Energy Fuels reported 2022-1Q results generally in line with expectations and gave an update on operations. Production and sales remain small (modest Vanadium sales) making bottom line results largely a function of operating costs. A slight increase in operating losses ($10.2m versus $8.8m) and net losses ($14.7m versus $10.9m) reflect additional ramp up costs for UUUU's rare earth element (REE) development and were expected. Development discussions were largely a repeat of the April update. But wait! A uranium supply contract?!?! Management plans to separate REE elements, efforts to access new REE supplies (Monzanite), and its medical isotope recovery partnership. This is all old news. However, management also announced on a call with investors (not in the press release) that it had just signed a uranium supply contract. This is the first contract in several years and a clear sign that the uranium market has improved to a point where UUUU may ramp up production, "perhaps as early as this summer." Read More >>
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Energy Fuels - Are we seeing the first signs of ramping up?
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Billion Dollar Uranium Market Growing at a Solid Rate Along With Rising Adoption Strategies
FN Media Group News Commentary - The Global Uranium Mining Market has consistently been growing over the past several years and is expected to continue for years to come. Uranium is a silver-white metal chemical element belonging to the lanthanide series of the periodic table. Its chemical symbol is U and its atomic order is 92. Each uranium atom has 92 protons and 92 electrons, 6 of which are valence electrons. Uranium is micro-radioactive, its isotopes are unstable, and uranium-238 and uranium-235 are the most common. A report from Market Reports World said that the global Uranium market size is expected to expand at a CAGR of 3.6% of 3.6% during the forecast period, reaching USD $3.27 Billion by 2027. The report said that the primary factors propelling the growth in the industry is primarily fueled by technological advancements, evolving consumer preferences, and the impact of government policies and regulations, which serve as drivers for expansion. Another report from 360Research Reports said: "The Global Uranium Mining, market is anticipated to rise at a considerable rate during the forecast period, between 2024 and 2031. In 2023, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon." Active mining companies in the markets this week include Stallion Uranium Corp. (OTCQB: STLNF) (TSX-V: STUD), CanAlaska Uranium Ltd. (OTCQX: CVVUF) (TSX-V: CVV), Denison Mines Corp (NYSE American: DNN), IsoEnergy Ltd. (OTCQX: ISENF) (TSX-V: ISO), Energy Fuels Inc . (NYSE American: UUUU).
360Research Reports continued: "North America, especially The United States, will still play an important role which cannot be ignored. Any changes from United States might affect the development trend of Uranium Mining. The market in North America is expected to grow considerably during the forecast period. The high adoption of advanced technology and the presence of large players in this region are likely to create ample growth opportunities for the market. Europe also play important roles in global market, with a magnificent growth in CAGR During the Forecast period 2024-2031. Despite the presence of intense competition, due to the global recovery trend is clear, investors are still optimistic about this area, and it will still be more new investments entering the field in the future."
Stallion Uranium Corp. (TSX-V: STUD) (OTCQB: STLNF) Commences Drilling on Appaloosa Uranium Target - 3,300 Meter Program Testing High Priority Appaloosa Target - Stallion Uranium Corp. (FSE: HM40) is pleased to announce that it has begun drilling on its high priority Appaloosa Target as part the Company's maiden drill program on its 100% owned Coffer Project in the prolific Southwestern Athabasca Basin in Saskatchewan, Canada.
Highlights:
- The objective of the drill program is the discovery of uranium mineralization associated with conductive electromagnetic (EM) anomalies.
- Drill holes are targeting multiple stacked geophysical anomalies including conductive EM anomalies, gravity low anomalies and magnetic low anomalies.
- Approximately 3,300 meters are planned in 3 drill holes.
- Stallion holds a 100% ownership of the project.
"Drilling marks a key milestone for Stallion as we move into more advanced exploration with potential to make a uranium discovery! We have been able to progress the Appaloosa target from a regional survey to an advanced drill target that hosts several known features associated with uranium mineralization," stated Drew Zimmerman, CEO. "Our systematic approach over such a large land package gives our team high confidence in drill testing the Appaloosa target."
Drill Program: The diamond drill program is the maiden drill program for Stallion Uranium. Drilling on the first hole is currently underway and will be the first drilling undertaken on Stallion's 100% owned Coffer Project. The Company has contracted CYR Drilling, a company with extensive drilling experience with a history of successful drill programs in the Southwestern Athabasca Basin. They will utilize one drill to complete a 3,300-meter program on the Appaloosa target. The target area hosts a ~6 km long EM conductor located on the contact between the Beaverlodge and Taltson geological domains. The contact between two domains is an optimal location for uranium bearing fluid to concentrate. The drill targets are along the identified EM conductor and will focus on coincident gravity and magnetic lows associated with alteration which have the potential to host uranium mineralization. The results from the recent ground EM survey are being plate modeled which will be integrated into the final drill targeting models.
Stallion will be announcing any anomalous scintillometer results from the program as a preliminary indication of the presence of radioactive materials if they are encountered. Final assay results will be released when available and are expected in the summer of 2024 after lithogeochemical analysis is completed.
Darren Slugoski, VP Exploration Canada, commented. "We are thrilled to announce that drill coring has begun on Coffer Project. This drilling program is the result from our successful exploration in 2023. We will continue to update market and shareholders with the news as we receive the results." CONTINUED … Read these full press releases and more news for Stallion Uranium at: https://www.financialnewsmedia.com/news-stud/
Other recent developments in the mining industry of note include:
CanAlaska Uranium Ltd. (OTCQX: CVVUF) (TSX-V: CVV) recently reported that drillhole WMA082-4 has intersected 13.75% eU 3 O 8 over 16.8 metres, including 40.30% eU 3 O 8 over 4.7 metres and 13.54% eU 3 O 8 over 2.4 metres at the Pike Zone as part of the ongoing winter exploration program on the West McArthur Joint Venture project (the "Project") in the eastern Athabasca Basin. The main objectives of the 2024 drill program are continued expansion of the Pike Zone discovery and along strike unconformity testing to the northeast and southwest. The West McArthur project, a Joint Venture with Cameco Corporation, is operated by CanAlaska that holds an 83.35% ownership in the Project (Figure 1). CanAlaska is sole-funding the 2024 West McArthur program, further increasing its majority ownership in the Project.
CanAlaska CEO, Cory Belyk, comments, "It is extremely rare to intersect uranium mineralization of this grade and width anywhere in the world, including the Athabasca Basin. This is a significant outcome for the West McArthur JV and CanAlaska shareholders. Since initial discovery in 2022, the CanAlaska team has believed Pike Zone had the potential for Cigar- and McArthur River-like uranium grades and thickness based on prior drilling results. The geologists have been laser focused on determining the geological controls in a clear and methodical approach and the results of this fantastic work are now achieving outcomes for our shareholders. Tier 1 uranium deposits always occur as 'pearls on a string' and we have now found a pearl. We look forward to the remainder of the winter program results from West McArthur in the backdrop of an eastern Athabasca region that requires a tier 1 uranium deposit discovery to maintain its current production profile."
IsoEnergy Ltd. (OTCQX: ISENF) (TSX-V: ISO) recently announced its strategic decision to reopen access to the underground at our Tony M uranium mine ("Tony M" or the "Mine) in the first half of 2024 ("H1-2024"), with the goal of restarting uranium production operations in 2025, should market conditions continue as expected. The decision to advance Tony M is underpinned by rising uranium prices, the climate of increasing support and demand for nuclear energy, and the recent announcement by Energy Fuels Inc. ("EFR") to restart its uranium circuit at the White Mesa Mill (the "Mill"), with whom IsoEnergy has a toll milling agreement.
Tony M, along with our Daneros and Rim projects, is one of three past-producing, fully-permitted, uranium mines in Utah owned by IsoEnergy, and is a large-scale, fully-developed and permitted underground mine that previously produced nearly one million pounds of U 3 O 8 during two different periods of operation, from 1979-1984 and from 2007-2008.
Energy Fuels Inc. (NYSE American: UUUU) recently reported its financial results for the year ended December 31, 2023. The Company's Annual Report on Form 10-K has been filed with the U.S. Securities and Exchange Commission ("SEC") and may be viewed on the Electronic Document Gathering and Retrieval System ("EDGAR") at www.sec.gov/edgar. html , on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com , and on the Company's website at www.energyfuels.com . Unless noted otherwise, all dollar amounts are in U.S. dollars.
Mark S. Chalmers, Energy Fuels' President and CEO, stated: "In 2023, Energy Fuels joined an exclusive club. With nearly $100 million in net income, we became one of the only profitable non-state-owned uranium mining companies in the world. There were two factors that contributed to our profitability: profitable uranium sales that captured the recent sharp rise in uranium prices and the sale of our non-core Alta Mesa project. The Alta Mesa sale was important, because it provided the Company with the funds needed to increase our uranium production and strategically diversify into the REE business. Keep in mind that while net income was less than Alta Mesa proceeds, this was by design, as we are investing heavily in growth to become a sustainably profitable, high-margin U.S. critical minerals company."
Denison Mines Corp. (NYSE American: DNN) recently announced that it has completed an acquisition of fixed and mobile MaxPERF Tool Systems from Penetrators Canada Inc. ("Penetrators"). Significantly, Penetrators has also agreed to work exclusively with Denison with respect to the use of the MaxPERF Tool Systems for uranium mining applications, and related services, in Saskatchewan for a 10-year period.
David Cates, Denison's President & CEO, commented, "We are pleased to enter into this exclusive arrangement with Penetrators and add the MaxPERF technology to Denison's in-house ISR mining toolkit, which we believe will further enhance our existing and significant competitive advantage in deploying the low-cost In-Situ Recovery ('ISR') mining method to our high-grade uranium deposits in the Athabasca Basin."
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Energy Fuels Announces 2023 Results: Record Net Income and Earnings per Share, Uranium Production Ramp-Up, and Near-Term Production of Separated Rare Earth Elements
Conference Call and Webcast on February 26, 2024
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy Fuels" or the "Company") today reported its financial results for the year ended December 31, 2023. The Company's Annual Report on Form 10-K has been filed with the U.S. Securities and Exchange Commission (" SEC ") and may be viewed on the Electronic Document Gathering and Retrieval System (" EDGAR ") at www.sec.govedgar. html on the System for Electronic Document Analysis and Retrieval (" SEDAR ") at www.sedar.com and on the Company's website at www.energyfuels.com . Unless noted otherwise, all dollar amounts are in U.S. dollars.
Financial Highlights:
- Record Annual Net Income of Nearly $100 Million : During the year ended December 31, 2023 , the Company earned net income of $99.76 million , or $0.63 per common share.
- Robust Balance Sheet with Over $220 million of Liquidity and No Debt: As of December 31, 2023 , the Company had $222.34 million of working capital (versus $116.97 million as of December 31, 2022 ), including $57.45 million of cash and cash equivalents, $133.04 million of marketable securities (uranium stocks and interest-bearing securities), $38.87 million of inventory, and no debt.
- Nearly $45 Million of Additional Liquidity from Market Value of Inventory: At current commodity prices, the Company's product inventory has a value of approximately $76.10 million , while the balance sheet reflects product inventory carried at cost of $31.16 million .
- Uranium Drives Revenue: Revenue was comprised of (i) sales of 560,000 pounds of uranium concentrates (" U 3 O 8 ") for $33.28 million , which resulted in a gross profit of $17.96 million and an average gross margin of 54%; (ii) sales of 153 metric tons (" tonnes ") of finished high purity, partially separated mixed rare earth carbonate (" RE Carbonate ") for $2.85 million ; and (iii) sale of 79,344 pounds of vanadium (" V 2 O 5 ") for $0.87 million .
- Alta Mesa Sale Funds Investment in Uranium and Rare Earth Production: The Company realized a gain of $119.26 million on the sale of the Company's Alta Mesa in situ recovery project in Texas (the " Alta Mesa Sale ") and Prompt Fission Neutron Assets that were used exclusively at Alta Mesa. The cash received from the Alta Mesa Sale helped to fund expenses associated with (i) preparing three (3) of our uranium mines for production and (ii) developing commercial rare earth element (" REE ") separation capabilities.
- Well-Stocked to Capture Market Opportunities: As of December 31, 2023 , the Company held 685,000 pounds of finished U 3 O 8 , 905,000 pounds of finished V 2 O 5 , and 11 tonnes of finished RE Carbonate in inventory. The Company holds an additional 436,000 pounds of U 3 O 8 as raw materials and work-in-progress inventory (for total finished, raw material and work-in-progress inventory of 1.12 million pounds of U 3 O 8 ), along with an estimated 1 - 3 million pounds of solubilized V 2 O 5 in tailings solutions that could be recovered in the future. In December 2023 , the Company purchased 100,000 pounds of U 3 O 8 and 480 tonnes of monazite from third parties.
Capitalizing on Strong Uranium Pricing:
- During the year ended December 31, 2023 , the Company sold 560,000 pounds of U 3 O 8 for $33.28 million or a realized sales price of $59.42 per pound. These sales resulted in a gross profit of $17.96 million ( $32.07 per pound of U 3 O 8 ), or a 54% gross margin.
- During 2023, the Company readied three of its permitted and developed uranium mines for uranium production, Pinyon Plain ( Arizona ), La Sal ( Utah ) and Pandora ( Utah ). In late December 2023 , the Company announced that all three uranium mines had commenced production on schedule.
- Once production is fully ramped up at these mines, which is expected by mid- to late-2024, the Company expects to be producing uranium at a run-rate of 1.1 to 1.4 million pounds per year.
- During 2024, the Company expects to produce approximately 150,000 to 500,000 pounds of U 3 O 8 from newly mined conventional ore, stockpiled ore, and recycled alternate feed materials, depending on the timing of the ramp up of production at the Company's Pinyon Plain, La Sal and Pandora mines, while increasing to higher levels of production in 2025 and beyond.
- The Company expects to issue an ore buying schedule in early 2024, describing the terms under which the Company is prepared to buy uranium and uranium/vanadium ore from third-party miners in the vicinity of the White Mesa Mill (the " Mill "), which is expected to contribute to the Company's production profile.
- During 2024, the Company expects to sell 200,000 to 300,000 pounds of U 3 O 8 into its existing portfolio of long-term uranium contracts, of which 200,000 pounds were sold during Q1-2024 at a realized price of $75.13 per pound, which resulted in a gross profit of $38.29 per pound, or gross margin of 51%.
- During Q1-2024, the Company contracted to sell an additional 100,000 pounds of uranium in March 2024 at an average sales price of $102.88 per pound, which it expects to result in a gross profit of approximately $66.04 per pound, or approximate gross margin of 64%. Assuming continued strength in uranium prices, the Company intends to capture further opportunities to selectively sell uranium into the spot market during 2024.
- In anticipation of continued strength in uranium markets, the Company is preparing two additional mines in Colorado and Wyoming (Whirlwind and Nichols Ranch) for expected production within one year. If market conditions remain strong, the Whirlwind and Nichols Ranch mines could potentially increase Energy Fuels' uranium production to a run-rate of over two million pounds of U 3 O 8 per year as early as 2025.
- In light of the current strength in the uranium market, the Company is planning to conduct exploration drilling on its Nichols Ranch area properties and underground delineation drilling at its Pinyon Plain mine, in order to increase the Company's uranium resources and mine life at its existing mines, as well as advance permitting on its large-scale Roca Honda , Sheep Mountain and Bullfrog uranium properties for additional uranium production in the future, which could expand the Company's uranium production to a run-rate of up to five million pounds of U 3 O 8 per year in the coming years.
- As of February 16, 2024 , the spot price of U 3 O 8 was $102.00 per pound and the long-term price of U 3 O 8 , which is the price most relevant for long-term uranium sales contracts, was $72.00 per pound, according to data from TradeTech.
Rare Earth Element Ramp-Up:
- The Mill's REE production is complementary to its uranium production and does not diminish the Mill's uranium production profile in any way.
- The Phase 1 modification and enhancements to the existing solvent extraction (" SX ") circuits at the Mill are expected to be completed on-schedule, and $7 million to $9 million below budget, by the end of Q1-2024, at which time the Company will be able to produce high purity separated REE oxides. Subject to securing sufficient monazite feed, "Phase 1" is expected to position Energy Fuels as one of the world's leading producers of separated neodymium-praseodymium (" NdPr ") outside of China .
- The Mill's "Phase 1" REE circuit is expected to have the capacity to produce approximately 800 to 1,000 tonnes of separated NdPr oxide per year. For reference, 1,000 tonnes of NdPr can be used in enough permanent REE magnets to power up to 1 million electric vehicles per year. "Phase 1" capital costs are expected to total between $16 million and $18 million , or approximately $7 million to $9 million less than our initial $25 million budget. During Q2-2024, the Company expects to produce about 25 – 35 tonnes of NdPr oxide to commission and optimize the NdPr circuit, after which time the Company expects to begin processing uranium ore and alternate feed materials for the large-scale production of uranium at the Mill for the remainder of the year.
- Due to the significant opportunity in REEs, Energy Fuels is engineering further enhancements at the Mill to increase NdPr oxide production capacity to approximately 3,000 tonnes – 5,000 tonnes per year by 2027 (" Phase 2 "), and to add a separate crack and leach facility to allow for the simultaneous operation of the Mill's conventional ore and REE processing circuits. The Company also intends to produce separated dysprosium (" Dy "), terbium (" Tb ") and potentially other advanced REE materials in the future from monazite and potentially other REE process streams by 2028 ( "Phase 3" ). Phase 2 and Phase 3 are subject to permitting, financing and receipt of sufficient monazite feed.
- To secure a cost-effective and reliable supply of monazite ore, Energy Fuels made significant progress in developing its Bahia Project in Brazil . During the first half of 2023, the Company completed 2,266 meters of sonic drilling at its Bahia Project in Brazil to confirm and further delineate the rare earth, titanium, and zirconium mineralization at the Bahia Project. The Company commenced further sonic drilling in Q1-2024. The Company is awaiting the results from the 2023 drilling campaign. The Company expects to complete an SK-1300 and NI 43-101 compliant mineral resource estimate on the Bahia Project during 2024.
- In December 2023 , the Company announced it had signed a non-binding Memorandum of Understanding (" MOU ") with Astron Corporation Limited to jointly develop the Donald Rare Earth and Mineral Sands Project, located in the Wimmera Region of the State of Victoria, Australia (the " Donald Project "). Under the terms of the MOU, Energy Fuels could earn into a 49% equity interest by investing Aus$180 million ( US$117 million ) into the Donald Project. The Donald Project has the potential to produce approximately 7,000 to 8,000 tonnes of monazite per year during its first phase, and 13,000 to 14,000 tonnes during its second phase, and is expected to be another low-cost source of feed for the Company's REE production at the Mill. This joint venture is subject to due diligence investigations and the negotiation of definitive agreements.
- The Company continues active discussions with several additional suppliers of natural monazite around the world to significantly increase the supply of feed for our growing REE initiative.
Vanadium Highlights:
- The Company produces high purity V 2 O 5 from time-to-time and carries that material in inventory for sale into market strength, including during Q1-2023 when the Company sold approximately 79,344 pounds of V 2 O 5 for a realized sales price of $10.98 per pound.
- The Company currently holds approximately 905,000 pounds of V 2 O 5 in inventory.
- As of February 16, 2024 , the spot price of V 2 O 5 was $6.88 per pound, according to data from Fastmarkets.
Medical Isotope Highlights:
- The Company continued advancing its program to evaluate the potential to recover radioisotopes from its process streams for use in emerging targeted alpha therapy (" TAT ") cancer therapeutics.
- In June 2023 , the Utah Division of Waste Management and Radiation Control issued the Company a research and development (" R&D ") license for the recovery of R&D quantities of Ra-226 at the Mill.
- During 2024, the Company intends to complete engineering on the R&D pilot facility for the production of Ra-226 at the Mill; to set up the first stages of the pilot facility; and to produce R&D quantities of Ra-226 at the Mill for testing by end-users of the product.
Mark S. Chalmers, Energy Fuels' President and CEO, stated:
"In 2023, Energy Fuels joined an exclusive club. With nearly $100 million in net income, we became one of the only profitable non-state-owned uranium mining companies in the world. There were two factors that contributed to our profitability: profitable uranium sales that captured the recent sharp rise in uranium prices and the sale of our non-core Alta Mesa project. The Alta Mesa sale was important, because it provided the Company with the funds needed to increase our uranium production and strategically diversify into the REE business. Keep in mind that while net income was less than Alta Mesa proceeds, this was by design, as we are investing heavily in growth to become a sustainably profitable, high-margin U.S. critical minerals company."
Chalmers continued, "Our nimble business plan enabled us to capture opportunities in the uranium market as prices surged beginning in late-2023. During 2023, we sold 560,000 pounds of uranium for about $60 per pound for total gross profits of $17.96 million and a 54% gross margin. However, uranium prices have risen significantly since then, and in Q1-2024, we intend to sell approximately 300,000 pounds of uranium under long-term contracts and on the spot market at an expected weighted average sales price of $84.38 per pound and at substantially higher gross margins. As long as market prices are strong, we will continue to selectively capitalize on spot market sales opportunities as we ramp up our production, in ways that are unique to our Company, in 2024 and beyond, and with limited capital.
"Furthermore, we have a bullish long-term view on uranium prices, and we are investing to increase production. We are ramping-up production at several of our uranium mines, which continue to proceed on-time and on-budget. In late-2023, we announced that we had begun ore production at our Pinyon Plain, La Sal , and Pandora mines. We currently expect to process ore from these conventional mines, along with alternate feed material recycling, at the Mill in the latter half of 2024. As a result, we intend to produce approximately 150,000 to 500,000 pounds of uranium during 2024 from both newly mined conventional ore and stockpiled alternate feed materials, increasing further in 2025, depending on the timing of the ramp up of production at the Company's Pinyon Plain, La Sal and Pandora mines."
"Looking further ahead, we are preparing two additional mines for production (the Whirlwind mine and the Nichols Ranch ISR Project), which have the potential to increase Company-wide production to a run-rate of about two million pounds of uranium per year by 2025. At the current time, only about 25% to 30% of our short-term, low-cost production is committed to contracts, and our contracts maintain some exposure to market prices. As a result, most of Energy Fuels' future uranium production is exposed to further market upside at this time. We are also planning an exploration drilling program on our Nichols Ranch Project and an underground delineation drilling program at our Pinyon Plain mine to increase our resources at those projects as well as advancing permitting efforts at three of our large-scale uranium mines, which could increase Company-wide production to a run-rate of up to five million pounds of uranium per year in the next several years."
Turning to the Company's REE opportunities, Chalmers noted, "Even as we capture today's opportunities in uranium, we are also advancing our REE initiatives. With relatively minimal capital expenditures, we are now positioned to capitalize on this potentially high-growth market. We believe now is the right time to secure a strategic position in the REE space, since REE prices are at relatively low levels, and because our unique ability to process radioactive ore at the Mill gives us a durable competitive advantage. We plan to commission our new NdPr circuit at the White Mesa Mill during Q2-2024 and produce about 25 – 35 tonnes of NdPr oxide, and are seeking to secure low-cost sources of monazite to feed current and future rare earth oxide crack-and-leach and separation circuits. We will not make major capital expenditures on any projects unless the REE economics build shareholder value. We are very excited about the long-term opportunity in REEs, especially because it is complementary to our uranium efforts, and does not diminish our short-, medium-, or long-term uranium opportunities."
Chalmers concluded, "Energy Fuels is taking a unique and attractive path in the critical minerals business. Unlike other companies, who are reliant on only uranium, Energy Fuels is taking a broader view of the critical mineral industry and is producing the materials necessary to power the energy transition. Over time, our intent is to build a multi-product, high value commodity portfolio, centered on uranium, that earns long-term, sustainable, and high-margin cashflows. I am excited to see our plans develop further in 2024."
Conference Call and Webcast at 8:30 am ET on Monday , February 26, 2024:
Energy Fuels will be hosting a conference call and webcast on February 26, 2024 at 8:30 am ET ( 6:30 am MT ) to discuss our 2023 financial results, the outlook for 2024, and our uranium, rare earths, vanadium, and medical isotopes initiatives.
To instantly join the conference call by phone, please use the following link to easily register your name and phone number. After registering, you will receive a call immediately and be placed into the conference call: RAPIDCONNECT
Alternatively, you may dial in to the conference call by calling 1-888-664-6392, and you will be connected to the call by an Operator.
You may also access viewer-controlled Webcast slides and/or stream the call by following this link: WEBCAST
A replay of the call will be available until March 11, 2024 by calling (888) 390-0541 or (416) 764-8677 and entering the replay code, 227391#
Selected Summary Financial Information:
Years Ended December 31, | |||||
(In thousands, except per share data) | 2023 | 2022 | 2021 | ||
Results of Operations: | |||||
Uranium concentrates revenues | $ 33,278 | $ — | $ — | ||
Vanadium concentrates revenues | 871 | 8,778 | 74 | ||
RE Carbonate revenues | 2,848 | 2,122 | 1,385 | ||
Total revenues | 37,928 | 12,515 | 3,184 | ||
Gross profit | 19,747 | 4,671 | 1,370 | ||
Operating loss | (32,367) | (44,938) | (35,425) | ||
Net income (loss) attributable to the company | 99,862 | (59,849) | 1,541 | ||
Basic net income (loss) per common share | 0.63 | (0.38) | 0.01 | ||
Diluted net income (loss) per common share | 0.62 | (0.38) | 0.01 | ||
December 31, | Percent | ||||
(In thousands) | 2023 | 2022 | Change | ||
Financial Position: | |||||
Working capital | $ 222,335 | $ 116,966 | 90 % | ||
Total current assets | 232,695 | 135,590 | 72 % | ||
Mineral properties | 119,581 | 83,539 | 43 % | ||
Property, plant and equipment, net | 26,123 | 12,662 | 106 % | ||
Total assets | 401,939 | 273,947 | 47 % | ||
Total current liabilities | 10,360 | 18,624 | (44) % | ||
Total liabilities | 22,734 | 29,538 | (23) % |
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States , mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (" REE ") materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado , near Denver , and substantially all its assets and employees are in the United States . Energy Fuels holds two of America's key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (" ISR ") Project in Wyoming . The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U 3 O 8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U 3 O 8 per year. The Company recently acquired the Bahia Project in Brazil , which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US 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 .
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based critical minerals company or as the leading producer of uranium in the U.S.; any expectation with respect to timelines to production; any expectation as to rates of production; any expectation as to quantities of uranium or NdPr oxides to be produced in 2024 or in any subsequent years; any expectation that production rates will increase in 2025 or in any future years; any expectation that the Company's permitting efforts will be successful and as to any potential future production from any mines that are in the permitting or development stage; any expectation that the Company will issue an ore buying schedule in 2024 or at all; any expectation as to future uranium sales, the price of any such sales or the gross profits or gross margins from any such sales; any expectations with respect to the Company's planned exploration programs; any expectation that the Mill's REE production will not diminish the Mill's uranium production profile in any way; any expectation that Energy Fuels will be successful in developing U.S. separation, or other value-added U.S. REE production capabilities at the Mill, or otherwise, including the timing of any such Phase 1, Phase 2, Phase 3 or other initiatives and the expected production capacity or capital costs associated with any such production capabilities; any expectation that the Company's planned Phase 1 separation facility will position the Company as one of the world's leading producers of NdPr outside of China ; any expectation as to the quantity of U 3 O 8 , RE Carbonate and V 2 O 5 the Company may hold as raw material and work-in-progress inventory or solubilized in tailings solution and the Company's ability to recover any such inventories in the future; any expectation with respect to the quantities of monazite to be acquired by Energy Fuels, or the quantities of RE Carbonate or REE oxides to be produced by the Mill; any expectation that the Company is well-stocked to capture market opportunities; any expectation that the Company may sell its separated NdPr oxide to electric vehicle manufacturers; any expectation that the Bahia Project will be a cost-effective and reliable supply of monazite ore for the Mill; any expectation that the Company will commence further sonic drilling at its Bahia Project in Q1-2024 or complete an SK-1300 and NI 43-101 compliant mineral resource estimate during 2024, or otherwise; any expectation that the Company's due diligence will be satisfactory and that the Company will enter into definitive agreements to jointly develop the Donald Project, the expected production levels associated with the Donald Project if it progresses and that, if developed, the Donald Project would be expected to be a low-cost source of feed for the Company's REE production at the Mill; any expectation that the Company will be successful in securing monazite from additional sources on satisfactory commercial terms or at all; any expectation that now is the right time to secure a strategic position in the REE space; any expectation that the Mill has a unique ability to process radioactive ore and that such ability gives the Company a durable competitive advantage; any expectation the Company will not make major capital expenditures on any projects unless the REE economics build shareholder value; any expectation about the long-term opportunity in REEs; any expectation the Company is taking a unique and attractive path in the critical minerals business or that the Company is taking a broad view of the many critical materials that are necessary to power the energy transition; any expectation that, over time, the Company will be successful in building a multi-product, high value commodity portfolio, centered on uranium, that earns long-term, sustainable, and high-margin cashflows; any expectation that the Company will complete engineering on its R&D pilot facility for the production of Ra-226 at the Mill, will set up the first stage of the pilot facility, and produce R&D quantities of Ra-226 at the Mill for testing by end-users of the product or at all; any expectation that the Company's evaluation of radioisotope recovery at the Mill will be successful; any expectation that the potential recovery of medical isotopes from any radioisotopes recovered at the Mill will be feasible; any expectation that any radioisotopes that can be recovered at the Mill will be sold on a commercial basis; any expectation as to the quantities to be delivered under existing uranium sales contracts; any expectation that the Company will be successful in completing any additional contracts for the sale of uranium to U.S. utilities on commercially reasonable terms or at all; any expectation that the Company will continue to selectively capitalize on spot market sales opportunities; and any expectation as to future uranium, vanadium or REE prices or market conditions. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of feed sources for the Mill; competition from other producers; public opinion; government and political actions; available supplies of monazite; the ability of the Mill to produce RE Carbonate, REE oxides or other REE products to meet commercial specifications on a commercial scale at acceptable costs or at all; market factors, including future demand for REEs; the ability of the Mill to be able to separate radium or other radioisotopes at reasonable costs or at all; market prices and demand for medical isotopes; and the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/ edgar. html , on SEDAR at www.sedar.com , and on the Company's website at www.energyfuels.com . Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, 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. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
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Energy Fuels Enters into MOU to Secure Near-Term, Large-Scale Australian Source of Rare Earth Minerals to Supply New U.S.-Based Supply Chain for Decades
Energy Fuels and Astron Corporation execute non-binding MOU to jointly develop the Donald Mineral Sands Project, a large heavy mineral sand deposit that has the potential to supply Energy Fuels with approximately 7,000 tonnes of rare earth-bearing monazite sand per year starting in 2026, ramping up to 14,000 tonnes per year soon thereafter.
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ( "Energy Fuels" or the "Company" ), a leading U.S. producer of uranium, rare earth elements (" REE "), and vanadium, is pleased to announce that it has entered into a non-binding Memorandum of Understanding (" MOU ") with Astron Corporation Limited (" Astron ") to jointly develop the Donald Rare Earth and Mineral Sands Project, located in the Wimmera Region of the State of Victoria, Australia (the " Donald Project "). The MOU describes indicative commercial terms and provides Energy Fuels with a binding exclusivity period to end on March 1, 2024 during which Energy Fuels will be entitled to conduct due diligence and the parties will negotiate definitive agreements.
The Donald Project is a world-class, world scale, 'shovel-ready' critical mineral deposit that Energy Fuels believes would provide it with another near-term, low-cost, and large-scale source of monazite sand in an REE concentrate (" REEC ") that would be transported to the Company's White Mesa Mill in Utah, USA (the " Mill ") for processing into REE oxides and other advanced REE materials and recovery of the contained uranium. Energy Fuels is announcing this non-binding MOU at this time, because Astron has determined that it is required to announce the MOU at this time under applicable Australian Securities Exchange (" ASX ") rules.
With supportive U.S. government policies, and U.S. and European companies increasingly focused on security of supply, Energy Fuels is rapidly creating a new significant REE supply chain that can reduce America's reliance on REE's from China . As part of this strategy, the Company is actively securing long-term sources of REEC through offtake (Chemours), joint venture (Astron), and direct ownership (the Company's 100% owned Bahia Project in Brazil ). Through these assets and potentially others, Energy Fuels is building a world significant REE oxide supply chain that the Company believes will be attractive to EV manufacturers and their Tier 1 suppliers.
THE DONALD PROJECT
With Energy Fuels' proposed investment of approximately A$180 million (approximately US$122 million at current exchange rates), and most licenses and permits in place (or at an advanced stage of completion), the Donald Project (see Figure 1) is expected to soon be a new, long-term source of several critical minerals key to the clean energy transition, including REE's, titanium, zircon, and uranium. The Donald Project is expected to provide Energy Fuels with 7,000 to 14,000 metric tons (" tonnes ") of REEC per year, containing 4,000 to 8,200 tonnes of total REE oxides (" TREO "), with commissioning and ramp-up expected to begin in 2026. Most of Energy Fuels' proposed investment is expected to be disbursed in 2025.
This annual quantity of REEC contains roughly 850 to 1,700 tonnes of neodymium-praseodymium (" NdPr ") oxide, 70 to 140 tonnes of dysprosium (" Dy ") oxide and 12 to 25 tonnes of terbium (" Tb ") oxide. The REEC from the Donald Project is also expected to contain approximately 50,000 to 100,000 pounds of low-cost recoverable uranium per year, which, in addition to the Company's large-scale uranium production from its numerous US mines and other sources, would be sold to the U.S. nuclear industry for the generation of clean, carbon-free electricity.
NdPr, Dy and Tb are known as the "magnet rare earths," as they are key ingredients in powerful permanent REE magnets used in the most efficient electric vehicles (" EVs "), wind generators, and other defense-related and advanced technologies. For scale, REEs provide significantly greater power and range for EVs, and the typical REE-powered EV uses about one kilogram (" kg ") of NdPr oxide per vehicle. Therefore, the Donald Project could supply enough of these critical elements for up to 1.4 million EVs per year.
The following tables summarize the updated Ore Reserve Statement for the Donald Project, prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 Edition (" 2012 JORC Code "), as of June 27, 2023 . The Company is treating the Mineral Reserves disclosed in the table below as historical in nature as a Qualified Person (" QP ") for the Company has not conducted the due diligence necessary to classify these as current Mineral Reserves. There can be no assurance that additional due diligence work will convert the historical Mineral Reserves to current Mineral Reserves under S-K 1300 and NI 43-101:
MIN5532 | |||||||||||||
% of total HM | |||||||||||||
Tonnes | HM | Slimes | Oversize | Zircon | Rutile + Anatase | Ilmenite | Leucoxene | Monazite | Xenotime | ||||
Classification | (Mt) | ( %) | ( %) | ( %) | |||||||||
Proved | 263 | 4.4 | 15.4 | 9.8 | 16.7 | 5.5 | 21.6 | 25.9 | 1.8 | 0.67 | |||
Probable | 46 | 4.1 | 19.7 | 11.1 | 15.3 | 5.5 | 21.3 | 20.1 | 1.8 | 0.64 | |||
Total | 309 | 4.4 | 16.1 | 10.0 | 16.5 | 5.5 | 21.6 | 25.1 | 1.8 | 0.66 | |||
Notes: | |||||||||||||
1) The ore tonnes have been rounded to the nearest 1 Mt and grades have been rounded to two significant figures. | |||||||||||||
2) The Ore Reserve is based on Indicated and Measured Mineral Resources contained within the mine designs above an economic cut-off. | |||||||||||||
3) A break-even cut-off has been applied defining any material with product values greater than processing cost as Ore. | |||||||||||||
4) Mining recovery and dilution have been applied to the figures above. | |||||||||||||
5) The area is wholly within the mining license (MIN5532). | |||||||||||||
6) The rutile grades are a combination of rutile and anatase minerals. 7) The Ore Reserve estimates have been compiled in accordance with the guidelines defined in the 2012 JORC Code. | |||||||||||||
RL2002 outside of MIN5532 | ||||||||||
% of total HM | ||||||||||
Tonnes | HM | Slimes | Oversize | Zircon | Rutile + Anatase | Ilmenite | Leucoxene | Monazite | Xenotime | |
Classification | (Mt) | ( %) | ( %) | ( %) | ||||||
Proved | 152 | 5.6 | 7.1 | 18.8 | 21.1 | 9.4 | 31.3 | 18.2 | 1.8 | |
Probable | 364 | 4.1 | 13.7 | 15.7 | 17.1 | 7.5 | 32.8 | 19.3 | 1.6 | |
Total | 516 | 5.6 | 11.7 | 16.6 | 18.6 | 8.2 | 32.3 | 18.9 | 1.7 | |
Notes: | ||||||||||
1) The ore tonnes have been rounded to the nearest 1 Mt and grades have been rounded to two significant figures. | ||||||||||
2) The Ore Reserve is based on Indicated and Measured Mineral Resources contained within the mine designs above an economic cut-off. | ||||||||||
3) The economic cut-off is defined as the value of the products less the cost of processing. | ||||||||||
4) Mining recovery and dilution have been applied to the figures above. | ||||||||||
5) The updated RL2002 Ore Reserve does not include an announced figure on xenotime due to historical samples used in the Ore Reserve calculation not being analyzed for xenotime. | ||||||||||
6) The rutile grades are a combination of rutile and anatase minerals. | ||||||||||
7) The Ore Reserve estimates have been compiled in accordance with the guidelines defined in the 2012 JORC Code. |
THE DONALD PROJECT JOINT VENTURE:
The MOU sets out in broad terms the basis upon which the parties would enter into an Australian incorporated Joint Venture (the " Venture ") covering the tenements MIN5532 and RL2002, which together form the Donald Deposit (see the attached figure). The MOU provides for the continuation of due diligence by Energy Fuels and the negotiation of definitive and binding agreements governing the Venture. The transactions contemplated by the MOU, including formation of the Venture, are conditional on a number of factors, including the Company being satisfied with the results of its due diligence investigations and the ability of the parties to successfully negotiate and enter into definitive and binding agreements. There can be no assurance that the Company will enter into definitive agreements to govern the Venture, or if entered into that the terms will be as set out in the MOU.
The MOU contemplates that the Venture would initially consist of operations to mine 7.5 million tonnes per year of ore to produce approximately 200,000 to 250,000 tonnes per year of heavy mineral concentrate (" HMC ") and approximately 7,000 to 8,000 tonnes per year of monazite-bearing rare earth element concentrate (" REEC ") (" Phase 1 "). It is further contemplated that, as soon as practicable after commencing Phase 1 commercial production, the Venture would double ore production to 15 million tonnes per year to produce approximately 400,000 to 500,000 tonnes per year of HMC and approximately 13,000 to 14,000 tonnes per year of REEC (" Phase 2 ") for decades to come.
The MOU provides for Energy Fuels to invest A$180 million (approximately US$122 million at current exchange rates) to earn a 49% interest in the Venture, most of which is expected to be spent in 2025. In addition, the Company would issue to Astron common shares having a value of US$17.5 million in consideration of RL2002 being included in the Venture to cover the entire Donald Deposit.
Energy Fuels' investment of A$180 million is expected to satisfy most of the equity capital requirements for the construction of the Phase 1 project. Astron, with a 51% interest, would be the Manager and Operator of the Venture, with specified major decisions subject to approval of both parties. Any future Venture expenditures, including development of Phase 2, would be funded by Energy Fuels and Astron on a pro-rata basis.
The MOU contemplates that under the Venture, Energy Fuels would enter into an offtake agreement for 100% of the Donald Project's Phase 1 and Phase 2 REEC production based on market prices of contained rare earth elements. Astron would have the right, but not the obligation, to enter into an offtake agreement with the Venture for up to 100% of the HMC product at market prices. Following payment of all joint venture expenses, all profits from the Venture would be distributed to Energy Fuels and Astron, pro-rata according to their respective ownership percentages.
The MOU also provides that the agreements will provide Energy Fuels with a first right of refusal over participation in the development of Astron's Jackson Deposit which is contained in the tenement RL2003 and adjoins the Donald Deposit to the south-west (see the attached figure). The Donald Deposit and the Jackson Deposit, together, form the Donald Rare Earth and Mineral Sands Project.
The Donald Project would greatly supplement Energy Fuels' other near-term monazite supplies. Earlier in 2023, Energy Fuels announced the acquisition of its 100% owned Bahia Mineral Sand Project, which is comprised of 60+ square miles of mineral concessions in Brazil containing large in-ground heavy mineral sand resources, including monazite. The Company is currently completing a sonic drill program at the Bahia Project to expand the heavy mineral sand resources and guide mine planning and additional permitting. The Bahia Project is expected to commence production in 2026, producing in the range of 3,000 to 10,000 tonnes of REEC per year.
Therefore, between the Bahia Project and the Donald Project, Energy Fuels would control roughly 10,000 to 24,000 tonnes of low-cost REEC per year, containing approximately 1,150 to 2,700 tonnes of NdPr along with significant quantities of "heavy" REEs and uranium for decades to come. The Company is continuing to evaluate additional opportunities to secure low-cost, large-scale monazite concentrates globally.
Energy Fuels' NEW U.S.-CENTRIC RARE EARTH SUPPLY CHAIN:
For the past four years, Energy Fuels has been developing a secure, U.S.-centric REE oxide supply chain that sources monazite concentrates from the US and around the world. Monazite is an excellent source of REE's, as it has superior distributions of the 'magnet' REE's versus other minerals. Energy Fuels is utilizing excess capacity at the Mill, and installing additional infrastructure, to produce advanced REE materials, including mixed REE carbonate and separated REE oxides. The Mill is the only operable conventional uranium mill in the U.S., and these REE capabilities are additive to the Company's uranium production capabilities.
Energy Fuels is utilizing the Mill for REE recovery, as most major REE-bearing minerals, including monazite, bastnaesite, ionic clays, xenotime, and others, contain uranium, thorium, and other radioactive elements that become concentrated through the REE extraction process. Therefore, companies that process REE-bearing minerals must have the licenses, infrastructure, tailings capacity, and expertise in radioactive hydrometallurgy to properly manage, process, recover, and/or dispose of uranium, thorium and other radioactive elements. As a result, the Company believes the Mill is an ideal facility to perform these functions, as it already possesses these attributes and is further able to recover the associated uranium for beneficial use. The Mill is licensed and constructed in the United States and overseen by an array of federal and state government agencies with expertise in the processing of radioactive materials. The Mill has an exceptional record of regulatory compliance and operates to the highest global standards for the protection of human health and the environment.
Furthermore, the proven processing method for producing high purity separated REE oxides is solvent extraction (" SX "), and the Mill has been utilizing SX for over 40 years to produce high-purity uranium and vanadium oxides. Therefore, it has not been difficult for Energy Fuels to deploy this institutional knowledge and experience with relatively minor Mill modifications to produce mixed REE carbonates since 2021 and to begin producing separated REE oxides, expected in early 2024, that meet applicable specifications.
As previously announced, the Company is currently installing a "Phase 1" REE separation circuit (the " Phase 1 REE Separation Circuit ") within the Mill's existing SX building that will have the capacity to process 8,000 to 10,000 tonnes of REEC per year and produce up to 1,000 tonnes of high-purity NdPr oxide per year. Based on current committed REEC supplies, the Company expects to produce 40-50 tonnes of NdPr oxide in 2024, while continuing to negotiate for the procurement of additional feedstock. The Mill has pilot-tested NdPr separation at its in-house laboratory for over two years, which has allowed the Company to compile extensive real-time data that it is using to design and optimize its soon-to-be-operational NdPr circuit. As previously announced, the Phase 1 REE Separation Circuit is expected to be operational in Q1-2024. Also in Q1-2024, the Company plans to perform pilot-scale testing on "heavy" REE separation, including the production of high-purity Dy and Tb oxides, along with potentially samarium (" Sm + ") oxides and others.
The Company is also in the process of designing a "Phase 2" REE separation circuit (the " Phase 2 Separation Circuit ") and a "Phase 3" REE separation circuit (the " Phase 3 Separation Circuit ") at the Mill. The Phase 2 Separation Circuit, which is currently expected to be completed in 2027, subject to receipt of any required regulatory approvals and the Company securing sufficient supplies of REEC, will consist of expanding NdPr oxide capacity to process between 30,000 and 40,000 tonnes of REEC per year and produce approximately 3,000 to 4,000 tonnes of NdPr oxide per year. The Company also plans to construct a dedicated "crack-and-leach" circuit in conjunction with its Phase 2 Separation Circuit, in order to allow the Mill to simultaneously process conventional uranium ore and REEC independently, thereby allowing for more efficient utilization of Mill capacity. The Phase 3 Separation Circuit, which is currently expected to be completed in 2028, subject to receipt of any required regulatory approvals, will consist of installing the capacity to produce "heavy" REE oxides, including Dy, Tb, and potentially Sm and other oxides. The Company continues to evaluate opportunities to enter the REE metal, alloy, and magnet-making space, in order to fully-integrate the entire REE magnet supply chain.
Assuming completion of the transactions contemplated by the MOU and formation of the Venture, the Company would expect to receive Phase 1 quantities of REEC from the Donald Project commencing in 2026. The Phase 1 quantities of REEC from the Donald Project would then be processed through the Mill's Phase 1 Separation Circuit, which is expected to be completed in 2024, for the production of NdPr oxide, with the heavies, Tb and Dy, either stockpiled at the Mill for future processing for the recovery of Tb and Dy in the Mill's Phase 3 Separation Circuit when constructed (currently expected to be in 2028) or sold as an SM + carbonate to third parties in the interim. The Company currently expects that the Phase 2 Separation Circuit at the Mill will be completed prior to receipt of Phase 2 quantities of REE from the Donald Project.
MARK S. CHALMERS , PRESIDENT AND CEO OF Energy Fuels STATED:
"Energy Fuels is working to secure future large-scale in-situ rare earth element projects around the world, which we expect to become low-cost sources of feed to supply our U.S.-centric REE supply chain in the coming years. Earlier in 2023, we acquired the Bahia Project in Brazil , and now we are working toward partnering with Astron on the Donald Project in Australia . Energy Fuels' goal is to source monazite from the US and around the World and become a reliable, globally diversified, multi-decade supplier of U.S.-produced magnet REE oxides to EV manufactures and other end-users. Our announcement today should help people 'connect-the-dots' to better understand the magnitude of our burgeoning REE business strategy. We are earning into an essentially 'de-risked' heavy mineral sand project that is in Australia , has many years of detailed resource and project evaluation, and has all the main regulatory approvals in place or well-advanced.
"And we are able to develop this U.S.-centric REE supply chain without diminishing our U.S.-leading uranium production capability in any way. Uranium will always continue to be our primary focus. However, REE and uranium production go hand-in-hand, as the REEC from the Donald Project contains decades of low-cost recoverable uranium, which perfectly complements the Company's large-scale uranium production. While this represents only a small part of our total uranium production, these pounds of uranium are very valuable to us because their incremental cost of production is expected to be very low, while providing a secure source of uranium for the generation of clean, carbon-free electricity in the U.S.
"We are putting Utah on the map as a responsible domestic supplier of many clean energy and critical minerals, including uranium, rare earths, vanadium, and even potentially life-saving medical isotopes. We are not aware of any other U.S. company able to produce as many advanced materials that contribute to carbon-reduction and electrification as Energy Fuels."
QUALIFIED PERSON
The technical information in this press release has been prepared in accordance with both U.S. and Canadian requirements set out in SK-1300 and National Instrument 43-101 and reviewed on behalf of the company by Dan Kapostasy , VP, Technical Services of Energy Fuels Resources ( USA ) Inc., a Qualified Person under both SK-1300 and National Instrument 43-101 regulations. The JORC compliant Mineral Reserves contained herein were disclosed by Astron Corporation Limited on 27 June 2023 . The Company has not completed the necessary due diligence on the Mineral Reserves to disclose them as current Mineral Reserves. Therefore, the Company is treating the contained tables as historical in nature as a Qualified Person has not done sufficient work to classify the Mineral Reserves as current under S-K 1300 or NI 43-101. These historical Mineral Reserves are relevant to this disclosure, as they provide information on the potential size and scale of MIN5532 and RL2002. The method used to estimate the in-situ resources was ordinary kriging utilizing octant and ellipsoid search parameters. The mineralized zone was domained into three zones: low grade, medium grade (>3% & 5%) heavy mineral. The block model used a 100 m x 200 m x 1 m block, which is approximately half the drillhole spacing in the well drilled areas. The model was visually verified against drillholes, SWATH plots were used to check average grade trends, and the current estimate is similar to previous estimates. To convert the mineral resources to mineral reserves, modifying factors including mining methods (dry mining), metallurgical testwork (including processing size assumptions, >38 µm size fraction) producing both a heavy mineral concentrate (Ti and Zr minerals) and a rare earth mineral concentrate (monazite + xenotime), capital cost, operating costs, and environmental factors. Additional details regarding the historical Mineral Reserves are available in the Astron Corporation Limited press release dated 27 June, 2023 :
https://www.astronlimited.com.au/wp-content/uploads/2023/06/20230627-Phase-2-Ore-Reserve-Update.pdf
ABOUT Energy Fuels
Energy Fuels is a leading US-based uranium and critical minerals company. The Company, as the leading producer of uranium in the United States , mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced REE materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides commencing in 2024. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado , near Denver , and substantially all its assets and employees are in the United States . Energy Fuels holds two of America's key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (" ISR ") Project in Wyoming . The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U 3 O 8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U 3 O 8 per year. The Company recently acquired the Bahia Project in Brazil , which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects in production, 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 ASTRON
Astron Corporation Limited (ASX: ATR) is an Australian-based company listed on the ASX. With over 35 years of operating history, Astron has been involved in mineral sands processing, downstream product development, as well as the marketing and sales of zirconium and titanium related products. Astron's prime focus is on the development of its large, long-life Donald Rare Earths and Mineral Sands Project in regional Victoria, Australia . Astron's website is www.astronlimited.com.au .
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based uranium and critical minerals company or as the leading producer of uranium in the U.S.; any expectation that the transactions contemplated by the MOU will be completed, or the terms on which it will be completed, and that the Venture will be formed; any expectation as to production levels or timing or duration of production from the Donald Project or any of the Company's other mines or projects; any expectations as to costs of production at the Donald Project or any of the Company's mines or other projects; any expectation that the Company will complete a sonic drill program at the Bahia Project, or that any such program will expand the heavy mineral sand resources and guide mine planning and additional permitting; any expectation that the Company will be successful in creating a new REE supply chain that can reduce America's reliance on China that will be attractive to EV manufacturers and their Tier 1 suppliers or at all; any expectation that the Company will be successful in becoming a reliable, globally diversified, multi-decade supplier of U.S.-produced magnet REE oxides to EV manufacturers and other end-users; any expectation that the Company will be successful in entering the REE metal, alloy, and magnet-making space, in order to fully-integrate the entire REE magnet supply chain; any expectation that any ore reserves estimated to date will accurately reflect actual reserves or resources; any expectation that the Company's A$180 million investment in the Venture will satisfy most of the equity capital requirements for the construction of Phase 1 of the Donald Project; any expectation that the Company will be successful in securing any additional low-cost monazite concentrates globally, or at all; any expectation that the Mill will successfully continue to operate to the highest global standards for the protection of human health and the environment; any expectation that the Company will be successful in advancing its REE initiatives or that it will be successful in installing REE production capacity at the Mill and the timing of installation of any such production capacity; any expectation as to the success of the Company's permitting programs; and any expectation that the Company will be successful in its medical isotopes program. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: the results of due diligence investigations relating to the Donald Project yet to be performed; the inability to negotiate satisfactory definitive agreements relating to the Venture; commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of feed sources for the Mill; competition from other producers; public opinion; government and political actions; available supplies of monazite; the ability of the Mill to produce rare earth carbonate, rare earth element oxides or other rare earth element products to meet commercial specifications on a commercial scale at acceptable costs or at all; market factors, including future demand for rare earth elements; the ability of the Mill to be able to separate radium or other radioisotopes at reasonable costs or at all; market prices and demand for medical isotopes; and the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar.shtml , on SEDAR at www.sedar.com , and on the Company's website at www.energyfuels.com . Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, 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. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
Cautionary Note for U.S. Investors Concerning Mineral Resources and Reserves: Certain technical disclosure contained in this news release has been prepared in accordance with the JORC Code . The JORC Code differs from the requirements of the U.S. Securities and Exchange Commission (" SEC ") and resource information contained in this news release may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements.
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SOURCE Energy Fuels Inc.
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In Response to Surging Prices, Supportive Government Policies, and a Domestic Focus on Security of Supply, Energy Fuels Has Commenced Production at Three of its U.S. Uranium Mines
Nuclear energy is increasingly being recognized as a clean energy resource globally, while buyers seek non-Russian uranium supply; Energy Fuels is uniquely positioned to immediately increase uranium production through multiple assets in the U.S., including the only licensed and operating conventional uranium processing facility in the U.S.
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ( "Energy Fuels" or the "Company" ), a leading U.S. producer of uranium, rare earth elements (" REE "), and vanadium, is pleased to announce that, in response to strong uranium market conditions, it has commenced uranium production at three (3) of its permitted and developed uranium mines located in Arizona and Utah . In addition, the Company is preparing two (2) additional mines in Colorado and Wyoming for expected production within one (1) year and advancing permitting on several other large-scale U.S. mine projects in order to increase uranium production in the coming years.
Energy Fuels is in an exceptional position to ramp up U.S. uranium production to take advantage of today's highly favorable market conditions, where spot prices have reached a 16-year high at nearly $90.00 per pound of U 3 O 8 . Energy Fuels has more licensed uranium production capacity than any other U.S. company (over 10 million pounds of U 3 O 8 per year), the only operable conventional uranium mill in the U.S., an in situ recovery (" ISR ") facility, several permitted mines in various stages of production, development and standby, and one of the largest in-ground uranium (and vanadium) resource portfolios in the U.S. Energy Fuels has accounted for roughly two-thirds of all U.S. uranium production over the past five (5) years. Once production is fully ramped up at three (3) mines (Pinyon Plain, La Sal and Pandora) by mid- to late-2024, the Company expects to be producing uranium at a run-rate of 1.1 to 1.4 million pounds per year. Ore mined from the three (3) mines during 2024 will be stockpiled at the Company's White Mesa Mill in Utah (the " Mill ") for processing in 2025, subject to market conditions, contract requirements and/or Mill schedule. The Company is also preparing two (2) mines (Whirlwind and Nichols Ranch) to commence uranium production within one (1) year, which would increase Energy Fuels' uranium production to over two (2) million pounds of U 3 O 8 per year starting in 2025, if strong market conditions continue as expected.
At the same time, Energy Fuels will continue to produce uranium from its alternate feed recycling program (expected to total approximately 150,000 pounds of finished U 3 O 8 in 2024), while the Company stockpiles ore as raw materials from its conventional mines pending the upcoming Mill run. The Company also expects to commence an ore buying program from third-party miners in 2024, which is expected to increase the Company's short-term uranium production profile even further. In 2024, the Company also plans to advance permitting and development on the Roca Honda, Sheep Mountain and Bullfrog projects, which could expand the Company's uranium production to up to five (5) million pounds of U 3 O 8 per year in the coming years. Energy Fuels also expects to produce 1.0 – 2.0 million pounds of vanadium per year, which could be held as in-process inventory or processed into finished V 2 O 5 available for sale into improving markets.
The Company's decision to ramp-up uranium production at this time was driven by several favorable market and policy factors, including strengthening spot and long-term uranium prices, increased buying interest from U.S. nuclear utilities, U.S. and global government policies supporting nuclear energy to address global climate change, and the need to reduce U.S. reliance on Russian and Russian-controlled uranium and nuclear fuel. Underscoring these positive trends, attendees at the recently concluded World Climate Action Summit of the 28 th Conference of the Parties of the U.N. Framework Convention on Climate Change Summit (" COP28 ") hosted in Dubai , UAE from November 30, 2023 to December 12, 2023 , emphasized the need for more nuclear energy, fueled by uranium, to lower global carbon emissions and help address climate change. According to a December 1, 2023 U.S. Department of Energy (" DOE ") news release , more than 20 countries on four continents, including the U.S., pledged to triple nuclear energy by 2050, recognizing "the key role of nuclear energy in achieving global net-zero greenhouse gas emissions by 2050 and keeping the 1.5-degree goal within reach."
Nuclear enjoys strong bipartisan support across the U.S. government. The current fleet of U.S. nuclear plants provides about 20% of all electricity in the U.S. – and about 50% of all carbon-free electricity in the U.S. The U.S. government has acted aggressively to support the existing fleet of reactors, advance future nuclear technologies, and restore domestic nuclear fuel capabilities through the Infrastructure Investment and Jobs Act of 2021 and the Inflation Reduction Act of 2022. The U.S. Congress recently included the Nuclear Fuel Security Act (" NFSA ") in the National Defense Authorization Act (" NDAA "), which is a critical step in restoring U.S. uranium and nuclear fuel capabilities and leadership. On December 11, 2023 , the U.S. House of Representatives overwhelmingly passed a ban on the import of Russian uranium and nuclear fuel into the U.S. in response to Russia's unprovoked invasion of Ukraine and ongoing atrocities. The Russian uranium ban appears to enjoy overwhelming support in the U.S. Senate.
During 2024, Energy Fuels expects to sell 200,000 pounds of uranium into its existing portfolio of long-term contracts, which is expected to occur in Q1 2024. In addition, a utility customer has the option to purchase an additional 100,000 pounds of uranium from Energy Fuels in 2024. The Company holds uncommitted inventory and, with the benefit of future production, will continue to evaluate additional spot and/or long-term uranium sales opportunities during 2024 and beyond.
In addition to the Company's uranium business, the Company will also continue to advance its REE program at the Mill in 2024 to fully capitalize on the Mill's unique and valuable capabilities. As previously announced, the Mill is in the process of installing the capacity to produce up to 1,000 tonnes of neodymium-praseodymium (" NdPr ") oxide per year, subject to receipt of sufficient monazite feed. This capacity is expected to be completed in Q1 2024. This quantity of NdPr oxide could power up to 1 million electric vehicles (" EVs ") per year. At the current time, the Company expects to produce roughly 60 – 80 tonnes of NdPr oxide in 2024, as it ramps-up and optimizes the newly installed circuit. The Mill's REE production capacity is complementary to its uranium operating capacity and is not intended to diminish the Mill's future uranium production profile in any way. The Company expects to provide additional updates on future monazite supply in the coming weeks/months.
"Due to the substantial increase in uranium prices, U.S. government support for nuclear energy and nuclear fuel, and a global focus on reducing carbon-emissions, Energy Fuels is resuming large-scale uranium production. Uranium spot prices are currently near $90 per pound, which is the highest level seen since 2007 when the uranium spot price reached a high of $135 per pound, or over $200 per pound on an inflation-adjusted basis. Energy Fuels is recognized globally as a dependable U.S. uranium supplier that operates to the highest environmental, safety, and efficiency standards. Energy Fuels has made the required investments over the past several years to prepare for today's uranium markets, and we are uniquely positioned to successfully resume U.S. uranium production in 2024. This is evidenced by our production of roughly two-thirds of all uranium produced in the U.S. over the past five years.
"In addition to aggressively restarting uranium production, we will also continue to rapidly advance our rare earth element processing and other plans, which are expected to become significant value streams that complement our core uranium business. Our shareholders will receive "multi-commodity" exposure in the 'Energy Transition' space. Numerous established and emerging clean energy technologies require specialized advanced materials produced from minerals that are naturally radioactive when they are mined, due to the presence of uranium and other elements. Energy Fuels is uniquely capable of processing these minerals and producing a number of these advanced materials. I know of no other public company in the world that can potentially execute these unique plans on the scale we have planned.
"Finally, as 2023 comes to a close, I wish to thank our amazing workforce, who are allowing us to respond so quickly to today's improved uranium market conditions while also capitalizing on our rare earth opportunities. I am humbled by their dedication, creativity, professionalism, and tenacity, which is truly unparalleled in my experience. I also wish all our shareholders, employees, and stakeholders a very Happy Holiday and a Happy New Year. 2024 could be a big year for Energy Fuels."
Energy Fuels is a leading US-based uranium and critical minerals company. The Company, as the leading producer of uranium in the United States , mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (" REE ") materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides commencing in 2024. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado , near Denver , and substantially all its assets and employees are in the United States . Energy Fuels holds two of America's key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (" ISR ") Project in Wyoming . The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U 3 O 8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U 3 O 8 per year. The Company recently acquired the Bahia Project in Brazil , which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects in production, 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 .
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based uranium and critical minerals company or as the leading producer of uranium in the U.S.; any expectation that any mines currently under development by the Company will be in production within one year, or at all; any expectation as to production levels or of increased production in coming years at any of the Company's mines or facilities; any expectation that the Company's ramp-up of production will allow the Company to take advantage of today's highly favorable market conditions or that strong market conditions will continue; any expectation as to when ore mined by the Company may be processed at the Mill for the recovery of contained uranium; any expectation as to the success of the Company's permitting programs; any expectations as to future market conditions or future political support for the nuclear industry; any expectations that spot and long-term uranium prices may strengthen in the future; any expectation as to any future spot and/or long-term uranium sales opportunities; any expectation that the Company will be successful in advancing its REE initiatives or that it will be successful in installing REE production capacity at the Mill; any expectation that the Company's shareholders will receive "multi-commodity" exposure; and any expectation that the Company will continue to be successful at operating to the highest environmental, safety and efficiency standards. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of feed sources for the Mill; competition from other producers; public opinion; government and political actions; available supplies of monazite; the ability of the Mill to produce rare earth carbonate, rare earth element oxides or other rare earth element products to meet commercial specifications on a commercial scale at acceptable costs or at all; market factors, including future demand for rare earth elements; the ability of the Mill to be able to separate radium or other radioisotopes at reasonable costs or at all; market prices and demand for medical isotopes; and the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar.shtml , on SEDAR at www.sedar.com , and on the Company's website at www.energyfuels.com . Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, 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. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
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SOURCE Energy Fuels Inc.
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Clean Energy and Precious Metals Virtual Investor Conference: Presentations Now Available for Online Viewing
Virtual Investor Conferences, the leading proprietary investor conference series, today announced the presentations from the Clean Energy and Precious Metals Virtual Investor Conference, held December 4 th 5 th and 6 th are now available for online viewing.
REGISTER NOW AT : https://bit.ly/46QuklX
The company presentations will be available 24/7 for 90 days. Investors, advisors, and analysts may download
investor materials from the company's resource section.
Select companies are accepting 1x1 management meeting requests through December 11th.
December 4 th – Uranium
Presentation | Ticker(s) |
Elevated Uranium Ltd. | OTCQX: ELVUF | ASX: EL8 |
Deep Yellow Ltd. | OTCQX: DYLLF | ASX: DYL |
Lotus Resources Ltd. | OTCQB: LTSRF | ASX: LOT |
Nuclear Fuels Inc. | OTCQX: NFUNF | CSE: NF |
Anfield Energy Inc. | OTCQB: ANLDF | TSXV: AEC |
Stallion Uranium Corp. | OTCQB: STLNF | TSXV: STUD |
Paladin Energy Ltd. | OTCQX: PALAF | ASX: PDN |
Peninsula Energy Ltd. | OTCQB: PENMF | ASX: PEN |
IsoEnergy Ltd. | OTCQX: ISENF | TSXV: ISO |
Yellow Cake PLC | OTCQX: YLLXF | AIM: YCA |
Baselode Energy Corp. | OTCQB: BSENF | TSXV: FIND |
Terra Uranium Limited | ASX: T92 |
Energy Fuels Inc. | NYSE American: UUUU |TSX: EFR |
December 5 th – Battery & Precious Metals
Presentation | Ticker(s) |
Jindalee Lithium Ltd. | OTCQX: JNDAF | ASX: JLL |
Hochschild Mining PLC | OTCQX: HCHDF | LSE: HOC |
Li-FT Power Ltd. | OTCQX: LIFFF | TSXV: LIFT |
Gold Terra Resource Corp. | OTCQX: YGTFF | TSXV: YGT |
Goliath Resources Ltd. | OTCQB: GOTRF | TSXV: GOT |
Silver Storm Mining Ltd | OTCQB: SVRSF | TSXV: SVRS |
Silver Tigers Metals Inc. | OTCQX: SLVTF | TSXV: SLVR |
Stillwater Critical Minerals Corp | OTCQB: PGEZF | TSXV: PGE |
Outcrop Silver & Gold Corp. | OTCQX: OCGSF | TSXV: OCG |
Southern Silver Exploration Corp. | OTCQX: SSVFF | TSXV: SSV |
Graphene Manufacturing Group Ltd. | Pink: GMGMF | TSXV: GMG |
Novo Resources Corp. | OTCQX: NSRPF | TSX: NVO |
December 6 th - Battery & Precious Metals
Presentation | Ticker(s) |
WestGold Resources Limited | Pink: WTGRF | ASX: WGX |
Onyx Gold Corp. | OTCQX: ONXGF | TSXV: ONYX |
West Vault Mining Inc. | OTCQX: WVMDF | TSXV: WVM |
Akobo Minerals AB | OTCQX: AKOBF | Oslo Bors: AKOBO |
GoGold Resources, Inc. | OTCQX: GLGDF | TSX: GGD |
European Energy Metals Corp. | OTCQB: EUEMF | TSXV: FIN |
Giga Metals Corp. | OTCQX: GIGGF | TSXV: GIGA |
Argentina Lithium & Energy Corp. | OTCQB: PNXLF | TSXV: LIT |
Lavras Gold Corp. | OTCQX: LGCFF | TSXV: LGC |
Osisko Metals Inc. | OTCQX: OMZNF | TSXV: OM |
Idaho Copper Corporation | Pink: COPR |
Sierra Metals, Inc. | OTCQX: SMTSF | TSX: SMT |
Arizona Metals Corp. | OTCQX: AZMCF | TSX: AMC |
To facilitate investor relations scheduling and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com .
About Virtual Investor Conferences ®
Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly traded companies to seamlessly present directly to investors.
Providing a real-time investor engagement solution, VIC is specifically designed to offer companies more efficient investor access. Replicating the components of an on-site investor conference, VIC offers companies enhanced capabilities to connect with investors, schedule targeted one-on-one meetings and enhance their presentations with dynamic video content. Accelerating the next level of investor engagement, Virtual Investor Conferences delivers leading investor communications to a global network of retail and institutional investors.
Media Contact:
OTC Markets Group Inc. +1 (212) 896-4428, media@otcmarkets.com
Virtual Investor Conferences Contact:
John M. Viglotti
SVP Corporate Services, Investor Access
OTC Markets Group
(212) 220-2221
johnv@otcmarkets.com
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Lithium ION Energy Announces Warrant Extension
Lithium ION Energy Ltd (TSXV: ION) (OTCQB: IONGF) (FSE: ZA4) ("ION" or the "Company") announces today that it intends to extend the expiry date of an aggregate 11,500,000 outstanding common share purchase warrants of the Company (the "April Warrants") by 12 months to April 12, 2025 and an aggregate 4,000,000 outstanding common share purchase warrants of the Company (the "July Warrants" and collectively with the April Warrants, the "Warrants") by 12 months to July 20, 2025 (collectively with the extension of April Warrants, the "Extension").
The April Warrants were issued pursuant to a public offering which closed on April 13, 2021 and are set to expire on April 12, 2024. The April Warrants were issued pursuant to a warrant indenture dated April 13, 2021 between the Company and TSX Trust and each April Warrant entitles the holder thereof to acquire one common share of the Company at a price of CAD $0.70. The July Warrants were issued pursuant to a non-brokered private placement which closed on July 20, 2023 and are set to expire on July 20, 2024. Each July Warrant entitles the holder thereof to acquire one common share of the Company at a price of CAD $0.40.
The Company believes that the extension of the Warrants is reasonable and necessary in the context of the overall market, as it increases the likelihood that any additional cash needs of the Company could be financed through the exercise of the Warrants.
The Extension remains subject to receipt of approval of the TSX Venture Exchange.
About Lithium ion energy ltd.
Lithium ion energy ltd. (TSXV: ION) (OTCQB: IONGF) (FSE: ZA4) is committed to exploring and developing high quality lithium resources in strategic jurisdictions. ION's flagship, 63,000+ hectare Baavhai Uul lithium brine project represents the largest and first lithium brine exploration licence award in Mongolia. ION also holds the 29,000+ hectare Urgakh Naran highly prospective lithium brine licence in Dorngovi Province in Mongolia. With the acquisition of the Bliss Lake and Little Nahani projects in NWT, Canada, ION has enhanced its lithium asset and jurisdiction profile. ION is well-poised to be a key player in the clean energy revolution, positioned well to service the world's increased demand for lithium. Information about the Company is available on its website, www.ionenergy.ca, or under its profile on SEDAR+ at www.sedarplus.ca.
For further information:
COMPANYCONTACT: Ali Haji, ali@ionenergy.ca, 647-871-4571
MEDIA CONTACT: Siloni Waraich, siloni@ionenergy.ca, 416-432-4920
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 news release.
Cautionary Note Regarding Forward-Looking Information
Information set forth in this news release contains forward‐looking statements. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements, anticipated regulatory approvals and completion and timing of closing of the debt settlement. Important factors that could cause actual results to differ materially from Ion's expectations include, among others, uncertainties relating to availability and costs of financing needed in the future, changes in equity markets, risks related to international operations, the actual results of current exploration activities, delays in the development of projects, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of lithium, and ability to predict or counteract potential impact of COVID-19 coronavirus on factors relevant to the Company's business. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/203328
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Government of Canada Announces Funding to Support Domestic Critical Minerals Value Chains and Create Good Jobs in the Northwest Territories
Canada is committed to supporting strong domestic value chains for critical minerals and the clean technologies and energy sources they enable. The Government of Canada is focused on increasing mineral and energy security, creating good jobs and supporting economic opportunities across critical mineral value chains, from upstream exploration and extraction to downstream processing, manufacturing and recycling.
Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced a $714,500 investment in Fortune Minerals Limited (Fortune Minerals) to enhance the production of cobalt sulphate and bismuth ingot products from the company's planned mine in the Northwest Territories and refinery in Alberta to increase the supply of critical battery metals that are essential to the development of a domestic electric vehicle value chain. This will be achieved through a pilot-scale hydrometallurgical program designed to optimize processing conditions while ensuring that residues from the process are stable for safe disposal.
When completed, the project will also develop new expertise create job opportunities for skilled trades and professional occupations, including Indigenous communities, and introduce a new sustainable technology to other Canadian companies. This investment will help Canada participate directly in the growing market of battery-grade cobalt and other concentrates instead of shipping concentrates overseas for value-added processing.
Funding for this project comes from the Critical Minerals Research, Development and Demonstration (CMRDD) program. The CMRDD aims to advance the commercial readiness of emerging mineral processing unit operations and technologies that will support the development of zero-emission vehicle value chains in Canada by providing raw material inputs for use in batteries and permanent magnets.
Creating domestic processing streams and developing expertise within Canada will support significant opportunities for Canadian workers and help us move toward a more sustainable and prosperous low-carbon future. By making smart investments like this, Canada is ensuring our responsibly sourced resources remain competitive in the global marketplace, while also strengthening domestic value chains.
"Today's investment of $714,500 for Fortune Minerals will help to advance the development of dynamic and competitive critical minerals value chains through an innovative new processing technology. This means good jobs for workers, more investment in Canadian innovation and lower emissions across the country — all part of our plan to build a cleaner Canada and a prosperous, sustainable economy that works for everyone."
The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources
"Critical minerals development like Fortune Minerals' NICO project is a key component of the future of mining in the Northwest Territories . Through this investment, our government is demonstrating its commitment to supporting the growth of this industry in the North."
Michael V. McLeod
Member of Parliament for Northwest Territories
"Fortune Minerals is grateful for the financial support it is receiving from the federal government for its vertically integrated NICO cobalt-gold-bismuth-copper project through the Critical Minerals Research Development and Demonstration program. These funds will support additional piloting needed for detailed engineering and preparation of the company's updated feasibility study to help advance the asset closer to a construction decision. Development of the NICO project would provide a Canadian solution for the supply of cobalt sulphate, bismuth and copper needed in the energy transition, new technologies and the growing green economy."
Robin Goad
President and CEO, Fortune Minerals Limited
- Budget 2021 provided $47.7 million to NRCan for the Critical Minerals Research Development and Demonstration (CMRDD) program to support the development of Canadian critical minerals value chains.
- On September 29, 2023 , the CMRDD program concluded its second call for proposals. Projects selected for this program will contribute to developing vital mineral resources and value chains that will facilitate the shift to a low-carbon economy and support advanced manufacturing and technology in an environmentally conscious manner.
- Canada's Critical Minerals Strategy is part of Canada's strengthened climate plan, 2030 Emissions Reduction Plan: Clean Air, Strong Economy , which advances Canada's goals of reducing greenhouse gas emissions by 40 to 45 percent below 2005 levels by 2030 and reaching net-zero emissions by 2050.
The Canadian Critical Minerals Strategy
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Brunswick Exploration Expands Its Exceptional Grassroot Portfolio Across Quebec, Canada and Greenland
Brunswick Exploration Inc. (" BRW " or the " Company ") is pleased to announce that, pursuant to its aggressive and innovative grassroot exploration campaign which led to three new discoveries including the flagship Mirage Project, it has expanded its portfolio of targets and map-staked over 215 outcropping, mapped andor interpreted, untested S-type pegmatites, measuring between 500 and 8,800 metres in strike length. These new targets are located in areas that have seen minimal or no current lithium exploration in Quebec, Labrador and, for the first time, Greenland. The newly acquired pegmatites were identified following extensive compilation work by BRW and most are located near existing roads, power infrastructure andor tidal water.
Mr. Killian Charles, President and CEO of BRW, commented: "Over the last 24 months, we have built one of the strongest lithium grassroot exploration strategies globally. Concurrent to our plans to rapidly advance the Mirage project in Quebec, where we excitedly await to release our first results next month from the winter campaign, we will continue to leverage our unique expertise and acquire domestic and global opportunities that combine sound fundamentals with high-quality targets. Our cost-effective grassroot strategy provides our shareholders maximum exposure to this generational lithium exploration boom and we are delighted to kick-start these initiatives in Q3 2024, with the goal of making significant discoveries to feed both North American and European markets."
Quebec
James Bay
The new area of interest comprises 538 claim units with a total surface area of 26,642 hectares, located roughly northwest of lake Canipiscau and northeast of the Mirage Project. The new claims contain multiple mafic belts that have a rough strike length of 12-20 kilometers with multiple documented pegmatites. Seven historic pegmatite outcrops are mapped on the property with biotite and/or muscovite. This area has seen little to no exploration for lithium.
Nunavik
The Project comprises 511 claim units with a total surface area of 23,519 hectares and most claims are located roughly 20-90 kilometers from the community of Kuujjuaq and are close to tide water. Compilation work has identified a minimum of 64 mapped pegmatites that are roughly 500 to 2,900 metres in strike length. Pegmatites were staked based on preferred geologic environments, historical geochemistry and historical mapping. Importantly, they have seen little to no exploration focused on lithium even documented lithium showings exists.
Labrador
South East Labrador
The company has staked 55 licenses with a total surface area of 7,051 hectares, located near and in between the areas of Cartwright, Port Hope Simpson and the intersection of highway 510 and 516, in southeast Labrador. Labrador has a very strong mining history and currently hosts large scale mining operations in the Wabush, Voisey's Bay and Schefferville areas. Numerous pegmatite occurrences contain beryl and/or tourmaline among other indicator minerals, highlighting the potential for evolved LCT pegmatites and lithium mineralization. To date, the licenses cover 19 pegmatites measuring between roughly 500 and 2,000 meters in strike length.
Greenland – Pushing the Envelope for Lithium Exploration
Having strong ties to Europe via Denmark and recently the focus of European Union delegation which highlighted the critical mineral potential of the autonomous country within the Kingdon of Denmark, Greenland has outstanding outcrop exposure (Figure 1 and 2), allowing for efficient and effective helicopter-supported prospecting. Pegmatites were staked based on preferred geologic environments, historical geochemistry, satellite imagery and historical mapping. Importantly, there has been little to no exploration for lithium in the country while having significant potential for new discoveries and containing all key geological grassroot indicators utilized by the BRW exploration team. The license areas are near communities and tidal water and there is a deep-sea port in Nuuk.
Licenses have been applied for by a third party and are awaiting approval from the Government of Greenland. Brunswick Exploration wishes to thank Xploration Services Greenland A/S for their assistance in the application.
Nuuk
The Project contains one proposed mineral exploration license, containing five blocks, with a total surface area of 49,562 hectares, located between 10 and 90 kilometres from the capital of Greenland, Nuuk. The Project contains 92 mapped and interpreted pegmatites that are between 500 and 8,800 meters in strike length. The area contains beryl and tourmaline occurrences as well as a historic pegmatite grab sample containing up to 3,700 ppm Rb and a K/Rb ratio of 9.5 already indicating the potential for very evolved pegmatites.
Figure 1: Significant Outcropping Pegmatites Around Nuuk
Paamiut
The project contains one proposed mineral exploration license, containing five blocks, with a total surface area of 15,141 hectares, located between 20 and 70 kilometres from the community of Paamiut. The properties contain 41 mapped and interpreted pegmatites that are between 500 and 4,400 meters in strike length.
Figure 2: Significant Outcropping Pegmatites Around Paamiut
Qualified Person
The scientific and technical information related to Quebec has been reviewed and approved by Mr. Francois Goulet, Manager Quebec. He is a Professional Geologist registered in Quebec.
The scientific and technical information related to Labrador and Greenland has been reviewed and approved by Mr. Charles Kodors, Manager Atlantic Canada. He is a Profession Geologist registered in New Brunswick, Nova Scotia, Newfoundland, Quebec, Ontario, Manitoba and Saskatchewan.
About Brunswick Exploration
Brunswick Exploration is a Montreal-based mineral exploration company listed on the TSX-V under symbol BRW. The Company is focused on grassroots exploration for lithium, a critical metal necessary to global decarbonization and energy transition. The company is rapidly advancing one of the extensive grassroots lithium property portfolios in Canada and Greenland.
Investor Relations/information
Mr. Killian Charles, President and CEO ( info@BRWexplo.com )
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; the other risks involved in the mineral exploration and development industry; and those risks set out in the Corporation's public documents filed on SEDAR at www.sedar.com. Although the Corporation believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. 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 news release.
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South Star Battery Metals Announces Commencement of Preliminary Economic Assessment for the BamaStar Graphite Project in Coosa County, Alabama, USA
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES
South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV:STS)(OTCQB:STSBF), is pleased to announce that it has awarded contracts for the National Instrument 43-101 ("NI43-101") Preliminary Economic Assessment(" PEA" or the "Study") for the BamaStar Graphite Project ("BamaStar"). The interdisciplinary team of consultants, engineers and scientists is co-led by Dorfner ANZAPLAN GmbH and Lycopodium Limited. The PEA is anticipated to be completed and published in July 2024. With the recent mineral lease and surface rights extensions, South Star has successfully completed all the other requirements for BamaStar's option agreement, and preparing the PEA is the final milestone that will give the Company the right to acquire an undivided 75% legal and beneficial interest in and to the minerals, mining rights and the underlying agreements for the mine
The PEA will incorporate the Company's 2023 drill-program results, providing an update to the maiden Mineral Resource Estimate for the BamaStar project. The Study's techno-economic analysis will present a scenario with concentrates from both BamaStar and Santa Cruz providing feedstocks for the secondary processed, specialty-graphite products. The Study will outline the strategic production/commercial plan for South Star's planned downstream transformation plant for the manufacturing of battery-graphite and other specialty-graphite commercial products, in the southeastern USA.
Additionally, senior representatives of the Company have engaged and met with numerous senior economic-development representatives for states in the region, including Alabama and Louisiana. The team has commenced a site-selection process to determine the most advantageous location for siting South Star's planned downstream transformation plant to produce coated spherical purified graphite ("CSPG") for lithium-ion ("Li-ion") battery applications, in addition to conductivity-enhancement products suited for numerous battery chemistries, and other unique and innovative products.
Richard Pearce, CEO of South Star, commented, "We are pleased to kickoff the PEA for BamaStar and to advance the project together with our partners. The PEA is expected to take approximately three to four months to complete, and we believe it will present a robust scenario with two scalable mines producing high-quality concentrates and a value-add plant in the middle of one of the most critical EV, defense, and energy storage corridors in the U.S. At a time of increasing geopolitical risks and supply-chain concerns regarding critical metals and the energy transition, it's great to be one of the first movers advancing a phased, vertically integrated graphite supply chain with near-term production and high-quality assets in Tier 1 jurisdictions in the Americas."
In addition, 10 kg of Santa Cruz material is being tested as part of ongoing characterization and optimization of the Santa Cruz graphite concentrates for battery applications for the Company's US downstream transformational technologies technical program. Currently, Santa Cruz graphite concentrate is being analyzed, purified, transformed and upgraded to produce a variety of different products, including CSPG.
As part of that ongoing characterization, the as-received Santa Cruz graphite concentrate was recently imaged using scanning electron microscop ("SEM"), as shown in the Figure 1 below.
Figure 1: The SEM image on the above left is of South Star's >96% Cg graphite concentrate from the Santa Cruz Graphite Mine in Brazil. The SEM image on the above right is of the EXACT same material as in the image on the left, imaged concurrently, but utilizing a SEM backscattered electron detector. Backscattered electron imaging is used to differentiate between materials of different compositions. Phases heavier than carbon will look bright (meaning, impurities will luminesce), and pure carbon will look matte black, as seen here. The even coloration demonstrates the >96% C purity of the Santa Cruz graphite concentrate.
ABOUT DORFNER ANZAPLAN GmbH
Dorfner is a leading European specialty minerals producer delivering high-quality mineral products to different industries. ANZAPLAN was founded in 1985 to become the most independent venture within the Dorfner group of companies while concentrating the group's analytical and engineering know-how to serve external customers. Extensive know-how in specialty minerals processing, including liberation of fine-grained minerals, separation, flotation, and mechanical, chemical, and thermal modification derived from more than a century of day-to-day processing experience at Dorfner, has been successfully applied in the processing of various graphite raw materials. Furthermore, ANZAPLAN has detailed expertise in advanced chemical and thermal purification, upgrading graphite concentrates to >99.9% purity levels. Today ANZAPLAN is a specialist with a strong focus on specialty minerals and metals businesses (e.g. graphite, lithium minerals, rare-earth elements, high purity quartz), providing a one-stop-shop solution across all phases of the economic evaluation and process development -- with technological expertise from its laboratories, test-center and pilot-plant processing facilities including basic and advanced engineering services.
Purification processes including mechanical, chemical, and thermal-refinement technologies are key elements in ANZAPLAN's and Dorfner's daily business to efficiently remove impurities by targeting high-value products. ANZAPLAN's experience in the processing of graphite includes extensive test work carried out for several different projects including flake and hydrothermal vein graphite deposits as well as processing of synthetic graphite.
LYCOPODIUM LIMITED
Lycopodium is a leader in its field, working with clients globally to provide integrated engineering, construction and asset management solutions. The company has the expertise to deliver complex, multidisciplinary projects, through to the provision of feasibility studies and advisory services.
Operating across the resources, infrastructure and industrial-processes sectors, Lycopodium offers a diverse team of industry experts to deliver bespoke and innovative solutions across all commodity types. With the capability to deliver projects around the world, the company has offices in Australia, South Africa, Canada, Ghana and the Philippines.
About South Star Battery Metals Corp
South Star Battery Metals Corp. is a Canadian battery metals project developer focused on the selective acquisition and development of near-term production projects in the Americas. South Star's Santa Cruz Graphite Project, located in Southern Bahia, Brazil is the first of a series of industrial and battery metals projects that will be put into production. Brazil is the second-largest graphite-producing region in the world with more than 80 years of continuous mining. Santa Cruz has at-surface mineralization in friable materials, and successful large-scale pilot-plant testing (> 30t) has been completed. The results of the testing show that approximately 65% of graphite concentrate is +80 mesh with good recoveries and 95%-99% graphitic carbon (Cg). With excellent infrastructure and logistics, South Star is fully funded for Phase 1, and the construction and commissioning are underway. Santa Cruz will be the first new graphite production in the Americas since 1996, with Phase 1 commercial production projected in Q2 2024. Phase 2 production (25,000 tpa) is partially funded and planned for 2026, while Phase 3 (50,000 tpa) is scheduled for 2028.
South Star's second project in the development pipeline is strategically located in Alabama in the center of a developing electric vehicle, aerospace, and defense hub in the southeastern United States. The BamaStar Project includes a historic mine active during the First and Second World Wars. A NI43-101 technical report with the maiden resource estimate has been filed on SEDAR. Trenching, Phase 1 drilling, sampling, analysis, and preliminary metallurgical testing have been completed. The testing indicates a traditional crush/grind/flotation concentration circuit that achieved grades of approximately 94-97% Cg with approximately 86% recoveries. South Star is executing on its plan to create a multi-asset, diversified battery metals company with near-term operations in strategic jurisdictions. South Star trades on the TSX Venture Exchange under the symbol STS, and on the OTCQB under the symbol STSBF.
South Star is committed to a corporate culture, project execution plan and safe operations that embrace the highest standards of ESG principles, based on transparency, stakeholder engagement, ongoing education, and stewardship. To learn more, please visit the Company website at http://www.southstarbatterymetals.com.
This news release has been reviewed and approved by Richard Pearce, P.E., a "Qualified Person" under National Instrument 43-101 and President and CEO of South Star Battery Metals Corp.
On behalf of the Board,
MR. RICHARD PEARCE
Chief Executive Officer
For additional information, please contact:
South Star Investor Relations
Email: invest@southstarbatterymetals.com
Phone: +1 (604) 706-0212
Website:www.southstarbatterymetals.com
Twitter: https://twitter.com/southstarbm
Facebook: https://www.facebook.com/southstarbatterymetals
LinkedIn: https://www.linkedin.com/company/southstarbatterymetals/
YouTube:South Star Battery Metals - YouTube
Forward-Looking Information
This press release contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements". Forward-looking statements in this press release include, but are not limited to, statements relating to the successful closing of the Private Placement and anticipated timing thereof and the intended use of proceeds and statements regarding moving Santa Cruz into production and scaling operations as well as advancing the Alabama project and the Company's plans and expectations.
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
NEITHER THE TSX VENTURE EXCHANGE, NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
SOURCE:South Star Battery Metals Corp.
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Drilling Approvals Received for Gascoyne East Project
Odessa Minerals Limited (ASX:ODE) (“Odessa” or the “Company”) is pleased to provide an update on its Gascoyne East Project (“Project”) in the Gascoyne region of Western Australia.
Highlights:
- Completion of lithological and structural interpretation from geophysical datasets
- PoW approval for Phase 1 aircore drilling to assist bedrock mapping
- Geophysical interpretation has confirmed drill targets for:
- Intrusion-related porphyry and Iron Oxide Copper-Gold (IOCG) mineralisation
- Magmatic Ni-Cu-PGE mineralisation within a distinct layered mafic intrusion
- Orogenic and intrusion-related gold mineralisation within the Dalgaringa Supersuite and Camel Hills Metamorphics.
- Intrusion-related gold and base metal deposits within the Edmund Basin
- Sedimentary-hosted base metal deposits in the Edmund Basin analogous to the Abra deposit
- At-surface uranium targets identified through airborne radiometric survey data
Exploration Plan
Target Generation
The Gascoyne East Project is one of the most under-explored areas of the emergent Gascoyne Province. Due to being almost entirely concealed under a thin veneer of transported cover, previous explorers have largely overlooked the area encapsulated by Odessa’s Gascoyne East Project, despite multiple mantle-tapping structures transecting the Project along strike from known mineralisation.
Odessa has now completed initial target generation through detailed litho-structural interpretation of the recently acquired airborne gradiometer-magnetic and radiometric data (Figure 1).
Multiple intrusion-related targets have been highlighted across the Project, including a layered mafic intrusive in the south, that is prospective for Ni-Cu-PGE, large-scale intrusions that are prospective for IOCG mineralisation, multiple discrete porphyry Cu-Au targets throughout the region, and base metal targets within the Edmund Basin.
Additionally, several uranium anomalies have been highlighted by radiometric survey data across the Project, coincident with calcrete deposits mantling fault structures, within an outcrop of the Moorarie Supersuite granite, a potential host to uranium and REE carbonatite mineralisation (Figure 2).
Aircore Drilling
With no previous drilling and a lack of exposure, the basement lithologies remain almost entirely inferred from geophysical datasets. As such, a mineral systems-based approach to exploration at the Project is required to build up high-quality regional datasets that can inform targeted and impactful exploration across the highly prospective Project. As the company has now completed acquisition and interpretation of high resolution magnetic and radiometric data, drilling is required to confirm and update current interpretations.
Phase 1 aircore drilling is planned predominantly along existing tracks with hole spacings ranging from 200m to 400m. This round of drilling aims to intercept basement lithologies in fresh rock below the transported cover material to validate the litho-structural basement geology interpretation of geophysical data (Figure 1), as well as test key structural corridors and intrusive target features. Bottom-of-hole core of fresh rock will be collected to conduct petrographical and petrophysical analysis alongside multi-element geochemical characterisation of lithologies.
Upon completion of Phase 1 drilling, the basement geology model will be updated, and targets re-ranked accordingly for follow-up Phase 2 drill testing for mineralisation at depth associated with intrusion-related systems.
The Company has received PoW approval from the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) to conduct air core drilling across the Project as part of the Phase 1 drill campaign scheduled to commence in June 2024.
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This article includes content from Odessa Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
ALX Resources Corp. Intersects Uranium Mineralization at the Gibbons Creek Uranium Project, Athabasca Basin, Saskatchewan
alx resources corp. (TSXV: AL) (FSE: 6LLN) (OTC: ALXEF) ("ALX" or the "Company") is pleased to announce an update on the 2024 winter drilling program at its 100%-owned Gibbons Creek Uranium Project ("Gibbons Creek", or the "Project") located in the northern Athabasca Basin near the community of Stony Rapids, Saskatchewan. The second and third holes of the planned 6-hole program have intersected narrow intervals of uranium mineralization at or near the unconformity, based upon hand-held scintillometer readings on drill core, downhole gamma probe results, and visual observation of uranium minerals by ALX's geological team.
Hole GC24-02 (180 degree azimuth / -75 degree dip) was drilled at the intersection of east-west and north-northwest faults interpreted from the 2023 ground magnetic survey and intersected fracture-controlled and disseminated blebs of uranium mineralization at 0.8 metres below the unconformity, which was reached at a depth of 108.4 metres. An Exploranium GR-135 handheld scintillometer measured radioactivity of 220 counts per second ("cps") and a Mount Sopris 2PGA-1000 downhole gamma probe measured a radiometric peak of 3,321 cps within a 0.6 metre interval of anomalous radioactivity from 108.9 to 109.5 metres. Drill hole GC24-02 represents an approximately 470-metre step-out to the west of ALX's historical hole GC15-03 (0.143% U3O8 assay over 0.23 metres) and was collared approximately 350 metres to the southwest of Eldorado Nuclear's ("Eldorado") 1979 hole GC-15 (1,520 parts per million ("ppm") uranium over 0.13 metres) (see Figure 1).
Hole GC24-03 (180 degree azimuth / -69 degree dip) was drilled as a 25-metre westward step out of unconformity-related uranium mineralization in hole GC15-03 to test the continuity of an interpreted trend of anomalous uranium mineralization between GC15-03 and historical drill hole GC-15, which are 340 metres apart. Anomalous radioactivity and fracture-controlled uranium mineralization was intersected from 110.0 to 110.9 metres approximately 1.5 metres below the unconformity at 108.5 metres. The Exploranium GR-135 handheld scintillometer measured a peak radioactivity value of 190 cps and the Mount Sopris 2PGA-1000 downhole gamma probe measured a radiometric peak of 2,217 cps within the noted anomalous radioactive interval. Uranium mineralization was observed as coatings on fractures in the drill core at 110.2 metres as well as other fractures between 110.0 and 110.9 metres.
Hole GC24-03: Uranium Mineralization Observed in Fracture at 110.2 metres
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The 2024 winter drilling program at Gibbons Creek is planned for six holes totaling approximately 1,200 metres to test for unconformity-type and basement-hosted uranium mineralization in the eastern area of the Project. The program is anticipated to continue until the end of March or early April 2024, weather permitting. Weather conditions remain satisfactory for the operation of equipment and personnel and the work is proceeding as scheduled. Proximity to the community and infrastructure of Stony Rapids adds greatly to the efficiency of the exploration program for the procurement of supplies, rentals, fuel, and additional personnel when required.
Figure 1. Gibbons Creek Uranium Project 2024 Drilling Plan and Completed Holes
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2024 Option Earn-in Transaction
Gibbons Creek is currently the subject of an option earn-in transaction with Trinex Lithium Ltd., a wholly-owned subsidiary of Trinex Minerals Limited ("Trinex"), which is a publicly-traded mineral exploration company listed on the Australian Securities Exchange. Under the terms of binding letter agreement signed in February 2024, Trinex can earn an initial 51% interest and up to a 75% participating interest in the Project in two stages over a period of five years by making cash payments and common shares payments to ALX, and by incurring exploration expenditures at the Project (see ALX news release dated February 28, 2024).
About Gibbons Creek and the 2024 Drilling Program
Gibbons Creek consists of eight mineral claims comprising 13,864 hectares (34,258 acres) located along the northern margin of the Athabasca Basin.
The Project is located in a region that hosts numerous historical uranium occurrences, such as the Black Lake discoveries in several drill holes beginning in 2004, and the historical Nisto Mine, from which 500 tons of ore was shipped in 1950 to the historical Lorado Mill at Uranium City, SK, including 106 tons grading 1.6% U3O8 (Source: Saskatchewan Mineral Deposits Index, #1621). ALX holds an exploration permit for Gibbons Creek, good until October 2025, which allows for up to 20 diamond drill holes totaling approximately 5,000 metres, along with ground-based geophysics, prospecting, and geochemical sampling. Access to Gibbons Creek is via roads and trails that lead from the community of Stony Rapids, SK, which is connected to all-weather Highway 905, thereby creating flexibility for either summer or winter exploration programs. Stony Rapids has readily-available fuel, supplies and accommodations for field personnel, and an airport with daily flights to cities and towns in southern Saskatchewan.
Prior to commencement of the 2024 drilling program, ALX carried out a comprehensive review of Gibbons Creek historical exploration data and has integrated that information with the high-resolution magnetic and SGH geochemical surveys completed in November 2023. The historical data and the results of ALX's ground surveys on the 2023 exploration grid show important characteristics of the Project's potential to host uranium mineralization, which is demonstrated by the mineralization found in ALX's 2015 hole GC15-03 (0.13% U3O8 over 0.23 metres from 107.67 metres to 107.90 metres), in Eldorado's 1979 hole GC-15 (0.179% U3O8 over 0.13 metres from 134.11 to 134.24 metres) and in the current 2024 drilling program.
Statement of Qualified Person
Geochemical analyses on samples from ALX's 2015 drill hole described in this news release were carried out by Activation Laboratories in Ancaster, Ontario using Inductively-Coupled Plasma Mass Spectrometry ("ICP-MS") methods on both partial and total digestions. Eldorado's 1979 geochemical analyses were carried out by Bondar-Clegg & Company Ltd. Laboratories, Ottawa, Ontario using Atomic Absorption, Colormetric, Fluorometric and XRF methods, which were standard methods of that exploration era.
All drill core samples from the 2024 program will be shipped to the Saskatchewan Research Council Geoanalytical Laboratories ("SRC") in Saskatoon, Saskatchewan, an ISO/IEC 17025/2005 and Standards Council of Canada certified analytical laboratory. ALX requests multi-element analysis by ICP-MS and ICP-OES using total (HF:NHO3:HClO4) and partial digestion (HNO3:HCl), boron by fusion, and U3O8 wt% assay by ICP-OES where applicable. One half of the split core samples are retained and the other half cores are sent to the SRC for analyses. Blanks, standard reference materials, and repeats are inserted into the sample stream at regular intervals by ALX and SRC in accordance with industry-standard quality assurance/quality control ("QA/QC") procedures. Uranium assay samples will be conducted on samples that return greater than 500 ppm uranium in the initial ICP analyses.
All reported depths and intervals are drill hole depths and intervals, unless otherwise noted, and do not represent true thicknesses, which have yet to be determined.
The technical information in this news release has been reviewed and approved by Robert Campbell, P.Geo., who is a Qualified Person in accordance with the Canadian regulatory requirements set out in National Instrument 43-101.
About ALX
ALX is based in Vancouver, BC, Canada and its common shares are listed on the TSX Venture Exchange under the symbol "AL", on the Frankfurt Stock Exchange under the symbol "6LLN" and in the United States OTC market under the symbol "ALXEF".
ALX's mandate is to provide shareholders with multiple opportunities for discovery by exploring a portfolio of prospective mineral properties in Canada, which include uranium, lithium, nickel-copper-cobalt and gold projects. The Company uses the latest exploration technologies and holds interests in over 240,000 hectares of prospective lands in Saskatchewan, a stable jurisdiction that hosts the highest-grade uranium mines in the world, a producing gold mine, diamond deposits, and historical production from base metals mines.
ALX's uranium holdings in northern Saskatchewan include 100% interests in the Gibbons Creek Uranium Project (now the subject of an option earn-in agreement with Trinex Minerals Limited), the Sabre Uranium Project, the Bradley Uranium Project, and the Javelin and McKenzie Lake Uranium Projects, a 40% interest in the Black Lake Uranium Project (a joint venture with Uranium Energy Corporation and Orano Canada Inc.), and a 20% interest in the Hook-Carter Uranium Project, located within the uranium-rich Patterson Lake Corridor with Denison Mines Corp. (80% interest) as operator of exploration since 2016.
ALX also owns 100% interests in the Firebird Nickel Project, the Flying VeeNickel/Gold and Sceptre Gold projects, and can earn up to an 80% interest in the Alligator Lake Gold Project, all located in northern Saskatchewan, Canada. ALX owns, or can earn, up to 100% interests in the Electra Nickel Project and the Cannon Copper Project located in historic mining districts of Ontario, Canada, and in the Vixen Gold Project (now under option to First Mining Gold Corp., who can earn up to a 100% interest in two stages).
ALX owns a 50% interest in eight lithium exploration properties staked in 2022-2023 collectively known as the Hydra Lithium Project, located in the James Bay region of northern Quebec, Canada, a 100% interest in the Anchor Lithium Project in Nova Scotia, Canada, and 100% interests in the Crystal Lithium Project and the Reindeer Lithium Project, both located in northern Saskatchewan, Canada.
For more information about the Company, please visit the ALX corporate website at www.alxresources.com or contact Roger Leschuk, Manager, Corporate Communications at: PH: 604.629.0293 or Toll-Free: 866.629.8368, or by email: rleschuk@alxresources.com
On Behalf of the Board of Directors of alx resources corp.
"Warren Stanyer"
Warren Stanyer, CEO and Chairman
FORWARD-LOOKING STATEMENTS
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this news release include: ALX's 2023 exploration results and 2024 exploration plans and preliminary results at the Gibbons Creek Uranium Project, ALX's ability to continue to expend funds on its mineral exploration projects, and the successful closing of the option earn-in transaction with Trinex Minerals Limited. It is important to note that the Company's actual business outcomes and exploration results could differ materially from those in such forward-looking statements. Risks and uncertainties include that ALX may not be able to fully finance exploration on our exploration projects, including drilling; our initial findings at our exploration projects may prove to be unworthy of further expenditures; commodity prices may not support further exploration expenditures; exploration programs may be delayed or changed due to any delays experienced in consultation and engagement activities with First Nations, Metis communities and local landowners in the region, and the results of such consultations;and economic, competitive, governmental, societal, public health, weather, environmental and technological factors may affect the Company's operations, markets, products and share price. Even if we explore and develop our projects, and even if uranium, lithium, nickel, copper, gold or other metals or minerals are discovered in quantity, ALX's projects may not be commercially viable. Additional risk factors are discussed in the Company's Management Discussion and Analysis for the Nine Months Ended September 30, 2023, which is available under the Company's SEDAR profile at www.sedar.com. Except as required by law, we will not update these forward-looking statement risk factors.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/202967
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