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SPARTON ENERGY 㠾イ欎厌䄟⏻⚇

⅝ㄮ㡶䏳䋿₼⒪㠿䂔㾐厌䄟

Making Clean Energy Fuel from Unconventional Sources ⓾ℶ❐-杏䤓⥭㟅欈䥽 ₝₼⦌㫇ぴ₩㓏⻭◤⇜⃚⚗⇫

Uranium By-Product Recovery Program Joint Project with China National Nuclear Corporation

2009 IAEA Workshop on Secondary Uranium Sources 㠾イ檢厌䄟⏻⚇– ⃉┯㖎⮶㠾イ檢彖䄟楕⦧⃚⷟⏻⚇

SPARTON ENERGY – A SUBSIDIARY OF SPARTON RESOURCES


卛㣾⅚兜 BACKGROUND

¾ 㩟K䏳₼㦘浧⚺摞䤓サ戟⺓杏 ✛␅Ⅵ㦘ↆ⋋䤓摠⻭ ¾ 䑒䍶⚺㦘扨K杏✛㦘ↆ⋋摠⻭ 䤓ㄮ㡶䏳䋿ⅴ扪嫛䦇␂摠⻭䤓 㙟♥ ¾ サ戟⺓䤓䏳䋿㢾ₜ厌⥭㟅Ⓙ㻃 㽴䷘␅Ⅵ嫛₩₼♊

ㅱ㠨懘▥⃉ 䂔䇣厌䄟

¾ Certain types of coal, phosphate rock and lithotypes are naturally high in Uranium and other metals ¾ Burning the coal concentrates Uranium and other metals in the Waste Ash ¾ Phosphoric acid production removes Uranium and recovery is possible ¾ U may be lost in fertilizer down stream processing ¾ Radioactive Waste CANNOT BE RECYCLED into cement, concrete, etc. Waste to Clean Fuel


䏳䋿₼⥭㟅杏✛␅⸒㦘ↆ⋋䤓摠⻭㢾⺈㫇䑒㠨䤓 嫴⏔ㄅ兞⮓䚕⚝㢾♾ⅴ扪嫛␜⥭㟅ⅴ⇫␅⸒䞷抣 Cleaning radioactive waste, phosphoric acid, reprocessing mine tailings, or developing new recovery methods to recover Uranium and other valuable metals can be a major a source of Nuclear Fuel and cleaned waste may be recycled ㅱ㠨懘▥⃉ Waste to 䂔䇣厌䄟 Clean Fuel


UNCONVENTIONAL URANIUM SOURCES PROPOSED SUBCATEGORIES TO REDBOOK DEFINITIONS

-“NOUDS” -- Naturally Occurring Uranium Deposits -“TENOUDS”

– Technically Enhanced Naturally Occurring Uranium Deposits


“TENOUD” EXAMPLES -

COAL ASH (FLY ASH, BOTTOM ASH)

-

PHOSPHORIC ACID

-

MINE TAILINGS

-

MINE WASTE ROCK

-

PROCESSING RESIDUE


WHY “TENOUD” URANIUM ?????? General Mining Project Flowsheet Exploration to Production Locate Ore Body

Economic Evaluation

Mine Establishment

Mine Ore Body

Treat Ore

Refine, Sell

Shut Down

Rehabilitate

Prospecting

New Mine Scope

Mine Engineering

Access ore Body

Crushing

Magnetic Converter

Marketing

Resale of Cleaned Ash

Mineral Rights

Mine modeling

Life of mine Costing

Develop (Drill & support)

Slurrying

Base metal Refining

Sales

Ongoing Capital investment

Geological Evaluation

Financial modeling

Build Mine

STOPING PITTING OR ISL MINING

Leaching

Precious metal Refining

Dispatch

Rehabilitation

(Mining Exploration)

Estimating

Commission Mine

Rock removal

U Recovery

Hoisting

Drying

Surface Transport

Smelting

HIGH RISK ACTIVITIES Most are

Storage of ore

Eliminated!!

Delivery & Invoice

Coal Ash, Process Waste or Phosphoric Acid Uranium Recovery

POTENTIAL FOR ENVIRONMENTAL CLEANUP !


HISTORY -PAST PRODUCTION NORTH AMERICA >~ 48,000,000 pounds U3O8, -3 million pounds from coal ash, 45 million pounds from phosphoric acid + others -(all plants now closed, last in 1995) -SIGNIFICANT PAST PRODUCTION IN EUROPE, Soviet Union (Kyrgestan 48 years). -Current production in Kazakhstan from phosphoric acid?, possibly in Ukraine from coal ash. (military background) -LIMITED PAST PRODUCTION IN CHINA (amount unknown AT LEAST 1,000,000 POUNDS, all plants closed) IN PAST CHINA HAD LITTLE NEED FOR URANIUM EXCEPT MILITARY


RECOVERY TECHNOLOGY

Patents in China

Test Programs

Ongoing Work ㅱ㠨懘▥⃉ Waste to 䂔䇣厌䄟 Clean Fuel


URANIUM RICH COAL North Dakota Operations 1960’s

August 2009


URANIUM PRODUCTION FROM COAL

HISTORICAL URANIUM PRODUCTION FROM DAKOTA LIGNITES Location

Operator/Owner

Plant / Mine Name

Belfield, Stark County, North Dakota

Union Carbide Corporation

Belfield Ashing Facility

Bowman, Bowman County, North Dakota

Kerr-McGee Oil Industries, Inc

Susquehanna Western

Manidon Mining Company

Edgemont

Mines Development Inc

Burning of uraniferous lignite near Belfield, North Dakota

Period of Production

Historical Production

Grade

1965-1967

60-100 tons/day feed 340,000lb U

0.37% U3O8

Bowman Ashing Facility

1964-1967

80-90 tons/day feed 686,000lb U

0.43% U3O8

Fritz Mine

~1963-1967

130,000 lb

0.175% U3O8

~1965-?

0.17-0.2% U3O8

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CHINA URANIUM SITUATION

- 3 RESOURCE CATEGORIES (Foreign Development) -

“Encouraged”

-

“Restricted”

-

“ Prohibited”

-

Uranium from primary sources “PROHIBITED” BUT !


URANIUM RECOVERY FROM WASTE MATERIAL “ENCOURAGED”

- November 2007 “ the comprehensive recovery of valuable material from waste coal ash is “encouraged” – addition to the PRC resource catalogue for foreign development participation Uranium Grade Categories (%U) - <0.01% waste - non commercial - 0.01%-0.03%- low grade, likely non commercial possible ISL if right kind of deposit- or non commercial mine waste - 0.03%-0.05% -ISL or vat leach if metallurgy is ok or waste - 0.05-0.10% - vat leach or milling ore >0 10%

milling ore if suitable metallurgy


U

U


U


摛䲚䬠 MILESTONES CHINA ¾ 欈䥽⦷2007 ㄃⒬㆏ⱚ⸭㡌 ¾ ⚗⇫↨⇃㢾₼⦌㫇ぴ₩捷䤓 棓⻭㧉㨓-咹㿚拴㎮₼㉒

¾ Project Startup, early 2007 ¾ Cooperation Agreement with ARCN, subsidiary of China National Nuclear Corporation

¾ 䪣䴅欈䥽析⸩ℕ⮩₹⚺浧戟 ⺓䤓䏳䋿᧨㫆❐㿚幤㣍䯉ℕ 㷲槱兢㨫

¾ Research Program identified several radioactive waste areas of interest Positive results in sample testing

¾ ⦷2007㄃⏻⚇䟂庆䤓␂ℝ⅝ 䏳䋿₼㙟杏䤓₢Ⓒ㈦Ⓙ㔈⑕

¾ Patented received in PRC for “Recovery of Uranium from Radioactive Coal Ash”, 2007

¾ ⸭洛⸳㿚幤め䞮ℶ⒉杏䤓㺶 ▥䓸᧨丏䱿“煓氋”

¾ Patent received for Recovery of Uranium from Phoisphoric Acid , 2008

ㅱ㠨懘▥⃉ Waste to ¾ Lab scale 䂔䇣厌䄟 testing has produced Clean Fuel U3O8 “Yellowcake”


㢅梃嫷

TIMELINES

¾ ⦷2008㄃₼ ⚗忓⏻⚇ㇱ㒟᧨䦇␂䤓⟕₩忓德✛ 㽷␛忓摠めⒿ⇜

¾ Mid-2008 Operating joint venture company formed. Business licence and registered capital in place

¾ ⦷2008㄃◐₏㦗 幤洛ぴ☑䤓ㆉ幍✛ぴ₩♾嫛㊶⸭洛 ㆏ⱚ

¾ November 2008 Contract signing for construction of Bulk Test Plant and Feasibility Study

¾ ⦷2009㄃⒬ ℠◦⃃㼶⦿◉䤓ぴ₩㿚幤⺕↩㆏ⱚ

¾ Early 2009 Bulk Sample Testing at Lincang (Yunnan)

¾ ⦷2010㄃ 欓帰㷲㆞䞮ℶ㆏ⱚ

¾ 2010-11 Production expected

ㅱ㠨懘▥⃉ Waste to 䂔䇣厌䄟 Clean Fuel


ADVANCED URANIUM PROJECTS Lincang Area - Yunnan Operations

Patented Patented Technology Technology

Yellowcake U3O8 Produced from Yunnan Fly Ash

Bulk Bulk Sample Sample Test Test Plant Plant

Testing Testing New New Waste Waste Sites Sites


PROCESS TECHNOLOGY


℣䤍ₖ⚷䤓ㄮ㡶䏳䋿 ℣䤍ₖ⚷䤓ㄮ㡶䏳䋿 ⚺㦘怔扖 450000 ⚺㦘怔扖450000 ◒⏚䤓杏㺶▥䓸 ◒⏚䤓杏㺶▥䓸 >> 450,000kg 450,000kg U3O8 U3O8

55 Million Million Tonnes Tonnes Waste Waste Ash Ash

℠◦⺞爨䇼䟄☑ XIALONGTANG POWER STATION YUNNAN


Xiaolongtang Power Station Yunnan China Stockpile 5,000,000 Tonnes Fly Ash containing 2,500,000 pounds U3O8


Radioactivity Radioactivity Level Level == 0.055% 0.055% Uranium Uranium

䏳䋿䤓戟⺓㿚幤᧶ 䏳䋿䤓戟⺓㿚幤᧶0.055% 0.055% 䤓杏 䤓杏

ㄮ㡶䏳䋿 ㄮ㡶䏳䋿

Radioactive Radioactive Waste Waste Piles Piles with with >200,000kg >200,000kg Recoverable Recoverable U308 U308

サ戟⺓䤓ㄮ㡶䏳䋿⪕᧶⚺㦘怔扖 サ戟⺓䤓ㄮ㡶䏳䋿⪕᧶⚺㦘怔扖 200,000 200,000◒⏚䤓♾⥭㟅䤓杏㺶▥䓸 ◒⏚䤓♾⥭㟅䤓杏㺶▥䓸

Waste Waste Coal Coal Ash Ash

Lincang Area Yunnan Operations

Coal Burning for Germanium Production

䏳䤓䑒䍶㙟♥枦 䏳䤓䑒䍶㙟♥枦

℠◦⃃㼶⦿◉㝜⇫


LINCANG COAL -100-300 PPM Ge, 100-500 PPM U

LINCANG BOTTOM ASH- 0.O15%-0.45% U


SPARTON ENERGY

ADVANCED URANIUM PROJECTS Lincang Area – Yunnan China

¾ 650,000 TONNES RADIOACTIVE ASH

¾ +150,000 kg U3O8


LINCANG HIGH U ASH WASTE FROM GERMANIUM PRODUCTION


 



























 







 

 







 

 









   









  









 

















 













































LINCANG CHINA WASTE ASH PILE U GRADES IN PPM




SPARTON ENERGY

ADVANCED URANIUM PROJECTS Datang - Heshan

Old Ash

20,000,000 Tonnes Waste Coal Ash

10-15% Carbon (unburned coal)

0.015-0.018% .est. Uranium Oxide (U3O8)

Possibly 2,500,000 kg recoverable U3O8

New Ash


MINE TAILINGS 6 MILLION TONNES @0.05% U- +- 3 million pounds U3O8 recoverable


0.01-0.03%U WASTE ROCK


SHALE HOSTED URANIUM - VANADIUM DEPOSIT IN SOUTH CHINA – 1.5 MILLION KgU3O8 AND 100 MILLION Kg V205 Cutoff Grade 0.05% U, (range 0.05-0.30%U) and 1%V2O5


URANIUM FROM COAL IN SASKATCHEWAN

55 OCCURRENCES OF COAL OR RELATED SEDIMENTS WITH >0.03%U3O8

20

URANIUM RICH LIGNITE COAL BASIN


URANIUM FROM COAL IN SASKATCHEWAN

U in Coal

21


URANIUM FROM COAL PAGMAG METAL’S RECENT DRILLING IN NORTH DAKOTA

29


SPARTON ENERGY AJKA WASTE COAL ASH – HUNGARY 14 MILLION TONNES @ 120 PPM U High lime and acid consuming minerals

SPARTON ENERGY – A SUBSIDIARY OF SPARTON RESOURCES


棓┯忱Ⓒ䴉梃

ADDED BENEFITS TO “TENOUD” U RECOVERY

¾ ⃃㼶⦿◉䏳⦷㙟杏⚝␜扪嫛枦 䤓㙟♥᧨扪₏㷴㙟浧Ⓒ䀵䴉梃

¾ Profitable Germanium production from same Lincang area coal containing high Uranium

¾ 枦⦷↦⮩䤓㦎ⅲ厌䄟Ⱁ⮹棂厌 ✛抩帾ぴ₩₼㦘ㄎ㽪䤓扟䞷

¾ Germanium is used in many environmental applications for alternative energy sources and power conservation technology

¾ ⮓䚕⚝䤓ₜサ戟⺓䤓䘾≬䏳䋿 扪嫛⥭㟅

¾ Recycling of non-radioactive ash after uranium removal

¾ 㖐兼⺊㻑⦷₼⦌䤓␅Ⅵ浧⚺杏 䏳䋿扪嫛䂔㾐䘾≬⮓䚕

¾ Potential for uranium production from several other sites in PRC to support fuel requirement for China’s Nuclear Power Program

ㅱ㠨懘▥⃉ Waste to 䂔䇣厌䄟 Clean Fuel


噆㈦⦌⹅᧨䦐儶✛㇢⦿䤓㟎ㄫ䤓㦘┪㞾㖐 Strong support from Central, Provincial, and Local Governments and their Environmental Departments

ㅱ㠨懘▥⃉ Waste to 䂔䇣厌䄟 Clean Fuel


㋊兢

SUMMARY

¾ ⚇ゃ欎㢾⦷₼⦌⬒␔➾₏䤓⮥忓⏻ ⚇⏐幇⦷呹㦘䤓₢Ⓒₚ㙟杏

¾ Sparton is the only foreign company presently allowed to produce Uranium Oxide in China with Patented Technology

¾ ㇉㦘┪䤓₼⦌㫇ぴ₩⏻⚇⚗⇫㞾㖐

¾ Strong Working Partnership with China National Nuclear Corporation

¾ 冋⚗Ⓒ䞷䏳䋿ㄅ⥭㟅㦘ↆ⋋摠⻭⻭ ℝ⮥忓䤓熢╀欈䥽

¾ The comprehensive use of coal ash for the recovery of valuable materials is an ‘encouraged activity’ for foreign investment

¾ ⮓䚕✛⥭㟅⚺戟⺓䤓䏳䋿㈦Ⓙℕ㦘 ┪䤓㞾㖐

¾ Environmental cleanup of radioactive waste sites and recycling of waste material strongly supported


SPARTON ENERGY 㠾イ欎厌䄟⏻⚇

庱庱 Thank You for the opportunity to present our unique company and it’s Unconventional Uranium programs FOR MORE INFORMATION: +86 10 8559 2276 - Mr. Ge Quiming (Charles) ᧤囪⚾㢝᧥ +1 416 366 3551 - Mr. Lee Barker ᧤㧝ゃ⏚᧥ www.spartonres.ca and www.spartonenergy.com

㠾イ檢厌䄟⏻⚇– ⃉┯㖎⮶㠾イ檢彖䄟楕⦧⃚⷟⏻⚇

2008 Ontario Environmental Mission to China SPARTON ENERGY – A SUBSIDIARY OF SPARTON RESOURCES

Sparton Energy of Canada: Making Clean Energy Fuel Making  

Certain types of coal, phosphate rock and lithotypes are naturally high in Uranium and other metals Burning the coal concentrate...