LAKEWOOD, CO, Aug. 2, 2016 /PRNewswire/ - Energy Fuels
Inc. (NYSE MKT: UUUU; TSX: EFR) ("Energy Fuels" or the
"Company"), a leading producer of uranium in the United States, is pleased to announce that
it has received an independent technical report (the "Technical
Report") containing a current mineral resource estimate for its
100%-owned Alta Mesa ISR Project located in Brooks and Jim
Hogg Counties, Texas,
including the Alta Mesa and Mesteña Grande deposits and exploration
targets ("Alta Mesa"), in accordance with National Instrument
43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101"). According to the Technical Report, Alta Mesa holds
a total of 1.6 million tons of measured and indicated mineral
resources with an average grade of 0.111%
U3O8 containing 3.6 million pounds of
uranium, along with 7.0 million tons of inferred mineral resources
with an average grade of 0.121% U3O8
containing 16.8 million pounds of uranium. In addition, the
technical report identifies certain exploration targets at Alta
Mesa that includes 2.6 million tons of mineralized material with an
average grade of 0.08% - 0.123% U3O8
containing 4.1 to 6.6 million pounds of uranium. These
mineral resources further add to Energy Fuels' industry-leading,
U.S.-based uranium resource portfolio.
Please note that the tonnages, grades and contained pounds of
uranium for the exploration targets should not be construed to
reflect a calculated mineral resource estimate (measured, indicated
or inferred). The potential quantities and grades for
exploration targets are conceptual in nature, and there has not
been sufficient work completed to date to define an NI 43-101
compliant resource. Furthermore, it is uncertain if
additional exploration will result in any of the exploration
targets being delineated as a mineral resource estimate in the
future.
As previously announced, Energy Fuels acquired Alta Mesa through
its June 17, 2016 acquisition of
Mesteña Uranium, LLC. In addition to the uranium resources
identified above, Alta Mesa also includes a fully-licensed and
constructed ISR processing facility which is currently on standby
status, pending improvements in uranium market conditions. As
a result of the acquisition of Alta Mesa, Energy Fuels now has
three fully-licensed and operational uranium production centers –
two that utilize in situ recovery ("ISR") and one that
utilizes conventional technologies – with a combined licensed and
operational capacity of 11.5 million pounds of uranium per
annum. As described in the report, the Alta Mesa project area
encompasses 200,076-acres of contiguous property including (i) the
current mining lease of 4,575 acres which holds the production
facilities and existing wellfields, and (ii) a lease option area of
195,501 acres.
Stephen P. Antony, President and
CEO of Energy Fuels stated: "Alta Mesa is the flagship asset
Energy Fuels obtained through our June
2016 acquisition of Mesteña Uranium, LLC. However,
since Mesteña was privately-held, no resource estimate was
previously prepared for Alta Mesa in compliance with NI
43-101. Therefore, we are very pleased to announce a maiden
NI 43-101 compliant resource estimate for this key project.
We believe we created real shareholder value through our
$11 million, all-stock acquisition of
Mesteña Uranium, LLC and its Alta Mesa Project. Not only does
Alta Mesa contain the resources described in the NI 43-101
technical report, but it also has a fully-licensed and constructed
processing plant built in 2005 that can produce finished uranium
product available for sale to global nuclear utilities. Based
on operating results from 2005 – 2013, when Alta Mesa was
previously in production, we also believe that Alta Mesa could have
some of the lowest 'all-in' costs of production within our
portfolio, providing us with significant production scalability
that we can bring online sooner and at lower uranium prices.
We are also particularly proud of the fact that we have built the
largest uranium resource portfolio in the U.S., among current
producers and near-producers, and Alta Mesa's maiden resource
estimate further cements our dominant position in this
category."
The author of the Technical Report is Douglas L. Beahm, P.E.,
P.G., of BRS Consulting, who is a qualified person and independent
of Energy Fuels for purposes of NI 43-101. The effective date
of the Technical Report and the mineral resource estimate is
July 19, 2016. A copy of the
technical report is being filed under the Company's SEDAR profile
at www.sedar.com.
Key assumptions and parameters utilized in determining the
mineral resource estimate contained in the Technical Report include
the following: (i) a minimum grade cut-off of 0.02%
U3O8 and a minimum grade x thickness (GT) of
0.30, which is considered reasonable for economic extraction
utilizing ISR methods; (ii) a bulk density factor of 17
ft3/ton was utilized which is considered conservative
for ISR extraction; (iii) drill data for 10,744 drill holes was
analyzed, including about 3,000 drill holes within existing
wellfields; (iv) prompt-fission-neutron (PFN) log data was
available for 92.8% of the 10,744 drill holes, which is considered
reasonably equivalent to chemical assays; (v) where possible, width
and GT parameters were determined from specific drill data, and
where this was not possible, trend width was determined from data
available from two existing wellfields; and (vi) the contained
pounds of uranium were calculated from the GT value applied to the
respective area of mineralization with the application of the
appropriate bulk density.
Because the project has operating permits in place and there is
an existing, adjacent ISR production facility, the risks associated
with the mineral resource estimate contained in the Technical
Report are considered low. There are no known legal,
political or other risks that could materially affect the potential
development of the mineral resources at Alta Mesa, other than the
normal risks associated with obtaining permits in the future for
additional wellfield development, and with resource estimates and
mining generally, as disclosed in the Company's most recent annual
report on Form 10-K.
About Energy Fuels: Energy Fuels is a
leading integrated US-based uranium mining company, supplying
U3O8 to major nuclear utilities. Energy
Fuels holds three of America's key uranium production centers, the
White Mesa Mill in Utah, the
Nichols Ranch Processing Facility in Wyoming, and the Alta Mesa Project in
Texas. The White Mesa Mill is the only conventional uranium
mill operating in the U.S. today and has a licensed capacity of
over 8 million pounds of U3O8 per year.
The Nichols Ranch Processing Facility is an ISR production center
with a licensed capacity of 2 million pounds of
U3O8 per year. Alta Mesa is an ISR
production center currently on standby. Energy Fuels also has
the largest NI 43-101 compliant uranium resource portfolio in the
U.S. among producers, and uranium mining projects located in a
number of Western U.S. states, including one producing ISR project,
mines on standby, and mineral properties in various stages of
permitting and development. The Company's common shares are
listed on the NYSE MKT under the trading symbol "UUUU", and on the
Toronto Stock Exchange under the trading symbol "EFR". The
Company's Debentures are listed on the Toronto Stock Exchange under
the trading symbol "EFR.DB."
Stephen P. Antony, P.E., President & CEO of Energy
Fuels, is a Qualified Person as defined by Canadian
National Instrument 43-101 and has reviewed and approved the
technical disclosure contained in this news
release.
Cautionary Note Regarding Forward-Looking
Statements: Certain information contained in this
news release, including any information relating to: the Company
being a leading producer of uranium in the U.S.; the
resource estimate, conclusions and assumptions contained in the NI
43-101 technical report for the Alta Mesa Project; the future
exploration potential for the Alta Mesa Project; the Company's
ability to restart production at the Alta Mesa Project upon
sufficient improvements in uranium market conditions; the Company's
claim to have created shareholder value through the acquisition of
Mesteña Uranium, LLC; the Company's expectations regarding 'all-in'
costs of production at Alta Mesa and any other project; production
scalability at the Alta Mesa project ; the Company cementing its
position as a dominant owner of uranium resources in the U.S.; the
risks associated with the resource estimate; and any other
statements regarding Energy Fuels' future expectations, beliefs,
goals or prospects; constitute forward-looking information within
the meaning of applicable securities legislation (collectively,
"forward-looking statements"). All statements in this news
release that are not statements of historical fact (including
statements containing the words "expects", "does not expect",
"plans", "anticipates", "does not anticipate", "believes",
"intends", "estimates", "projects", "potential", "scheduled",
"forecast", "budget" and similar expressions) should be considered
forward-looking statements. All such forward-looking
statements are subject to important risk factors and uncertainties,
many of which are beyond Energy Fuels' ability to control or
predict. A number of important factors could cause actual
results or events to differ materially from those indicated or
implied by such forward-looking statements, including without
limitation factors relating to: the Company being a leading
producer of uranium in the U.S.; the resource estimate,
conclusions and assumptions contained in the NI 43-101 technical
report for the Alta Mesa Project; the future exploration potential
for the Alta Mesa Project; the Company's ability to restart
production at the Alta Mesa Project upon sufficient improvements in
uranium market conditions; the Company's claim to have created
shareholder value through the acquisition of Mesteña Uranium, LLC;
the Company's expectations regarding 'all-in' costs of production
at Alta Mesa and any other project; production scalability at the
Alta Mesa project; the Company cementing its position as a dominant
owner of uranium resources in the U.S.; the risks associated with
the resource estimate; and other risk factors as described
in Energy Fuels' most recent annual report on Form 10-K and
quarterly financial reports. Energy Fuels assumes no
obligation to update the information in this communication, except
as otherwise required by law. Additional information
identifying risks and uncertainties is contained in Energy Fuels'
filings with the various securities commissions which are available
online at www.sec.gov and www.sedar.com.
Forward-looking statements are provided for the purpose of
providing information about the current expectations, beliefs and
plans of the management of Energy Fuels relating to the
future. Readers are cautioned that such statements may not be
appropriate for other purposes. Readers are also cautioned
not to place undue reliance on these forward-looking statements,
that speak only as of the date hereof.
SOURCE Energy Fuels Inc.