Anfield Energy Inc. (TSX.V: AEC; OTCQB: ANLDF; FRANKFURT:
0AD) (“Anfield” or the
“Company”) is
pleased to report the results of a combined preliminary economic
assessment (“PEA”) for both its Utah-based Velvet-Wood Uranium and
Vanadium Project (“Velvet-Wood”) and its Colorado-based Slick Rock
Uranium and Vanadium Project (“Slick Rock”). The PEA titled, “The
Shootaring Canyon Mill and Velvet-Wood and Slick Rock Uranium
Projects, Preliminary Economic Assessment” (PEA, 2023), will be
published on SEDAR within 45 days. These two projects are located
proximal to one another within the prolific Uravan Mineral Belt,
and within close distance of the Company’s [permitted] Shootaring
Canyon Mill (“Shootaring”) which will act as a centralized mineral
processing facility in the PEA. The independent PEA was prepared in
accordance with National Instrument 43-101 standards of disclosure
for mineral properties.
Highlights include:
- The PEA indicates a pre-tax project internal rate of return
(“IRR”) of 40% and a net present value (“NPV”) of US$238 million,
based on a discount rate of 8% and a uranium price of US$70 per
pound, along with a vanadium price of US$12 per pound.
- Average annual production of approximately 750,000 pounds of
uranium and 2.5 million pounds of vanadium per year is estimated
over the 15-year mine life;
- The combined feed of the Velvet-Wood and Slick Rock mines is
designed to meet the existing tonnage capacity at Shootaring of 750
tons per day. Additional tonnage capacity would be available after
year 8 of the plan.
- Estimated mill-related capital expenditures at Shootaring,
including 25% contingency amount for each item, of: 1) US$31.4
million for general upgrades; 2) US$13.4 million to install a
modern vanadium circuit; and 3) US$20 million to update the
tailings management facility.
- Estimated mine-related capital expenditures, including
engineering and design, mine facilities, mine equipment, and the
reopening of the Velvet decline and the sinking of two production
shafts at Slick Rock with a 25% contingency, of: 1) US$15.3 million
for Velvet-Wood; and 2) US$27.2 million for Slick Rock.
Anfield CEO, Corey Dias, stated, “We are extremely pleased with
the outcome of this PEA as it provides Anfield with evidence of the
true potential of both Velvet-Wood and Slick Rock within Anfield’s
uranium and vanadium production model. Critically, the future
addition of our West Slope project to Anfield’s production model
will require little incremental capital expenditure, as
Shootaring’s restart costs will have already been borne by both
Velvet-Wood and Slick Rock.
“We have been keen to highlight the economic
value of combining our assets into one cohesive development
project, and the subsequent availability of excess uranium and
vanadium production capacity at Shootaring over the life of the
mill. We view this excess capacity as providing important additive
value through the potential for future integration of other uranium
and vanadium projects in the area, such as our West Slope Project,
as well as potential toll-milling opportunities.
“The prospect of Shootaring becoming the next
operational conventional uranium and vanadium mill in the United
States is significant both economically as well as with respect to
security of supply for utilities. This PEA not only represents a
significant milestone for Anfield but also outlines a path towards
commercial development of its core uranium and vanadium assets.
Anfield is clearly well-positioned to benefit from an improving
uranium market as nuclear energy becomes a more integral part of
the global transition towards electrification.”
The Velvet-Wood project area covers
approximately 2,140 acres, including unpatented mining claims and a
State of Utah mineral lease related to the Velvet and Wood mine
areas. In addition, the Slick Rock project area covers
approximately 4,860 acres including 293 unpatented mining lodes
claims. The Shootaring area covers approximately 265 acres of
surface ownership and approximately 905 acres of mineral
leases.
Shootaring Mill
The Shootaring Mill was licensed and constructed
by Plateau Resources and operated in 1982. U.S. Energy and Uranium
One were also previous owners of the Shootaring Mill. The mill has
not been decommissioned and has been under care and maintenance
since cessation of operations. The mill license has been maintained
and Anfield is currently conducting engineering and design studies
for both the refurbishment of the mill and tailings facility in
support of converting the license from its status of care and
maintenance to operations.
Velvet-Wood
Between 1979 and 1984, Atlas Minerals mined
approximately 400,000 tons of ore from the Velvet Deposit at grades
of 0.46% U3O8 and 0.64% V2O5, recovering approximately 4 million
pounds of U3O8 and 5 million pounds of V2O5.
The current mineral resources (PEA, 2023) of the
combined Velvet and Wood historical mines have been estimated to
comprise 4.6 million pounds of eU3O8, at a grade of 0.29% eU3O8
(measured and indicated resource), and 552,000 pounds of eU3O8, at
a grade of 0.32% U3O8 (inferred resource) with a
vanadium-to-uranium ratio of 1.4 to 1.
Surface Stockpiles
In addition to the estimated mineral resource at
Velvet-Wood, Anfield controls mineralized stockpiles from past
mining at two locations: 1) one stockpile at the Patty Ann mine
area near the historic Velvet mine; and 2) several stockpiles near
the Shootaring mill. The volumes and uranium content of the
stockpiles were estimated from volumetric surveys and sampling
conducted by BRS in March, 2015. The PEA includes the stockpiles
located near the Shootaring mill only. In total these stockpiles
are estimated to contain approximately 77,500 tons of material at
an average grade of 0.161% U3O8 and contain approximately 250,000
pounds of uranium.
Slick Rock
Slick Rock is located in the Uravan Uranium Belt
region of Colorado. The PEA, 2023 estimates 1.7 million tons
containing some 7.7 million pounds eU3O8, with a vanadium to
uranium ratio of 6 to 1.
Project Economics
The PEA provides for a two-year pre-production
period. The first year’s forecasted capital expenditures of
approximately US$24 million include initial mill and mine
permitting and licensing, an updated mining and reclamation plan,
and initiation of mine development. The second year’s capital
expenditures, forecasted at US$88 million (including a 25%
contingency), include completion of the construction of mine
facilities and purchasing of equipment, and refurbishment of the
Shootaring uranium and vanadium mill. Total capital for Life Of
Mine is estimated at US$130 million, including sustaining
capital.
The PEA indicates a pre-tax IRR of 40% at a
uranium price of US$70 per pound and US$12 per pound of vanadium.
The pre-tax NPV of the project at an 8% discount rate at the
aforementioned prices is US$238 million.
NI 43-101 Disclosure
This combined PEA completed for Velvet-Wood and
Slick Rock, using centralized processing at Shootaring, has been
authored by Douglas L. Beahm, P.E., Harold H. Hutson, P.E., P.G.,
Carl D. Warren, P.E., P.G., of BRS Inc. and Terence (Terry)
McNulty, P.E., D. Sc., of T.P. McNulty and Associates Inc. The
authors have reviewed and approved the technical content of this
news release. Results of the PEA represent
forward-looking information. This economic assessment is
preliminary in nature and it includes inferred mineral resources
that are considered too speculative, geologically, to have the
economic considerations applies to them that would enable them to
be categorized as mineral reserves. There is no certainty that the
preliminary economic assessment will be realized. Conditions and
parameters of the project are subject to change based on the final
filing of the PEA on SEDAR within 45 days of this release. Mineral
resources are not mineral reserves as they do not have demonstrated
economic viability.
About Anfield
Anfield is a uranium and vanadium development
and near-term production company that is committed to becoming a
top-tier energy-related fuels supplier by creating value through
sustainable, efficient growth in its assets. Anfield is a publicly
traded corporation listed on the TSX-Venture Exchange (AEC-V), the
OTCQB Marketplace (ANLDF) and the Frankfurt Stock Exchange (0AD).
Anfield is focused on its conventional asset centre, as summarized
below:
Arizona/Utah/Colorado – Shootaring Canyon Mill
A key asset in Anfield’s portfolio is the
Shootaring Canyon Mill in Garfield County, Utah. The Shootaring
Canyon Mill is strategically located within one of the historically
most prolific uranium production areas in the United States and is
one of only three licensed uranium mills in the United States.
Anfield’s conventional uranium assets consist of
mining claims and state leases in southeastern Utah, Colorado, and
Arizona, targeting areas where past uranium mining or prospecting
occurred. Anfield’s conventional uranium and vanadium assets
include the Slick Rock Project, the Velvet-Wood Project, the Frank
M Uranium Project, the West Slope Project, the Long Park Project as
well as the Findlay Tank breccia pipe. All conventional uranium
assets are situated within a 200-mile radius of the Shootaring
Mill.
On behalf of the Board of Directors
ANFIELD ENERGY INC.Corey Dias, Chief Executive
Officer
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Contact:Anfield Energy Inc.Clive MostertCorporate
Communications780-920-5044contact@anfieldenergy.comwww.anfieldenergy.com
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