Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR) ("Energy Fuels" or the "Company") today reported its financial results for the quarter ended June 30, 2022. 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.govedgar.shtml, 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. Highlights: Read More >>
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Release - Energy Fuels Announces Q2-2022 Results, Including Continued Robust Balance Sheet And Market-Leading U.S. Uranium And Rare Earth Positions
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Energy Fuels
Overview
Energy Fuels( TSX:EFR, NYSE:UUUU) has been the largest producer of uranium and vanadium in the United States and an emerging producer of rare earth elements (REEs). The company’s portfolio of assets positions it to contribute meaningfully to some of the most important challenges faced by the world today - climate change and energy security. Uranium remains the core business for Energy Fuels, contributing nearly 89 percent of revenue in the first nine months of 2023. However, the company is rapidly expanding its REE capacity, and expects to have the installed capacity to produce 1,000 tonnes of NdPr oxide in early 2023.
Energy Fuels is the only uranium producer with both conventional production and in-situ recovery (ISR) in the US. Its 100-percent-owned White Mesa Mill is the only conventional uranium mill in the country with a licensed capacity of over 8 million pounds (Mlbs) of U3O8 per year. The company also owns the Nichols Ranch Uranium Recovery Facility in Wyoming, which is a fully permitted uranium ISR facility with a licensed capacity of 2 Mlbs of U3O8 per year. The Nichols Ranch Project is currently being maintained on standby.
Energy Fuels has a number of other uranium mine projects which are ready to start production, including Pinyon Plain Mine in Arizona (pre-production), La Sal Complex in Utah (pre-production), the Whirlwind Mine (pre-production), and three large-scale projects in the permitting stage (Sheep Mountain, Roca Honda and Bullfrog). Importantly, the infrastructure at these conventional mines is already in place, allowing for a quick restart with minimal capital expenditure. These mines, once ready, could add roughly 1.5 Mlbs of uranium production per year. With Nichols Ranch's ISR project also on standby, Energy Fuels has a clear path to substantially grow its US uranium production.
With the uranium supply market expected to be in deficit over the next few years, prices are likely to continue to trend higher. For 2023, UxC, a leading market research firm, projects a 52-Mlb deficit with global demand at 195 Mlbs and supply at 143 Mlbs. The deficit is expected to further jump to 113 Mlbs by 2025. As a result, spot uranium prices have skyrocketed, reaching more than US$80/lb, the highest it’s been since 2008. The prices are likely to remain firm as the uranium supply/demand balance remains tight. With uranium prices trending higher, Energy Fuels is in a strong position to leverage its licensed, low-cost uranium production capabilities and extensive mineral resources in the US.
In addition to its core uranium business, Energy Fuels is building out its rare earth element (REE) production and processing at the White Mesa Mill. The company is advancing phase 1 of the project focused on producing 800 to 1,000 metric tons (MT) of neodymium-praseodymium (NdPr) oxide per year, which will be in operation in Q1 2024. At the current spot price of $69.79 per kilogram, sales could approach $70 million. The company expects the NdPr production to grow further nearly three times upon completion of phase 2 in 2026/27, along with the addition of “heavy” REE production in phase 3 (2027/28), implying annual sales from REE to be more than several hundred million.
Vanadium and medical isotopes present another long-term growth opportunity for Energy Fuels. White Mesa Mill is a significant US producer of vanadium (V2O5), and the only primary producer in the US. No vanadium production is currently planned for 2023, though the company continually monitors its inventory and vanadium markets to guide future potential vanadium production. It currently holds 0.9 Mlbs in inventory and aims to selectively produce and sell into the market based on the strength of price. The company also continues to evaluate the potential to recover medical isotopes from its existing uranium and vanadium process streams. These isotopes are required for emerging cancer therapies.
Sustainability is a key part of the company’s focus. It is committed to recycling naturally bearing uranium and vanadium materials. White Mesa Mill has a separate circuit for processing alternate feed materials, thereby promoting sustainable sourcing, reducing carbon emissions and saving resources.
Energy Fuels has US$162.5 million in working capital. This includes US$54.5 million cash and equivalents, US$70.6 million marketable securities (mostly short-term treasury bills), US$27.6 million inventory and no debt. Factoring in current commodity prices, the value of existing inventory rises to US$49.1 million. Further, the company benefits from a management team with a record of building and operating both conventional and ISR uranium mines globally.
Company Highlights
- Energy Fuels is one of the largest producers of uranium and vanadium in the United States, and an emerging producer of rare earth elements (REEs), all of which are key inputs in the production of clean energy.
- The company is currently ramping-up uranium production with a goal to achieve 2 million pounds of uranium production in the short-term.
- The company’s White Mesa Mill, located in Utah is the only conventional uranium and vanadium recovery facility operating in the US, having a licensed capacity of over 8 million pounds of U3O8 per year.
- In addition, the company also owns multiple uranium/vanadium properties which are in pre-production or on standby, plus three large-scale projects that are in permitting stage and have potential to produce more than 4 million pounds of additional U3O8 per year.
- Energy Fuels is building the first fully integrated REE supply chain in the US. The White Mesa Mill has the licenses and capability to handle and process radioactive materials in the REE-bearing monazite sands and produce advanced REE products.
- The company expects to have the capacity to produce up to 1,000 tonnes of NdPr oxide in early 2024, enough for the magnets needed to power up to 1 million electric vehicles per year.
- The acquisition of the Bahia Project (Brazil) in February 2023 ensures the availability of low-cost REE-bearing monazite sands to the White Mesa Mill for decades.
- The company’s products have the key ESG attributes needed to address climate change. Uranium is the key fuel for zero-carbon baseload nuclear energy; vanadium is suitable for grid-scale batteries; REEs for clean energy technologies such as EVs and wind power generation.
Key Projects
White Mesa Mill, Utah
White Mesa Mill, located near Blanding, San Juan County, Utah, is the only conventional uranium, vanadium and REE recovery facility operating in the US, with a licensed capacity of over 8 Mlbs of U3O8 per year. In addition to uranium, the Mill has a separate vanadium by-product recovery circuit, and will soon have a separate NdPr separation circuit. When in full operation, the mill employs approximately 150 people, which is reduced to approximately 110 people when the vanadium circuit is not being operated.
The White Mesa Mill has a separate circuit for processing alternate feed materials, which are other uranium-bearing materials, not derived from conventional ore. Recycling materials back into the market contributes to Energy Fuels’ commitment to sustainability.
The mill is also currently producing rare earth carbonate from REE-bearing monazite sands. In 2021, the company began utilizing the mill to process rare-earth-bearing materials at commercial scale from a monazite feed source. Since then, the company has been producing rare earth carbonate products that have been sold to the market.
In early 2023, the company began modifying and enhancing its circuits at the Mill (phase 1) to be able to produce separated REE oxides. Phase 1 is expected to be completed and fully commissioned in Q1 2024, and will have the capacity to produce roughly 800 to 1,000 MT of NdPr oxide per year. It is then planned for a further increase to 3,000 MT by 2026/27 (phase 2). A phase 3 program to produce heavy separated REE products, such as dysprosium, terbium and potentially other advanced REE materials, is expected to be completed by 2027/28.
The input (REE-bearing monazite sands) needed to produce these REEs is supplied by the Bahia Project (Brazil), which was acquired by Energy Fuels in February 2023, along with other heavy mineral sand (titanium/zirconium) mines. A sonic drilling program is currently underway at the project aiming to further delineate the rare earth, titanium and zirconium mineralization.
Nichols Ranch, Wyoming
Nichols Ranch is an ISR uranium mine located in the productive Powder River Basin district of Wyoming, with a total licensed capacity of 2 Mlbs of U3O8 per year. Energy Fuels acquired this key production asset in 2015 through its acquisition of Uranerz Energy Corporation.
The project is currently on standby and restoration, pending market conditions improving sufficiently to resume production. The company will need to incur capital expenditures to develop additional wellfields, as all existing wellfields are now depleted.
The Nichols Ranch ISR project has measured and indicated mineral resources of nearly 7 Mlbs of uranium and inferred resource estimate of 1.3 Mlbs of uranium.
Pinyon Plain Project, Arizona
The Pinyon Plain mine is a development-stage high-grade uranium mine located in Arizona. Acquired by Energy Fuels in 2012, the mine is currently in the pre-production stage with ongoing work including installing surface ventilation fans, secondary egress equipment and other underground development work. The mine hosts measured and indicated uranium resources at 0.7 Mlbs at average grades of 0.95 percent U3O8.
La Sal Complex, Utah
The La Sal Project is an existing complex comprising seven individual underground uranium mines and properties in eastern Utah, including the Beaver, Pandora, La Sal, Energy Queen and Redd Block Project. As of September 30, 2023, the company was performing rehabilitation and development work on its La Sal Project. This additional work will make the La Sal Project “mine ready” should market conditions warrant reopening of the mine.
La Sal hosts inferred mineral resources of 4.3 Mlbs of uranium and 17.8 Mlbs of vanadium at average grades of 0.26 percent U3O8 and 1.08 percent V2O5.
Sheep Mountain Project, Wyoming
The Sheep Mountain project, also located in Wyoming, includes an open-pit operation (the Congo pit), as well as the existing Sheep Mountain underground mine. The project is in Jeffrey City, Wyoming, and is easily accessible via airport and road. The project is currently on standby, pending evaluation of the processing options for the Sheep Mountain Project and improvement in market conditions.
The project has a resource estimate of approximately 4.2 million tons of measured and indicated resources at an average grade of 0.11 percent U3O8, including 18.4 Mlbs of probable mineral reserves. The pre-feasibility study estimates the project can produce up to 1.5 Mlbs of U3O8 annually over a 15-year mine life.
Roca Honda Project, New Mexico
The project is in McKinley County in New Mexico, covering an area of 4,440 acres. It is located within trucking distance of the White Mesa Mill and as such, materials mined from the project are to be processed at the White Mesa mill. The project is adjacent to General Atomics’ Mount Taylor mine and could see similar success. The Roca Honda Project is in the advanced stage of permitting.
The project has measured and indicated resources estimated at 1.8 million tons, with an average grade of 0.48 percent U3O8 containing 17.6 Mlbs U3O8, and inferred mineral resources estimated at 1.5 million tons of U3O8 with an average grade of 0.46 percent U3O8 containing 13.8 Mlbs U3O8. Once operational, it could produce up to 2.7 Mlb U3O8 annually with a nine-year mine life.
Bullfrog Project, Utah
The project is located in eastern Garfield County, Utah, covering 2,344 acres. The property is 100 percent owned by the company and was acquired in 2012. There is no existing infrastructure on the Bullfrog Property.
The project has measured and indicated resources estimated at 1.56 million tons, with an average grade of 0.29 percent U3O8 containing 9.1 Mlbs U3O8 and inferred mineral resources estimated at 0.41 million tons of U3O8 with an average grade of 0.25 percent U3O8 containing 2.0 Mlbs U3O8. The project is currently in the permitting stage.
Management Team
Mark S. Chalmers – President and CEO
Mark Chalmers brings a wealth of experience in mining and mineral processing to his position. Prior to his promotion to CEO in 2018, he served as president and chief operating officer of Energy Fuels. Chalmers is an expert in ISR uranium production and has managed the Beverley Uranium Mine owned by General Atomics (Australia) and the Highland Mine owned by Cameco Corporation (USA). Additionally, he has consulted several large players in the uranium supply sector, including BHP, Rio Tinto and Marubeni. He has served as the chair of the Australian Uranium Council for 10 years. He holds a Bachelor of Science in mining engineering from the University of Arizona and is a registered professional engineer.
Tom Brock – Chief Financial Officer
Tom Brock has more than two decades of executive leadership experience in the energy industry. Brock is skilled in raising money, M&A, technical accounting and SEC financial reporting matters. Prior to joining Energy Fuels in 2022, Brock served as the vice-president and chief accounting officer at Extraction Oil & Gas. He holds a degree in accounting from New Mexico State University and is a certified public accountant licensed in the State of Texas.
Curtis Moore – VP of Marketing & Corporate Development
Curtis Moore is involved in overseeing product marketing, public relations, investor relations and government relations, as well as M&A, strategy and legal matters. He has been working with Energy Fuels for over 15 years in various leadership positions. Before Energy Fuels, Moore worked in diverse fields, including multi-family real estate development, government relations and public affairs, production homebuilding, and private law practice. He earned a Juris Doctor degree and a Master of Business Administration from the University of Colorado, Boulder. Additionally, he holds a dual bachelor’s degree in economics-government from Claremont McKenna College.
J. Birks Bovaird – Chairman of the Board
J. Birks Bovaird has served as an independent director of several public resource companies including GTA Resources and Mining (TSXV:GTA) and Noble Mineral Exploration (TSXV:NOB). He brings extensive experience in corporate financial consulting and strategic planning. He holds an ICD.D designation.
*This article was written in collaboration with Couloir Capital.
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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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 .
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Forsys Commences 2024 Program at Valencia and Reports Results from the 2023 Drilling Program
Forsys Metals Corp. (TSX: FSY) (FSE: F2T) (NSX: FSY) ("Forsys" or the "Company")
Forsys is pleased to provide assay results from the Valencia 2023 drilling programme, from Mining License ("ML)-149("Valencia") in the Erongo region of Namibia, which forms part of the Company's larger Norasa Uranium Project ("Norasa¹").
Fifteen boreholes were drilled with a combined total of 2,684.44 metres ("m") (Figure 1). The objectives of the drill program were:
- geotechnical drilling, and logging and sampling for geo-mechanical testing for pit slope stability assessment and optimizing pit designs;
- testing the continuity of mineralization for resource modelling;
- confirming Mineral Resource Estimation (MRE) parameters; and
- sampling for metallurgical test work and processing design optimization
Drilling, geological and geotechnical logging, down-hole optical televiewer and radiometric scans have been completed on the 15 holes. Eight hundred and nineteen samples from ten of the boreholes underwent assay with established quality control protocol and procedures. The chemical results have been verified by an accredited lab and reviewed by a third party professional geologist. Highlights are as follows:
- Multiple zones of massive alaskite intrusions were intersected. Chemical assays confirm uranium mineralization in all six of the confirmation boreholes.
- Best mineralized borehole PQ-5 intersected 77.34 m of continuous mineralisation, averaging 439 ppm U 3 O 8 , including 41.9 m of 683 ppm U 3 O 8 .
- 2023 intersections of mineralization correlate with the neighbouring, historic drilling, intersections and down-hole gamma survey results.
- No major zones of rock weakness, i.e. no concerning geological structures, have been intersected. This is a positive result for the ongoing geotechnical specialist work, as it indicates conducive conditions for pit slope optimization and overall mine design.
Table 1: Highlights reported from the completed 2023 drill campaign, minimum width of 5m and cutoff of 50 ppm U 3 O 8
BHID | FROM m | TO m | LENGTH m | U3O8 ppm | FROM m | TO m | LENGTH m | U3O8 ppm | |
VA23GT001 | 23 | 29 | 6 | 108 | |||||
VA23GT001 | 40 | 47 | 7 | 189 | |||||
VA23GT001 | 77 | 82 | 5 | 66 | |||||
VA23GT001 | 95 | 101 | 6 | 140 | |||||
VA23GT002 | 38 | 77 | 39 | 106 | |||||
VA23GT002 | 105.3 | 149 | 43.7 | 152 | including | 104 | 124.1 | 20.1 | 334 |
VA23GT004 | 1 | 103.2 | 102.2 | 164 | including | 73 | 103.2 | 30.2 | 216 |
VA23GT005 | 22 | 41 | 19 | 92 | |||||
VA23GT005 | 51 | 63 | 12 | 218 | |||||
VA23GT005 | 89 | 94 | 5 | 123 | |||||
VA23GT005 | 101 | 106 | 5 | 114 | |||||
VA23GT005 | 116.2 | 129 | 12.8 | 122 | |||||
VA23GT005 | 141.8 | 147.11 | 5.31 | 241 | |||||
VA23GT005 | 229.13 | 239 | 9.87 | 236 | |||||
VA23GT005 | 244.77 | 272 | 27.23 | 184 | |||||
VA23GT006 | 65 | 81 | 16 | 136 | |||||
VA23GT006 | 100 | 105 | 5 | 143 | |||||
VA23GT007 | 18 | 26 | 8 | 194 | |||||
VA23GT007 | 33 | 38 | 5 | 194 | |||||
VA23GT007 | 189 | 195 | 6 | 213 | |||||
VA23PQ04 | 30 | 37.5 | 7.5 | 229 | |||||
VA23PQ04 | 54 | 59 | 5 | 181 | |||||
VA23PQ05 | 3.96 | 81.3 | 77.34 | 439 | including | 36 | 77.9 | 41.9 | 683 |
VA23RE001 | 50 | 100 | 50 | 90 | |||||
VA23RE001 | 114 | 119 | 5 | 215 | |||||
VA23RE001 | 128.73 | 178 | 49.27 | 201 | including | 142 | 169.05 | 27.05 | 275 |
VA23RE001 | 190 | 237 | 47 | 253 | including | 202.37 | 225 | 22.63 | 371 |
VA23RE001 | 302.75 | 414 | 111.25 | 134 | including | 322.88 | 345.24 | 22.36 | 331 |
VA23RE002 | 1 | 21 | 20 | 105 | |||||
VA23RE002 | 95 | 124.1 | 29.1 | 271 | including | 104 | 124.1 | 20.1 | 334 |
VA23RE002 | 129.7 | 152 | 22.3 | 376 | including | 129.7 | 140.8 | 11.1 | 673 |
VA23RE002 | 160 | 180 | 20 | 162 | |||||
VA23RE002 | 244 | 251.2 | 7.2 | 158 | |||||
VA23RE002 | 258 | 268 | 10 | 171 | |||||
VA23RE002 | 275 | 288 | 13 | 139 |
Geological context:
- Boreholes GT-01 to GT-07 were drilled from within the planned Valencia Main mine pit, angled and directed away from the centre of the 2015 pit shell to investigate the ground conditions for the pit slope design.
- Two boreholes, RE-01 and RE-02, were strategically positioned to confirm mineralization from the 2015 FS Mineral Resource Estimate at Valencia in a geologically unique zone.
- Holes PQ-01 to PQ-05 were drilled at Valencia for a total of 285.31 m, providing approximately 3 tons of sample for metallurgical testing.
Figure 1: Recent boreholes drilled within the 2015 main pit outline on ML-149, Valencia West planned exploration drilling.
https://www.globenewswire.com/NewsRoom/AttachmentNg/bdc97a7e-8ff7-4fa6-8c7e-6a71aa561a7d
Borehole samples were selected for geochemical assay from the routine downhole radiometric scanning results and sent to Trace Elements Analysis Laboratories (Pty) Ltd ("TEA Labs") in Swakopmund for sample preparation and analyses by XRF. For internal quality control purposes TEA Labs has weekly round robins with independent laboratories at Rosh Pinah, Husab Uranium, and Langer Heinrich mine laboratories.
Forsys employs an industry standard QA/QC program with Standard Reference Materials, blanks, coarse duplicates and pulp duplicates inserted into each batch of samples analysed. 4% of the samples sent to TEA Labs were sent for check analyses to SGS Laboratories in South Africa, which is an independent accredited laboratory. The sample results are further validated by comparison with the downhole radiometric survey results.
Table-2 below lists borehole intersections with minimum intersections of 50ppm U 3 O 8 over 5m:
Table 2: 2023 drill campaign: drill type, assay, composites, downhole gamma survey
BHID | X | Y | Z | FROM | TO | LENGT H | EOH | RC | COR E | Gamm a | U | Th | U3O 8 |
UTM | UTM | m amsl | m | m | m | m | m | m | cps | pp m | pp m | p pm | |
VA23GT001 | 523609 | 7528504 | 716.505 | 0 | 23 | 23 | 222 | - | 222 | - | - | - | 0 |
VA23GT001 | 523602 | 7528501 | 703.981 | 23 | 29 | 6 | 222 | - | 222 | 722 | 92 | - | 108 |
VA23GT001 | 523598 | 7528499 | 696.608 | 29 | 40 | 11 | 222 | - | 222 | 308 | - | - | 0 |
VA23GT001 | 523594 | 7528498 | 688.796 | 40 | 47 | 7 | 222 | - | 222 | 702 | 160 | - | 189 |
VA23GT001 | 523586 | 7528494 | 672.673 | 47 | 77 | 30 | 222 | - | 222 | 235 | - | - | 0 |
VA23GT001 | 523578 | 7528490 | 657.402 | 77 | 82 | 5 | 222 | - | 222 | 761 | 55 | - | 66 |
VA23GT001 | 523574 | 7528489 | 649.543 | 82 | 95 | 13 | 222 | - | 222 | 204 | - | - | 0 |
VA23GT001 | 523570 | 7528487 | 641.25 | 95 | 101 | 6 | 222 | - | 222 | - | 119 | - | 140 |
VA23GT001 | 523541 | 7528475 | 585.825 | 101 | 222 | 121 | 222 | - | 222 | - | - | - | 0 |
VA23GT002 | 523526 | 7528889 | 697.146 | 0 | 38 | 38 | 203.8 | 102 | 100 | 108 | - | - | 0 |
VA23GT002 | 523518 | 7528896 | 660.245 | 38 | 77 | 39 | 203.8 | 102 | 100 | 495 | 90 | - | 106 |
VA23GT002 | 523510 | 7528904 | 628.372 | 77 | 105.3 | 28.3 | 203.8 | 102 | 100 | 201 | - | - | 2 |
VA23GT002 | 523502 | 7528914 | 594.818 | 105.3 | 149 | 43.7 | 203.8 | 102 | 100 | 744 | 129 | 36 | 152 |
VA23GT002 | 523496 | 7528926 | 561.152 | 149 | 177.95 | 28.95 | 203.8 | 102 | 100 | 214 | - | - | 1 |
VA23GT002 | 523491 | 7528936 | 533.545 | 184 | 202.8 | 18.8 | 203.8 | 102 | 100 | 216 | - | - | 0 |
VA23GT003 | 523841 | 7529328 | 692.427 | 0 | 102 | 102 | 102 | 102 | - | - | - | - | 0 |
VA23GT003 | 523861 | 7529274 | 633.213 | 0 | 227.28 | 227.28 | 227.28 | - | 225 | 186 | - | - | 0 |
VA23GT004 | 524440 | 7529153 | 734.567 | 0 | 1 | 1 | 152.26 | 50.26 | 102 | - | - | - | 0 |
VA23GT004 | 524467 | 7529148 | 690.761 | 1 | 103.2 | 102.2 | 152.26 | 50.26 | 102 | 1134 | 139 | - | 164 |
VA23GT004 | 524507 | 7529140 | 627.146 | 103.2 | 152.26 | 49.06 | 152.26 | 50.26 | 102 | 150 | - | - | 1 |
VA23GT005 | 524189 | 7528751 | 729.233 | 0 | 22 | 22 | 275.47 | 102 | 173 | - | - | - | 0 |
VA23GT005 | 524187 | 7528755 | 709.298 | 22 | 41 | 19 | 275.47 | 102 | 173 | 421 | 78 | - | 92 |
VA23GT005 | 524185 | 7528759 | 695.341 | 41 | 51 | 10 | 275.47 | 102 | 173 | 265 | - | - | 0 |
VA23GT005 | 524184 | 7528762 | 684.832 | 51 | 63 | 12 | 275.47 | 102 | 173 | 1185 | 185 | - | 218 |
VA23GT005 | 524181 | 7528767 | 667.017 | 63 | 89 | 26 | 275.47 | 102 | 173 | 252 | - | - | 0 |
VA23GT005 | 524178 | 7528773 | 652.66 | 89 | 94 | 5 | 275.47 | 102 | 173 | 496 | 104 | - | 123 |
VA23GT005 | 524177 | 7528775 | 647.267 | 94 | 101 | 7 | 275.47 | 102 | 173 | 178 | - | - | 0 |
VA23GT005 | 524176 | 7528777 | 641.914 | 101 | 106 | 5 | 275.47 | 102 | 173 | 574 | - | - | 114 |
VA23GT005 | 524174 | 7528781 | 635.168 | 106 | 116.2 | 10.2 | 275.47 | 102 | 173 | 162 | - | - | 0 |
VA23GT005 | 524172 | 7528786 | 624.989 | 116.2 | 129 | 12.8 | 275.47 | 102 | 173 | 653 | - | - | 122 |
VA23GT005 | 524170 | 7528791 | 613.699 | 129 | 141.8 | 12.8 | 275.47 | 102 | 173 | 277 | - | - | 9 |
VA23GT005 | 524168 | 7528795 | 605.732 | 141.8 | 147.11 | 5.31 | 275.47 | 102 | 173 | 1282 | 205 | 7 | 241 |
VA23GT005 | 524159 | 7528815 | 567.876 | 147.11 | 229.13 | 82.02 | 275.47 | 102 | 173 | 180 | - | - | 0 |
VA23GT005 | 524150 | 7528836 | 528.09 | 229.13 | 239 | 9.87 | 275.47 | 102 | 173 | 1394 | 200 | 25 | 236 |
VA23GT005 | 524148 | 7528840 | 521.336 | 239 | 244.77 | 5.77 | 275.47 | 102 | 173 | 142 | - | - | 0 |
VA23GT005 | 524145 | 7528847 | 507.084 | 244.77 | 272 | 27.23 | 275.47 | 102 | 173 | 977 | 156 | 51 | 184 |
VA23GT005 | 524142 | 7528854 | 493.825 | 272 | 275.47 | 3.47 | 275.47 | 102 | 173 | - | - | - | 0 |
VA23GT006 | 523928 | 7528337 | 693.644 | 0 | 65 | 65 | 225.14 | 100 | 125 | 251 | - | - | 0 |
VA23GT006 | 523936 | 7528330 | 654.546 | 65 | 81 | 16 | 225.14 | 100 | 125 | 504 | 115 | - | 136 |
VA23GT006 | 523940 | 7528328 | 637.595 | 81 | 100 | 19 | 225.14 | 100 | 125 | 312 | - | - | 0 |
VA23GT006 | 523943 | 7528327 | 625.965 | 100 | 105 | 5 | 225.14 | 100 | 125 | 734 | 121 | 28 | 143 |
VA23GT006 | 523957 | 7528323 | 566.26 | 105 | 223.14 | 118.14 | 225.14 | 100 | 125 | 242 | - | - | 0 |
VA23GT007 | 524262 | 7529312 | 734.236 | 0 | 18 | 18 | 275.35 | 102 | 168 | - | - | - | 0 |
VA23GT007 | 524257 | 7529316 | 723.059 | 18 | 26 | 8 | 275.35 | 102 | 168 | 1141 | 164 | - | 194 |
VA23GT007 | 524254 | 7529318 | 716.725 | 26 | 33 | 7 | 275.35 | 102 | 168 | 350 | - | - | 0 |
VA23GT007 | 524251 | 7529320 | 711.742 | 33 | 38 | 5 | 275.35 | 102 | 168 | 515 | 165 | - | 194 |
VA23GT007 | 524217 | 7529357 | 652.171 | 38 | 189 | 151 | 275.35 | 102 | 168 | 281 | - | - | 0 |
VA23GT007 | 524182 | 7529394 | 592.48 | 189 | 195 | 6 | 275.35 | 102 | 168 | 773 | 180 | 5 | 213 |
VA23GT007 | 524162 | 7529417 | 561.769 | 195 | 275.35 | 80.35 | 275.35 | 102 | 168 | - | - | - | 0 |
VA23PQ01 | 523762 | 7528744 | 688.025 | 0 | 59.95 | 59.95 | 60 | - | 59.95 | 892 | - | - | 0 |
VA23PQ02 | 523714 | 7529040 | 709.151 | 0 | 23.7 | 23.7 | 23.7 | - | 23.7 | - | - | - | 0 |
VA23PQ03 | 523869 | 7529019 | 702.407 | 0 | 61.27 | 61.27 | 60.27 | - | 60.27 | - | - | - | 0 |
VA23PQ04 | 523745 | 7529037 | 702.033 | 0 | 30 | 30 | 59 | - | 59 | 291 | - | - | 0 |
VA23PQ04 | 523744 | 7529037 | 683.329 | 30 | 37.5 | 7.5 | 59 | - | 59 | 1230 | 194 | 46 | 229 |
VA23PQ04 | 523743 | 7529038 | 671.361 | 37.5 | 54 | 16.5 | 59 | - | 59 | 258 | - | - | 0 |
VA23PQ04 | 523743 | 7529038 | 660.637 | 54 | 59 | 5 | 59 | - | 59 | 1019 | - | - | 181 |
VA23PQ05 | 523722 | 7528668 | 721.02 | 0 | 3.96 | 3.96 | 80 | - | 80 | - | - | - | 0 |
VA23PQ05 | 523722 | 7528668 | 680.372 | 3.96 | 81.3 | 77.34 | 80 | - | 80 | 3138 | 372 | 48 | 439 |
VA23RE001 | 524309 | 7528910 | 724.265 | 0 | 50 | 50 | 419.72 | 102 | 318 | 512 | - | - | 0 |
VA23RE001 | 524286 | 7528933 | 686.478 | 50 | 100 | 50 | 419.72 | 102 | 318 | 375 | 76 | - | 90 |
VA23RE001 | 524270 | 7528949 | 663.893 | 100 | 114 | 14 | 419.72 | 102 | 318 | 121 | - | - | 5 |
VA23RE001 | 524265 | 7528954 | 657.753 | 114 | 119 | 5 | 419.72 | 102 | 318 | 1319 | 190 | - | 215 |
VA23RE001 | 524261 | 7528958 | 653.019 | 119 | 128.73 | 9.73 | 419.72 | 102 | 318 | 85 | - | - | 0 |
VA23RE001 | 524244 | 7528974 | 634.211 | 128.73 | 178 | 49.27 | 419.72 | 102 | 318 | 1266 | - | - | 201 |
VA23RE001 | 524227 | 7528991 | 614.788 | 178 | 190 | 12 | 419.72 | 102 | 318 | 156 | - | - | 0 |
VA23RE001 | 524210 | 7529007 | 596.799 | 190 | 237 | 47 | 419.72 | 102 | 318 | 1892 | 215 | - | 253 |
VA23RE001 | 524178 | 7529038 | 563.102 | 237 | 302.75 | 65.75 | 419.72 | 102 | 318 | 83 | - | - | 1 |
VA23RE001 | 524127 | 7529089 | 511.66 | 302.75 | 414 | 111.25 | 419.72 | 102 | 318 | - | - | - | 134 |
VA23RE001 | 524093 | 7529123 | 478.027 | 414 | 419.72 | 5.72 | 419.72 | 102 | 318 | 2 | 39 | - | 47 |
VA23RE002 | 524153 | 7529118 | 748.623 | 0 | 1 | 1 | 296.21 | 102 | 153 | - | - | - | 0 |
VA23RE002 | 524159 | 7529114 | 740.728 | 1 | 21 | 20 | 296.21 | 102 | 153 | 671 | 89 | - | 105 |
VA23RE002 | 524186 | 7529096 | 706.86 | 21 | 95 | 74 | 296.21 | 102 | 153 | 107 | 15 | - | 18 |
VA23RE002 | 524217 | 7529075 | 670.879 | 95 | 124.1 | 29.1 | 296.21 | 102 | 153 | 1980 | 229 | - | 271 |
VA23RE002 | 524228 | 7529068 | 659.428 | 124.1 | 129.7 | 5.6 | 296.21 | 102 | 153 | 330 | 15 | - | 17 |
VA23RE002 | 524237 | 7529063 | 650.437 | 129.7 | 152 | 22.3 | 296.21 | 102 | 153 | 2767 | 318 | - | 376 |
VA23RE002 | 524247 | 7529057 | 640.726 | 152 | 160 | 8 | 296.21 | 102 | 153 | 200 | - | - | 0 |
VA23RE002 | 524256 | 7529051 | 631.919 | 160 | 180 | 20 | 296.21 | 102 | 153 | 1046 | 137 | - | 162 |
VA23RE002 | 524285 | 7529034 | 606.377 | 180 | 244 | 64 | 296.21 | 102 | 153 | 130 | - | - | 0 |
VA23RE002 | 524309 | 7529019 | 585.009 | 244 | 251.2 | 7.2 | 296.21 | 102 | 153 | 1021 | 134 | - | 158 |
VA23RE002 | 524314 | 7529016 | 580.956 | 251.2 | 258 | 6.8 | 296.21 | 102 | 153 | 613 | - | - | 12 |
VA23RE002 | 524319 | 7529012 | 576.141 | 258 | 268 | 10 | 296.21 | 102 | 153 | 1370 | 145 | - | 171 |
VA23RE002 | 524325 | 7529008 | 571.309 | 268 | 275 | 7 | 296.21 | 102 | 153 | 380 | - | - | 0 |
VA23RE002 | 524332 | 7529004 | 565.685 | 275 | 288 | 13 | 296.21 | 102 | 153 | 786 | 118 | - | 139 |
VA23RE002 | 524339 | 7528999 | 559.753 | 288 | 296.21 | 8.21 | 296.21 | 102 | 153 | - | - | - | 0 |
2024 Drilling Program on ML-149, Valencia
The Company also announces that it has commenced a new drilling program at Valencia. Three zones of potential uranium mineralization situated outside of the existing resource block model are now being investigated.
The drilling program focusses on three target areas; refer to Table-3 and Figure-2 for individual drill hole locations:
- A favourable horizon identified at the Jolie Zone (~ 1km north of Valencia pit)
- Valencia West Extension
- Valencia South
Twenty-nine boreholes are scheduled for a total of 5,236m of drilling to assess mineralization to depths of up to 380 m below collar.
The three areas of mineralization potential were delineated from historic exploration work that included; aerial photo interpretation, geological mapping, aeromagnetic surveys, airborne and ground scintillometer surveys and exploration drilling. Investigation by drilling is required to define the mine's surface infrastructure development and also to explore for resource upside potential in these areas.
Table 3: Below lists the holes planned for RC drilling. A diamond drill rig is available for extension of the RC drill section, as required by the ground conditions.
BHID | Rig / Ranking | X COLLAR | Y COLLAR | Z COLLAR | EOH | BRG | DIP |
UTM | UTM | m | m | degree | degree | ||
VA24-01 | VA_West | 523370 | 7528883 | 724 | 150 | 330 | 60 |
VA24-02 | VA_West | 523303 | 7528855 | 725 | 132 | 330 | 60 |
VA24-03 | VA_West | 523165 | 7528783 | 729 | 126 | 330 | 60 |
VA24-04 | VA_West | 523178 | 7528750 | 721 | 150 | 330 | 60 |
VA24-05 | VA_West | 523100 | 7528754 | 731 | 144 | 330 | 60 |
VA24-06 | VA_West | 523113 | 7528729 | 726 | 180 | 330 | 70 |
VA24-07 | VA_West | 522990 | 7528722 | 735 | 98 | 330 | 60 |
VA24-08 | VA_West | 523015 | 7528674 | 727 | 132 | 330 | 60 |
VA24-09 | VA_West | 522912 | 7528692 | 735 | 168 | 330 | 60 |
VA24-10 | VA_West | 522818 | 7528684 | 736 | 120 | 330 | 60 |
Exp13 | VA_West | 522738 | 7528660 | 741 | 98 | 330 | 60 |
Exp14 | VA_West | 522763 | 7528616 | 734 | 172 | 330 | 60 |
Exp15 | VA_West | 523439 | 7528939 | 730 | 138 | 340 | 60 |
Exp04 | VA_West | 523139 | 7528852 | 743 | 84 | 330 | 61 |
Exp07 | VA_West | 523066 | 7528822 | 743 | 72 | 330 | 60 |
Exp10 | VA_West | 522885 | 7528741 | 750 | 120 | 330 | 60 |
Exp08 | VA_West | 523411 | 7528974 | 724 | 78 | 330 | 60 |
Exp17 | VA_West | 523493 | 7528994 | 721 | 98 | 330 | 60 |
Jolie01 | Jolie | 523883 | 7529918 | 680 | 120 | 330 | 60 |
Jolie02 | Jolie | 523917 | 7530008 | 694 | 66 | 330 | 60 |
Jolie03 | Jolie | 524046 | 7529973 | 705 | 150 | 330 | 60 |
VA_S_1 | VA_South | 523716 | 7528300 | 725 | 260 | 270 | 60 |
VA_S_2 | VA_South | 523796 | 7528300 | 725 | 300 | 270 | 60 |
VA_S_3 | VA_South | 523876 | 7528300 | 725 | 360 | 270 | 60 |
VA_S_4 | VA_South | 523956 | 7528300 | 725 | 380 | 270 | 60 |
VA_S_5 | VA_South | 523723 | 7528500 | 725 | 260 | 270 | 60 |
VA_S_6 | VA_South | 523796 | 7528500 | 735 | 320 | 270 | 60 |
VA_S_7 | VA_South | 523876 | 7528489 | 725 | 380 | 270 | 60 |
VA_S_8 | VA_South | 523956 | 7528500 | 732 | 380 | 270 | 60 |
Total metres: | 5,236 |
Boreholes VA24-01 to VA10 are completed, awaiting down-hole surveys, detailed recording, and sampling for chemical assay. Additional drilling might be required to test at depth, dependent onthe results to be obtained from the campaign.
Figure 2: Overview map of Norasa 2024 Q1 drill campaign on a radiometric background.
https://www.globenewswire.com/NewsRoom/AttachmentNg/38b9bda9-00f8-4a9f-b9db-85c1beade129
Qualified Persons Statement
The information in this release that relates to "project update" for the Norasa Project is based on information compiled or reviewed by Dr Guy Freemantle of The MSA Group (Pty) Ltd., South Africa. Dr Freemantle is a consultant for Valencia Uranium (Pty) Ltd. and is a member of the SACNASP. Dr Freemantle has sufficient experience and knowledge that is relevant to the style of mineralisation and type of deposits under consideration as well as to the activity that is being undertaken to fulfill requirements of a Qualified Person as per NI 43-101. Dr Freemantle consents to this release in the form and context in which it appears.
About Forsys Metals Corp.
Forsys Metals Corp. (TSX: FSY, FSE: F2T, NSX: FSY) is an emerging uranium developer focused on advancing its wholly-owned Norasa Uranium Project, located in the politically friendly jurisdiction of Namibia, Africa. The Norasa Uranium Project is comprised of the Valencia Uranium deposit (ML-149) and the nearby Namibplaas Uranium deposit (EPL-3638).
Further information is available at the Company website www.forsysmetals.com .
On behalf of the Board of Directors of Forsys Metals Corp. Richard Parkhouse, Director, Investor Relations.
For additional information please contact:
Richard Parkhouse, Director, Investor Relations
email: rparhkhouse@forsysmetals.com email: info@forsysmetals.com
Forward-Looking Statement
Certain information contained in this press release constitutes "forward-looking information" , within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "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 "has the potential to". Forward looking statements contained in this press release are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedarplus.ca . The forward-looking statements included in this press release are made as of the date of this press release and Forsys Metals Corp disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
_____________________________
¹ The Norasa Uranium Project ("Norasa") is wholly-owned by the Company's 100% subsidiary Valencia Uranium (Pty) Ltd. ("Valencia Uranium") and comprises the Valencia uranium deposits (held under ML-149) ("Valencia") and the Namibplaas uranium deposit (under EPL-3638, application for ML-251) ("Nambiplaas").
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Bullish Uranium Sparks Increased Investor Interest in Exploration, Basin Energy CEO Says
As more countries renew their commitments to nuclear energy as a way forward toward decarbonization, Basin Energy (ASX:BSN) CEO Pete Moorhouse believes proven uranium jurisdictions like the Athabasca Basin will continue to see increased investor traction.
Speaking to the Investing News Network during the 2024 Prospectors & Developers Association of Canada convention, he said there has been a “massive increase” in interest in Basin Energy.
“We set out … specifically to provide the ASX with a uranium pure-play exploration company,” Moorhouse said. “We had an opportunity to really scour the Earth … so we went out, we looked for jurisdiction, we looked for explorability, where you can actually explore for these large-scale deposits with a sensible market cap.”
Basin Energy has three projects located in Saskatchewan's Athabasca Basin: North Millennium, Geikie and Marshall. All are in close proximity to world-class, high-grade uranium discoveries and mining operations, including Baselode Energy’s (TSXV:FIND,OTCQB:BSENF) ACKIO discovery and 92 Energy’s (ASX:92E,OTCQX:NTELF) Gemini discovery.
When asked about the company’s plans for 2024, Moorhouse said, “I hope to be in a position to be able to advance North Millennium or Marshall, subject to the results of the (digital elevation model) surveys. Lots of newsflow coming: drilling is now, AM (survey is) happening now. With further money, we’d be able to do more drilling all in the next six to eight months. So, exciting times.”
Watch the full interview with Basin Energy CEO Pete Moorhouse above.
Disclaimer: This interview is sponsored by Basin Energy (ASX:BSN). This interview provides information which was sourced by the Investing News Network (INN) and approved by Basin Energy in order to help investors learn more about the company. Basin Energy is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Basin Energy and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
Global Uranium Mining Output Expected To Rise 11.7% in 2024 Due To Kazakh and Canadian Growth
FN Media Group News Commentary - The Global Uranium production is projected to grow this year and in the years to come. A report in Mining Technology said that the Global uranium production is expected to grow by 11.7% to more than 60.3 megatonnes (Mt) in 2024. The increase will predominantly be fueled by rising output from key producers such as Kazakhstan and Canada. Kazakhstan is expected to deliver the highest uranium production growth in 2024, driven by the planned higher output from the country's largest uranium producer, Kazatomprom . The continuous ramp-up of Canada's McArthur River uranium mine will also contribute to the global increase. The report added: "Uranium output to rise 11.7% in 2024 due to Kazakh and Canadian growth… and production will be bolstered by the ramp-up of Canada's McArthur River mine. Kazakhstan accounted for 37.3% (20.1kt) of total global uranium supply in 2023. Despite a 5.1% dip in output in 2023 due to planned lower production from Kazatomprom, its output is expected to recover in 2024, with forecast production of 23.2kt. This will be supported by the company's plan to produce between 21.2 kilotonnes (kt) and 21.6kt on a 100% basis, while production is expected to increase to between 25.9 and 26.7kt with no restrictions in 2025." Active mining companies in the markets this week include Stallion Uranium Corp. (OTCQB: STLNF) (TSX-V: STUD), enCore Energy Corp. (NASDAQ: EU), Skyharbour Resources Ltd.'s (OTCQX: SYHBF) (TSX-V: SYH), Uranium Energy Corp (NYSE American: UEC), ATHA Energy Corp. (OTCQB: SASKF) (TSX.V: SASK).
Mining Technology continued: "Meanwhile, global uranium production in 2024 will be further bolstered by continuous ramp-up of Canada's McArthur River, which is aiming to produce 6.9kt of uranium (8.2kt of U3O8) for 2024. In October 2023, the Canadian Nuclear Safety Commission renewed the licences for McArthur River for a further 20 years, allowing the mine to continue operations until October 2043. Global uranium production is expected to grow with a compound annual growth rate of 4.1% from 2024 to 2030, as output reaches 76.8kt in 2030."
Stallion Uranium Corp. (TSX-V: STUD) (OTCQB: STLNF) Provides Corporate Update - Stallion Uranium Corp. (FSE: HM40) is pleased to provide a corporate update on Stallion's current exploration efforts. Stallion holds the largest exploration land package in the Southwestern Athabasca Basin and are following their proven roadmap to discovery, learned through decades of exploration in the basin, to increase the probability of finding the next significant uranium discovery in the Athabasca Basin.
Stallion's Maiden Drill Program - Stallion maiden drill program is underway, as announced on March 6th, and continues to be progressing. Stallion has planned 3 holes totaling 3,300m utilizing a diamond core drill to test for uranium mineralization on it's 100% owned Appaloosa target. The target is a ~6 km long EM conductor located along the contact between the Beaverlodge and Taltson geological domains that can create an optimal location for uranium bearing fluid to concentrate. Each of the drill holes are focusing on a coincident gravity and magnetic lows associated with alteration which are known to be associated with uranium deposits. Given that these are the first drill holes on Stallion's projects, data collected from each drill hole is actively being used to adjust and fine tune the next drill hole to enhance the outcomes of uranium mineralization. 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.
Stallion and Atha Energy JV Project - Stallion completed the largest single airborne geophysical survey in the southwestern Athabasca basin, as announced on February 22nd. This survey was able to uncover over 560km of conductive trends, a significant achievement in adding several new high priority target areas that could have the potential to host uranium mineralization. The preliminary results were released from the survey and the team is now working with Convolutions Geoscience to take the data through advanced processing and modeling. The advanced interpretation will allow for Stallion to pragmatically prioritize the key target areas for additional survey work as the target areas move along Stallion's roadmap of discovery. The preliminary data indicate that these additional areas will provide the company with several tier one targets for drill testing.
Gunter Lake Project - Stallion has completed an airborne gravity survey over its 100% owned Gunter Lake project that was announced on January 31st. This survey utilized the latest technology to record the density in the underlying rocks and has now started to be processed. This data when compiled with VTEM survey data over the entire project and MobileMT data over the Coyote target will be interpreted to find the most prospective areas for drill targeting. Providing the company with further high priority target areas and potential drill ready targets.
Upper Mirror River Project - Stallion staked 6 new mineral claims this year, half announced January 17th and the remaining on February 28th, giving the company a new 100% owned, highly prospective project, covering 31,645 hectares. This project was staked to cover the extensions of conductive corridors that were newly discovered as part of the regional airborne survey completed over the Atha JV project. In uncovering unknown conductive trends Stallion continues to build on its advantage of completing the first effective survey work at scale across much of the southwestern Athabasca Basin. Stallion is evaluating the next steps across this project as it believes it will hold several kilometre long conductive corridors and when aligned with magnetic lows signatures are known to correlate with uranium mineralization, providing the company with additional high priority target areas. 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:
enCore Energy Corp. (NASDAQ: EU) (TSXV: EU) , a domestic uranium producer, recently announced the highest grade drill results to date since drilling activities restarted from the Alta Mesa Project in South Texas. These results significantly exceed the cutoff grade thickness requirements for In-Situ Recovery ("ISR") of uranium. The Company also reports that work to advance the Alta Mesa Uranium Central Processing Plant and Wellfield ("Alta Mesa") towards production is advancing on schedule.
Paul Goranson, enCore Energy's Chief Executive Officer, stated: "We are extremely pleased with the drilling results from Alta Mesa. Cutoff grade thickness for ISR operations in Texas are generally 0.3 GT for economic extraction. With drilling returning a significant number of GTs in production delineation holes in excess of 3.0 with a high of 8.4, we are becoming increasingly optimistic that our contained uranium will exceed estimates contained in the 2023 technical report that cited GTs averaging 0.59 to 0.68 for each of the specific ore horizons. Indeed, we are confirming higher grade portions of the mineralized zone than initially estimated from broader spaced drilling as proposed in the 2023 technical report. Having directed the initial development and operation of Alta Mesa for a private company in 2005, I have observed that this project has historically consistently exceeded expectations. We look forward to returning Alta Mesa to production in the coming weeks."
Skyharbour Resources Ltd.'s (OTCQX: SYHBF) (TSX-V: SYH) partner company Azincourt Energy ("Azincourt"), recently announced that mobilization is set to begin later this week for the 2024 winter drill program at the East Preston uranium project in the Athabasca Basin, Saskatchewan, Canada.
Azincourt is undertaking a drill program for the winter of 2024, consisting of up to 1,500 meters of drilling in a maximum of five (5) diamond drill holes. The priority will be to follow up on the clay alteration zone with elevated uranium that was identified in the winter of 2023 with a focus on the area of transition between the K and H Zones.
Uranium Energy Corp (NYSE American: UEC) recently reported drill results from its Roughrider Project located in Northern Saskatchewan, Canada. Both exploration and metallurgical sample drilling have been successful at intersecting uranium mineralization.
Chris Hamel, Vice President Exploration, Canada stated: "Roughrider is a world-class project with untapped potential for resource expansion and we're pleased to confirm this with the discovery of high-grade mineralization between the East and West Zone deposits. The drilling program will continue through the winter and focus on exploration for additional uranium that is outside the existing mineralized zones decades of hands-on experience in the key facets of uranium exploration, development and mining."
ATHA Energy Corp. (OTCQB: SASKF) (TSX.V: SASK), holder of the largest uranium exploration portfolio in two of the highest-grade uranium districts in the world, recently announced plans for its 2024 Exploration Program. At the 100%-owned Angilak Project in Nunavut, the Company will focus on diamond drilling with the objective of deposit expansion and discovery. In the Athabasca Basin, the Company will be further advancing nine of its 100%-owned projects through a combination of ground and airborne geophysical surveys. The objective of the Athabasca Basin Program is to continue to mature ATHA's geological understanding within each of its projects, increasing the probability of discovery and optimise capital expenditure during future drill campaigns.
Additionally, subject to the completion of the Company's proposed scheme of arrangement (the "Scheme") with 92 Energy Limited (ASX: 92E) ("92E"), development of 92 Energy's projects, such as Gemini, which hosts the recently discovered high-grade GMZ showing, will be incorporated into the into the Company's Athabasca Basin Exploration Program. The Company will provide an update inclusive of drilling plans for the Gemini project, post closing of the Scheme.
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Purepoint Uranium Initiates Airborne Magnetotellurics at Russell South and Outlines Upcoming Announcements
Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) ("Purepoint" or the "Company") today initiated an airborne Mobile Magnetotellurics ("MobileMT") survey, including total field magnetic and VLF, at their Russell South Uranium Project which lies on the south-eastern edge of the Athabasca Basin, Saskatchewan Canada.
"Russell South is 20 kms east-northeast of Cameco's Key Lake mine and adjoins prominent uranium projects including Rio Tinto's Russell Lake property and Skyharbour Resources Inc's Moore Lake project" said Scott Frostad, VP Exploration at Purepoint. "Our previous airborne gravity survey results outlined four high-value target regions on the project and the planned MobileMT resistivity results will allow us to further develop those drill targets."
Highlights
- The MobileMT survey detects resistivity contrasts of geology structures and boundaries and will cover approximately 1,064 kilometres of flight at 150 metre spacings.
- The results of the airborne survey, carried out by Expert Geophysics of Aurora Ontario Canada, are expected for release in May 2024
- For more information on Russell South, including location map, visit: https://purepoint.ca/projects/russell-south/.
- A schedule of exploration activities and announcements for the next six months is summarized in the table below.
Russell South Project
The 100% owned Russell Lake Project is located near the south-central edge of the Athabasca Basin covering an area of 13,320 hectares.
Four target areas have now been identified at the project. The three eastern targets are based on the recent results from the airborne geophysical survey. The target zones are coincident airborne gravity low and magnetic low responses, interpreted as favourable rock types and/or alteration zones, that are proximal to north-northwest trending structures. The western Treleaven target area hosts historic coincident geochemical anomalies possibly related to a dilational zone lying between the interpreted north-south faults.
The Russell Lake project is approximately 20 km ENE of the Key Lake Mine that produced over 200 million pounds of uranium at a grade averaging 2.3% U3O8 between 1983 and 1997. In addition, the project adjoins the Moore Lake Project owned by SkyHarbour Resources Ltd. with their high-grade Maverick Zone and Rio Tinto's Russell Lake Project to the west and south.
Figure 1: Russell South Location Map
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3218/202488_b17dcbe204599bfa_002full.jpg
Figure 2: Russell South Regional Map
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3218/202488_b17dcbe204599bfa_003full.jpg
Figure 3: Russell South Gravity Map
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3218/202488_b17dcbe204599bfa_004full.jpg
Upcoming Exploration Announcements
The current 2024 schedule of exploration activities and results are expected to be available for dissemination as follows. Any additions or amendments will be noted in subsequent releases.
Timing | Project | Activity |
April 2024 | Hook Lake | Drill program complete - initial results |
Russell South | Commencement of Airborne Electromagnetic (EM) survey | |
Smart Lake JV | Commencement of Ground EM survey | |
Turnor Lake | Outline of planned drill program | |
May 2024 | Turnor Lake | Commencement of drill program |
Smart Lake | EM survey results and interpretation | |
Russell South | Airborne EM results and drill program plan | |
Hook Lake/Smart Lake | Joint Venture meetings | |
June 2024 | Red Willow | Outline of planned drill program |
Tabbernor | Commencement of Airborne Gravity survey | |
July 2024 | Red Willow | Commencement of drill program |
Turnor Lake | Drill program complete - discussion of results | |
August 2024 | Red Willow | Drill program complete - discussion of results |
About Purepoint
Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) actively operates an exploration pipeline of nine advanced projects in Canada's Athabasca Basin. In addition to its flagship joint venture project at Hook Lake with partners Cameco and Orano and a second joint venture with Cameco at Smart Lake, Purepoint also holds seven, 100% owned projects with proven uranium rich targets. With an aggressive exploration program underway on multiple projects, Purepoint is emerging as the preeminent uranium explorer in the world's richest uranium district.
Scott Frostad BSc, MASc, PGeo, Purepoint's Vice President, Exploration, is the Qualified Person responsible for technical content of this release.
For more information, please contact:
Chris Frostad, President & CEO
Phone: (416) 603-8368
Email: cfrostad@purepoint.ca
For additional information please visit our new website at https://purepoint.ca, our Twitter feed: @PurepointU3O8 or our LinkedIn page @Purepoint-Uranium.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this Press release.
Disclosure regarding forward-looking statements
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/202488
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Skyharbour's Partner Company North Shore Uranium Completes Maiden Drill Program and Identifies Elevated Radioactivity, Fault Zones and Alteration at Falcon Project
Skyharbour Resources Ltd. (TSX-V: SYH ) (OTCQX: SYHBF ) (Frankfurt: SC1P ) ("Skyharbour" or the "Company"), is pleased to announce that its partner company, North Shore Uranium ("North Shore"), has completed a maiden drill program at its 55,699 hectare Falcon Property ("Falcon" or the "Property") located at the eastern margin of the Athabasca Basin in northern Saskatchewan.
Location Map of Falcon Project:
https://skyharbourltd.com/_resources/maps/Sky-SouthFalconOption.jpg?v=0.1
During the program, three targets were drilled along a strong, dominantly northeast-trending electromagnetic ( " EM " ) conductor system, P03, P08 and P12 (Table 1). At P03 and P08 the targeted sub-vertical EM conductors were intersected. At P12, the hole had to be terminated prior to reaching the interpreted conductor depth. Highlights from the program include:
- Radioactivity: Elevated total count gamma probe readings were obtained at targets P03 and P08 with a maximum value of 2695 counts per second (" cps ") at P03.
- Conductor modeling: Three-dimensional plate models of the EM conductor systems were modelled using Maxwell EMIT software. At P03 and P08, the targeted conductors were intersected very close to the depths predicted by the models.
- Favorable structures: A brittle graphitic fault zone with angular rubble and clay gouge underlain by gneiss with strong silica alteration and patchy chlorite alteration was encountered coincident with the EM conductor at P03. A brittle fault zone with bleached clay, hematite staining and altered pegmatite explained the EM conductor at P08.
- Next Steps: Fault zones and alteration similar to that encountered at P03 and P08 can be associated with basement-hosted uranium mineralization. The forthcoming analytical results integrated with the drill hole data will guide future work related to these two targets . Target P12 remains untested and should be drilled again to reach the targeted EM conductor depth. It lies within a prominent interpreted structural zone near several other priority targets in the South Walker area. In addition, multiple high priority untested targets on the Property have the potential for basement-hosted uranium mineralization. Using its proven exploration methods, the Company will continue to prioritize these targets for future field evaluation and drilling.
Electromagnetics with 2024 Drill Targets P03, P08 and P12:
https://www.skyharbourltd.com/_resources/images/Electromagnetics-with-2024-Drill-Targets.jpg
Select samples of drill core have been sent for analysis, and final analytical results are expected in four to six weeks. The geochemical analyses are performed to detect the presence of uranium, pathfinder elements, gold and other metals.
Mr. Brooke Clements, President and CEO of North Shore stated: " The initial results from our maiden drill program are encouraging and confirm the presence of sub-vertical basement structures with associated radioactivity, graphite and alteration at P03 and P08. The intersection of altered and graphitic structures at the modelled Maxwell plate depths validates our team's exploration approach and techniques. The initial results from the program also reinforce our belief that Falcon is a highly prospective uranium property and affirm the prospectivity of other compelling untested EM conductors that have been identified, many of which are associated with interpreted structures. The Company is excited to receive the analytical results from this program and looks forward to maximizing its exposure to significant discovery by continuing to evaluate target zones at Falcon with the potential to host an economic uranium deposit."
Total field magnetics with 2024 drill targets P03, P08 and P12:
https://skyharbourltd.com/_resources/images/Total-field-magnetics-2024-drill-targets.jpg
TABLE 1: Falcon Drilling Summary
Drillhole Information | Gamma Probe Results* | ||||||||
ID | Prospect | Dip (°) | Azi (°) | Over-burden (m) | Final Depth (m) | From (m) | To (m) | Avg. cps | Peak cps |
FN24001 | P03 | -50 | 135 | 6 | 230 | 196.51 199.92 203.21 205.42 | 196.92 200.92 203.51 206.32 | 1475 849 775 705 | 2695 1637 1022 1196 |
FN24002 | P08 | -47 | 120 | 30.5 | 144 | 42.25 | 45.95 | 1085 | 2120 |
FN24003 | P12 | -47 | 315 | 2.5 | 106 | No gamma probe testing as hole was abandoned due to unstable ground conditions before target horizon was reached |
*The results are for total gamma ray counts and were obtained using a Mount Sopris 2SNA-1000-S Spectral Gamma-Ray probe
Target P03:
Drillhole FN24001 at target P03 in the north Knob Lake area intersected approximately six metres of overburden followed by an alternating succession of metasedimentary rocks comprised of variably garnetiferous and graphitic pelitic gneisses, cross-cut by numerous plagioclase-dominant granitic pegmatites to 222.53m. Granite with intercalations of biotite-garnetiferous pelite was encountered to the end of hole at 230m. The metasediments between 94-175m were host to an estimated 0.1%-1% pyrrhotite and 0.1-0.5% pyrite. A blocky fracture zone and interpreted brittle fault with graphite-rich gouge was encountered within the graphitic gneiss unit between 193.48-196.01m; the projected EM conductor intersection depth was 195m. A key interval just below this fault zone associated with strong localized chlorite and silica alteration between 196.5 and 206.3m returned the most notable gamma probe readings. A pegmatite-rich interval from 196.51-196.92m returned a gamma probe reading of 2695 cps. The combination of the spatial relationship between the graphitic horizon, the structure, alteration and the radioactivity upgrade this target. P03 has the exploration criteria that are important for a basement-hosted uranium mineralizing system. This structure together with other zones of the EM conductor system in the immediate area are prospective as potential conduits for precipitated uranium within basement-hosted graphitic fault zones and follow-up drilling will be considered.
Drill Hole FN24001:
https://skyharbourltd.com/_resources/images/Drill-hole-FN24001.jpg
Target P08:
Drillhole FN24002 was also drilled in the northern Knob Lake Area. After intersecting 30.5 metres of overburden, an alternating succession of metasedimentary rocks comprised of variably garnetiferous and graphitic pelitic gneiss and schists cross-cut by numerous plagioclase and K-feldspar granitic pegmatites was encountered to 132.32m. Granitic gneiss intersected by K-feldspar granitic pegmatites is present until the end of hole at 144m. The graphitic metasediments throughout the hole were host to up to 30 percent graphite, with localized patches up to 60 percent. The most notable gamma probe results were returned between 42.25-45.95m, within a K-feldspar pegmatitic interval with a peak reading of 2120 cps. This anomalous interval was followed by a brittle fault zone, from 43.90-49.00m, comprised of fractured pegmatites and blocky and rubbly graphitic metasediments. The entire graphitic schist upper portion of the hole displayed very strong patchy chlorite-cordierite-hematite-illite alteration to 102.27m. From 102.27-105.55m, a brittle pegmatitic and graphitic fault zone was intersected at the projected depth of the Maxwell conductor. This lower fault zone displayed strong bleaching (illite+/-sericite) clay alteration, strong hematite and chlorite along fractures and patchy silica alteration. These alteration minerals can be indicative of a proximal hydrothermal system and the results suggest the possibility that the structures at target P08 could be related to a basement-hosted, fault-controlled mineralizing system and future follow-up drilling will be considered.
Target P12:
FN24003 was drilled at P12 in the South Walker area within a prominent interpreted northeast-trending structural zone as defined by EM and magnetics. After drilling three metres of glacial overburden, extensively fractured monzonitic orthogneisses cross-cut by plagioclase and K-feldspar granitic pegmatites was encountered to 52.08m. A succession of variably garnetiferous and graphitic metasediments cross-cut by plagioclase-rich pegmatites was encountered to the final hole depth of 107.60m. The hole was abandoned before reaching the modelled Maxwell conductor plate depth of approximately 125m due to unstable ground conditions and was not evaluated with the gamma probe. Therefore, the target remains untested and will likely be targeted for drilling in a future program.
Drill Program logistics and Quality Control, Quality Assurance and Analytical Procedures:
Multiple potential targets with favorable geologic and geophysical characteristics were evaluated, and three were selected for drilling. The drill program was managed by Laura Tennent, B.Sc of TerraLogic Exploration Inc, ("TerraLogic"). The drill contractor was Quesnel Brothers Diamond Drilling Ltd. based in Denare Beach, Saskatchewan.
TerraLogic adheres to best management exploration practices, including Quality Assurance and Quality Control (QA/QC). All standard operating procedures have been developed and overseen by Jarrod Brown M.Sc., P.Geo. of TerraLogic, a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
All drill core was systematically photographed, measured (recovery, rock quality designation ("RQD"), natural fracture count, longest stick), oriented (Reflex – ACTIII) and logged (lithology, alteration, mineralization, structure, veins, brecciation and weathering). The core is then scanned with a RS230 Spectrometer to determine total gamma Counts Per Second (CPS), and with a KT-10 magnetic susceptibility meter. Upon completion of the drilling, while the rods are still in the hole, a calibrated Mount Sopris 2SNA-1000-S Gamma-Ray Spectrometer Probe rented from Terraplus Inc. was used to measure the natural gamma spectra within the hole. Measurements for total counts (GR-total, counts per second ("cps"), Potassium cps (K), Thorium cps (Th) and Uranium cps (U) were collected. The data is processed using WellCad software and the Terraplus Inc. calibrated K-Factor.
QA/QC protocols are maintained through the random insertion of blanks and certified reference material (standards) throughout the drill core sampling process. Drill core is split in half with a manual splitter, select split samples are then placed in a sealed bag and transported by TerraLogic personnel to the laboratory while the remainder is stored on site. Analytical testing will be performed by the Saskatchewan Research Council Geoanalytical Laboratories in Saskatoon, Saskatchewan.
Falcon Uranium Project:
The Falcon Property, which constitutes part of North Shore's Falcon Property, contains eleven mineral claims comprising approximately 42,908 hectares approximately 50 km east of the Key Lake mine. Nine of the claims are from Skyharbour's original South Falcon Uranium Project and the remaining two claims are from Skyharbour's Foster River Project. Historical uranium mineralization discovered at Falcon is shallow and is hosted in several geological settings including classic Athabasca-style basement mineralization associated with well-developed EM conductors. At the EWA target, up to 0.492% U 3 O 8 and 1,300 ppm lead was encountered in outcrop grab samples (Sask. Mineral Deposits Index [SMDI] 5038). Historical grab sampling at Knob Lake (SMDI 1014) also encountered up to 0.01% U 3 O 8 in an outcrop of pegmatite, while anomalous nickel, copper, and molybdenum were found in historical grab samples from the Fraser North target area (SMDI's 1125 and 1126).
A well-defined northeast-trending, locally folded, electromagnetic conductor system runs throughout the Property, which was defined by airborne and ground geophysical surveys by JNR Resources ("JNR") in the 2000's. In 2008 JNR conducted a drill campaign at the property area. Of the 47 holes drilled that year, 28 holes (totaling 7,348 metres) were drilled on the South Falcon Uranium Property at the Walker (14 holes), Walker South (7 holes), and EWA target areas (6 holes). At the Walker and South Walker targets, which lie along the aforementioned EM conductor system, structurally disrupted and variably altered metasediments (including graphitic pelitic gneisses) with anomalous boron, copper, molybdenum, nickel, cobalt, arsenic, and vanadium were encountered in several drill holes. During this same drill campaign, the Fraser Lakes Zone B uranium deposit was discovered approximately four kilometres east of the Walker South target on a refolded extension of the EM conductor system. At the EWA target, which lies along a separate northeast-trending EM conductor, anomalous uranium, boron, lead, and molybdenum were encountered in structurally disrupted pegmatites; the best result was 0.235% U 3 O 8 over 0.5 m (within a 3.5 m interval of 0.113% U 3 O 8 ) in hole WYL-08-501 (Sask. Mineral Assessment File 74H02-0045).
Furthermore, in 2022, Skyharbour completed a FALCON® airborne gravity gradiometer and magnetic survey over nine of the eleven claims at the Falcon Property. This new geophysical data will assist North Shore in prioritizing areas along the EM conductor system for drilling. Over 30 kilometres of the EM conductor system remains untested on the Falcon Property. North Shore's initial focus will be on the two claims formerly part of the Foster Project (geophysics), and on generating drill targets on three claims at the southeastern end of the EM conductor systems including Knob Lake, which shows similarities to the Fraser Lakes Zone B deposit approximately 6 km to the northeast and several other high-priority targets elsewhere along the main EM conductor system.
Significant potential exists on the project for basement-hosted, unconformity-related uranium deposits like those further to the north in the Wollaston Domain (i.e. Eagle Point, Rabbit Lake, Key Lake and others), as well as for pegmatite/granite-hosted (i.e. alaskite-type) U-Th-REE mineralization like at the Fraser Lakes Zone B deposit on Skyharbour's adjacent South Falcon East Property, currently under option to Tisdale Clean Energy.
The Option Agreement:
North Shore may acquire an initial 80% interest in the Property by issuing common shares of the Resulting Issuer ("Shares") having an aggregate value of CAD $1,225,000; making aggregate cash payments of CAD $525,000; and incurring an aggregate of CAD $3,550,000 in exploration expenditures on the Property over a three-year period. Once North Shore has earned an initial 80% interest in the Property, North Shore may acquire the remaining 20% interest in the Property within 90 business days by issuing Shares having a value of CAD $5,000,000, and making a cash payment of CAD $5,000,000 to Skyharbour. If North Shore does not elect to acquire the remaining 20% interest, a joint venture will be formed with Skyharbour holding a 20% participating interest.
North Shore will be the operator of the exploration programs during the earn-in stage and for the joint venture if formed. Two claims totaling 10,673 hectares that form part of Skyharbour's Foster River Property are subject to a one percent (1%) NSR royalty payable to Skyharbour. The remaining nine claims totaling 32,235 hectares that comprise Skyharbour's South Falcon Point Property are subject to a two percent (2%) NSR royalty payable to Denison Mines Corp. ("Denison") with North Shore having the right to purchase one percent of the royalty from Denison at anytime by paying $1 million. All Shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Qualified Person:
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by David Billard, P.Geo., a Consulting Geologist for Skyharbour as well as a Qualified Person.
About North Shore Uranium Ltd:
North Shore is a mineral exploration company focused on uranium exploration at the eastern margin of the Athabasca Basin through its Falcon property which will increase from 12,800 to 55,700 hectares with the addition of the claims subject to the Agreement, and the West Bear property located 90 kilometres to the northeast.
About Skyharbour Resources Ltd.:
Skyharbour holds an extensive portfolio of uranium exploration projects in Canada's Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals with twenty-nine projects, ten of which are drill-ready, covering over 587,000 hectares (over 1.45 million acres) of land. Skyharbour has acquired from Denison Mines, a large strategic shareholder of the Company, a 100% interest in the Moore Uranium Project which is located 15 kilometres east of Denison's Wheeler River project and 39 kilometres south of Cameco's McArthur River uranium mine. Moore is an advanced-stage uranium exploration property with high-grade uranium mineralization at the Maverick Zone that returned drill results of up to 6.0% U 3 O 8 over 5.9 metres including 20.8% U 3 O 8 over 1.5 metres at a vertical depth of 265 metres. Adjacent to the Moore Uranium Project is Skyharbour's recently optioned Russell Lake Uranium Project from Rio Tinto, which hosts historical high-grade uranium drill intercepts over a large property area with robust exploration upside potential. The Company is actively advancing these projects through exploration and drill programs.
Skyharbour has joint-ventures with industry-leader Orano Canada Inc., Azincourt Energy and Valor Resources at the Preston, East Preston and Hook Lake Projects, respectively. The Company also has several active earn-in option partners including: CSE-listed Basin Uranium Corp. at the Mann Lake Uranium Project; CSE-listed Medaro Mining Corp. at the Yurchison Project; North Shore Uranium at the Falcon Project; and TSX-V listed Tisdale Clean Energy at the South Falcon East Project which is host to the Fraser Lakes Zone B Uranium and Thorium Deposit. In aggregate, Skyharbour has now signed earn-in option agreements with partners that total to over $33 million in partner-funded exploration expenditures, over $27 million worth of shares being issued and over $19 million in cash payments coming into Skyharbour, assuming that these partner companies complete their entire earn-ins at the respective projects.
Skyharbour's goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions.
Skyharbour's Uranium Project Map in the Athabasca Basin:
https://www.skyharbourltd.com/_resources/images/SKY_SaskProject_Locator_2024-02-14_V2.jpg
To find out more about Skyharbour Resources Ltd. (TSX-V: SYH) visit the Company's website at www.skyharbourltd.com .
"Jordan Trimble"
Jordan Trimble
President and CEO
For further information contact myself or:
Nicholas Coltura
Investor Relations Manager
Skyharbour Resources Ltd.
Telephone: 604-558-5847
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@skyharbourltd.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
The securities offered 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 U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.
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, including the Private Placement. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, regulatory approvals, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.
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North Shore Uranium Completes Maiden Drill Program at Falcon; Elevated Radioactivity, Fault Zones and Alteration Identified
North Shore Uranium Ltd. (TSXV:NSU) ("North Shore" or the "Company") is pleased to announce that it has completed a maiden drill program at its 55,699 hectare Falcon Property ("Falcon" or the "Property") located at the eastern margin of the Athabasca Basin in northern Saskatchewan. During the program, three targets were drilled along a strong, dominantly northeast-trending electromagnetic ("EM") conductor system, P03, P08 and P12 (Table 1 and Figures 1 and 2). At P03 and P08 the targeted sub-vertical EM conductors were intersected. At P12, the hole had to be terminated prior to reaching the interpreted conductor depth. Highlights from the program include
- Radioactivity. Elevated total count gamma probe readings were obtained at targets P03 and P08 with a maximum value of 2695 counts per second ("cps") at P03.
- Conductor modeling. Three-dimensional plate models of the EM conductor systems were modelled using Maxwell EMIT software. At P03 and P08, the targeted conductors were intersected very close to the depths predicted by the models.
- Favorable structures. A brittle graphitic fault zone with angular rubble and clay gouge underlain by gneiss with strong silica alteration and patchy chlorite alteration was encountered coincident with the EM conductor at P03. A brittle fault zone with bleached clay, hematite staining and altered pegmatite explained the EM conductor at P08.
- Next Steps. Fault zones and alteration similar to that encountered at P03 and P08 can be associated with basement-hosted uranium mineralization. The forthcoming analytical results integrated with the drill hole data will guide future work related to these two targets. Target P12 remains untested and should be drilled again to reach the targeted EM conductor depth. It lies within a prominent interpreted structural zone near several other priority targets in the South Walker area. In addition, multiple high priority untested targets on the Property have the potential for basement-hosted uranium mineralization. Using its proven exploration methods, the Company will continue to prioritize these targets for future field evaluation and drilling.
Select samples of drill core have been sent for analysis, and final analytical results are expected in four to six weeks. The geochemical analyses are performed to detect the presence of uranium, pathfinder elements, gold and other metals.
Mr. Brooke Clements, President and CEO of North Shore stated: "The initial results from our maiden drill program are encouraging and confirm the presence of sub-vertical basement structures with associated radioactivity, graphite and alteration at P03 and P08. The intersection of altered and graphitic structures at the modelled Maxwell plate depths validates our team's exploration approach and techniques. The initial results from the program also reinforce our belief that Falcon is a highly prospective uranium property and affirm the prospectivity of other compelling untested EM conductors that have been identified. Many of these targets are associated with interpreted structures. The Company is excited to receive the analytical results from this program and looks forward to maximizing its exposure to a significant discovery by continuing to evaluate target zones at Falcon with the potential to host an economic uranium deposit."
TABLE 1: FALCON DRILLLING SUMMARY
Drillhole Information | Gamma Probe Results* | ||||||||
ID | Prospect | Dip (°) | Azi (°) | Over-burden (m) | Final Depth (m) | From (m) | To (m) | Avg. cps | Peak cps |
FN24001 | P03 | -50 | 135 | 6 | 230 | 196.51 199.92 203.21 205.42 | 196.92 200.92 203.51 206.32 | 1475 849 775 705 | 2695 1637 1022 1196 |
FN24002 | P08 | -47 | 120 | 30.5 | 144 | 42.25 | 45.95 | 1085 | 2120 |
FN24003 | P12 | -47 | 315 | 2.5 | 106 | No gamma probe testing as hole was abandoned due to unstable ground conditions before target horizon was reached |
* The results are for total gamma ray counts and were obtained using a Mount Sopris 2SNA-1000-S Spectral Gamma-Ray probe
Figure 1: Electromagnetics with 2024 drill targets P03, P08 and P12. Processing by Condor North Consulting ULC using 2006 and 2007 airborne data.
Figure 2: Total field magnetics with 2024 drill targets P03, P08 and P12. Processing by Condor North Consulting ULC using 2006 and 2007 airborne data.
Target P03
Drillhole FN24001 at target P03 in the north Knob Lake area intersected approximately six metres of overburden followed by an alternating succession of metasedimentary rocks comprised of variably garnetiferous and graphitic pelitic gneisses, cross-cut by numerous plagioclase-dominant granitic pegmatites to 222.53m. Granite with intercalations of biotite-garnetiferous pelite was encountered to the end of hole at 230m. The metasediments between 94-175m were host to an estimated 0.1%-1% pyrrhotite and 0.1-0.5% pyrite.A blocky fracture zone and interpreted brittle fault with graphite-rich gouge was encountered within the graphitic gneiss unit between 193.48-196.01m; the projected EM conductor intersection depth was 195m. A key interval just below this fault zone associated with strong localized chlorite and silica alteration between 196.5 and 206.3m returned the most notable gamma probe readings. A pegmatite-rich interval from 196.51-196.92m returned a gamma probe reading of 2695 cps. The combination of the spatial relationship between the graphitic horizon, the structure, alteration and the radioactivity upgrade this target. P03 has the exploration criteria that are important for a basement-hosted uranium mineralizing system. This structure together with other zones of the EM conductor system in the immediate area are prospective as potential conduits for precipitated uranium within basement-hosted graphitic fault zones, and follow-up drilling will be considered.
Target P08
Drillhole FN24002 was also drilled in the northern Knob Lake Area. After intersecting 30.5 metres of overburden, an alternating succession of metasedimentary rocks comprised of variably garnetiferous and graphitic pelitic gneiss and schists cross-cut by numerous plagioclase and K-feldspar granitic pegmatites was encountered to 132.32m. Granitic gneiss intersected by K-feldspar granitic pegmatites is present until the end of hole at 144m. The graphitic metasediments throughout the hole were host to up to 30 percent graphite, with localized patches up to 60 percent. The most notable gamma probe results were returned between 42.25-45.95m, within a K-feldspar pegmatitic interval with a peak reading of 2120 cps. This anomalous interval was followed by a brittle fault zone, from 43.90-49.00m, comprised of fractured pegmatites and blocky and rubbly graphitic metasediments. The entire graphitic schist upper portion of the hole displayed very strong patchy chlorite-cordierite-hematite-illite alteration to 102.27m. From 102.27-105.55m, a brittle pegmatitic and graphitic fault zone was intersected at the projected depth of the Maxwell conductor plate. This lower fault zone displayed strong bleaching (illite+/-sericite) clay alteration, strong hematite and chlorite along fractures and patchy silica alteration. These alteration minerals can be indicative of a proximal hydrothermal system, The results suggest the possibility that the structures at target P08 could be related to a basement-hosted, fault-controlled mineralizing system and future follow-up drilling will be considered.
Target P12
FN24003 was drilled at P12 in the South Walker area within a prominent interpreted northeast-trending structural zone as defined by EM and magnetics. After drilling three metres of glacial overburden, extensively fractured monzonitic orthogneisses cross-cut by plagioclase and K-feldspar granitic pegmatites was encountered to 52.08m. A succession of variably garnetiferous and graphitic metasediments cross-cut by plagioclase-rich pegmatites was encountered to the final hole depth of 107.60m. The hole was abandoned before reaching the modelled Maxwell conductor plate depth of approximately 125m due to unstable ground conditions and was not evaluated with the gamma probe. Therefore, the target remains untested and will likely be targeted for drilling in a future program.
Drill Program logistics and Quality Control, Quality Assurance and Analytical Procedures
Multiple potential targets with favorable geologic and geophysical characteristics were evaluated, and three were selected for drilling. The drill program was managed by Laura Tennent, B.Sc of TerraLogic Exploration Inc, ("TerraLogic"). The drill contractor was Quesnel Brothers Diamond Drilling Ltd. based in Denare Beach, Saskatchewan.
TerraLogic adheres to best management exploration practices, including Quality Assurance and Quality Control (QA/QC). All standard operating procedures have been developed and overseen by Jarrod Brown M.Sc., P.Geo. of TerraLogic, a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
All drill core was systematically photographed, measured (recovery, rock quality designation ("RQD"), natural fracture count, longest stick), oriented (Reflex - ACTIII) and logged (lithology, alteration, mineralization, structure, veins, brecciation and weathering). The core was then scanned with a RS230 Spectrometer to determine total gamma Counts Per Second (CPS), and with a KT-10 magnetic susceptibility meter. Upon completion of the drilling, while the rods are still in the hole, a calibrated Mount Sopris 2SNA-1000-S Gamma-Ray Spectrometer Probe rented from Terraplus Inc. was used to measure the natural gamma spectra within the hole. Measurements for total counts (GR-total, counts per second ("cps"), Potassium cps (K), Thorium cps (Th) and Uranium cps (U) were collected. The data is processed using WellCad software and the Terraplus Inc. calibrated K-Factor.
QA/QC protocols are maintained through the random insertion of blanks and certified reference material (standards) throughout the drill core sampling process. Drill core is split in half with a manual splitter, select split samples are then placed in a sealed bag and transported by TerraLogic personnel to the laboratory while the remainder is stored on site. Analytical testing will be performed by the Saskatchewan Research Council Geoanalytical Laboratories in Saskatoon, Saskatchewan.
Falcon Property Background Information
Falcon is a highly prospective uranium exploration project with a limited exploration history at the eastern margin of the Athabasca Basin in an area that is seeing increased exploration activity and recent discoveries.Reinterpretation of EM data complemented by geophysical data acquired in 2022 has allowed the Company to identify high priority uranium targets in areas with limited previous drilling. The Property is located approximately 35 kilometres east of the active Key Lake uranium mill and former mine. The new uranium discovery potential at Falcon is significant including shallow basement-hosted unconformity-style mineralization and pegmatite-hosted mineralization similar to that discovered at the Fraser Lakes Zone B uranium resource located just three kilometres south of the Property.
Falcon consists of 15 mineral claims; four of the claims comprising 12,791 hectares are 100 percent-owned by the Company and the remaining 11 claims totaling 42,908 hectares are subject to an option agreement with Skyharbour Resources Ltd. Under the terms of the option agreement, North Shore can earn an 80% interest in the 11 claims and has the option to purchase the remaining 20% interest after it has earned its initial 80% interest.
About North Shore Uranium
The near-term business objectives of North Shore Uranium are to become a major force in exploration for economic uranium deposits at the eastern margin of Saskatchewan's Athabasca Basin, a tier-one jurisdiction for discovering new mineable high-grade uranium deposits. The Company will work to achieve those objectives by conducting exploration programs on its two properties, Falcon and the West Bear Property, located 90 kilometres northeast of Falcon, and by evaluating opportunities to increase its portfolio of properties in the region.
Qualified Person
Mr. Brooke Clements, MSc, P.Geol., a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects and the President and CEO of North Shore, has reviewed and approved the scientific and technical disclosure in this press release.
ON BEHALF OF THE BOARD
Brooke Clements,
President, Chief Executive Officer and Director
For further information:
Please contact: Brooke Clements, President, Chief Executive Officer and Director
Telephone: 604.536.2711
Email: b.clements@northshoreuranium.com
www.northshoreuranium.com
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.
Forward-Looking Statements
This news release may contain forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect","project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's current plans and business objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such forward‑looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: assumptions regarding future uranium prices, debt and equity financing market conditions, receipt of regulatory approvals, and other factors. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on its behalf. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward- looking statement, whether as a result of new information, future events or results or otherwise. 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, undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE: North Shore Uranium Ltd.
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