Vanguard Mining Corp. Expands Uranium Footprint in Paraguay

Vanguard Mining Corp. has made a bold move in the uranium sector by signing a Letter of Intent (LOI) to acquire four concessions in Paraguay, collectively known as the Yuty Prometeo project. This strategic acquisition positions Vanguard at the forefront of one of the most promising uranium regions in South America, adjacent to Uranium Energy Corp.’s (UEC) established Yuty deposit, which hosts indicated resources of 8.96 million pounds of U₃O₈. The acquisition covers approximately 90,000 hectares (222,395 acres) within the Paraná Basin, a region known for its significant uranium potential.

The Yuty Prometeo project consists of three San Jose concessions and one Yuty Uno concession. The San Jose concessions span approximately 62,210 hectares and are located along the Upper Permian–Carboniferous contact, about 100 km northwest of UEC’s Yuty Project and 40 km west of its Coronel Oviedo Project. A radiometric car survey conducted over a 40 km by 10 km area identified significant uranium anomalies across the property. The Yuty Uno concession, on the other hand, covers approximately 27,666 hectares and is directly contiguous to UEC’s Yuty Project. To date, 28 drill holes have been completed on the property, returning uranium assay results ranging from 0.05% to 0.10% U₃O₈. Geophysical surveys, drilling data, and surface sampling indicate that the Prometeo block is on trend with UEC’s adjacent Transandes block.

The terms of the proposed transaction are outlined in the LOI, which includes Vanguard acquiring an 85% interest in Paraguay Uranium S.A. by providing a payment of $20,000 upon signing, issuing 8,000,000 common shares in the capital of Vanguard to the shareholders of Paraguay Uranium, and an additional payment of $20,000 upon being issued a Prospecting Permit. This permit will entitle the company to commence further surface exploration as well as exploration drilling.

The acquisition of the Yuty Prometeo concessions aligns perfectly with Vanguard’s long-term uranium exploration strategy. By securing concessions adjacent to UEC’s Yuty deposit, Vanguard gains access to a region with a proven geological framework, reducing exploration risk and enabling it to build on historical data from prior explorers. The proximity to established deposits increases the likelihood of discovering extensions or new deposits in the same mineralized zone. Additionally, the substantial land package offers expansion potential, with the San Jose Concession alone spanning 62,210 hectares and anomalies spanning a 40 km by 10 km area, indicating large-scale exploration opportunities.

The strategic positioning of the Yuty Prometeo project in the Paraná Basin also offers significant market positioning benefits. The region’s potential as a non-Russian, non-Kazakh source aligns with Western nations’ efforts to diversify supply chains, particularly in light of U.S. sanctions on Russian uranium and the growing influence of China in Kazakhstan. The Yuty ISR Project, owned by uec, is amenable to in situ recovery (ISR), a low-cost method that UEC has successfully deployed in Texas. If Vanguard’s concessions share similar geology, this could lower extraction costs, enhancing project economics as uranium prices rise. The uranium spot price has risen to $73.75/lb in 2024, with forecasts of further increases, making early-stage exploration in low-cost regions like Paraguay strategically timed.



However, the acquisition is not without its risks. Vanguard faces financial risks such as high upfront costs and uncertain funding requirements, as well as operational risks such as exploration uncertainty and permitting delays. To mitigate these risks, Vanguard could secure additional funding through partnerships, equity financing, or debt facilities, and leverage uranium price trends by locking in forward sales contracts. The company could also accelerate drilling and sampling, collaborate with UEC on shared infrastructure or data, and engage local authorities early to streamline permitting. Additionally, Vanguard could conduct environmental impact assessments and partner with local stakeholders to ensure social license to operate.

The acquisition of the Yuty Prometeo concessions represents a significant step forward for vanguard mining Corp. in its uranium exploration strategy. By securing concessions adjacent to UEC’s established Yuty deposit, Vanguard gains access to a region with proven geological potential and significant market positioning benefits. While the acquisition is not without its risks, Vanguard’s strategic approach and mitigation strategies position the company for success in the growing uranium market. As the global demand for uranium continues to rise, Vanguard’s acquisition of the Yuty Prometeo project positions it as a key player in the South American uranium sector, with the potential to unlock significant value for shareholders.