Uranium in Paraguay - Cue Resources Ltd by dfsdf224s


									       August 2010

Uranium in
Cautionary Statement

  Statements contained in this presentation which are not
  historical facts are forward-looking statements that
  involve risks, uncertainties and other factors that could
  cause actual results to differ materially from those
            d implied by
  expressed or i li d b such f           d l ki     t t
                               h forward-looking statements.t
  Such factors include among others: volatility and
  sensitivity to market prices for uranium, competition, the
  impact of changes in foreign currency exchange rates  rates,
  environmental risks, political risk, changes in government
  regulations and policies including trade laws and policies,
                        p      , p                 p
  demand for nuclear power, replacement of production,        ,
  receipt of permits and approvals from government
  authorities as well as other operating and development

                            Page 2
Uranium’s Renewed Demand

• Berkeley Resources (ASX:BKY) signs
  $70M MOU with KEPCO to develop
  Salamanca Uranium Project, August 10,
   A             transactions*
• “A total of 22 transactions were concluded
  in July, with prices increasing steeply
  during the second half of the month.” –
  Uranium Investing News, August 3, 2010
• “increasing overall expectations that present supply projections for
  the years ahead will fall short while Asian utilities plan to step up
  their buying activity. ” – U3O8.biz, July 28, 2010
           y g        y              ,    y ,
• “China is buying unprecedented amounts of uranium, signaling
  that prices are poised to rebound after three years of declines.” –
             g,    y ,
  Bloomberg, July 12, 2010
                 *transactions = uranium sales as reported by Ux Consulting Company, LLC

                                     Page 3

                    •         g g
                        Emerging democracy   y
                    •   Government pro-
                    •   Strong national and local
                        support for project
                    •   Energy seen as major
                        foreign currency generator
                    •   Favourable logistics

           Page 4
Yuty Uranium Project Background

 •   Anschutz/Korea Electric Power/Taiwan Power Joint Venture
                               ,              p
     • Over 450 holes drilled, San Antonio deposit discovered
     • $30 million spent (1976 to 1983) – (Paraguay total)
     • All technical data retained by Paraguayan government
 •   Transandes Paraguay acquired 318,650 ha in 2006
     • 230,000 ha Yuty Project – San Antonio plus multiple targets
     • Cue Resources earn-in with Transandes in Q1 2007
     • Cue earns full 100% in September 2008
 •   Concession
     • 20 year exploration/exploitation granted August 2008
     • No restrictions on export
 •   Partial Resource Estimate - San Antonio zone (April 2009)
     • Indicated Resource 9.0 mt at 0.042% = 8.3 m lbs eU3O8
     • Inferred Resource 1.1 mt at 0.050% = 1.2 m lbs eU3O8
         Internal update, April 16, 2009. GT Contour method, 0.03% metre x eU3O8 cutoff, NI 43-101 compliant

                                                             Page 5
Project Evolution
  June 2007   Drilling commenced
  Sept 2007   Placement by Cameco – US$7.0 million
  Sept 2007   Cue purchases
              C e p rchases 30% of Transandes
              - US$4.5m cash
  Oct 2007    Initiated environmental baseline studies
  May 2008    NI 43-101 Resource by Scott Wilson RPA
              - Indicated 4.7 million lbs U3O8 @ 0.030% avg. grade
              - Inferred 2.0 million lbs U3O8 @ 0.041% avg. grade
  Aug 2008    Yuty Mining Concession signed into law
              - Exploitation licence, 20 years, extendable
  Sept 2008   Cue announces completion of earn-in of remaining 70%
  Sept 2008   Initial column leach test completed
  Dec 2008    Initial permeability/porosity ISR test work completed
  Feb 2009    Commenced upgrade to NI 43-101 estimate
              - +77% increase in deposit size & +40% increase in avg. grade
              - Additional 26 holes, ISR test work
  Mar 2009    Cameco relationship terminated by mutual consent
                               Page 6
Geological Setting of Yuty Project

                    Page 7
Yuty Project Exploration Potential

                           • San Miguel
                             •   64 historic holes
                             •   three holes in the 0.10-0.50m% eU3O8 range
                             •   A significant number of holes encountered
                                 anomalous or better U mineralization
                             •   A mineralized zone has been identified in this area

                           • Yarati-y
                             •   6 of 39 historic holes drilled intersected mineralization
                             •   0.02-0.06m% eU3O8 range
                             •   very large area, thus wide spacing of drilling

                           • Typychaty
                             •   2 holes intersected low grade uranium mineralization
                             •   grade x thickness up to 0.06m% eU3O8
                             •               rocks,
                                 in oxidized rocks probably quite close to a
 Note –grid lines are at         mineralized redox front
 1000m intervals
                                        Page 8
Technical Status

 •   266 holes drilled regionally by Anschutz/Kepco/Taiwan Power
 •   218 holes drilled by Cue Resources June 2007 – August 2008
 •   New resource estimate in April, 2009
 •   Indicated Resource 9.0 mt at 0.042% = 8.3 m lbs eU3O8
 •   Inferred Resource 1.1 mt at 0.050% = 1.2 m lbs eU3O8
      • Significant increase in grade and tonnage from original estimate
      • 77% increase in Indicated Resources
      • Less than 66% of mineralized strike length in the resource category
          Internal NI 43-101-compliant update by Chris Healey, CUE’s COO and QP, April 16, 2009, with assistance from BRS Inc.
              Original estimate by Scott Wilson RPA, May15, 2008. GT Contour method, 0.03% GT (metres x eU3O8) cutoff

 •   Column leach test returned 86% recovery with sulphuric acidacid,
     reinforcing lab testing that resulted in 86% to 96.7% recoveries
 •   Initial permeability/porosity evaluation returned values within the
     range of other commercial ISR operations.

                                                         Page 9
Potential to Increase Grade

 • The current grade estimate is based on
   broad drill hole intercepts with a very low
   cut off grade
 • For current resource estimate, no attempt
   was made to optimize these grades
 • With a detailed evaluation of individual
   drill holes, it is projected that the grade
   can be increased to 0.08 – 0.10% U3O8
   with minimal loss of pounds (<5%)
                     Page 10
Yuty Project - San Antonio Deposit

                   Page 11
Yuty Project – San Antonio Deposit

     Cross section of typical
                  p     (San Antonio)
     roll front deposit (           )
                     Page 12
2010/11 Plan - Objectives

 • Define additional resources at San
   Antonio (target 15 million lbs.)
 • Increase knowledge of hydrological
   parameters of the San Antonio aquifer
 • Optimize leach parameters

                    Page 13
Q4 2010/Q1 2011 Plan – Work Plan

 •                (                    )
   Drill 30 holes (4,000 meter estimate)
 • Conduct further column leach tests
 • Maintain property in good standing
 • Continue capture of environmental base-
   li d t
   line data
 • Budget $1.0 million

                    Page 14
2010 Drilling Plan

   Drill    holes: A
 • D ill 30 h l             4,000   t      ti t d
                   Area 1 - 4 000 meters estimated
                           Page 15
2010/11 Plan – Distribution of Funds

     Description                         US $ Estimated Cost
     Drilling                                        500,000
     Column Leach Testing                             75,000
     Environmental Base-Line                          75,000
     Paraguay Camp/Operational Costs                 175,000
     Corporate Costs
        p                                            150,000
     Sub Total                                       975,000
     Contingency                                      75,000
     Grand Total                                   1 050 000

     Raise $1.0 illi for     ti    f l
     R i $1 0 million f execution of plan
                               Page 16
Cue Resources – Corporate Information

 •   Listing: CUE (TSX-V)
 •   Shares outstanding:          74,156,525
 •   Fully Diluted:               109,981,206
 •   Major h h ld
     M j shareholders:
     • Resinco Capital Partners             14,616,135   19.71%
     • Pinetree Capital                     6,477,800    8.74%
     • Red Rock Resources                   14,117,385   19.04%
 • Exploration expense: US $13.2 million
   Yuty E    I      $4.5 illi      d   illi        h
 • Y t Earn-In: US $4 5 million and 4 million CUE shares
 • Total mineral property costs: CDN $22.4 million

                                  Page 17
Management and Board
•    John Icke – Executive Chairman/Director
John Icke is a senior executive with more than 25 years global management experience, 14 in the role of President,
General Manager or Chief Executive Officer, in both the private and public sector. He was previously the president
 fA       t    B i       S i      for Utiliti
of Accenture Business Services f Utilities, th l
                                               the largest b i
                                                         t business process outsourcing practice of it ki d worldwide.
                                                                               t    i        ti    f its kind  ld id
Prior to taking up his current position, he had been a principal of JRI Strategy Consultants Inc., a business
consultancy which provides strategic counseling and leadership to senior executives of retailers, technology and
consumer goods manufacturing businesses. Mr. Icke currently is President & CEO of Resinco Capital Partners and
a director of several public companies.

•    Robert Tyson – P id
     R b T          President & CEO
Mr. Tyson is a corporate development specialist with 20 years experience in financing and managing public
companies. Currently, he is a director of Source Exploration Corp., a public exploration company focused on the
development of it's San Acacio Silver Project in Mexico. Previously, he has held the positions of Vice President,
    p             p                              p,                 p                              p
Corporate Development at Solex Resources Corp., Minco Gold Corporation and Minco Silver Corporation. He has
also held several senior management positions and directorships with Canadian and U.S. based publicly trading
companies with his primary responsibility being corporate compliance, finance and investor relations.

•    Chris Healey B.Sc., P. Geo. – Director
Mr. Healey is a licensed professional geologist in Wyoming with over 40 years experience in the natural resources
industry, specializing in uranium exploration and extraction. He has held senior positions with Cameco Corporation,
the world's largest uranium producer, where he recently managed its US operations and was responsible for the
acquisition of several major uranium properties that hosted in excess of 50 million pounds of resources. He was
involved in the discovery and development of the world's two largest high grade deposits: Cigar Lake and McArthur
River. Chris has broad and deep experience in all aspects of resource mining, especially in the uranium sector. He
has l         k d          i     j t
h also worked on uranium projects around th world, i l di C
                                             d the                      d the United States, P
                                                      ld including Canada, th U it d St t                Kazakhstan,
                                                                                               Paraguay, K     kh t
Mongolia, Australia and Malawi. He is currently Chief Operating Officer for Titan Uranium, and a director of several
public companies.

                                                       Page 18
Management and Board (con’t)
 •    Dorian (Dusty) Nicol B.Sc. Geo, M.A. Geo – Director
 Mr. Nicol has over 30 years of international experience in mineral exploration and mining. His past positions include
 Executive V.P. - Exploration with Yukon-Nevada Gold, President and CEO of Queenstake Resources, Latin
 A    i Manager f C
 America M         for Canyon R             V.P. Exploration for Castle Exploration ith           i C t lA
                               Resources, V P E l ti f C tl E l ti with programs in Central America                i
 and Africa, and exploration positions with Exxon Minerals and Renisson Gold Fields in Papua New Guinea. Among
 other achievements, his programs have led to the addition of over 1.5 million ounces of gold at Jerritt Canyon,
 Nevada, including the discovery of a new mine at Starvation Canyon. He is a member of the American Institute of
 Professional Geologists and a Fellow of the Society of Economic Geologists. He has a B.Sc. in geology from M.I.T.
       Master's                                                                  languages.
 and a Master s Degree in Geology from Indiana University and is fluent in five languages

 •    Peter Leighton – Director
 Mr. Leighton is a senior executive with more than 20 years experience in leadership roles in the energy industry. He
 is the former COO and previously CFO of Accenture Business Services for Utilities. Mr. Leighton was also a
         p                                   g       gy,                            p
 Development Executive for Fletcher Challenge Energy, a former director of the Independent Power Association of
 BC and a finance executive with Amoco. He is currently President and Chief Operating Officer of Finavera
 Renewables, as well as an Independent Director on the Board of the British Columbia Health Authority Shared
 Services Organization.

 •    Jon Lever - CFO
 Mr. Lever is a Certified Management Accountant and has extensive experience with venture-stage private and
 public companies in the energy and natural resource industries. He began his career with Touche Ross & Co (now
 part of Deloitte) in 1985. In recent years, Mr. Lever served as Chief Financial Officer for Wealth Minerals Ltd and
 Tournigan Gold Corporation. He currently serves as CFO for junior exploration companies Salmon River Resources
 Ltd. and Mega Moly Inc.

                                                       Page 19
Technical Team
 •    Chris Healey B.Sc., P. Geo. – Director, Consultant
 •    Tim Marlow C. Eng., MIMMM – General Manager, Paraguay
       d t f th Camborne S h l of Mi
 A graduate of the C b                          U.K., Mr. Marlow i a hi hl experienced professional Mi i
                               School f Mines, U K M M l          is highly        i    d     f   i    l Mining
 Engineer and Company Director with more than 35 years in the international mining industry. He has had extensive
 experience in Corporate, Consulting, Business Development, Project Management, and Operational and Technical
 activities, and has worked in North America, Africa, and the Far East, including two years in China. In addition to
 spending four years working at the Elliot Lake, Ontario, Canada uranium mines of Rio Algom, he has recently
                 S. America,                                                                  Mining s
 returned from S America where he was responsible for corporate oversight of Hochschild Mining’s operations in
 Peru, Argentina and Mexico.

 •    Dr. Bernie Schmeling – Project Manager
 Dr. Bernie D. Schmeling is a professional geophysicist with more than 35 years of experience in world wide
 exploration p g
   p                              g projects for uranium and other commodities. He is a member of the European
             programs and mining p j                                                                       p
 Federation of Geologists (i.e. a Qualified Person (QP) according to NI 43-101 requirements). Till 1996 He was a
 member of the Uranerz team as a senior and chief geophysicist and was closely involved in 1975 with the discovery
 and development of the major uranium deposits Key Lake in Saskatchewan, Canada.

               Competent, qualified & experienced leadership team

                                                      Page 20

• 100% ownership of mining concession
  Favourable political environment
• F        bl     liti l   i        t
• Significant deposit identified on only 1% of the area of
  the concession
• ISR potential favourable. Open-pit, heap leach
  potential alternative
• Topography and climate conducive to either type of
• Excellent potential to expand resource base at San
  Antonio d t th id tifi d target zones
  A t i and at other identified t       t
• Spring 2009 NI 43-101 resource update contains
    g         y                              g
  significantly more contained metal, at a higher ggrade.
• Experienced & qualified leadership team
                           Page 21
• ISR Schematic

                    Page 22
Schematic ISR Operation

                  Page 23
Cue Resources


                Page 24

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