LAKEWOOD, CO, Aug. 18, 2016 /CNW/ - 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 intercepted
several large and high-grade areas of mineralization at its Canyon
Mine, a conventional uranium mine located in northern Arizona, USA.
The Company is currently pursuing an underground delineation
core drilling program from a station located at a depth of
approximately 1,000 feet below the surface. To date, thirteen
(13) core holes have been drilled, and most have encountered
uranium mineralization in multiple levels throughout the deposit,
including 8.5-feet of mineralization with an average grade of 6.88%
eU3O8, 48.0-feet of mineralization with an
average grade of 1.02% eU3O8, and 35-feet of
mineralization with an average grade of 1.39%
eU3O8. The Company expects to drill a
total of fifteen (15) core holes from the first station during the
current drilling program, which is expected to be followed up by
additional delineation drilling from a second station later this
year.
The table below summarizes the data for the ten (10) best
individual intercepts that the Company has encountered to date:
Hole
Number
|
Thickness
(feet)
|
Avg.
Grade
(%
eU3O8)
|
GT
(Grade x
Thickness)
|
CMCH-011
|
8.5
|
6.88%
|
58.5
|
CMCH-005
|
48.0
|
1.02%
|
49.0
|
CMCH-007
|
35.0
|
1.39%
|
48.7
|
CMCH-006
|
38.5
|
1.11%
|
42.7
|
CMCH-008
|
40.5
|
0.99%
|
40.1
|
CMCH-004
|
38.0
|
1.02%
|
38.8
|
CMCH-007
|
8.5
|
2.48%
|
21.1
|
CMCH-013
|
30.0
|
0.66%
|
20.6
|
CMCH-006
|
38.0
|
0.50%
|
19.0
|
CMCH-002
|
29.0
|
0.62%
|
18.0
|
All holes were logged for gamma by trained Company personnel to
calculate eU3O8%. Gamma logging tools
were calibrated prior to the drilling program and verified by an
independent 3rd party geophysicist. Samples from
the zones showing high eU3O8% assay values
are currently being sampled and sent to the Company's White Mesa
Mill for further verification.
According to a June 27, 2012
technical report ("Technical Report") prepared in accordance with
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101"), the Canyon deposit contains 83,000 tons
of Inferred Mineral Resources with an average grade of 0.98%
eU3O8, containing 1.63 million pounds of
uranium. The existing Technical Report was based on the
results of surface drilling. The current underground drilling
program is intended to further define and delineate the uranium
resources in the Canyon deposit – and to potentially expand and
upgrade the resources – above what are described in the Technical
Report. If required, the Company expects to have an updated
Technical Report prepared for the Canyon deposit, in accordance
with NI 43-101.
In addition to the delineation drilling, the Company is also
continuing to sink an 8-foot by 20-foot mine shaft, which will be
used to access the deposit. The shaft is currently at a depth
of approximately 1,100 feet.
Stephen P. Antony, President and
CEO of Energy Fuels stated: "So far, the results of the
underground drill program at the Canyon deposit are very
positive. The uranium grades, thicknesses, and continuities
we have encountered at this stage of our delineation drilling
program are confirming our high expectations for the deposit.
Furthermore, as we extend core holes beyond the known zones of
mineralization, additional high-grade uranium resources are being
identified that are expanding the size of the deposit beyond what
was described in the Technical Report.
"We have long known that the Canyon deposit boasts world-class
uranium grades, and we have the potential to increase the tonnage
to be mined through underground delineation drilling.
Historically, uranium produced from other similar deposits in
northern Arizona was low-cost and
competitive globally with other low-cost underground uranium mines,
including mines in Canada. In addition, the Canyon Mine
enjoys other important advantages. It is fully licensed and
permitted. It is at a very advanced stage of construction,
with all surface development completed and the shaft is close to
being complete. And, the mine is located within economic
trucking distance of Energy Fuels' White Mesa Mill, which is
licensed, operating, and has the capacity to process the Canyon
material into finished yellowcake that can be sold to global
nuclear utilities. We look forward to completing our current
drill program, potentially performing future delineation drill
programs, and continuing to confirm the size and quality of the
resources."
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 care and maintenance. 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".
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, including
sampling, analytical, and test data underlying such
disclosure.
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
drilling results to date from the Canyon mine and any conclusions
which may be drawn from such results; the total number of holes the
Company expects to drill in the current delineation program;
the conclusions contained in the 2012 Technical Report and any
future technical reports which may be prepared in accordance with
NI 43-101; the final depth of the shaft; the potential that the
resources and/or tonnage may be expanded beyond what is described
in the 2012 Technical Report; the Company's belief that the Canyon
deposit is world-class; the costs of production and competitiveness
of other similar mines, and any inference to the Canyon deposit;
the factors which the Company believes makes the Canyon deposit
unique; 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
drilling results to date from the Canyon mine and any conclusions
which may be drawn from such results; the total number of holes the
Company expects to drill in the current delineation program;
the conclusions contained in the 2012 Technical Report and any
future technical reports which may be prepared in accordance with
NI 43-101; the final depth of the shaft; the potential that the
resources and/or tonnage may be expanded beyond what is described
in the 2012 Technical Report; the Company's belief that the Canyon
deposit is world-class; the costs of production and competitiveness
of other similar mines, and any inference to the Canyon deposit;
the factors which the Company believes makes the Canyon deposit
unique;; 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.
Cautionary Note to United States Investors Concerning
Estimates of Measured, Indicated and Inferred
Resources: This news release contains
certain disclosure that has been prepared in accordance with the
requirements of Canadian securities laws, which differ from the
requirements of U.S. securities laws. Unless otherwise
indicated, all reserve and resource estimates included in this news
release have been prepared in accordance with Canadian National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101") and the Canadian Institute of Mining, Metallurgy and
Petroleum ("CIM") classification system. Canadian standards,
including NI 43-101, differ significantly from the requirements of
U.S. securities laws, and reserve and resource information
contained in this news release may not be comparable to similar
information disclosed by companies reporting only under U.S.
standards. In particular, the term "resource" does not equate
to the term "reserve" under SEC Industry Guide 7.
United States investors are
cautioned not to assume that all or any of Measured or Indicated
Mineral Resources will ever be converted into mineral
reserves. Investors are cautioned not to assume that all or
any part of an "Inferred Mineral Resource" exists or is
economically or legally minable. Energy Fuels does not hold
any Reserves as that term is defined by SEC Industry Guide 7.
Please refer to the section entitled "Cautionary Note to United
States Investors Concerning Disclosure of Mineral Resources" in the
Company's Annual Report on Form 10-K dated March 15, 2016 for further details.
SOURCE Energy Fuels Inc.