U3O8 Corp. Receives One-Year Extension on Its Reconnaissance Permits for Uranium Exploration in Guyana
U3O8 Corp. announce that the Guyana Government has granted U3O8 Corp’s wholly owned subsidiary, Prometheus Resources Inc., a one-year extension on the company’s Reconnaissance Permits for uranium exploration in Guyana. The Reconnaissance Permits (technically termed “Permission for Geological and Geophysical Surveys”) provide U3O8 Corp. with exclusive exploration rights for uranium on its Reconnaissance Permit Areas A and B that total approximately 1.3 million hectares within the Roraima Basin and adjacent basement in Guyana. The Reconnaissance Permit for Area A is now valid until November 23, 2009, and for Area B until May 31, 2010.
“U3O8 Corp’s exploration has progressed on schedule with our first resource estimates targeted for completion by the end of 2008. This one-year extension on our Reconnaissance Permits provides us with an opportunity to apply our holistic and integrated exploration approach for both basement-hosted and unconformity-related uranium deposits more intensely across all of our current holdings,” said Dr. Richard Spencer, U3O8 Corp’s President and CEO. “We express our gratitude to the Government of Guyana for recognizing both the substantial commitment that we have already made in exploring our permit areas over the past two years, and the economic potential of U3O8 Corp’s exploration activity in Guyana.”
Regulatory Process
Exploration rights in Guyana typically involve a two-step regulatory process. The first step is an application for a Reconnaissance Permit that provides an exclusive right to explore for specific minerals or elements for a three-year period over a relatively large land area. The second step is the application for Prospecting Licenses that cover specific areas of interest within the Reconnaissance Permit Area. Applications for Prospecting Licenses must be made while the Reconnaissance Permit is valid. The granting of a Prospecting License does not affect the validity of the underlying Reconnaissance Permit.
Prospecting Licenses are valid for three years with options for extensions for a total of five years. Prospecting Licenses that contain potentially economic mineralization are typically converted into Mining Licenses, which are valid for seven years and renewable to a maximum of 20 years.
U3O8 Corp. has already commenced the process of covering areas of significant uranium mineralization potential within its permit areas with Prospecting Licenses. One Prospecting License has been granted and another four applications are being processed for specific areas within Reconnaissance Permit Area A. Applications have recently been submitted for the first five Prospecting Licences for specific areas within Reconnaissance Permit Area B.
U3O8 Corp. is a Canadian uranium exploration company based in Toronto, Canada. Currently focused on exploration in the Roraima Basin area of Guyana, South America, U3O8 Corp’s primary business objective is to explore, develop and acquire uranium projects in the Americas. The company is well funded with over $14 million held solely in cash and Canadian chartered bank-backed Guaranteed Investment Certificates. At current rates of exploration expenditure, the company expects to be funded up until 2010.
