LAKEWOOD, CO, Oct. 27, 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 report that
it has discovered an extensive system of high-grade copper
mineralization at its 100%-owned Canyon Mine in northern
Arizona. As previously announced, the Company is currently
evaluating the Canyon deposit to expand and upgrade the uranium
resources. The Canyon Mine is the highest-grade uranium mine
in the U.S., and based on uranium recovery alone, the Company
expects production costs from the Canyon Mine to be competitive
with the best underground uranium mines globally, including mines
in Canada, based on
industry-published cost estimates. However, now that
extensive high-grade copper mineralization has been discovered
within the deposit – with exploration results to date averaging
8.75% Cu and one intercept hitting 5-feet of 31.69% Cu – the
Company is now expanding the scope of the evaluation of the Canyon
deposit to analyze recovering copper as a byproduct of uranium
recovery, which has the potential to make the economics of the
Canyon Mine even better.
As a part of the current evaluation, the Company is completing
the production shaft to a planned depth of 1,470-feet and
conducting an underground drilling program. At the current
time, the shaft is at a depth of approximately 1,250-feet, and
underground drilling is currently occurring on the second of the
three planned levels. As previously announced, the Company
completed a fifteen hole subsurface angled core drilling program
from the 1st level that intercepted several large and
high-grade areas of uranium mineralization, including 8.5-feet with
an average grade of 6.88% eU3O8, 48.0-feet
with an average grade of 1.02% eU3O8, and
35-feet with an average grade of 1.39%
eU3O8.
The uranium grades above were calculated at that time utilizing
gamma analysis. The Company has since performed analysis on
select core which has shown that five holes drilled into the middle
zone of the deposit contain significant, high-grade copper
mineralization. The core from the five holes was separated
into individual intercept composites, each being 4-inches in
diameter and 5 to 10 feet in length (representing 313-feet of total
intercept length). Combined, all copper bearing core holes
have an average grade of 8.75% Cu, including one composite that
contains an average grade of 31.69% Cu. In addition, the
Company is finding small quantities of silver, zinc, and other
minerals which have the potential to be recoverable as additional
value-added byproducts.
The table below summarizes the data for the five copper-bearing
core holes sampled thus far, along with the uranium and silver
data:
Core Hole
#
|
Length of
Mineralization
|
Copper
(% Cu)
|
Uranium
(%U3O8)
|
Silver
(oz/ton)
|
8
|
58-feet
|
12.63%
|
0.74%
|
1.72
|
2
|
105-feet
|
9.44%
|
0.17%
|
1.49
|
5
|
54-feet
|
9.25%
|
0.71%
|
1.87
|
3
|
55-feet
|
7.66%
|
0.02%
|
1.04
|
4
|
41-feet
|
2.32%
|
1.00%
|
0.67
|
All of these results are from the middle zone of the deposit,
which is located at a depth of between 1,200-1,400 feet below
surface. The table below summarizes the data for the ten best
copper intercept composites recovered to date with the
corresponding uranium and silver grades in these zones:
Intercept
Composite #
|
Composite
Length
|
Copper
(% Cu)
|
Uranium
(%U3O8)
|
Silver
(oz/ton)
|
8-334
|
5-feet
|
31.69%
|
3.96%
|
3.83
|
5-289
|
5-feet
|
29.97%
|
4.01%
|
6.32
|
2-253
|
5-feet
|
29.94%
|
0.07%
|
1.69
|
2-258
|
5-feet
|
29.74%
|
0.07%
|
1.47
|
8-364
|
5-feet
|
25.50%
|
0.05%
|
2.40
|
2-228
|
5-feet
|
21.36%
|
0.95%
|
1.83
|
8-369
|
5-feet
|
19.47%
|
1.18%
|
2.12
|
8-339
|
5-feet
|
19.04%
|
0.13%
|
2.25
|
3-225
|
10-feet
|
16.06%
|
0.01%
|
1.29
|
2-233
|
5-feet
|
14.42%
|
0.04%
|
1.37
|
All data presented in the table above were analyzed at the
Company's White Mesa Mill using ICP-OES and ICP-MS, except in the
case of uranium which was measured by spectrophotometric analysis
following the Mill's standard quality assurance program and quality
control measures. Check samples were sent to an independent
laboratory in Salt Lake City for
verification analyses using ICP-OES and ICP-MS, and confirmation of
results is pending.
According to a June 27, 2012
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. As reported in the Company's news release dated
August 18, 2016, the current
underground drilling program is further defining and delineating –
and potentially expanding and upgrading – the uranium resources
within the Canyon deposit.
The high-grade uranium mineralization identified in the Canyon
Mine so far is located in three main zones within the deposit: an
upper zone, a middle zone, and a lower zone. The high-grade
copper mineralization discovered so far is located in the middle
zone. It is evident from the foregoing results that the
high-grade copper mineralization in the middle zone is found both
inside and outside the areas of high-grade uranium mineralization,
which suggests that the total tonnage of high grade copper
resources may exceed the total tonnage of uranium resources in that
zone. The Company also has reason to believe that there is
potential for copper in the upper and lower zones as well, all
residing within the physical boundaries of the identified
deposit. Therefore, if copper is eventually recovered from
the Canyon Mine, it is not expected to change the currently
contemplated surface area disturbance, the mine depth, the mining
method, or significantly increase the unit mining cost.
Due to the extensive high-grade copper mineralization
encountered to date, we have expanded the scope of our next drill
program to further identify, define, and delineate the copper,
uranium, silver, and other mineral resources, and to determine the
true width of the mineralized zones. As such, the Company
plans to complete percussion and core drilling programs on the
2nd level at the Canyon deposit during Q4-2016. The cost
of the additional drilling is not expected to be significant.
The Company expects to complete an updated technical report
for the Canyon deposit, in accordance with NI 43-101, in the first
quarter of 2017, updating the uranium resources and adding any
copper resources, other exploration results, or if applicable,
other potentially resources.
Copper has been recovered as a byproduct at a number of uranium
mills in the western United States
in the past, and BHP Billiton's Olympic Dam mine in Australia currently recovers copper and a
uranium byproduct. As previously announced on September 12, 2016, the Company has engaged a
team of metallurgical experts to complete a comprehensive review of
all of the Company's processing operations as a part of our
optimization program. This review will include an evaluation
of the potential for recovering copper utilizing existing circuitry
at the Company's White Mesa Mill located in southeast Utah.
Stephen P. Antony, President and
CEO of Energy Fuels stated: "The preliminary drilling results
showing an extensive system of high-grade copper mineralization at
the Canyon Mine are very exciting for Energy Fuels. We have
long known that similar deposits in northern Arizona contain copper. However, the
average grades in the five holes sampled thus far, with a total
grade of nearly 9% copper and one intercept hitting copper grades
over 31%, has far exceeded expectations based on past historical
results at other mines in the region. These are remarkable
copper grades that one may only encounter a couple of times in a
mining career. Even though the Canyon deposit is relatively
small compared to other global mines, these grades are
world-class. These results also have the potential to
significantly improve the economics of the Canyon Mine, which is
vitally important in today's weak uranium market. As a
result, we intend to continue to evaluate the Canyon deposit,
complete the shaft, perform additional core drilling, and optimize
the potential of this exciting high-grade deposit."
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 also produces vanadium as a
co-product of its uranium production from certain of its mines on
the Colorado Plateau, as market conditions warrant. 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 Canyon mine being the highest-grade uranium mine in
the United States; the expected
production costs of the Canyon mine being competitive with the best
uranium mines globally; the expected average grade of copper and
quantities of copper at the Canyon mine; the success of shaft
sinking activities at the Canyon mine; the ability of the Company
through its current or future evaluations to expand or upgrade
uranium or copper mineralization at the Canyon mine; the ability of
the Company to successfully recover copper as a byproduct of
uranium recovery at its White Mesa mill; the potential that copper
recoveries could make the economics at the Canyon mine better; the
expectation that the surface area disturbance, mine depth or mining
method will not change and that expected unit mining costs will not
significantly increase; 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 Canyon mine being the highest-grade uranium mine in
the United States; the expected
production costs of the Canyon mine being competitive with the best
uranium mines globally; the expected average grade of copper and
quantities of copper at the Canyon mine; the success of shaft
sinking activities at the Canyon mine; the ability of the Company
through its current or future evaluations to expand or upgrade
uranium or copper mineralization at the Canyon mine; the ability of
the Company to successfully recover copper as a byproduct of
uranium recovery at its White Mesa mill; the potential that copper
recoveries could make the economics at the Canyon mine better; the
expectation that the surface area disturbance, mine depth or mining
method will not change and that expected unit mining costs will not
significantly increase; 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 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.