Energy Fuels Announces Significant Maiden Resource Estimate for its Alta Mesa ISR Project

LAKEWOOD, CO, Aug. 2, 2016 /CNW/ – Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) (“Energy Fuels” or the “Company”), a leading producer of uranium in the United States, is pleased to announce that it has received an independent technical report (the “Technical Report”) containing a current mineral resource estimate for its 100%-owned Alta Mesa ISR Project located in Brooks and Jim Hogg Counties, Texas, including the Alta Mesa and Mesteña Grande deposits and exploration targets (“Alta Mesa”), in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).  According to the Technical Report, Alta Mesa holds a total of 1.6 million tons of measured and indicated mineral resources with an average grade of 0.111% U₃O₈ containing 3.6 million pounds of uranium, along with 7.0 million tons of inferred mineral resources with an average grade of 0.121% U₃O₈ containing 16.8 million pounds of uranium.  In addition, the technical report identifies certain exploration targets at Alta Mesa that includes 2.6 million tons of mineralized material with an average grade of 0.08% – 0.123% U₃O₈ containing 4.1 to 6.6 million pounds of uranium.  These mineral resources further add to Energy Fuels’ industry-leading, U.S.-based uranium resource portfolio.
Please note that the tonnages, grades and contained pounds of uranium for the exploration targets should not be construed to reflect a calculated mineral resource estimate (measured, indicated or inferred).  The potential quantities and grades for exploration targets are conceptual in nature, and there has not been sufficient work completed to date to define an NI 43-101 compliant resource.  Furthermore, it is uncertain if additional exploration will result in any of the exploration targets being delineated as a mineral resource estimate in the future.
As previously announced, Energy Fuels acquired Alta Mesa through its June 17, 2016 acquisition of Mesteña Uranium, LLC.  In addition to the uranium resources identified above, Alta Mesa also includes a fully-licensed and constructed ISR processing facility which is currently on standby status, pending improvements in uranium market conditions.  As a result of the acquisition of Alta Mesa, Energy Fuels now has three fully-licensed and operational uranium production centers – two that utilize in situ recovery (“ISR”) and one that utilizes conventional technologies – with a combined licensed and operational capacity of 11.5 million pounds of uranium per annum.  As described in the report, the Alta Mesa project area encompasses 200,076-acres of contiguous property including (i) the current mining lease of 4,575 acres which holds the production facilities and existing wellfields, and (ii) a lease option area of 195,501 acres.
Stephen P. Antony, President and CEO of Energy Fuels stated:  “Alta Mesa is the flagship asset Energy Fuels obtained through our June 2016 acquisition of Mesteña Uranium, LLC.  However, since Mesteña was privately-held, no resource estimate was previously prepared for Alta Mesa in compliance with NI 43-101.  Therefore, we are very pleased to announce a maiden NI 43-101 compliant resource estimate for this key project.  We believe we created real shareholder value through our $11 million, all-stock acquisition of Mesteña Uranium, LLC and its Alta Mesa Project.  Not only does Alta Mesa contain the resources described in the NI 43-101 technical report, but it also has a fully-licensed and constructed processing plant built in 2005 that can produce finished uranium product available for sale to global nuclear utilities.  Based on operating results from 2005 – 2013, when Alta Mesa was previously in production, we also believe that Alta Mesa could have some of the lowest ‘all-in’ costs of production within our portfolio, providing us with significant production scalability that we can bring online sooner and at lower uranium prices.  We are also particularly proud of the fact that we have built the largest uranium resource portfolio in the U.S., among current producers and near-producers, and Alta Mesa’s maiden resource estimate further cements our dominant position in this category.”
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