LAKEWOOD, CO, May 11, 2017 /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 provide the following update on the
uranium and copper resource evaluation at the Company's Canyon
Mine, which is a high-grade, low-cost mine being developed by the
Company in northern Arizona. The
Company is also pleased to announce that it has substantially
completed the production shaft, the core drilling program to
delineate the deposit, and additional capital development at the
mine, including approximately 300 feet of lateral development on
the 1,400 foot level. At this time, major capital development
activities and associated expenditures have been significantly
reduced.
The Company's resource evaluation program is continuing to
identify areas of high-grade uranium mineralization at the Canyon
Mine, which the Company expects will result in a larger recoverable
uranium resource than what is currently described in the existing
technical report for the Canyon Mine, prepared in accordance with
National Instrument NI 43-101, Standards for Disclosure for
Mineral Projects ("NI 43-101"). The Company is also continuing
to evaluate additional zones of high-grade copper mineralization
that reside both inside and outside the areas of potentially
recoverable uranium mineralization. The additional uranium the
Company is identifying has the potential to significantly lower the
production costs of this nearly developed mine to a level that is
in-line with the lowest-cost, 'tier one' conventional uranium mines
operating in the world today. If the copper can be economically
recovered as a byproduct of uranium recovery, production costs will
drop even further.
Chemical assay analysis of the core samples generated from the
underground drilling program is ongoing at the Company's laboratory
at the White Mesa Mill. To date, approximately 95% of the core
samples have been sampled and analyzed. This news release provides
additional data for core that has been sampled and analyzed since
the Company released its FY-2016 financial results on March 10, 2017.
The Company intends to utilize the data developed from the
underground drilling program to prepare a new NI 43-101 mineral
resource estimate for the Canyon Mine, which the Company expects to
release in the 3rd Quarter of 2017. The Company
expects to describe an expanded uranium resource estimate and, as
more fully described below, a new copper resource estimate. In
addition to expanding the size of the uranium resources, the
Company also expects to upgrade a significant portion of the
existing mineral resources from the inferred category to the
measured and indicated categories.
The Company is also making progress toward determining whether
copper can be economically recovered at the Company's White Mesa
Mill. Through bench-scale testing, the Company has been able to
place a significant percentage of the copper into solution. The
Company is now determining whether the copper can be removed from
solution and converted into a marketable copper product. If
positive testing results continue, the Company also expects to
include a copper resource estimate in the new NI 43-101 technical
report in the 3rd Quarter of 2017.
The table below summarizes the 10 best previously unreported
uranium intercepts ranked by uranium grade times intercept
length. The associated copper results are also
shown.
|
|
|
|
|
|
|
|
|
|
Hole
ID
|
From
|
To
|
Intercept
Length (ft.)
|
Uranium
Avg. Grade (%U3O8)
|
Uranium
GT (Grade x
Thickness)
|
Copper
Average
Grade (%Cu)
|
Azimuth (deg.)
|
Dip (deg.)
|
Depth
(ft. below
surface)
|
26
|
86.0
|
134.0
|
48.0
|
2.88%
|
138.1
|
2.31%
|
180
|
-32
|
1,340
|
43
|
16.0
|
136.0
|
120.0
|
0.81%
|
97.1
|
11.95%
|
260
|
-41
|
1,306
|
40
|
12.0
|
112.0
|
100.0
|
0.91%
|
90.8
|
9.44%
|
240
|
-21
|
1,292
|
64
|
64.0
|
142.0
|
78.0
|
1.11%
|
86.8
|
9.47%
|
300
|
+47
|
1,400
|
67
|
142.0
|
190.0
|
48.0
|
1.78%
|
85.3
|
11.22%
|
285
|
+19
|
1,400
|
32
|
120.0
|
192.0
|
72.0
|
0.99%
|
71.3
|
10.08%
|
220
|
-41
|
1,386
|
69
|
144.0
|
208.0
|
64.0
|
1.08%
|
69.4
|
14.51%
|
285
|
+40
|
1,400
|
38
|
8.0
|
154.0
|
146.0
|
0.47%
|
69.2
|
6.22%
|
241
|
-40
|
1,311
|
37
|
165.5
|
196.0
|
30.5
|
1.54%
|
47.1
|
10.35%
|
240
|
-50
|
1,411
|
33
|
100.0
|
128.0
|
28.0
|
1.66%
|
46.4
|
14.85%
|
222
|
-31
|
1,344
|
The information presented represents the assay results from
205 samples that were taken from split NQ size core ranging from 2
to 4-feet in length. The intercepts were constructed using a
nominal cutoff grade of 0.30% U3O8 or 4.00%
Cu. In general, the breccia pipe mineralized zone where the
samples were collected is orientated vertically, varies in diameter
from 140 to 190 feet, begins approximately 1,200-feet below the
surface, and is open at depth. Assay analysis was performed
at Energy Fuels' White Mesa Mill Laboratory ("WMM") near Blanding,
Utah. U3O8 is analyzed using
spectrophotometry, and copper is analyzed using ICP-OES. A
QA/QC program has been implemented for the Canyon core drilling
campaign. The QA/QC program includes: fine duplicates (2 per
100 samples are split and both samples are analyzed by the WMM lab
and compared); coarse duplicates (2 per 100 samples are split and
both samples are analyzed by the WMM lab and compared); standards
and blanks (8 per 100 samples are certified standards or blanks and
the WMM lab results are compared to the certified values, and 3
different sample standards and 2 different sample blanks are used
in the program); and 3rd party laboratory analysis (a
split of 4 per 100 samples are sent to Inter-Mountain Labs, Inc.
(IML) in Sheridan, Wyoming for
independent uranium and copper testing; the IML results are then
compared to the WMM lab results; to date 99 IML results have been
received and confirmed to be consistent with WMM lab results, and
30 are in process).
The Company is currently finishing sampling and analysis of the
remaining core, preparing a new resource estimate, and completing
final mine planning. The timing of the Company's plans to mine and
process mineralized materials from the Canyon Mine will be based on
continued positive results of this additional evaluation work,
along with market conditions.
Stephen P. Antony, President and
CEO of Energy Fuels stated: "We are pleased to announce more
excellent uranium results at our Canyon Mine, that average 1.09%
U3O8 and 9.61% Cu over 734-feet.
We continue to see extraordinary uranium and copper results
that, we believe, will increase the size of the recoverable
resources, thereby reducing our mining cost. Further, Energy Fuels'
cost-efficient Canyon Mine is at an advanced stage. It is
fully-permitted, all surface development is in place, we have
substantially completed the production shaft, and our White Mesa
Mill is ready to produce uranium from the Canyon Mine. As a result,
we have significantly reduced capital expenditures, and when mining
resumes, only limited additional capital development will be
required. The mine is expected to be low cost, as we believe it has
forward costs that are in-line with the lowest cost, 'tier one'
conventional uranium mines operating globally today. The economics
have the potential to improve further, as we make progress toward
determining the monetization of copper. We look forward to
completing our evaluation and releasing a new resource estimate for
the Canyon Mine later this year."
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
drilling results to date and any conclusions which may be drawn
therefrom; the potential that the mineralization and/or tonnage may
be expanded beyond what is described in the existing NI 43-101
technical report; any expectation that copper recovery may be
economically feasible; any expectation that any additional
licensing or permitting for copper recovery at the White Mesa Mill
will be obtained in a timely manner; any potential improvement that
any copper recovery may have on the economics of the mine; the mine
being a low-cost uranium mine; the expected future drilling,
development and production activities; the factors which the
Company believes makes the Canyon deposit unique; the expected
timing for issuing a new technical report under NI 43-101; expected
development and other expenditures that may be required when mining
resumes; 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 and any conclusions which may be drawn
therefrom; the potential that the mineralization and/or tonnage may
be expanded beyond what is described in the existing NI 43-101
technical report; any expectation that copper recovery may be
economically feasible; any expectation that any additional
licensing or permitting for copper recovery at the White Mesa Mill
will be obtained in a timely manner; any potential improvement that
any copper recovery may have on the economics of the mine; the mine
being a low-cost uranium mine; the expected future drilling,
development and production activities; the factors which the
Company believes makes the Canyon deposit unique; the expected
timing for issuing a new technical report under NI 43-101; expected
development and other expenditures that may be required when mining
resumes; 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.