LAKEWOOD, CO, Feb. 26, 2018 /PRNewswire/ - Energy Fuels Inc.
(NYSE American: 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 approval from the U.S. Bureau of Land Management
("BLM") and U.S. Forest Service
("USFS") for the expansion of its 100%-owned La Sal Complex of
uranium/vanadium mines (the "La Sal Complex").
Mark S. Chalmers, President and
CEO of Energy Fuels, stated: "We are pleased that the BLM and USFS
issued approvals for expansion of this project following a
comprehensive multi-year analysis. This is particularly important,
as the mines and properties comprising the La Sal Complex contain
large quantities of uranium resources, along with significant
high-grade vanadium resources. We have recently seen vanadium
prices increase significantly, and our nearby White Mesa Mill has a
long history of producing uranium and vanadium from these mines.
The Environmental Assessment prepared for the expansion of this
project thoroughly considered all aspects of proposed operations,
including environmental protection, transportation, cultural
issues, jobs, economic benefits, and environmental justice
concerns. This project is fully-permitted and constructed, and is
currently on standby status, ready to resume mining operations
within approximately six months of a production decision, with
minimal capital required. We believe these approvals once again
demonstrate that Energy Fuels is a responsible operator and an
asset to the region. We also acknowledge and appreciate the hard
work and professionalism of the BLM and USFS staff involved in the
preparation of this EA. We are the largest private employer in
San Juan County, Utah, including a
major employer of Native Americans, and these approvals set the
stage for our Company to grow in the region in the future."
On February 23, 2018, the BLM and
USFS issued the Environmental Assessment ("EA"), Decision Record
(BLM)/Decision Notice (USFS), and Findings of No Significant Impact
("FONSI") approving the expansion of a large portion of the
Company's La Sal Complex, conditional upon the Company
incorporating certain specific requirements into the Plan of
Operations Amendment and having the required reclamation bond in
place. The La Sal Complex is a series of several past producing
uranium/vanadium mines, currently on standby status, along an
11-mile mineral trend located in northeast San Juan County, Utah, including the Energy
Queen, Beaver/La Sal and Pandora/Snowball mines and the Redd
Block and Pine Ridge properties. The La Sal Complex, which includes
significant existing surface and underground mining infrastructure,
is located approximately 65-miles north of the Company's 100%-owned
White Mesa Mill, the only operating conventional uranium and
vanadium processing facility in the
United States. Material produced from the La Sal Complex
will be processed at the White Mesa Mill.
The Plan of Operations Amendment ("POA") combines a number of
the existing Plans of Operations at the Complex and allows for
expansion of development rock storage, the drilling of up to 400
exploration holes to further delineate and expand certain of the
deposits, the construction of additional ventilation shafts, and
the reclamation of historic disturbances by previous mine
operators, on various areas of the project. In addition, the new
POA requires the implementation of detailed interim management
measures during any periods of temporary cessation. Combining these
existing Plans of Operations also makes for much better
administrative efficiency for both the agencies and Energy Fuels.
The specific requirements to be incorporated into the Plan of
Operations Amendment as a condition of these approvals are all as
contemplated by the Company and do not impose any unexpected
requirements.
During the 2007 to 2013 time period, 446,000 tons of mineralized
material were mined from the La Sal Complex and processed at the
White Mesa Mill. This material had an average grade of 0.20%
U3O8 and 1.02% V2O5 and
contained 1,774,000 pounds of uranium and 9,098,000 pounds of
vanadium. According to a March 2014
technical report prepared in accordance with National Instrument
43-101, Standards of Disclosure for Mineral Projects ("NI 43-101"),
the La Sal Complex holds 1.1 million tons of Measured and Indicated
Mineral Resources containing 4.1 million pounds of uranium and 21.5
million pounds of vanadium, with an average grade of 0.18%
U3O8 and 0.94% V2O5.
The project also holds additional quantities of Inferred uranium
and vanadium resources.
At the same time, the BLM also issued the EA, Decision Record,
and FONSI for the expansion of the Company's Daneros Mine, subject
to certain specified requirements. The BLM-approved Mine Plan of Operations Modification ("MPOM")
allows for expanded mining operations, the reclamation of historic
mining disturbances, and the implementation of additional
operational and emission controls. During the 2010 to 2013 time
period, 121,000 tons of mineralized material were mined at the
Daneros Mine and processed at the White Mesa Mill. This
material had an average grade of 0.26% U3O8
and contained 629,000 pounds of uranium. The Company expects to
file an updated NI 43-101 resource estimate for the Daneros Mine in
March 2018 to account for mining
activity and new drilling data since the last report was
completed.
About Energy Fuels: Energy Fuels is a leading
integrated US-based uranium mining company, supplying
U3O8 to major nuclear utilities. Its
corporate offices are in Denver,
Colorado, and all of its assets and employees are in the
western United States.
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 primary trading
market for Energy Fuels' common shares is the NYSE American under
the trading symbol "UUUU", and the Company's common shares are also
listed on the Toronto Stock Exchange under the trading symbol
"EFR". Energy Fuels' website is
www.energyfuels.com.
John White,
P.E., 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 timing and/or
technical, environmental, or economic feasibility of placing the La
Sal Complex and/or Daneros Mine into production in the future; any
conclusions which may be drawn with regard to rising vanadium
prices; any expectations regarding growth of the Company; current
resource estimates; the expectation of filing any updated NI 43-101
resource estimates; 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 timing and/or
technical, environmental, or economic feasibility of placing the La
Sal Complex and/or Daneros Mine into production in the future; any
conclusions which may be drawn with regard to rising vanadium
prices; any expectations regarding growth of the Company; current
resource estimates; the expectation of filing any updated NI 43-101
resource estimates; 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.