regulated industry, Maurice, is a reputation that’s as solid as it gets, and the state of Minnesota guaranteeing that should anything ever go wrong, there’s a large surety bond in place to take care of any discrepancies. So, not that that will ever happen, but certainly the state of Minnesota guarantees that it won’t. And a little insurance in a federally non-regulated industry is not a bad thing, in my opinion.
Maurice Jackson: Andy, I want to begin by thanking you for the compliment. The respect is mutual. A number of investors in the stock market understand the advantages of tax-loss selling when it comes to their stock portfolio. But I find that in many circumstances, precious metals investors are not aware that they may implement a similar strategy on their physical precious metals holdings. Can you share with us some of the options precious metals investors may use to their benefit?
Andy Schectman: Actually, yeah. I find that a lot of accountants don’t even know how this rule applies, the difference between a precious metals tax swap or tax loss versus a security’s tax loss opportunity. Let me explain. When you sell a security for a loss, you are not allowed to buy it or anything similar to it back for 31 days. Or if you do, it’s a violation of what’s called the 30-day wash rule. The intention of that is imagine you have a large capital gain. You sold an investment property or sold a stock at a huge gain, or cryptocurrency at a huge gain, and you have a stock that you really like at a loss. You’d like to book that loss, but you don’t want to relinquish custody of the stock. So, the idea would then be sell the stock at a loss to cover the gain, to offset it. And then just buy it right back for the typical commission in buying a security on something like Scottrade that might only be $9.
The bottom line is that the federal government says, “Well, you can sell a security to offset a capital gain, you can use a capital loss to offset a capital gain. But if you do that, you can’t buy that same stock back or anything similar to it for 31 days.” Okay, fine. That 31 day wash rule does not apply to precious metals. So, if we were talking about trading gold for gold or silver for silver to book a loss and buy it right back, that’s completely, totally legal, as long as custody changes place. So, in other words, if you had gold to sell and you wanted to book a loss at these low levels, and either apply it towards a capital gain today, Maurice, or government allows you to carry that forward either … I think it’s $3,000 a year off or regular income, or you can carry it forward indefinitely until you have a capital gain.
But if you do it for the exact same product, in fact, the exact same product that you sell, you just decided to buy it back immediately, you can do that as long as custody changes hands. You’d have to send it to us and then we send it back to you. Just normal business spreads apply. But then you can book that loss. But, looking at gold to silver right now, I guess we can touch on it for a second. Never been a better time to kill two birds with one stone, sell your gold at a loss, book that loss and convert it to silver at 86 to 1 ratio.
That ratio, Maurice, has only been seen or bettered once in the last 50 years in 1993. When you look at silver right now, I see a historical ratio of silver to gold of being 40 to 1 going back 100 years. Over the last 50 years, it’s a little higher at about 45 to 1. But anytime you can see 80 to 1 bettered at all, typically you see it revert pretty darn close back to the mean, sometimes even below it. Last time was 2011. We had an 80 to 1 ratio for 2010. And by 2011, we had $2,000 gold and $50 silver at a 40 to 1 ratio. You would have doubled the amount of gold when you swapped back in.
Huge opportunity now to trade gold to silver, book a loss, buy silver at a rate we haven’t seen but once in the last 50 years, with the intention, Maurice, of someday swapping back into gold and maybe doubling it or better when these ratios normalized. And if you read our newsletter today, there are a plethora of reasons why we expect silver to be among the very best performing assets on the planet going forward.
So the bottom line is that the precious metals tax swap or tax loss plan is actually far more encompassing and liberal than is the security’s tax swap that inhibits you from buying anything similar to it, whatever you sold, for over 31 days.
Maurice Jackson: And the key here, again, is that ownership has to convey.
Andy Schectman: Right. Let’s say someone had something in the storage facility, like one of our Brinks facilities or any facility—we have relationships with just about every major storage facility in North America. A client maybe has a couple thousand ounces of silver in a storage facility. They would sell it. It gets transferred to our parent account in that facility. And they’d buy it right back at normal spreads. Here’s a little cherry on the sundae. While we sell something and book a loss, we give that information to our accountant.
The accountant never says to you, “Maurice, what did you do with the proceeds of that sale?” Your answer should be, “None of your business.” If you’re a nice guy like you, you’d probably tell them what you did. But the point is, is that if you sold something at a loss and then bought it back, there is no obligation to report what you did with the proceeds of that sale. And if you’re using the proceeds of the sale to finance the repurchase, the difference may be one or two percent. You can send a check for two percent. But the point of it is, is that if someone sells $100,000 worth of metal and then immediately turns around and buys it back, and gets ninety, eight cents on the dollar for it. So it costs them two percent to do the swap, but they just saved 20, 30, 40, 50 percent on capital gains.
It’s a home run for the client, not only in the tax savings, but also in the fact that we live in a world of decreasing privacy. And the loss in privacy in and of itself in buying gold is writing out a check or sending a wire. That wouldn’t happen here, because the only amount of money that’s going to be exchanged is the two percent or the client could simply say, “Just keep it out of the gold or silver. Give me back my 98 percent and that’s fine.” That transaction now is, for all intents and purposes, paper trail free completely and totally legal.
So at some point, let’s say a client were to get audited for something unrelated and they see this transaction. Well, you have the receipts, you have the metal. You just didn’t write out a check to reacquire it, giving you a whole bunch of privacy to boot.
Maurice Jackson: This is some valuable information. Andy, I’d like to switch gears here and still stick with precious metals, if I may.
Miles Franklin offers physical precious metals, IRAs, which offer some unique features. But most important, these IRAs can be redeemed in physical precious metals. What type of clients have physical precious metal IRAs?
Andy Schectman: I don’t know that there’s a specific type. But for my money, the best person to own a precious metals IRA is someone who is at or nearing distribution phase. I’m sure you know, Maurice, on a traditional IRA, when we are 70 and a half years old, the federal government says we need to take what’s called a required minimum distribution. In other words, you cannot let it continue to grow without taking a minimum distribution from it when we turn 70 1/2 years old, or you start to receive a penalty if you don’t.
So you take a minimum distribution every year, once you turn 70 1/2. For me, because this investment or the IRA allows you to take what’s called an in-kind distribution, where you would say, “You know what? Just send me my gold eagles or my silver eagles,” or whatever it is that’s being stored for you. And the list is pretty lengthy as to what you can store in a precious metals IRA, just pretty much has to be either American made, or 24 karat in gold, or 0.9995 in silver, and LBMA approved or Nymex approved metal, and it can be stored in an IRA. So the neat thing about it is the distribution in kind. Instead of taking a check, you can take your metal back.
So, someone who wants to buy gold from me. Let’s say they’re 70 years old or 69 or 68, one way to make a big splash in the gold pool without writing out a big check is to transfer an IRA into a precious metals IRA, fund it with gold and silver, and then start taking distributions of it through your IRA distribution channels. So for me, because it’s a non-interest bearing investment, I think it is a perfectly suited for someone at or nearing the distribution phase.
Maurice Jackson: Now, do I have the option of owning gold, silver, platinum, and palladium in this physical precious metals IRA?
Andy Schectman: Yes, you do.
Maurice Jackson: Now, as the ratios change, may I sell within my holdings, exchanging one metal for another?
Andy Schectman: I love the way you’re thinking outside the box. It’s the best vehicle for doing it because there are no tax consequences. If anyone is holding gold right now and not at least contemplating trading it to silver, or owning palladium and not contemplating trading it to platinum, they’re making a mistake. These ratios, Maurice, are so far out of whack, it is akin to four feet of snow in Phoenix. And if it snowed four feet of snow in Phoenix this morning, I promise you no one in Phoenix was rushing out to buy snowmobiles. It’s an anomaly and that’s exactly same thing we’re seeing right now. So, yes, if you have it in an IRA, if you have gold in an IRA, it is an absolute perfect vehicle to trade the silver. You have it stored, the storage fees are static, and there are no tax consequences. It’s a great vehicle for doing it.
Maurice Jackson: What is the maximum contribution I may make annually?
Andy Schectman: Contributions cannot go higher, in both traditional and Roth IRAs, than $5,500 per year, $6,500 if you’re 50 or older. The perfect vehicle, Maurice, is a transfer or a rollover, a transfer being you transfer a portion of an existing IRA, or you rollover the entire thing into a new precious metals IRA. That’s the best way to get a larger amount of money into an IRA.
Maurice Jackson: And that alludes to my next question here. So, if you currently have a 401k, you can’t transfer that over right now. But if you’re no longer with that employer, can you take your 401k and transfer it over?
Andy Schectman: Absolutely. And if you are no longer working with an employer who offered a 401k, you’re crazy to not move it out of said 401k, because of the lack of flexibility that the 401ks offer. And the whole idea for being in a 401k, or the whole incentive, is to have it matched. The matching that the employers typically provide is incentive to keep it in. But leaving it in a 401k, which is just a couple of different choices within that platform, instead of having the ability to self-direct it, it would be a mistake. A 401k is a little bit different. You would turn it into a self-directed IRA, and then purchase the metal. But either a traditional IRA can be rolled over or transferred, or someone who had a 401k would transfer that to a self-directed IRA without any taxable issues, and then purchase metals that way.
Maurice Jackson: Lastly, what if I wanted to leave a lasting legacy with my children or grandchildren? May I open up a precious metals IRA for them?
Andy Schectman: You know, Maurice, I truly believe what has made me successful, among a few other lucky breaks, is being very objective. And the salesman in me wants to say, “Yeah, sure, absolutely. Great idea.” But I think in truth, if someone wanted to leave a lasting legacy for someone, a child or a grandchild, number one, someone who has many years, a life ahead of them, interest bearing is important. And if you could put it into something interest bearing, preferably compounding, that is the key to grow in wealth. But as far as precious metals, when I started in this industry, I was 19 years old. And my father and I started this company together. And he said to me when we started, “There’ll be one rule and one rule only.” And that is that I’ll buy something every two weeks or he’ll fire me. I’m the president of the company now and I own 51%, so he won’t fire me any longer. But I have honored my commitment to him for over almost three decades. And every two weeks, I have purchased precious metals, every two weeks for 29 years. I have not missed a two-week period.
To me, it is wealth. And the best way to accumulate wealth is to do it that way, privately, not in an IRA where it’s going to sit there for a long period of time because it’s a very different set of conditions to call precious metals in your possession that you and only you know about it versus having it in an IRA. And I don’t think I need to elaborate on that anymore. But I simply think that my grandchildren will greatly appreciate, hopefully someday, receiving gold and silver that was first passed on from my father, and to me and my sister, and from me to my three children, and hopefully from them to their children and etc.
And it’s done so in a manner that is very private. And I think, in a world of decreasing privacy, a little bit of extra privacy is a nice thing. And, you know, there are proper ways to pass money on in your estate. And if you can have a little bit of privacy to boot, that’s not a bad thing.
Maurice Jackson: Mr. Schectman, thank you for sharing your wisdom and insights. For someone that wants to get more information regarding today’s discussion, please share the website and phone number.
Andy Schectman: The website is milesfranklin.com. And my phone number directly is 1-800-255-1129. And my personal email is Andy@MilesFranklin.com.
Maurice Jackson: As a reminder for our audience, we are licensed brokers to buy and sell gold, silver, platinum, palladium, and rhodium, offshore storage accounts and precious metals IRAs. If you wish to have a conversation with me, please email Maurice@MilesFranklin.com or call 919-274-5680.
And last but not least, please visit our website ProvenandProbable.com, where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Andy Schectman of Miles Franklin Precious Metals Investments, thank you for joining us today on Proven and Probable.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

Disclosure: 

1) Andy Schectman is the owner of Miles Franklin Precious Metals Investments.
2) Maurice Jackson is a licensed representative of Miles Franklin Precious Metals Investments. Proven and Probable disclosures are listed below.
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Categories
Energy Oil & Gas

JERICHO OIL Announces 725 BOE per Day STACK Well Targeting Meramec Formation

TULSA, Okla., Dec. 10, 2018 (GLOBE NEWSWIRE) — Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC PINK: JROOF) announces through its Oklahoma STACK Joint Venture (“STACK JV”), that it has brought online a second high-rate single-mile lateral Meramec oil well within its contiguous Blaine County acreage position.

The Valkyrie 19-12-06 1H well is located within the STACK JV’s approximately 16,000 net acre position of the normally-pressured oil window of the STACK play.  The Valkyrie achieved a peak 24-hour rate of 725 oil-equivalent barrels (“BOE”) per day (55% oil).  The 30-day normalized rate (IP30) for this ~4,500 ft perforated lateral well was 625 BOE per day (52% oil).  Initial rates of productivity from the Valkyrie continue to strongly support the Company’s confidence in its multi-zone developments and the overall value of our coveted STACK acreage position.  The Valkyrie, in addition to the STACK JV’s previously announced Wardroom Meramec well, located 2 miles to the southeast, show consistent performance of the STACK resource, crucial to our Company’s long-term net asset value.
Jericho’s STACK JV owns a 24% working interest alongside Staghorn Petroleum II LLC (Staghorn) in the Valkyrie.
As a reminder, the Meramec and Osage formations, the principal targets of the STACK play, represent a combined oil-rich thick column of approximately 700 feet.  Our experience throughout 2018, by way of drilling and participating in both target-zone formation wells, has provided our STACK JV the proper catalysts of data to leverage into the Company’s 2019 development program.
Brian Williamson, CEO of Jericho Oil, stated, “Our focus in participating with best in class operators is working and we are extremely encouraged with the results of the Valkyrie and surrounding Meramec wells, proving the extent, both geographically and geologically, of the formation.  In addition to the Meramec, we continue to execute on successfully proving-up the large resource potential of the regionally deposited Osage formation.  Ultimately, 2018 has been an extremely productive year which has allowed our Company to have ever-increasing confidence in repeatable, multi-zone development of our STACK resource which, over time, should benefit our strong shareholder base.”
About Jericho Oil Corporation
Jericho Oil (www.jerichooil.com) is focused on domestic, liquids-rich unconventional resource plays, located primarily in the Anadarko basin STACK Play of Oklahoma.  Jericho’s primary business objective is driving long-term shareholder value through the growth of oil and gas production, cash flow and reserves.  Jericho has assembled an interest in 55,000 net acres across Oklahoma, including an interest in ~16,000 net acres in the STACK Play. Jericho owns a 26.5% interest in STACK JV.
Jericho’s current operations are focused on the oil-prone Meramec and Osage formations in the STACK.  The Jericho team applies advanced engineering analyses and enhanced geological techniques to under-developed resource areas.
Jericho, with operational headquarters in Tulsa, Oklahoma, trades publicly on the TSX Venture Exchange (JCO) and OTC Markets (JROOF). Jericho owns its net acre position in Oklahoma through, and participates in the STACK JV through, one or more wholly owned subsidiaries.
Cautionary Note Regarding Forward-Looking Statements: This news release includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from Jericho’s expectations include risks related to the exploration stage of Jericho’s project; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT:
Adam Rabiner,
Director, Investor Relations
1.800.750.3520
investorrelations@jerichooil.com

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Blog

MILES FRANKLIN | Is Federal Reserve Script Starting To Sound Familiar?

Chris Marcus-Contributing Writer For Miles Franklin
Is Federal Reserve Script Starting To Sound Familiar?
Written by Chris Marcus of Miles Franklin
On Thursday the volatility in the stock market continued, with the Dow Jones at one point down over 700 points before closing at 24,947. Well off its 26,951 high from October 3rd.
Interestingly the market did rebound, and ended up only down 79 points on the day. Although just take a guess at what led to the reversal.
“But stocks pared their declines after The Wall Street Journal reported Federal Reserve officials are considering whether to signal a new wait-and-see mentality after a likely interest-rate increase at their meeting in December, which could slow down the pace of rate increases next year.”
To those in the precious metals and Austrian Economics communities, the news hardly comes as a surprise. In many ways, it’s more surprising that the Fed has waited as long as it has to finally hint at reversing course.
The signs of the downturn in the real estate market are there for those who choose to look. As the market is struggling to absorb the higher interest rates, similar to what happened in 2006-2007 when the Fed was raising rates prior to the collapse of the sub-prime bubble.
Now over the past 2 months the impact of the rising rates has been felt in the stock market as well. And it appears as if the Federal Reserve may be nearing its threshold for how long it plans to sit by and watch.
“Officials still think the broad direction of short-term interest rates will be higher in 2019, the Journal reported pointing to recent interviews and public statements. But as they push up their benchmark, they are becoming less sure how fast they will need to act or how far they will need to go
While CME data gave a 76.6% probability of a rate increase at the Fed’s December meeting, figures show a less clear consensus for 2019, reflecting estimates of just over one rate raise. But some analysts see that as an overly dovish forecast.”
Which has been predicted by many in the Austrian community, for the simple reason that the Federal Reserve long-ago backed itself into a corner. Where after a decade of unprecedented monetary easing, it’s now faced with the unenviable choice of either continuing to print and further make a mockery out of the dollar. Or raise rates and face the consequences.
And given the Fed’s past track record, it’s incredibly likely that they’re eventually going to resort to cranking up the presses again. Likely in amounts far in excess of what we’ve already seen. For the simple reason that the bubbles are bigger, and it takes increasingly larger amounts of money to keep them inflated.
Interestingly, the yield on the benchmark U.S. 10-year Treasury has come in substantially to 2.90%. Which means the bond market has been rallying as investors continue to follow the long-held, yet fatally flawed premise that U.S. treasuries and dollars are a legitimate safe haven asset.
Yet at least for now, the traditional response to buy treasuries and dollars during periods of stock market chaos has continued. And to some degree can be expected going forward, at least in the near-term. Yet it’s one of those flawed assumptions that holds true until one day when it doesn’t. Just like the once-held belief that housing prices would never fall.
The unfortunate reality for the Federal Reserve is that there is no way easy way out now. The easy way out was to not print money to begin with. But now it’s been done, and the impact of the consequences is being felt. And the Fed will have to choose between standing by and watching the markets collapse as rates rise, or revert back to more printing to delay the inevitable.
Either outcome leads to an environment that’s favorable for gold and silver. And with the Department of Justice seemingly taking a far more serious tone regarding precious metals manipulation than the CFTC has ever done, the pressure building for a resolution to the current pricing in the gold and silver markets continues to grow stronger than ever.
P.S. If you have any questions about this article, what’s happening with the Fed, or the precious metals market, you’re welcome as always to email me here.
-To buy or sell gold and silver call Miles Franklin today at (1-800-822-8080).
-Or get Miles Franklin’s detailed report on why the price of silver is set to explode.
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About Miles Franklin
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
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Categories
Blog

BOB MORIARTY | The Deal of the Century for Contrarians is here

Bob Moriarty
Archives
Dec 8, 2018
Regular readers of 321gold are well aware that I am a contrarian. As Rick Rule likes to repeat, if you aren’t a contrarian, you are a victim.
On January 26th of this year, using nothing more than the DSI information, I predicted that 12 commodities would be making a turn. There was no magic to it; I just used information available to anyone at all. If they had access to the DSI and were capable of making a decision all by themselves.
Read what I wrote and then go look up any or all of those commodities by yourself so you can see how many I got right. I will give you a hint, I have never in fifty years of investing seen anyone else call turns on twelve commodities and get so many right.
It’s not magic, it’s not voodoo and for damn sure, I am not a guru or even an expert. I just used information available to everyone.
I’ve whined to Jake Bernstein in the past and begged for a special deal, perhaps just for the metals, that I could give my readers. He was willing to give me a discount but I didn’t think it was enough of a discount to make it worth writing about.
The DSI is simply the most valuable investing tool I have ever seen. There are a dozen or more various contrarian signals such as the PSLV Premium/Discount to NAV chart for silver and the SPPP Premium/Discount to NAV chart for platinum and palladium.
That last one by the way is telling me that platinum at a $460 discount to gold is about to rocket higher. But the Platinum/Gold spread chart [password required] put out by Gold Charts R Us by the talented Nick Laird would tell you exactly the same thing.
In the last three weeks the discount to gold by platinum has gone from $355 to $460. That has never happened in history. Nothing at all has changed in terms of fundamentals except the price. If you were a contrarian you would be looking to buy platinum and sell gold.
Jake just sent me an offer where between now and closing on the 20th of December, you can get a year of the DSI, normally priced at $1895 for $608 US. That’s a 68% discount by the way. I’d be proud to tell you that he made the offer just for 321gold readers but I would have to lie to do so. The offer is open to everyone. The rat.
If you can’t afford $608 for the DSI for a year, you have no business calling yourself an investor. You are not an investor; you are a chump trying to give your money away. The guys who do spring for the $608 are going to end up with all of your money.
I don’t get anything out of this other than he has comped me the service for the last couple of years. If you don’t find it one of the most valuable tools you have ever been handed after you use it for some time, write me and I will patiently listen to you whine and I will pat your back for you.
Order here and order now.
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Bob Moriarty
President: 321gold
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321gold Ltd

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Precious Metals

GOWEST GOLD Private Placement – Amendment of Terms

TORONTO, Dec. 10, 2018 (GLOBE NEWSWIRE) — Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX VENTURE: GWA) announced today that it has revised the terms of its previously announced private placement of units of the Company (the “Units”), at a price of $0.05 per Unit, for aggregate gross proceeds of up to $5,000,000 (the “Private Placement”) (see news release dated November 27, 2018).  Under the Unit offering terms, each Unit will comprise one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”), with each Warrant being exercisable to acquire one common share of the Company at a price of $0.07 for a period of 24 months following the closing date of the Private Placement.

The Company has amended the terms of the Private Placement such that up to $1,500,000 of the Private Placement will now be available on a flow-through basis.  Specifically, pursuant to the Private Placement, the Company will issue up to 25,000,000 flow-through units of the Company (the “FT Units”) at a price of $0.06 per FT Unit.  Each FT Unit will comprise one “flow-through” common share (a “FT Share”) and one-half of one Warrant.  As under the Unit offering terms, each Warrant will be exercisable to acquire one common share of the Company at a price of $0.07 for a period of 24 months following the closing date of the Private Placement.

The proceeds of the Private Placement will be used by the Company for the continued development of its 100% owned Bradshaw Gold Deposit (“Bradshaw”) and for working capital purposes.  At the same time, now that the Company has secured a toll-milling agreement (see news release dated October 30, 2018) and expects to be in a position to start processing material from Bradshaw, Gowest is also pursuing a more significant, long-term strategic investment (see news release dated November 15, 2018).

Certain insiders of the Company may participate in the Private Placement, and the Company may pay a finder’s fee to registrants who assist the Company in connection with the Private Placement.  Completion of the Private Placement is subject to receipt of TSX Venture Exchange approval.

All of the securities issuable in connection with the Private Placement will be subject to a hold period expiring four months and one day after date of issuance.  The Private Placement may be closed in one or more tranches.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements.  This release does not constitute an offer for sale of securities in the United States.

It is anticipated that the closing of the Private Placement will occur on or before December 31, 2018.

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Company’s North Timmins Gold Project (NTGP).  Gowest is exploring additional gold targets on its +100‐square‐kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp.  Currently, Bradshaw contains a National Instrument 43‐101 Indicated Resource estimated at 2.1 million tonnes (“t”) grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre‐Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut‐off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.

Forward-Looking Statements

This news release may contain certain “forward looking statements.” Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

For further information please contact:

Greg Romain
President & CEO
Tel: (416) 363-1210
Email: info@gowestgold.com

Greg Taylor
Investor Relations
Tel: 416 605-5120
Email: gregt@gowestgold.com

Categories
Base Metals Energy Precious Metals Project Generators

MILLROCK RESOURCES | Financing Opportunity

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Blog

OPPORTUNITY TRAVEL | 7 Unforgettable Days in Southeast Asia

From the desk of Barbara Perriello
Dear Reader,
My name is Barbara Perriello. I’m the Director of Opportunity Travel and the Conference Coordinator for the 2019 International Living 2019 Fast Track Your Retirement Overseas Conference in Bangkok, Thailand – February 21-23.
Since we’ll already be right here in beautiful Bangkok for the IL conference, I’ve put together an exclusive, fun filled post-conference tour that’s frankly irresistible.
Not only is it a first-class, luxurious journey with an intimate group of like-minded people…
You’ll also get a chance to see firsthand why travelers and expats alike simply love everything about these two destinations – Chiang Mai and Penang.
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And if this sounds interesting, we’d love to have you join us. But please don’t delay.
With only 20 spaces available, chances are this tour will sell out quickly.
To get all the details about this exclusive expedition and how you can guarantee yourself a spot, go here for pricing and our day to day itinerary…
Don’t miss out! Call me right now at 800 926 6575 or +561 243 6276, or if you prefer, send me an email at info@opportunity-travel.com. We’re always happy to answer your questions or help you with special requests.
I hope to hear from you soon…
Cordially,

Barbara Perriello, Director
Opportunity Travel
P.S. Only the first 20 sign-ups are guaranteed a space for this tour. No exceptions. If you’re interested, I encourage you to reserve your place now.
P.P.S. If you haven’t already done so, click here to book International Living’s 2019 Fast Track Your Retirement Overseas Conference – Bangkok, Thailand – February 21-23.
Where We’re Headed Next

Why Retire in Panama?

Can you retire where you live now on $1,500 – $2,000 a month? You can easily do that in Panama, where most everything—from rent to health insurance and medical care—costs far less than you’re likely paying now. And you’ll love the climate. Discover how to live the retirement of your dreams in Panama.
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Opportunity Travel’s
Southeast Asia Tour to Thailand & Malaysia
February 24-March 3, 2019

Post-Tour Following International Living’s
2019 Fast Track Your Retirement Overseas Conference
Bangkok, Thailand – February 21-23

Since we’ll be right here in beautiful Bangkok for the IL conference, we’ve designed an exclusive, fun-filled post conference tour that’s a first class, luxurious journey. You’ll get a chance to see firsthand why travelers and expats alike simply love everything about Thailand and Malaysia. Get full details about this exclusive expedition and guarantee yourself a spot – but you’ll have to act fast, only 20 spaces are available. Call me at 800 926 6575 or +561 243 6276, or email at info@opportunity-travel.com.

The Oxford Club’s 21st Annual Investment U Conference
March 28-31, 2019 – The Vinoy Renaissance Resort


Every spring, The Oxford Club hosts its biggest event of the year –the Annual Investment U Conference. For this signature event, we spare no expense to bring you the latest and greatest from the investing world as well as a real no-nonsense look into the markets.
Throughout this event, you’ll discover dozens of profitable ideas from our team of expert analysts, as well as investment insights from more than two dozen of the industry’s top economists and investment minds.
Join us as we celebrate more than two decades of success and tremendous profit opportunities brought to life through this premier event. Year-after-year – we’ve seen the ideas shared here soar to great heights and we are thrilled to see what’s in store next.
For more information on this event, and to reserve your spot today, click here. If you have any questions about the event, please email us at voyagerclub@oxfordclub.com or call us at +443.708.9411.

Money Map Press presents…

The Black Diamond Conference
Delray Beach Marriott – April 4-6, 2019

Now Accepting Registrations – Act Now & Save

Our next Money Map Press event will take place at one of the most beautiful oceanfront hotels in Florida… the Delray Beach Marriot. Escape with us to Florida’s sun-drenched beaches and take in all that this hip and happening town has to offer.
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Sprott Natural Resource Symposium 2019
Fairmont Hotel Vancouver – July 30-August 2, 2019

Plan your 2019 vacation now – we’ll be happy to help you!
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For more information about any of these events or expeditions, simply give us a call right now at 800 926 6575 or 561 243 6276, OR send us an email at info@opportunity-travel.com

Opportunity Travel’s South America Expedition 
Uruguay & Argentina – November 2019
Call now to get your name on the list!

One of our most popular tours! Come November 2019 and once again we’ll be heading south to Uruguay and Argentina where we’ll show you so much more than the wonders these countries are known for. We’d love to have you join us!
Tantalizing wines, fabulous farm to table dining and sensuous tango are just a small snippet of what we have in store. Add to that our unique brand of personal service, luxury hotels and “boots on the ground” experts. Find out for yourself why our past attendees return again and again.
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For more information about our tours or conferences, please contact, Barbara Perriello or Michelle Sedita at Opportunity Travel by email at info@opportunity-travel.com or by phone at +561.243.6276 or toll-free at +800.926.6575.

Disclaimer: Nothing in this e-mail should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. In the interest of full disclosure: Opportunity Travel may receive commissions from any property sales made during any of its trips. And, as a travel agency, we often receive a commission from hotels when we book rooms for our tours and conferences.
Copyright © 2018 Opportunity Travel, All rights reserved.
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Categories
Blog

MILLROCK RESOURCES | Announces Private Placement Financing and Closes Tranche 1

VANCOUVER, British Columbia, Dec. 07, 2018 (GLOBE NEWSWIRE) — Millrock Resources Inc. (MRO.V) (“Millrock” or “the Company”) announces that it plans to raise gross proceeds of up to $1,000,000 through a non-brokered private placement of up to 10,000,000 units (the “Units”) priced at $0.10 per Unit. Each Unit will consist of one common share and one share purchase warrant (the “Unit Warrants”). Each Unit Warrant will entitle the holder to purchase one additional common share at an escalating exercise price over a period of three years from the closing date as follows:

  • During the first year from the closing date the Unit Warrants will be exercisable at $0.14 per share;
  • Thereafter, during the second year from the closing date, $0.17 per share; and
  • Thereafter during the third year from the closing date, $0.20 per share.

Finder’s fees of 6% cash and 6% finder’s warrants (Finder’s Warrants”) may be paid in connection with this financing. The Finder’s Warrants have the same terms as the Unit Warrants.

The Company reports it has closed a portion of the non-brokered private placement. A total of 7,000,000 units at a price of $0.10 per unit have been issued for gross proceeds of $700,000. Each unit consists of one common share of Millrock and one share purchase warrant (the “Unit Warrants”).  Each Unit Warrant entitles the holder to purchase one additional common share at an escalating exercise price over a period of three years from the closing date as follows:

  • During the first year from the closing date the Unit Warrants are exercisable at $0.14 per share;
  • Thereafter, during the second year from the closing date, $0.17 per share; and
  • Thereafter during the third year from the closing date, $0.20 per share.

Finder’s fees of $38,400 and 384,000 Finder’s Warrants are payable to Red Plug Capital Corp. in connection with this portion of the financing. 

The common shares issued under this financing and any common shares issued pursuant to exercise of Unit Warrants or Finder’s Warrants are subject to a hold period and may not be traded until April 8, 2019.
This financing is subject to receipt of TSX Venture Exchange acceptance.

Proceeds from the financing will be used for project generation and general corporate purposes. The financing is subject to final approval from the TSX Venture Exchange.

About Millrock Resources Inc.
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is active in Alaska, the southwest USA and Sonora State, Mexico. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, and Riverside. Millrock is a major shareholder of junior explorers PolarX Limited. and Sojourn Exploration Inc.

ON BEHALF OF THE BOARD

“Gregory Beischer”

Gregory Beischer, President & CEO

FOR FURTHER INFORMATION, PLEASE CONTACT:
Melanee Henderson, Investor Relations
(604) 638-3164
(877) 217-8978 (toll-free)

Some statements in this news release contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.

Categories
Base Metals Energy Precious Metals Project Generators

PROJECT GENERATOR | EMX Royalty Executes Regional Strategic Alliance Agreement with South32 Covering Arizona, New Mexico, and Utah

Vancouver, British Columbia–(Newsfile Corp. – December 6, 2018) – EMX Royalty Corporation (TSXV: EMX) (NYSE American: EMX) (the “Company” or “EMX”) is pleased to announce the execution of a Regional Strategic Alliance agreement (the “Agreement”) between its wholly-owned subsidiary Bronco Creek Exploration, Inc. (“BCE”), and South32 USA Exploration Inc. (“South32”), a wholly-owned subsidiary of South32 Limited. The Agreement provides annual funding for generative work and acquisitions over a two year period, as well as a framework to advance projects of interest. Generative work will focus on copper and other base metal projects within the Laramide and Tertiary magmatic arcs of Arizona, New Mexico and Utah. Projects advanced to the drill program stage may be selected as Designated Projects. Designated Projects will advance under separate option agreements providing for work commitments and cash payments to EMX during South32’s earn-in period, and upon earn-in, a 2% net smelter return (“NSR”) royalty interest and pre-production and milestone payments to EMX’s benefit. South32 has initially selected five EMX copper projects in Arizona to begin advancing toward the drill program stage. Please see the attached map and www.EMXroyalty.com for more information.

Alliance and Commercial Terms Overview (all dollar amounts in USD). Under the terms of the Agreement, which has an initial term of two years, South32 will provide annual funding for generative work performed by EMX personnel to identify properties for exploration work (“Alliance Exploration Properties” or “AEPs”) within the Regional Strategic Alliance Area of Interest (“AOI”) that consists of the states of Arizona, New Mexico, and Utah, but excludes South32’s Hermosa project in southern Arizona. EMX personnel will conduct exploration activities on AEPs with additional funding from South32 in order to identify projects suitable for designation as Designated Projects. Each Designated Project will be covered by a separate option agreement pursuant to which South32 can acquire 100% of the project on the terms described below. All generative and AEP exploration activities will be guided by a Technical Committee consisting of two members from each company.

South32 will provide $800,000 per year to cover the generative work and the salaries of EMX personnel involved in AEP exploration work. South32 will also provide a separate annual acquisition fund of $200,000 to pay for the acquisition of new properties as approved by the Technical Committee. AEP exploration work will be funded separately through cash calls to South32 in amounts directed by the Technical Committee.

Designated Project Option Agreement Terms (all dollar amounts in USD). Each option agreement covering a Designated Project will provide that South32 can earn 100% interest in the project by reimbursing EMX’s holding costs upon execution of the option agreement, and making option payments totaling $525,000 and completing $5,000,000 in exploration expenditures during the five-year term of the option agreement.

Upon exercise of the option by South32, EMX will retain an uncapped 2% NSR royalty on the project (not subject to purchase or buy down) and receive annual advance royalty (“AAR”) payments equivalent to 50,000 pounds (“lbs”) of copper commencing on the first anniversary. All AAR payments are set off against 80% of future royalty payments. In addition, South32 will make milestone payments as follows (project milestones are to NI 43-101 reporting requirements):

  • 166,000 lbs of copper (or the cash equivalent) upon the completion of an initial resource estimate,
  • 333,000 lbs of copper (or the cash equivalent) upon completion of a prefeasibility study, and
  • 666,000 lbs of copper (or the cash equivalent) upon completion of a feasibility study.

Initial Alliance Exploration Projects. Five Arizona porphyry-copper projects have been selected as AEPs by South32, including Midnight Juniper, Jasper Canyon, Sleeping Beauty, Dragons Tail, and Lomitas Negras. EMX and South32 are commencing work programs on the initial AEPs, as well as initiating a generative program to identify new projects for acquisition. Note, in the following project descriptions, although the referenced nearby mines and deposits provide geologic context for EMX’s properties, this is not indicative that the EMX properties host similar endowments of mineralization.

Midnight Juniper. The Midnight Juniper project lies at the north end of the Clifton-Morenci mining district, approximately one kilometer northwest of the Morenci open pit copper mine. The project geology consists of a dissected plateau of Tertiary age volcanic cover rocks overlying a series of Paleozoic sedimentary and Proterozoic metamorphic rocks that are exposed in an arcuate pattern at lower elevations along stream courses. Paleozoic carbonate rocks contain a number of manganese oxide-rich base metal occurrences in northeast oriented vein, replacement, and breccia bodies typical of the distal expression of porphyry copper systems. EMX’s reconnaissance mapping shows that these occurrences appear to vector towards a suspected porphyry source lying under Tertiary cover rocks in the center of the Midnight Juniper land position.

Jasper Canyon and Sleeping Beauty. The Jasper Canyon and Sleeping Beauty projects are located in the Globe-Miami mining district. Both properties lie on the flanks of the Schultz Granite intrusive complex, which is associated with numerous past and current producing copper mines and deposits in the Globe-Miami and Superior mining districts. Porphyry copper deposits in this region have been dismembered by numerous post-mineral faults that displace upper levels of the mineralized systems northeastward. The Jasper Canyon and Sleeping Beauty projects lie at the east end of a northern trend of fault bounded deposits that include Pinto Valley, Diamond H and Copper Cities. The Jasper Canyon project lies along the easternmost portion of this trend and represents a fault-bounded and largely covered portion of the suspected upper levels of a porphyry copper system in a previously unexplored portion of the district. The Sleeping Beauty project lies to the west of Jasper Canyon, and directly north of the Copper Cities open pit copper mine, and is interpreted to contain down-dropped blocks of mineralization north of the Sleeping Beauty fault. Other fault-bounded copper deposits in the district at similar structural levels include Copper Cities, Miami East, Van Dyke, and Old Dominion.

Dragons Tail. The Dragons Tail project is located in the Superior mining district, approximately eight kilometers north of the Resolution copper deposit and five kilometers southwest of Pinto Valley. EMX identified a 1.6 kilometer long zone of quartz-sulfide alteration within Proterozoic sedimentary rocks during reconnaissance work. The outcrops of quartz-sulfide veining lie beneath tilted Tertiary age volcanic and conglomeratic cover rocks. Historic drilling on the east side of the property intercepted transported copper-oxide mineralized clasts within Tertiary conglomerates, which suggests the source of the copper lies to the west of the drilling and likely down dip of the mineralized exposures.

Lomitas Negras. The Lomitas Negras project is located approximately ten kilometers southeast of the town of San Manuel, in a broad area of post-mineral cover rocks. The property is ringed by Laramide-age intrusive rocks and porphyry copper/skarn deposits that include San Manuel-Kalamazoo (~20 kilometers north), Copper Creek (~25 kilometers northeast), and Oracle Ridge (~10 kilometers southwest). Nearby outcrops exhibit alteration and anomalous base metal mineralization that characteristically occurs on the margins of porphyry copper systems. EMX’s recognition of the altered outcrops, combined with a new interpretation of the extensional structural setting of the area, led to the identification of concealed porphyry copper targets beneath the post-mineralization pediment cover.

About EMX. EMX leverages asset ownership and exploration insight into partnerships that advance our mineral properties, with EMX receiving pre-production payments and retaining royalty interests. EMX complements its royalty generation initiatives with royalty acquisitions and strategic investments.

The Regional Strategic Alliance Agreement with South32 is an excellent example of the execution of EMX’s royalty generation business model. The Company’s organically generated porphyry copper projects were acquired on open ground in productive mining districts, with value established through low cost, early-stage exploration work. The Agreement’s provisions for generative funding are coupled with the future upside potential for project work commitments, pre-production payments and retained royalty interests based upon exploration success to EMX’s and South32’s mututal benefit.

Mr. Dean D. Turner, CPG, a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.

-30-

For further information contact:

David M. Cole
President and Chief Executive Officer
Phone: (303) 979-6666
Email: Dave@EMXroyalty.com

Scott Close
Director of Investor Relations
Phone: (303) 973-8585
Email:SClose@EMXroyalty.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release may contain “forward looking statements“ that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,“ “intend,“ “expect,“ “anticipate,“ “will“, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company‘s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended September 30, 2018 (the“MD&A”), and the most recently filed Form 20-F for the year ended December 31, 2017, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the 20-F and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.

Figure 1: AEP projects and RSA AOI (Arizona, Utah, and New Mexico) with South32.

Cannot view this image? Visit: http://media.zenfs.com/en-US/homerun/newsfile_64/27ed3777461831dca4f03d98f4676ec3
Cannot view this image? Visit: http://media.zenfs.com/en-US/homerun/newsfile_64/27ed3777461831dca4f03d98f4676ec3

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/1508/41446_figure1new.jpg

Categories
Base Metals Energy

URANIUM | U3O8 Corp. Reports a 23% Improvement in Vanadium Extraction Over the 2014 Preliminary Economic Assessment on its Laguna Salada Uranium-Vanadium Deposit

T

oronto, Ontario–(Newsfile Corp. – December 6, 2018) – U3O8 Corp. (TSX: UWE) (OTCQB: UWEFF) (“U3O8 Corp.” or the “Company“) is pleased to report initial results of test work on the extraction of uranium and vanadium from almost a metric tonne of mineralized gravel from the wholly-owned Laguna Salada deposit in Argentina.

The test work has been designed, and results monitored, by Mr. David Marsh, director of U3O8 Corp. whom, as former General Manager – Technical Project Development at Paladin Energy, was intimately involved in the design, construction and operation of two uranium production plants in Africa. This work represents a complete overhaul of the preliminary economic assessment (“PEA”) carried out by Tenova Mining and Minerals (Australia) Pty Ltd. in 2014. Mr. Marsh, with his vast practical experience, reviewed the PEA and felt that there was room for improvement and simplification of the flowsheet and processing plant design, resulting in potential to reduce estimated capital costs (“capex”) and operating costs (“opex”).

David Marsh commented, “I am delighted with the initial results from our test work on Laguna Salada gravel. The work program was designed to test ways of reducing estimated production costs by simplifying the former PEA process flow sheet. Our first step was to optimize the washing of the fine, uranium-vanadium – bearing material off the barren pebbles. The test results show that “scrubbing” the gravel for 5 minutes produces similar results as scrubbing for the 15 minutes modelled in the PEA. This two-thirds reduction in processing time could potentially reduce the cost of the associated equipment which was estimated at US$6.2 million in the PEA.”

“Our second step aimed to extract more of the uranium and vanadium contained in the gravel, and this proved successful with vanadium recovery increasing by 23%, and uranium marginally by 2%, over the PEA.”

The original Laguna Salada PEA reported life-of-mine cash costs of approximately US$22 per pound of uranium, net of vanadium, and a net present value of US$55 million at a 7.5% discount rate, with a US$136 million capital cost.

A PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA assessment will be realized.

Next Steps:

There are two main components to ongoing metallurgical test work:

  • Continued simplification of the Laguna Salada process flow sheet:
    • The life-of-mine operating cost, including royalties due to the State, were estimated at US$22 per pound of uranium, net of vanadium, in the PEA. Approximately 40% of this cost estimate is related to the management of sulphate (gypsum) that is present in the gravel, that competes with uranium and vanadium for the reagents used to leach the metals. So, finding a more cost-effective way of dealing with the sulphate is a priority in driving down production cost estimates. Alternative ways of controlling sulphate levels were examined and these results will be reported shortly;
    • The PEA modelled the processing of uranium and vanadium that was concentrated in very fine-grained (<0.075 millimetre (“mm”)) powder that proved to be relatively costly to process since excess water had to be squeezed from it in filter presses that are not only expensive, but are costly to operate. The PEA design included six filter presses at a cost of US$2.1 million per unit. The current work tested a much coarser (0.85mm grain size) uranium-vanadium – bearing component of the gravel from which excess water should drain much more readily, thereby likely reducing the number of filter presses required. Results of this work are also expected shortly;
    • Test work is now planned for the uranium/vanadium separation and refining processes where there is further potential to reduce capex and opex. More efficient and proven processes and equipment successfully employed elsewhere on similar types of uranium/vanadium mineralized bodies will be tested and the expectation is that they will prove every bit as efficient with the Laguna Salada material; and
  • Initial metallurgical test work is being done on unconsolidated sand and gravel samples from the relatively high-grade channels discovered beneath the layer of gravel on which the PEA was based. This will provide the first data as to how efficiently uranium and vanadium can be extracted from the channel fill. Results are expected in early January.

Technical Details of Test Work:

1. Bulk Sample

Approximately 950 kilograms of gravel was excavated from within three metres of surface from five locations within the resource footprint in the Guanaco sector of the Laguna Salada Deposit. Guanaco contains 94% of the total Laguna Salada resource tonnage (an Indicated and Inferred resource) and 87% of the contained Uranium. The material was bagged and shipped to Australian Nuclear Science and Technology Organisation (“ANSTO”) in Australia. The sample was homogenized prior to commencing the test work.

2. Test Work Aimed at Simplifying the Process Flow Sheet

Scrubbing at Laguna Salada refers to removal of fine uranium-vanadium – bearing powder that coats barren pebbles in the gravel. The scrubbed material was then screened to separate the pebbles from the fine component into which most of the uranium and vanadium is concentrated.

The flowsheet generated for the PEA involved a gravel-scrubbing process followed by screens and cyclones to separate the extremely fine (0.075mm) material from the gravel, along with two stages of filtration ahead of the uranium/vanadium leach circuit. David Marsh commented, “There is scope to simplify the process flowsheet making the future plant easier to operate.”

The recent work at ANSTO suggests that this circuit can be greatly simplified as follows:

  • Refining of the scrubbing process has reduced the residence time in the scrubbers from 15 minutes to only 5 minutes which will make the equipment smaller, cheaper and easier to operate as well as making the units more mobile;
  • Changing the cut-point after scrubbing to a 0.85mm screen separates the coarse, pebbly component of the gravel that constitutes 77% of its mass, from the <0.85mm material that represents 23% of the gravel’s mass. Although using the <0.85mm material involves processing almost three times the volume of material contemplated in the PEA, the size of the downstream equipment would increase only marginally because of the shorter residence time in each component of the equipment. Subsequent filtration and dewatering processes are likely to be simpler and should result in an overall cost reduction and improved process efficiencies (filtration results will be reported on shortly);
  • The <0.85mm material contains 89% of the original gravel’s uranium compared with 85% in the <0.075mm material modelled in the PEA. Alkaline leach extracted 94% of the contained uranium versus a marginally better 95% in the test work incorporated in the PEA. Overall, 84.5% of the gravel’s uranium was extracted from the 0.85mm material, compared with 82.5% in the PEA – an increase of 2%.
  • 46% of the gravel’s vanadium was concentrated into the <0.85mm component against 29% in the 0.075mm component used in the PEA model. Alkaline leach at ANSTO extracted 55% of the vanadium, lower than the 71% extraction used in the PEA. However, processing of the coarser 0.85mm material still led to a better vanadium recovery: 25% of the gravel’s vanadium was recovered from the 0.85mm material against 21% for the 0.075mm material used in the PEA – an increase of 23%;

Table 1. Summary of beneficiation and alkaline leach tests on <0.85mm material from a bulk sample of gravel from the Guanaco sector of the Laguna Salada Deposit.

Study% of gravel’s mass in fine-screened componentUraniumVanadium
% of metal in fine-grained component of gravel% of metal extracted by alkaline leach% overall extraction% of metal in fine-grained component of gravel% of metal extracted by alkaline leach% overall extraction
PEA9%85%95%82.5%29%71%21%
Bulk sample23%89%94%84.5%46%55%25%
Difference260%2%23%

  

3. Alkaline Leach

The alkaline leach was done at a temperature of 80 degrees Celsius (175 degrees Fahrenheit) for 8 hours and maximum extraction of 94% was achieved after 6 hours.

Technical Information & Cautionary Note

The technical report referred to in this press release is entitled:

September 18, 2014 technical report: “Preliminary Economic Assessment of the Laguna Salada Uranium Vanadium Deposit, Chubut Province, Argentina.” The report is available on www.sedar.com and www.u3o8corp.com.

Dr. Richard Spencer, P.Geo., CGeol., President and CEO of U3O8 Corp. and a Qualified Person as defined by National Instrument 43-101, has approved the technical information in this news release relating to the Laguna Salada Deposit and the related PEA.

About U3O8 Corp.

U3O8 Corp. is focused on exploration and development of deposits of uranium and battery commodities in South America. Battery commodities that occur with uranium resources include vanadium, nickel, zinc and phosphate. The Company’s mineral resources estimates were made in accordance with National Instrument 43-101, and are contained in the following deposits:

  • Laguna Salada Deposit, Argentina – a PEA shows that this near surface, free-digging uranium-vanadium deposit has low production-cost potential; and
  • Berlin Deposit, Colombia – a PEA shows that Berlin also has low-cost uranium production potential due to revenue that would be generated from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals that occur within the deposit.

Additional Information

Information on U3O8 Corp., its resources and technical reports are available at www.u3o8corp.com and on SEDAR at www.sedar.com. Follow U3O8 Corp. on Facebook: www.facebook.com/u3o8corp, Twitter: www.twitter.com/u3o8corp and YouTube: www.youtube.com/u3o8corp.

For further information, please contact:

Carolina Diaz at carolina@u3o8corp.com or phone (416) 868-1491 or Richard Spencer, President & CEO, U3O8 Corp., Tel: (647) 292-0225 richard@u3o8corp.com

Forward-Looking Statements

This news release includes certain “forward looking statements” related with the development plans, economic potential and growth targets of U3O8 Corp’s projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) the low-cost and near-term development of Laguna Salada, (b) the Laguna Salada and Berlin PEAs, (c) the potential of the Kurupung district in Guyana and (d) the price and market for uranium. These statements are based on assumptions, including that: (i) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, and assumptions in the Laguna Salada and Berlin PEAs prove to be accurate, (ii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iii) economic, political and industry market conditions will be favourable, and (iv) financial markets and the market for uranium will improve for junior resource companies in the short-term. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements, including, but not limited to: (1) changes in general economic and financial market conditions, (2) changes in demand and prices for minerals, (3) the Company’s ability to establish appropriate joint venture partnerships, (4) litigation, regulatory, and legislative developments, dependence on regulatory approvals, and changes in environmental compliance requirements, community support and the political and economic climate, (5) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (6) competitive developments, (7) availability of future financing, (8) exploration risks, and other factors beyond the control of U3O8 Corp. including those factors set out in the “Risk Factors” in our Annual Information Form available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. U3O8 Corp. assumes no obligation to update such information, except as may be required by law. For more information on the above-noted PEAs, refer to the September 18, 2014 technical report titled “Preliminary Economic Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina” and the January 18, 2013 technical report titled “U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia.”