A Further Step in the Development of a Fully
Integrated U.S. Rare Earth Element Supply Chain
- Energy Fuels and Hyperion have signed a memorandum of
understanding to evaluate the potential supply of monazite sands
from the Titan Project in Tennessee to Energy Fuels' White Mesa Mill in
Utah for the production of rare
earth products.
- Monazite is a very valuable rare earth-bearing mineral, planned
to be produced at the Titan Project as a component of its heavy
mineral sand concentrate product.
- The MOU highlights the potential importance of Hyperion's Titan
Project, as Energy Fuels advances its initiatives to establish a
fully integrated, low-cost U.S rare earth element supply chain.
- Energy Fuels and Hyperion will also evaluate a potential
arrangement to collaborate in the development of an integrated U.S.
rare earth supply chain.
LAKEWOOD, Colo., April 21, 2021 /PRNewswire/ - Energy
Fuels Inc. ("Energy Fuels") (NYSE: UUUU) (TSX: EFR) and
Hyperion Metals Limited ("Hyperion") (ASX: HYM) are pleased
to announce the execution of a non-binding memorandum of
understanding ("MOU") for the supply of natural monazite
sands ("Monazite") from Hyperion's Titan Project in
Tennessee (the "Titan
Project"). Energy Fuels plans to produce mixed rare earth
element ("REE") products from processing the Monazite at its
White Mesa Mill in Utah.
The parties have also agreed to evaluate a potential teaming,
joint venture, equity investment or other arrangement under which
Hyperion would collaborate with Energy Fuels, and potentially other
parties, in advancing Energy Fuels' current initiative to establish
a fully integrated, "mine to market" U.S. rare earth supply chain
for the electric vehicle and renewable energy sectors, as well as
other specialty uses.
The collaboration between Energy Fuels and Hyperion will
initially focus on the potential commercial supply of Monazite from
Hyperion's Titan Project to Energy Fuels' White Mesa Mill. Under
the MOU, the parties have agreed to negotiate a definitive sales
agreement for this supply of Monazite. In addition, subject to
Hyperion supplying Energy Fuels with a sufficient quantity of
Monazite from the Titan Project within a reasonable period of time,
Hyperion and Energy Fuels will evaluate entering into a joint
venture or other similar arrangement whereby Hyperion would
participate with Energy Fuels, and potentially other parties, in
the continuing development and operation of an integrated, low-cost
and sustainable independent U.S. rare earth supply chain, under
which Monazite would be supplied from The Chemours Company (NYSE:
CC) ("Chemours") U.S. projects, the Titan Project, and
potentially other U.S and international mines, with the Monazite to
be processed and separated into value-added rare earth products at
Energy Fuels' White Mesa Mill. This could potentially also result
in the development of rare earth metal production capabilities.
Hyperion's Titan Project covers a large area of heavy mineral
sands properties in Tennessee
prospective for titanium, zircon, Monazite and other valuable
minerals such as high-grade silica sand and other refractory
minerals. The Titan Project is in an area which saw significant
historic exploration from 1960 – 1990 by DuPont, BHP and others,
strategically located in the southeast of the U.S., close to
significant manufacturing capacity, providing what Hyperion
believes to be a significant logistical advantage over current U.S.
supplies of imported titanium feedstock.
Hyperion is nearing completion of a three-phase drilling and
bulk sampling test work program at the Titan Project. Results to
date have successfully confirmed the high grade and significant
thickness of mineralization over approximately a 3.6 km strike
length. Assays from the drill programs to date have returned thick
zones of high-grade Total Heavy Mineral ("THM") near
surface, with highlights including:
- 47.2m @ 3.69% THM including
10.7m @ 8.09% THM and 10.7m @ 5.47% THM
- 36.6m @ 3.37% THM including
12.2m @ 7.65% THM
- 35.1m @ 3.04% THM including
10.7m @ 8.16% THM
- 41.1m @ 2.14% THM including
9.1m @ 5.55 THM
- 33.5m @ 2.21% THM including
12.2m @ 5.64% THM
Hyperion's bulk sampling test work for flow-sheet development is
nearing completion, and is evaluating the production of a number of
mineral products, including:
- Titanium minerals – used to produce titanium metal and for the
production of paint and pigments;
- Monazite – used for the production of rare earth products;
- Zircon – used for the ceramic and foundry markets; and
- High quality silica – used in float glass, solar panel glass
and pharmaceutical grade glass.
A 70-hole Phase 3 drill program is nearing completion, and
together with the bulk sample program will form the basis for
Hyperion's initial mineral resource estimate expected to be
delivered in Q2 2021. For more information about the Titan Project
go to: www.hyperionmetals.us
Energy Fuels and Neo Performance Materials Inc. (TSX: NEO)
("Neo") recently announced the joint launch of a
U.S.-European REE supply chain involving Energy Fuels, Neo and
Chemours. Under this emerging initiative, Energy Fuels is currently
purchasing 2,500 tons of Monazite per year from the Chemours
Company's Georgia (USA) heavy
mineral sand operations. Energy Fuels is currently processing this
Monazite at its White Mesa Mill in Utah into a clean, mixed REE carbonate, as
well as recovering the contained uranium. Energy Fuels is selling
this intermediate REE product to Neo's REE separations facility in
Sillamae, Estonia for the
production of commercial value-added REE products, supplying U.S.
and European markets.
In addition to producing mixed REE carbonate, Energy Fuels is
also evaluating the potential to develop U.S. separation, metals,
alloys, and other downstream REE capabilities at the White Mesa
Mill, or nearby, thereby fully integrating a U.S. rare earth supply
chain in the coming years. Energy Fuels is seeking to increase its
supply of Monazite feed to approximately 15,000 tons per year (or
greater) for this initiative. Subject to completion of permitting,
development and commencement of operations, the Titan Project is
expected to be a potential future source of Monazite to supplement
Chemours' supply of Monazite to Energy Fuels.
The MOU highlights the importance of Hyperion's Titan Project as
a potentially important source of high value American rare earth
minerals, expected to play an integral role in rebuilding
sustainable, robust and resilient transportation, energy and
defense sectors, and the desire of Energy Fuels to build
diversified and significant Monazite feedstocks from various
sources.
Energy Fuels' President and Chief Executive Officer, Mr.
Mark Chalmers, said: "Energy
Fuels, along with Chemours and Neo, are creating a new
U.S.-Europe rare earth supply
chain. For this initiative to achieve its full potential, we are
actively seeking new, ethically-produced sources of Monazite, with
sources from the U.S. being our first priority. Therefore, we are
excited to work with Hyperion to secure additional sources of
Monazite for processing at the White Mesa Mill. Through their
association with Piedmont Lithium's project in North Carolina, members of the Hyperion team
have demonstrated to us that they have the know-how and resources
to bring U.S. critical mineral projects into production. We look
forward to working with the Hyperion team and potentially seeing
our relationship grow through their participation in a
fully-integrated, low cost U.S. rare earth supply chain in the
future. We are particularly excited about the prospect of sourcing
U.S. mined Monazite, which together with our current supplies from
Chemours' Georgia operations and
the unique capabilities of the White Mesa Mill, demonstrates to us
that a world-competitive and world-scale, fully integrated U.S.
rare earth supply chain is becoming a reality."
Hyperion's Managing Director, Mr. Anastasios Arima, said: "We are excited
to progress the potential supply to Energy Fuels of American
Monazite for its rare earths supply chain right here in the
USA, bringing back sustainable
American industry and skilled jobs for generations. The import
dependence of the U.S. for key critical minerals, including rare
earths and titanium, presents a huge threat to the security of key
domestic industries, including defense, space, aerospace,
renewables and electric vehicles. Our collaboration with Energy
Fuels highlights the importance of Hyperion's Titan Project in the
U.S. as a leader in American sourced critical minerals through its
plans to produce zero carbon titanium metals, delivering a clean
energy future through the supply of rare earth elements for
electric vehicles and the renewable power sectors."
This announcement has been authorized for release by
Hyperion's Managing Director.
About Energy Fuels: Energy Fuels is a leading
U.S.-based uranium mining company, supplying
U3O8 to major nuclear utilities. The Company
also produces vanadium from certain of its projects, as market
conditions warrant, and is in the process of ramping-up to
commercial production of REE carbonate in 2021. Its corporate
offices are in Lakewood, Colorado
near Denver, and all of its assets
and employees are in the United
States. Energy Fuels holds three of America's key uranium
production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery
("ISR") Project in Wyoming,
and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only
conventional uranium mill operating in the U.S. today, has a
licensed capacity of over 8 million pounds of
U3O8 per year, and has the ability to produce
vanadium when market conditions warrant, as well as REE carbonate
and uranium from Monazite. The Nichols Ranch ISR Project is
currently on standby and has a licensed capacity of 2 million
pounds of U3O8 per year. The Alta Mesa ISR
Project is also currently on standby. In addition to the above
production facilities, Energy Fuels also has one of the largest NI
43-101 compliant uranium resource portfolios in the U.S. and
several uranium and uranium/vanadium mining projects on standby and
in various stages of permitting and development. 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.
About Hyperion: Hyperion Metals' mission is to
be the leading developer of zero carbon, sustainable, critical
material supply chains for advanced American industries including
space, aerospace, electric vehicles and 3D printing. The Company
holds a 100% interest in the Titan Project, covering nearly 4,000
acres of prospective titanium, rare earth minerals, high grade
silica sand and zircon mineral sands properties in Tennessee, USA, as well as an option to secure
the exclusive license to produce low carbon titanium metal using
the breakthrough HAMR technology, invented by Dr. Z. Zak Fang and his team at the University of Utah with government funding from
ARPA-E. The primary trading market for Hyperion's common shares is
the Australian Stock Exchange under the trading symbol "HYM."
Hyperion's website is www.hyperionmetals.us.
Cautionary Statements Regarding Forward Looking
Statements
This news release contains "forward-looking information"
within the meaning of applicable securities laws in the United States, Canada, and Australia. Forward-looking information may
relate to future events or future performance of Energy Fuels or
Hyperion. All statements in this release, other than statements of
historical facts, with respect to Energy Fuels' or Hyperion's
objectives and goals, as well as statements with respect to their
beliefs, plans, objectives, expectations, anticipations, estimates,
and intentions, are forward-looking information. Specific
forward-looking statements in this discussion include, but are not
limited to, the following: any expectation that the Titan Project
will be permitted and developed into a commercial producing mine;
any expectation that the Titan Project will provide a significant
logistical advantage over current U.S. supplies of imported
titanium feedstock; any expectation that future exploration or bulk
sample results at the Titan Project will meet expectations; any
expectation that a JORC Code report will be prepared for the Titan
Project and that it will confirm current exploration or bulk
sampling results or otherwise meet expectations; any expectation
that the Titan Project will contain Monazite in a commercial form
or that the Titan Project will be capable of producing satisfactory
amounts of Monazite per year; any estimation of the mine life of
the Titan Project or when it may commence production of Monazite,
if at all; any expectation that the White Mesa Mill will be
successful in producing REE carbonate on a commercial basis; any
expectation that Neo will be successful in separating the White
Mesa Mill's REE carbonate on a commercial basis; any expectation
that Energy Fuels will be successful in increasing its supplies of
Monazite, developing U.S. separation, metals or metal/alloy
capabilities at the White Mesa Mill or nearby, or otherwise fully
integrating a low cost U.S REE supply chain in the future; any
expectation with respect to the quantities of Monazite to be
acquired by Energy Fuels; any expectation with regard to the cost
of producing and separating REE carbonate; and any expectation that
Energy Fuels and Hyperion will be successful in completing
definitive agreements and hence proceeding with their collaborative
efforts . Often, but not always, forward-looking information can be
identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "continues",
"forecasts", "projects", "predicts", "intends", "anticipates" or
"believes", or variations of, or the negatives of, such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "should", "might" or "will" be taken, occur or be
achieved. This information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information. Factors that could cause actual
results to differ materially from those anticipated in these
forward-looking statements include risks associated with:
permitting and developing the Titan Project; exploration results
not meeting expectations on the Titan Project; commodity prices;
the Titan Project never going into production; legal challenges and
injunctions; processing difficulties and upsets; available supplies
of Monazite; the ability of the White Mesa Mill to produce REE
carbonate to meet commercial specifications on a commercial scale
at acceptable costs; the ability of Neo to separate REE carbonate
to meet commercial specifications on a commercial scale at
acceptable costs; market factors, including future demand for REEs;
and the ability of Energy Fuels and Hyperion to finalize definitive
agreements. Forward-looking statements contained herein are made as
of the date of this news release, and Energy Fuels and Hyperion
disclaim, other than as required by law, any obligation to update
any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if
management's estimates or opinions should change, or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements. Energy Fuels and Hyperion assume no
obligation to update the information in this communication, except
as otherwise required by law.
Competent Persons Statement
The information in this announcement that relates to
the Titan Project Exploration Results is extracted from
Hyperion's ASX Announcements dated 10
March 2021 and 7 January
2021 ("Original ASX Announcements") which are
available to view at Hyperion's website at
www.hyperionmetals.us. Hyperion confirms that a) it is
not aware of any new information or data that materially affects
the information included in the Original ASX Announcements; b) all
material assumptions included in the Original ASX Announcements
continue to apply and have not materially changed; and c) the form
and context in which the relevant Competent Persons' findings are
presented in this report have not been materially changed from the
Original ASX Announcements.
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SOURCE Energy Fuels Inc.