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Madagascar Government Lifts Suspension on Energy Fuels' Toliara Critical Minerals Project
Council of Ministers gives U.S.-based Energy Fuels the 'green light' to continue development of its world-class Toliara titanium, zirconium and rare earth elements project
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (" Energy Fuels " or the " Company "), a leading U.S. producer of uranium, rare earth elements (" REEs "), and critical minerals, is pleased to announce that today the Madagascar Council of Ministers, as Chaired by the President of the Republic of Madagascar has lifted the suspension (the " Suspension ") of the Company's 100%-owned Toliara critical minerals project (the " Toliara Project "). The Suspension was imposed by the Government in November 2019 . In October 2024 Energy Fuels acquired Base Resources and the Toliara Project.
Mark S. Chalmers , President and CEO of Energy Fuels stated:
"The lifting of the suspension by the Malagasy Government is a very significant step in the development of the Toliara rare earths, titanium, and zirconium project. The Company can now re-commence development and other technical activities on the ground, which are expected to include the re-establishment of the Company's social programs, additional mine planning and engineering, expanding the critical mineral resource base, as well as progressing any other legal activities necessary to progress the Toliara Project and achieve a positive financial investment decision.
"Having closely evaluated countless mining projects around the world during my 45-year career, I believe the Toliara Project is truly a 'generational' mining project, having the potential to provide the U.S. and the rest of the world with large quantities of critical minerals for many decades, including rare earth elements which we plan to process at our existing facility in the U.S.
"We also believe the Toliara Project has the strong potential to be a 'crown jewel' of Madagascar's future economy, a leader in the global clean energy transition, and a model for sustainable mining in Africa , harnessing the principles and practices established and refined by Base Resources over 11 years operating the Kwale titanium and zirconium operation in Kenya . Energy Fuels acquired Base Resources this past October, including its well-regarded management and operations team which remains in place.
"We look forward to growing our partnership with the Government of Madagascar as we formalize the fiscal and other terms applicable to the project, move forward with development activities, and rapidly progress Toliara towards operation for the benefit of our host communities, the nation of Madagascar , and our shareholders."
Lifting the Suspension
The Toliara Project currently holds a mining permit that allows production of titanium and zirconium minerals, including ilmenite, rutile and zircon. In 2019, development activities at the Project were suspended by the Government of Madagascar , pending negotiation of fiscal and other terms applicable to the Toliara Project.
Now that the Government has lifted the suspension, the Company can recommence development and investment in the Project, re-establish community and social programs, and advance the technical, environmental and social activities necessary to achieve a positive Financial Investment Decision (" FID "), which the Company expects to make in early 2026.
While the Project is progressing towards a FID, the Company will continue working with the Government of Madagascar to formalize the fiscal, stability and other terms applicable to the project, including the addition of rare-earth element production to the existing mining permit, through a memorandum of understanding, an investment agreement, amendments to existing laws and other mechanisms as appropriate.
ABOUT Energy Fuels
Energy Fuels is a leading US-based critical minerals company, focused on uranium, REEs, heavy mineral sands (" HMS "), vanadium and medical isotopes. The Company has been the leading U.S. producer of natural uranium concentrate for the past several years, which is sold to nuclear utilities that process it further for the production of carbon-free nuclear energy and owns and operates several conventional and in situ recovery uranium projects in the western United States. The Company also owns the White Mesa Mill in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States. At the Mill, the Company also produces advanced REE products, vanadium oxide (when market conditions warrant), and is preparing to begin pilot-scale recovery of certain medical isotopes from existing uranium process streams needed for emerging cancer treatments. The Company also owns the operating Kwale HMS project in Kenya which is nearing the end of its life and is developing three (3) additional HMS projects, including the Toliara Project in Madagascar, the Bahia Project in Brazil, and the Donald Project in Australia in which the Company has the right to earn up to a 49% interest in a joint venture with Astron Corporation Limited. The Company is based in Lakewood, Colorado, near Denver, with its heavy mineral sands operations primarily managed from Perth, Australia. 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." For more information on all we do, please visit http://www.energyfuels.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
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 Company will re-commence development activities on the ground, re-establish the Company's community programs or progress the other activities necessary to achieve a positive FID for the Toliara Project; any expectation that the Toliara Project is a 'generational' critical minerals project or that it has the potential to provide the U.S. and the rest of the world with large quantities of titanium, zirconium, REEs and other materials for decades or at all; any expectation that the Toliara Project has the strong potential to be a 'crown jewel' of Madagascar's future economy, a leader in the global clean energy transition or a model for sustainable mining in Africa , or that it will adopt the proven approaches from the Company's Kwale Operation in Kenya ; any expectation that the Company will continue working with the Government of Madagascar to formalize fiscal and other terms applicable to the project through a memorandum of understanding, an investment agreement, amendments to existing laws and other mechanisms as appropriate; any expectation that rare-earth element production will be added to the existing mining permit; any expectation that the financial and legal stability of the Toliara Project will be maintained; any expectation that a positive FID will be made for the Toliara Project and the timing of any such positive FID; and any expectation that the Toliara Project will be developed. 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; competition from other producers; public opinion; government and political actions; the failure of the Company to provide or obtain the necessary financing required to develop the Project; market factors, including future demand for REEs; 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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Energy Fuels Announces Q3-2024 Results, Including Active Uranium Mining and Processing, Successful Rare Earth Production, and Continuing to Build a World-Scale Rare Earth Supply Chain Centered in the U.S.
"We invite all stakeholders to join us in our upcoming November 1, 2024, earnings call, details of which are below, to learn more about these exciting achievements."
Q3-2024 Highlights
Unless noted otherwise, all dollar amounts are in U.S. dollars.
- Robust Balance Sheet with Over $180 million of Liquidity and No Debt: As of September 30, 2024, the Company had $183.16 million of working capital including $47.46 million of cash and cash equivalents, $101.15 million of marketable securities (interest-bearing securities and uranium stocks), $35.91 million of inventory, and no debt.
- Over $10 Million of Additional Liquidity from Market Value of Inventory: At October 28, 2024 commodity prices, the Company's product inventory has a market value of approximately $23.79 million, while the balance sheet reflects product inventory carried at cost of $13.38 million.
- Incurred Net Loss of $12 Million: During the three months ended September 30, 2024, the Company incurred a net loss of $12.08 million, or $0.07 per common share, primarily due to transaction and integrations costs related to the Donald Project joint venture (described below), the acquisition of Base Resources (described below) and recurring operating expenses, partially offset by sales of natural uranium concentrates ("U3O8").
- Uranium Continues to Drive Revenue: The Company sold 50,000 pounds of U3O8 on the spot market at a realized sales price of $80.00 per pound of U3O8 for total proceeds of $4.00 million, which resulted in a gross profit of $2.15 million and a gross margin of 54%.
- New Long-Term Uranium Sales Contract with U.S. Utility: The Company added a fourth long-term uranium sales contract to its existing portfolio. Under the contract, the Company expects to deliver a total of 270,000 to 330,000 pounds of uranium between 2026 and 2027, and potentially an additional 180,000 to 220,000 pounds until 2029, under a "hybrid" pricing formula, subject to floor and ceiling prices, that maintains exposure to further uranium market upside and protection from inflation.
- "Phase 1" REE Separation Circuit Successfully Commissioned: Final commissioning of the Phase 1 REE separation circuit at the Company's White Mesa Mill (the "Mill") was successfully completed during the quarter resulting in the production of approximately 38 tonnes of 'on-spec' separated NdPr.
- Samples of NdPr Actively Being Qualified by Potential Customers: NdPr produced at the Mill is currently being qualified with permanent magnet manufacturers and other potential customers to set the stage for potential offtake in the future.
- Well-Stocked to Capture Market Opportunities: As of September 30, 2024, the Company held 235,000 pounds of finished U3O8 and 805,000 pounds of U3O8 in ore and raw materials and work-in-progress inventory for a total of 1,040,000 pounds of U3O8 in inventory. This inventory increased from last quarter due to Pinyon Plain, La Sal and Pandora mine ore production and additional alternate feed materials received, partially offset by our spot sale during Q3-2024. The Company expects these uranium inventories to continue increasing as we continue to mine additional ore. The Company also held 905,000 pounds of finished vanadium ("V2O5"), 38 tonnes of finished separated neodymium praseodymium ("NdPr") and 9 tonnes of finished high purity, partially separated mixed rare earth carbonate ("RE Carbonate") in inventory.
Capitalizing on Strong Uranium Pricing:
- Due to uranium market tailwinds and upcoming commitments in long-term contracts with U.S. nuclear utilities, the Company is currently mining and stockpiling uranium ore from its Pinyon Plain, La Sal and Pandora mines and plans to ramp up to a production run-rate of approximately 1.1 to 1.4 million pounds of U3O8 per year by late-2024.
- The Company expects to produce a total of 150,000 to 200,000 pounds of finished U3O8 during 2024 from stockpiled alternate feed materials and newly mined ore, which is at the lower end of our previous guidance of 150,000 to 500,000 pounds of finished U3O8 during 2024, due to delays in transporting ore from the Pinyon Plain mine to the White Mesa Mill, which is expected to be resolved in Q4-2024. Mining continues at the Pinyon Plain mine, with mined ore being stockpiled at the mine site, containing approximately 180,000 pounds of U3O8 at September 30, 2024, which is expected to be processed at the Mill later in 2024 or in early 2025.
- During Q3-2024, the Company received positive results from drill holes during ongoing preparations at its Nichols Ranchin situ recovery ("ISR") Project in Wyoming. Both the Nichols Ranch Project and Whirlwind Mine in Colorado are being prepared for production and are within one year of a "go" decision, as market conditions warrant. Production from these mines, when combined with alternate feed materials, uranium from monazite, and 3rd party uranium ore purchases, would be expected to increase the Company's production run-rate to roughly two million pounds per year by as early as 2026.
- The Company continued advancing permitting and other pre-development activities on its large-scale Roca Honda, and Bullfrog uranium projects in Q3-2024, which together with its Sheep Mountain Project, have the potential to expand the Company's uranium production to a run-rate of up to five million pounds of U3O8 per year in the coming years.
- As of October 28, 2024, the spot price of U3O8 was $81.00 per pound and the long-term price of U3O8 was $82.00 per pound, according to data from TradeTech.
Rare Earth Element Production Milestones:
- The Company produced about 38 tonnes of separated NdPr from its newly commissioned Phase 1 REE separation circuit at the Mill in Q2- and Q3-2024.
- Samples of the Company's NdPr product have been sent to permanent magnet and other companies around the world for product qualification, and initial testing responses have been positive.
- The Company is currently in the process of updating the White Mesa Mill's AACE International ("AACE") Class 4 Pre-Feasibility Study (not a Pre-Feasibility Study subject to or intended to be compliant with NI 43-101 or S-K 1300), originally released in Q2-2024 to increase throughput to a total of 60,000 tpa of monazite, producing roughly 6,000 tpa of NdPr, 150 to 225 tpa of Dy, and 50 to 75 tpa of Tb, of which the existing commissioned Phase 1 circuit will constitute about 17% of this amount (10,000 tpa of monazite). The Mill PFS referenced above can be viewed on the Company's website, www.energyfuels.com.
Heavy Mineral Sands:
- On October 2, 2024, the Company announced it completed its previously announced acquisition of all the issued and outstanding shares of Base Resources Ltd. ("Base Resources"), which is expected to transform the Company into a global leader in critical minerals production, including HMS (titanium and zirconium), REEs and uranium. The acquisition of Base includes the advanced, world-class Toliara HMS project in Madagascar. In addition to its stand-alone, ilmenite, rutile (titanium) and zircon (zirconium) production capability, the Toliara Project also contains a long-life, high-value and low-cost monazite (REEs) stream, produced as a byproduct of primary titanium and zirconium production. Toliara's monazite is expected to be processed at the Mill into separated REE products, along with uranium, at globally competitive capital and operating costs. The Toliara Project is subject to negotiation of fiscal terms with the Madagascar government and the receipt of certain Madagascar government approvals and actions before a current suspension on activities at the Toliara Project will be lifted and development may occur. The transaction also includes Base's management, mine development and operations teams, who have a successful track-record of designing, constructing, and profitably operating a world-class HMS operation in Kenya.
- The Company continued to advance the Donald Project (the "Donald Project"), a large monazite-rich HMS project in Australia, pursuant to its joint venture with Astron Corporation limited, announced in Q2-2024. The Company expects that a final investment decision ("FID") will be made on the Donald Project as early as 2025.
- During Q3-2024, the Company also continued to advance its wholly owned Bahia HMS project in Brazil (the "Bahia Project") with its Phase 2 drilling campaign, which is expected to continue through the rest of the year. Additionally, the Company completed bulk test work on a 2.5 tonne sample in March 2024, and recently shipped a larger 15 tonne sample to the U.S. for additional process test work. The Company expects to complete a U.S. Subpart 1300 of Regulation S-K ("S-K 1300") and Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate on the Bahia Project during 2024.
Vanadium Highlights:
- The Company chose not to execute any vanadium sales during Q3-2024 and holds about 905,000 pounds of V2O5 in inventory.
- As of October 28, 2024, the spot price of V2O5 was $5.25 per pound, according to data from Fastmarkets.
Medical Isotope Highlights:
- On August 19, 2024, the Company announced it acquired RadTran LLC ("RadTran"), a private company specializing in the separation of critical radioisotopes, to further the Company's plans for development and production of medical isotopes used in cancer treatments. RadTran's expertise includes separation of radium-226 ("Ra-226") and radium-228 ("Ra-228") from uranium and thorium process streams. This acquisition is expected to significantly enhance Energy Fuels' planned capabilities to address the global shortage of these essential isotopes used in emerging targeted alpha therapies ("TAT") for cancer treatment.
- The Company continues to utilize its research and development ("R&D") license for the recovery of R&D quantities of Ra-226 at the Mill. Activities to set up the pilot facility at the Mill continued in Q3-2024 and are expected to progress through the end of the year, with the goal of producing R&D quantities of Ra-226 for testing by end-users of the product in late 2024 or early 2025.
Mr. Chalmers continued:
"During the quarter, we achieved numerous additional milestones to bring the Energy Fuels' vision to fruition for our innovative, low-cost, U.S.-centered critical mineral supply chain. As previously announced, shortly after the close of the quarter, we successfully completed our acquisition of Base Resources. This is a major piece of our strategic puzzle, bringing to the Company the Base Resources management and operations team and the world-class Toliara Project in Madagascar, which is considered by industry experts to be one of the best HMS projects in the world. With the Toliara Project, our joint venture on the Donald Project in Australia, and our 100% ownership of the Bahia Project, we have secured a leading position in the titanium and zirconium mineral industry, in addition to a low-cost source of REE feedstock that will be processed in the United States.
"These developments have the potential to transform Energy Fuels into a world leader in titanium, zirconium, and rare earth elements production, while maintaining our position as a U.S. leader in uranium and vanadium production. All these materials are critical to the global energy transition and to our vision of creating a leading diversified critical minerals company."
Conference Call and Webcast at 10:00 AM MT (12:00 pm ET) on November 1, 2024:
Conference call access with the ability to ask questions:
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
- Rapid Connect URL: https://emportal.ink/3Xq8rHH
or
Alternatively, you may dial in to the conference call where you will be connected to the call by an Operator.
- North American Toll Free: 1-800-510-2154
To view the webcast online:
Audience URL: https://app.webinar.net/5kM3dkJ6D4A
Conference Replay
- Conference Replay Toronto: 1-289-819-1450
- Conference Replay North American Toll Free: 1-888-660-6345
- Conference Replay Entry Code: 53463 #
- Conference Replay Expiration Date: 11/15/2024
The Company's Quarterly Report on Form 10-Q 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, on the System for Electronic Data Analysis and Retrieval + ("SEDAR+") at www.sedarplus.ca, and on the Company's website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in U.S. dollars.
Selected Summary Financial Information:
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company, focused on uranium, REEs, HMS, vanadium and medical isotopes. The Company has been the leading U.S. producer of natural uranium concentrate for the past several years, which is sold to nuclear utilities that process it further for the production of carbon-free nuclear energy and owns and operates several conventional and in situ recovery uranium projects in the western United States. The Company also owns the White Mesa Mill in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States. At the Mill, the Company also produces advanced REE products, vanadium oxide (when market conditions warrant), and is preparing to begin pilot-scale recovery of certain medical isotopes from existing uranium process streams needed for emerging cancer treatments. The Company also owns the operating Kwale HMS project in Kenya which is nearing the end of its life and is developing three (3) additional HMS projects, including the Toliara Project in Madagascar, the Bahia Project in Brazil, and the Donald Project in Australia in which the Company has the right to earn up to a 49% interest in a joint venture with Astron Corporation Limited. The Company is based in Lakewood, Colorado, near Denver, with its heavy mineral sands operations managed from Perth, Australia. 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." For more information on all we do, please visit http://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 or quantities of production; any expectation as to costs of production or gross profits or gross margins; any expectation as to future sales or sales prices; any expectation that the Company will be profitable; any expectation that the Company's permitting efforts will be successful and as to any potential future production from any properties that are in the permitting or development stage; any expectation with respect to the Company's planned exploration programs; any expectation that the Company will achieve its business objective of becoming a long-term, profitable U.S. critical minerals company; any expectation that Energy Fuels will be successful in expanding its U.S. separation, or other value-added U.S. REE production capabilities at the Mill, or otherwise, including the timing of any facilities or other initiatives and the expected production capacity associated with any such production capabilities; any expectation that the Mill's REE products will meet commercial expectations or result in commercial offtake agreements; any expectation that the Company will update the Mill PFS to increase throughput of the planned Phase 2 separation circuit; any expectation that the Company's planned Phase 2 separation facility will complete engineering design and will receive all required permits and licenses on a timely basis or at all; any expectation that the Company is well-stocked to capture market opportunities; any expectation that the Bahia Project, Donald Project and/or Toliara Project will be low-cost sources of monazite feed for the Mill and/or also potentially produce significant standalone cashflow from the sale of ilmenite, rutile, zircon and other minerals; any expectation as to the exploration program to be conducted at the Bahia Project during 2024; any expectation that the Company will complete an S-K 1300 and NI 43-101 compliant mineral resource estimate for the Bahia Project during 2024, or otherwise; any expectation that a FID will be made on the Donald Project or that the Company will earn its full 49% interest in the Donald JV; any expectation that any production at the Bahia Project, Donald Project and/or Toliara Project or Mill will be world or globally competitive; any expectation that the Base Resources team will continue to have a successful track-record of designing, constructing, and profitably operating any of the Company's HMS projects; any expectation that Energy Fuels will be successful in agreeing on fiscal terms with the Government of Madagascar or in achieving sufficient fiscal and legal stability for the Toliara Project; any expectation that the current suspension relating to the Toliara Project will be lifted in the near future or at all; any expectation that the additional permits for the recovery of Monazite at the Toliara Project will be acquired on a timely basis or at all; any expectation that the Toliara Project will become a world-class HMS project; any expectation about the long-term opportunity in REEs; any expectation that the Company will be globally competitive in its markets; 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 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; and any expectation as to future uranium, vanadium, HMS 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; the failure of the Government of Madagascar to agree on fiscal terms for the Toliara Project or provide the approvals necessary to achieve sufficient fiscal and legal stability on acceptable terms and conditions or at all; the failure of the current suspension affecting the Toliara Project to be lifted on a timely basis or at all; the failure of the Company to obtain the required permits for the recovery of Monazite from the Toliara Project; the failure of the Company to provide or obtain the necessary financing required to develop the Toliara Project, the Donald Project, the Bahia Project and/or its expanded REE separations capacity; 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; actual results differing from estimates and projections; the ability of the Mill to recover 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, on SEDAR+ at www.sedarplus.ca, 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.
1 The information relating to the Donald Project's estimated monazite production is based on the Donald DFS prepared on June 27, 2023. This study constituted a "Feasibility Study" for the purposes of JORC, and the Ore Reserves underpinning this study were estimated in accordance with JORC. The results from this study may not be comparable to (as the case may be) data or estimates under either NI 43-101 or S-K 1300– see disclosure under "Technical Information."
Laramide's 2024 Drill Program Continues to Return Strong Results at the Westmoreland Project in Queensland, Australia, including Notable Gold Mineralisation
Highlights:
- Results continue to demonstrate the potential to link the Huarabagoo and Junnagunna uranium deposits
- HJ24DD017 – 25.00m @ 393.64 ppm (0.04%) U 3 O 8 from 15.00m ,
- including 1.00m @ 1,015.29 ppm (0.10%) U 3 O 8 from 28.00m
- and 1.00m @ 2,128.46 ppm (0.21%) U 3 O 8 from 34.00m
- HJ24DD019 – 6.00m @ 1,177.43 ppm (0.12%) U 3 O 8 from 87.00m ,
- including 4.00m @ 1,520.58 ppm (0.15%) U 3 O 8 from 89.00m
- HJ24DD017 – 25.00m @ 393.64 ppm (0.04%) U 3 O 8 from 15.00m ,
- Uranium mineralisation at Huarabagoo continues to deliver impressive results including:
- HB24DD010 – 15.60m @ 2,237.03 ppm (0.22%) U 3 O 8 and 0.53 g/t Au from 68.40m ,
- including 1.00m @ 2,264.06 ppm (0.23%) U 3 O 8 and 0.23 g/t Au from 70.00m
- and 7.00m @ 4311.16 ppm (0.43%) U 3 O 8 and 0.10 g/t Au from 76.00m
- with highest intercept result of 1.00m @ 1.42% U 3 O 8 and 0.01 g/t Au from 80.00m
- HB24DD010 – 15.60m @ 2,237.03 ppm (0.22%) U 3 O 8 and 0.53 g/t Au from 68.40m ,
- Broad zones of gold mineralisation were also intercepted with grades up to 24.2g/t Au
- HB24DD008 – 19.00m @ 620.58 ppm (0.06%) U 3 O 8 and 1.95 g/t Au from 48.00m ,
- including 2.00m @ 1,720.45 ppm (0.17%) U 3 O 8 and 1.64 g/t Au from 57.00m
- and 2.00m @ 2,202.16 ppm (0.22%) U 3 O 8 and 12.39 g/t Au from 64.00m
- with highest intercept result of 1.00m @ 2,299.44 ppm (0.22%) U 3 O 8 and 24.20g/t Au from 65.00m
- HB24DD006 – 8.00m @ 1,449.86 ppm (0.14%) U 3 O 8 & 0.22 g/t Au from 36.00m ,
- including 1.70m @ 6,208.83 ppm (0.62%) U 3 O 8 & 0.78 g/t Au from 37.60m .
- HB24DD008 – 19.00m @ 620.58 ppm (0.06%) U 3 O 8 and 1.95 g/t Au from 48.00m ,
- New Exploration Permit (EPM 28807) granted adjacent to Westmoreland Project adding 327km 2 of highly prospective tenure in NW Queensland
Laramide Resources Ltd. ( "Laramide" or the "Company" ) (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF), a uranium mine development and exploration company with globally significant assets in the United States and Australia is pleased to announce another batch of assay results from the 2024 drilling campaign completed at the Westmoreland Uranium Project in Queensland, Australia ( "Westmoreland" ) and the receipt of a permit for exploration for a large land package immediately east of and adjacent to the current Westmoreland land tenure.
Results for 6 holes of 17 holes from infill drilling at Huarabagoo and for 11 holes of 27 holes drilled in the zone between the Huarabagoo and Junnagunna deposits have been received. The results demonstrate that uranium mineralisation is continuous along strike and potentially joins the two deposits. Furthermore, there is a significant gold endowment within the mineralising system.
Commenting on the results, Laramide's Vice-President of Exploration Rhys Davies said:
"The uranium and gold grades at Huarabagoo are consistently impressive. As we continue to gather more data relating to gold in the system, it is becoming clear that historical exploration work did not include assaying for gold, which has left significant gaps in the data, and presents a meaningful opportunity to enhance the project economics of these deposits.
"Furthermore, the shallow and broad zones of mineralisation observed in the Huarabagoo-Junnagunna link zone highlight the considerable potential for expanding the uranium mineral resources."
Drilling across the broader Westmoreland Project was completed on the 4th of November and comprised 106 holes (includes 60 RC and 46 DD) for 11,263 meters, across multiple targets. Core processing continues, with announcements on assay results expected to continue into Q1 2025.
An updated Westmoreland Mineral Resource Estimate, which will include all results and include a Maiden Resource Estimate for Long Pocket, remains on track for early 2025.
Huarabagoo
The Huarabagoo deposit is located in the structural corridor between Redtree and Junnagunna and is included in the restated 2016 Westmoreland Mineral Resource Estimate 1 . Seventeen diamond drill holes for a total of 1,827.16m , were completed in 2024. Laramide designed this program to test the extents of modelled mineralisation for both uranium and also for the gold associated with the intrusive dolerite dyke.
Significant results from the 2024 drilling confirm that both uranium and gold mineralisation are within and peripheral to the dyke margins (Figure 1) and along fault extensions, with multiple zones intersecting a similarly variable hematite-silicate-sericite altered sandstone.
_______________________ |
1 https://laramide.com/projects/westmoreland-uranium-project/ |
Full Drill Collar details can be found here by clicking this link.
Huarabagoo-Junnagunna Link Zone
Drilling in the Huarabagoo-Junnagunna structural corridor is designed to test the mineralisation continuity between the two deposits with the intent to further increase the overall size of the resource. The program drill tested a system analogous to the Redtree Dyke system, and comprised of 21 RC holes for 3,096m , and 8 diamond drillholes for 1,124.10m , totaling 29 holes for 4,220.10m . The program was designed with three phases starting with an initial RC component (HJ24RC001 to HJ24RC013) to target the spatial extents for the Dolerite Dyke. The subsequent phases consisted of step out diamond drilling (HJ24DD014-HJ24DD021) to obtain structural measurements and establish structural controls and orientation of mineralisation the dolerite dyke system and fault zone extensions. The final phase consisted of RC drilling (HJ24RC014-HJ24RC021) to follow up on substantial downhole gamma results from earlier in the campaign.
NEW EXPLORATION PERMIT GRANTED
EPM28807 has recently been granted, adding 327 km 2 (32,700 hectares) to the exploration portfolio in northwest Queensland . This tenement is adjacent to and surrounding EPM14558 which contains the Westmoreland Project, increasing and securing our foothold in the region to grow our pipeline of exploration targets and resources. The permit hosts 7 known uranium occurrences and one gold occurrence and presents a substantial exploration opportunity with significant areas of prospective Westmoreland Conglomerate outcropping and under cover.
Qualified/Competent Person
The information in this announcement relating to Exploration Results is based on information compiled or reviewed by Mr. Rhys Davies , a contractor to the Company. Mr. Davies is a Member of The Australasian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves', and is a "Qualified Person" as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Davies consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
To learn more about Laramide, please visit the Company's website at www.laramide.com
Follow us on Twitter @LaramideRes
About Laramide Resources Ltd.
Laramide is focused on exploring and developing high-quality uranium assets in Tier-1 uranium jurisdictions. The company's portfolio comprises predominantly advanced uranium projects in districts with historical production or superior geological prospectivity. The assets have been carefully chosen for their size, production potential, and the two large development projects are considered to be late-stage, low-technical risk projects. As well, Laramide has expanded its pipeline with strategic exploration in Kazakhstan where the company is exploring over 5,500 km 2 of the prolific Chu-Sarysu Basin for world class roll-front deposits which are amenable to in-situ recovery.
Forward-looking Statements and Cautionary Language
This release includes certain statements that may be deemed to be "forward-looking statements." All statements in this release, other than statements of historical facts, that address events or developments that the management of the Company expect, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "plans", "projects", "intends", "estimates", "envisages", "potential", "possible", "strategy", "goals", "objectives", or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions. Actual results or developments may differ materially from those in forward-looking statements. Laramide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
Since forward-looking information addresses future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, exploration and production for uranium; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of resource estimates; health, safety and environmental risks; worldwide demand for uranium; uranium price and other commodity price and exchange rate fluctuations; environmental risks; competition; incorrect assessment of the value of acquisitions; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
Table 1: Significant intercepts >100ppm U 3 O 8 | |||||
Hole number | From | To | Length (m) | U 3 0 8 ppm | Au g/t |
HB24DD005 | 47 | 50 | 3 | 371.49 | 0.18 |
HB24DD005 | 55.4 | 63 | 7.6 | 162.71 | 0.03 |
HB24DD005 | 70 | 74 | 4 | 150.17 | 0.01 |
HB24DD005 | 103 | 111 | 8 | 102.27 | 0.01 |
HB24DD006 | 30 | 33 | 3 | 307.07 | 0.15 |
HB24DD006 | 36 | 44 | 8 | 1449.86 | 0.22 |
including | 37.3 | 39 | 1.7 | 6208.83 | 0.78 |
HB24DD006 | 79 | 80 | 1 | 155.06 | 0.02 |
HB24DD007 | 60 | 76 | 16 | 2151.24 | 0.01 |
including | 60 | 72 | 12 | 2816.22 | 0.01 |
HB24DD007 | 80 | 82 | 2 | 192.50 | 0.03 |
HB24DD007 | 86 | 87 | 1 | 121.46 | 0.01 |
HB24DD008 | 33 | 34 | 1 | 101.88 | 0.01 |
HB24DD008 | 40 | 42 | 2 | 222.28 | 0.02 |
HB24DD008 | 48 | 67 | 19 | 620.58 | 1.95 |
including | 57 | 59 | 2 | 1720.45 | 1.64 |
and | 64 | 66 | 2 | 2202.16 | 12.39 |
HB24DD008 | 73 | 74 | 1 | 190.44 | 0.23 |
HB24DD008 | 81 | 84 | 3 | 487.72 | 0.03 |
including | 83 | 84 | 1 | 1084.86 | 0.04 |
HB24DD009 | 58 | 62 | 4 | 236.11 | 0.04 |
HB24DD009 | 76 | 77 | 1 | 116.27 | 0.01 |
HB24DD009 | 78 | 79 | 1 | 153.30 | 0.01 |
HB24DD010 | 15 | 17 | 2 | 574.86 | 0.15 |
including | 15 | 16 | 1 | 1007.04 | 0.25 |
HB24DD010 | 33 | 41.3 | 8.3 | 336.50 | 0.08 |
including | 40 | 41.3 | 1.3 | 1379.66 | 0.35 |
HB24DD010 | 44 | 47 | 3 | 1339.85 | 1.18 |
including | 44 | 45.65 | 1.65 | 2191.03 | 0.96 |
HB24DD010 | 53.25 | 62 | 8.75 | 1115.03 | 1.44 |
including | 53.25 | 56.1 | 2.85 | 2785.70 | 0.22 |
HB24DD010 | 68.4 | 84 | 15.6 | 2237.03 | 0.53 |
including | 70 | 71 | 1 | 2264.06 | 0.23 |
and | 76 | 83 | 7 | 4311.16 | 0.10 |
with # | 80 | 81 | 1 | 1.42 % | 0.01 |
HB24DD010 | 88 | 89 | 1 | 131.48 | 0.01 |
HJ24DD014 | 25.55 | 27 | 1.45 | 180.42 | 0.01 |
HJ24DD014 | 79 | 80 | 1 | 310.13 | 0.01 |
HJ24DD014 | 125 | 126 | 1 | 113.20 | 0.02 |
HJ24DD015 | 95 | 96 | 1 | 321.92 | 0.40 |
HJ24DD015 | 101 | 103 | 2 | 191.03 | 0.10 |
HJ24DD015 | 133 | 135 | 2 | 1229.32 | 0.02 |
including | 133 | 135 | 2 | 1229.32 | 0.02 |
HJ24DD016 | 69.35 | 73 | 3.65 | 772.12 | 0.12 |
including | 69.35 | 70.15 | 0.8 | 1285.33 | 0.15 |
and | 71 | 72 | 1 | 1044.77 | 0.14 |
HJ24DD016 | 76 | 87 | 11 | 229.76 | 0.02 |
HJ24DD016 | 104.4 | 106 | 1.6 | 130.89 | 0.01 |
HJ24DD017 | 15 | 40 | 25 | 393.64 | 0.01 |
including | 28 | 29 | 1 | 1015.29 | 0.01 |
and | 34 | 35 | 1 | 2128.46 | 0.01 |
HJ24DD017 | 48 | 49 | 1 | 128.53 | 0.01 |
HJ24DD017 | 51 | 52 | 1 | 142.68 | 0.01 |
HJ24DD017 | 68 | 69 | 1 | 114.85 | 0.01 |
HJ24DD017 | 72 | 78 | 6 | 161.69 | 0.01 |
HJ24DD018 | 21 | 22 | 1 | 277.11 | 0.01 |
HJ24DD018 | 29 | 32 | 3 | 477.18 | 0.01 |
HJ24DD018 | 106 | 115 | 9 | 770.03 | 0.05 |
including | 111 | 113 | 2 | 2953.90 | 0.18 |
HJ24DD019 | 87 | 93 | 6 | 1177.43 | 0.04 |
including | 89 | 93 | 4 | 1520.58 | 0.01 |
HJ24DD020 | 70 | 71 | 1 | 199.87 | 0.01 |
HJ24DD020 | 95.55 | 100 | 4.45 | 163.33 | 0.01 |
HJ24DD020 | 104 | 108 | 4 | 196.04 | 0.01 |
HJ24DD020 | 113 | 114 | 1 | 178.65 | 0.01 |
HJ24DD020 | 119 | 120 | 1 | 203.41 | 0.01 |
HJ24RC016 | 35 | 40 | 5 | 176.13 | 0.01 |
HJ24RC016 | 43 | 44 | 1 | 114.62 | 0.01 |
HJ24RC016 | 48 | 51 | 3 | 195.16 | 0.01 |
HJ24RC016 | 62 | 63 | 1 | 109.90 | 0.01 |
HJ24RC017 | 22 | 23 | 1 | 120.87 | 0.01 |
HJ24RC018 | No significant intercepts to report | ||||
HJ24RC019 | 14 | 19 | 5 | 166.08 | 0.01 |
* Included intercepts are above >1000 ppm U 3 O 8 # intercept is above >1% U 3 O 8 |
Table 2: Significant intercepts >0.1 g/t Au | |||||
Hole number | From | To | Length (m) | U 3 0 8 ppm | Au g/t |
HB24DD005 | 47 | 47.7 | 0.7 | 233.48 | 0.51 |
HB24DD005 | 48.85 | 50 | 1.15 | 749.97 | 0.13 |
HB24DD005 | 55.4 | 56 | 0.6 | 244.09 | 0.10 |
HB24DD006 | 32 | 33 | 1 | 274.75 | 0.35 |
HB24DD006 | 37.3 | 39 | 1.7 | 6208.83 | 0.78 |
HB24DD006 | 43 | 44 | 1 | 341.97 | 0.21 |
HB24DD006 | 82 | 83 | 1 | 38.68 | 0.48 |
HB24DD006 | 86 | 87 | 1 | 58.25 | 0.43 |
HB24DD007 | 21 | 22 | 1 | 17.92 | 0.36 |
HB24DD008 | 48 | 51 | 3 | 343.34 | 0.46 |
HB24DD008 | 57 | 60.15 | 3.15 | 1220.21 | 1.10 |
including | 57 | 58 | 1 | 2185.06 | 2.89 |
with | 57.6 | 58 | 0.4 | 3631.94 | 5.96 |
HB24DD008 | 64 | 71 | 7 | 781.46 | 4.60 |
including | 64 | 67 | 3 | 1733.42 | 10.60 |
with # | 65 | 66 | 1 | 2299.44 | 24.2 |
HB24DD008 | 73 | 74 | 1 | 190.44 | 0.23 |
HB24DD008 | 79 | 80 | 1 | 30.66 | 0.10 |
HB24DD010 | 15 | 16 | 1 | 1007.04 | 0.25 |
HB24DD010 | 40 | 41.3 | 1.3 | 1379.66 | 0.35 |
HB24DD010 | 44 | 62 | 18 | 778.72 | 1.34 |
including | 44 | 47 | 3 | 1339.85 | 1.18 |
with | 52 | 53.25 | 1.25 | 54.01 | 5.51 |
including | 56.1 | 60 | 3.9 | 259.61 | 2.92 |
with | 56.1 | 58 | 1.9 | 139.39 | 5.41 |
HB24DD010 | 70 | 71 | 1 | 2264.06 | 0.23 |
HB24DD010 | 73 | 77 | 4 | 855.21 | 1.97 |
including | 74 | 77 | 3 | 1053.42 | 2.54 |
with | 74 | 76 | 2 | 545.38 | 3.54 |
HJ24DD016 | 69.35 | 72 | 2.65 | 974.04 | 0.14 |
HJ24DD018 | 111 | 113 | 2 | 2953.90 | 0.18 |
HJ24DD019 | 43 | 44 | 1 | 4.36 | 0.41 |
HJ24DD019 | 88 | 89 | 1 | 841.95 | 0.15 |
HJ24RC019 | 108 | 109 | 1 | 45.75 | 0.21 |
* Included intercepts are above >0.5g/t Au; with intercepts above >1g/t Au # I ntercepts exceed 20 g/t Au |
SOURCE Laramide Resources Ltd.
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Laramide Resources closes option agreement on exploration opportunity in Kazakhstan's prolific Chu-Sarysu Basin
Highlights:
- Laramide has completed the agreement terms for the opportunity to explore 22 subsoil use license applications covering approximately 5,500 km 2 comprising the Chu-Sarysu Project located in the Suzak District of the South Kazakhstan Oblast, Republic of Kazakhstan .
- The prospective land package covers an area which is proximal to some of Kazatomprom's largest uranium deposits and operational mines, including Cameco's JV project, Inkai, and Orano's JV project, Muyunkum-Tortkuduk.
- The Chu-Sarysu Project area includes a number of mapped, paleo-channel roll-fronts, associated with uranium deposits and amenable to ISR mining.
- Laramide will operate and fund the exploration program towards the discovery of a viable uranium resource.
Laramide Resources Ltd. ( "Laramide" or the "Company" ) (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF), a uranium mine development and exploration company with globally significant assets in the United States and Australia is pleased to announce the successful closing of a three-year option agreement (the " Option Agreement "), with an option to extend for an additional year, with Aral Resources Ltd. (" Aral "), a Kazakh company registered with the Astana International Financial Center and the shareholders of Aral (the " Optionors "). Aral has secured 22 mineral licenses covering nearly 5,500 square kilometres of the Chu-Sarysu sedimentary basin of Kazakhstan (collectively, the " Chu-Sarysu Project ").
Under the terms of the Option Agreement, Laramide has the right (the " Option ") to acquire all outstanding shares of Aral at any time during the option period, thereby obtaining full ownership of the Chu-Sarysu Project. The Chu-Sarysu Project is located in the Suzak District of the South Kazakhstan Oblast, Republic of Kazakhstan (Figure 1).
In 2022 Kazakhstan accounted for over 43% 1 of global U 3 O 8 production. Among the country's five main uranium-producing basins, the Chu-Sarysu and Syr Darya basins located in the south of the country, contribute more than 75% of national output. These basins host major deposits and operational in-situ recovery (" ISR ") mines including Inkai (Cameco JV) and Muyunkum-Tortkuduk (Katco JV).
Additionally, the Chu-Sarysu Basin is notable for its significant copper potential, exemplified by the Dzhezkazgan sediment-hosted copper deposit located in the northern region. This potential is further reinforced by the ongoing exploration efforts across large tenement packages in the basin by major companies such as Rio Tinto, Fortescue, and First Quantum.
Throughout the Option period, Laramide will serve as the exclusive operator, assuming responsibility for all operational and exploration expenses. The mineral licenses included in the option agreement cover nearly 5,500 square kilometres and represent a unique greenfield exploration opportunity covering properties adjacent to some existing large operational uranium mines. Each license has an initial term of up to six years, with the option for a one-time renewal for an additional five years.
Marc Henderson , Laramide's President and CEO, comments:
"The uranium sector has faced years of underinvestment, and with nuclear energy now widely recognized as one of the most effective solutions to meet global energy demands, nuclear commitments are increasing. This has put further pressure on the existing supply-demand deficit. As many existing mines are nearing depletion or failing to meet production targets, there are few new projects to bridge the shortfall and an urgent focus on greenfield exploration is clearly warranted.
" Kazakhstan's government actively supports the uranium sector, with favourable policies for foreign investment and streamlined permitting processes. Furthermore, their high-grade, large-scale deposits are amenable for the environmentally friendly and cost-efficient in-situ recovery (ISR) mining method.
"While Laramide had not been actively seeking to expand its portfolio, the high-impact exploration potential in Kazakhstan presented an exceptional low-risk, high-reward opportunity to strengthen our pipeline of quality projects. As a company committed to building a uranium producer capable of meeting utility needs, this aligns perfectly with our long-term strategy.
"The Chu-Sarysu Basin is an underexplored region and offers significant potential, comparable to the merits of Canada's Athabasca Basin. With strong government support for uranium mining and foreign partnerships, this venture represents an exciting addition to Laramide's portfolio of existing development assets. Exploration for ISR deposits in an infrastructure-rich region with many existing producing operations has significant cost advantages and we are looking forward to advancing this asymmetric opportunity in an aggressive manner."
__________________________ |
1 https://wna.origindigital.co/information-library/nuclear-fuel-cycle/mining-of-uranium/world-uranium-mining-production |
Option Agreement Highlights:
- Aral has received grant notifications for all license applications related to the Chu-Sarysu Project and Laramide has received conditional approval from the TSX.
- Laramide has made a one-time payment of US$450,000 to the Optionors as follows: (i) US$225,000 in cash; and (ii) 421,038 common shares in the capital of Laramide (the "Laramide Shares") at a deemed price of CDN$0.751 determined from the 20-day volume-weighted average sale trading price of the Laramide Shares on the TSX as of November 25, 2024 .
- Annual payments of US$150,000 will be payable in cash on each anniversary of the Option Agreement, commencing on the first anniversary.
- The Option is exercisable for a term of three years and may be extended for an additional one-year term with a one-time payment of US$400,000 , 50% in cash and 50% in Laramide Shares.
- The Option can be exercised by Laramide at any time during the term of the agreement through a one-time payment of US$14,000,000 , 50% in cash and 50% in Laramide Shares.
- The Option Agreement also contemplates and allows for an alternative mechanism to develop this opportunity by way of a spin-off transaction.
2025 Plans for the Chu-Sarysu Project
In late 2024, Laramide commenced the process of acquiring historical data from Kazakhstan's state National Geological Services. Review of historical geological reports and data is ongoing and includes the digitization of Soviet-era data. By early 2025, Laramide expects to secure the required ecological permits and will then proceed with submitting exploration work plans to the Ministry of Industry and Construction.
Laramide's initial exploration activities will focus on geological ground reconnaissance, in conjunction with a broad airborne geophysical survey. This survey, scheduled to begin in Q2 2025, will be designed to establish a modern, high-quality baseline dataset across the entire project and will incorporate magnetic, electromagnetics and radiometric measurements.
Target generation from a combination of thorough historical data review and geophysical interpretation will support the plan to drill test initial roll-front uranium targets during Q4 2025.
Details of the Option Agreement
With the exception of the annual payments, all payments outlined above are payable as follows: (i) 50% in United States dollars; and (ii) 50% in Laramide Shares, the value of which shall be determined in accordance with the 20-day volume-weighted average sale price per share of the Laramide Shares on the TSX as of the date prior to the relevant date of each of the payments as described above.
During the term of the Option Agreement, Laramide will be the operator of the Property and will exercise exclusive supervision, direction and control over any and all operations, programs and budgets relating to the Property. Laramide will provide funding to Aral for the purposes of satisfying and fulfilling minimum economic commitments and expenditures in relation to each license comprising the Property, as required under Kazakhstan's mining regulations.
In connection with the Option Agreement, and in order to ensure Aral's compliance with the bonding requirements of Kazakhstan's mining regulations for the licenses comprising the Property, Laramide agreed to provide funding to Aral in an amount of up to US$1,450,000 in the form of interest-free loans pursuant to the terms and conditions of a grid promissory note and credit facility agreement dated as of June 24, 2024 (the " Promissory Note ") issued by Aral for the benefit of Laramide. Laramide loaned Aral an aggregate amount of US$900,000 in connection with the Promissory Note and Aral has successfully obtained appropriate bonding for all licenses comprising the Chu-Sarysu Project. The funds loaned under the Promissory Note are repayable by Aral to Laramide in the event Laramide does not exercise the Option, or the Option Agreement is terminated for any reason, or in part if a license is terminated or withdrawn.
The Optionors will retain a 1% net smelter royalty which is subject to a buy down provision where Laramide may, at its discretion, repurchase 25% at a price to be agreed among the parties or by an independent third-party appraiser. In addition, Laramide holds a right of first offer regarding the sale, transfer or assignment of any portion of the net smelter royalty.
Qualified/Competent Person
The information in this announcement relating to Exploration Results is based on information compiled or reviewed by Mr. Rhys Davies , a contractor to the Company. Mr. Davies is a Member of The Australasian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves', and is a "Qualified Person" as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects . Mr. Davies consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
To learn more about Laramide, please visit the Company's website at www.laramide.com.
Follow us on Twitter @LaramideRes
About Laramide Resources Ltd.
Laramide is focused on exploring and developing high-quality uranium assets in Tier-1 uranium jurisdictions. The company's portfolio comprises predominantly advanced uranium projects in districts with historical production or superior geological prospectivity. The assets have been carefully chosen for their size and production potential, and the two large development projects are considered to be late-stage, low-technical risk projects. As well, Laramide has expanded its pipeline with strategic exploration in Kazakhstan where the company is exploring over 5,500 km 2 of the prolific Chu-Sarysu Basin for world-class roll-front deposits which are amenable to in-situ recovery.
Forward-looking Statements and Cautionary Language
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "plans", "projects", "intends", "estimates", "envisages", "potential", "possible", "strategy", "goals", "objectives", or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions. Actual results or developments may differ materially from those in forward-looking statements. Laramide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
Since forward-looking information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, exploration and production for uranium; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of resource estimates; health, safety and environmental risks; worldwide demand for uranium; uranium price and other commodity price and exchange rate fluctuations; environmental risks; competition; incorrect assessment of the value of acquisitions; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
SOURCE Laramide Resources Ltd.
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