LAKEWOOD, CO, Feb. 28, 2020 /CNW/ - Energy Fuels Inc. (NYSE
American: UUUU; TSX: EFR) ("Energy Fuels" or the "Company"), a
leading producer of uranium in the United
States, is pleased to announce that it has filed an updated
technical report, including a Preliminary Feasibility Study
("PFS"), for its Sheep Mountain Project in Fremont County, Wyoming (the "Project") on the
System for Electronic Document Analysis and Retrieval ("SEDAR") at
www.sedar.com in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101")
and in accordance with Canadian Institute Mining's ("CIM") Best
Practice Guidelines for the Estimation of Mineral Resources and
Mineral Reserves.
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The technical report, entitled "Updated Preliminary Feasibility
Study National Instrument 43-101 Technical Report Amended and
Restated" and dated February 28,
2020, was authored by Douglas L. Beahm, P.E., P.G.,
Principal Engineer of BRS Engineering, Inc., who is independent of
the Company and a Qualified Person pursuant to NI 43-101. The
technical report references and updates the "Sheep Mountain Uranium
Project, Fremont County, Wyoming,
USA, Updated Preliminary Feasibility Study, National Instrument
43-101, Technical Report" dated April
13, 2012, previously filed the Company. The updated
PFS incorporates recent changes in CIM mineral resource
requirements and changes in the Sheep Mountain Project mine
plan.
The Sheep Mountain Project consists of the Congo Pit, a proposed
open pit mine, and the re-opening of the Sheep Underground mine.
The Congo Pit is estimated to contain a total of 3,955,000 tons of
Probable Mineral Reserves with an average grade of 0.115%
eU3O8 containing 9,117,000 pounds of uranium,
and the Sheep Underground is estimated to contain 3,498,000 tons of
Probable Mineral Reserves with an average grade of 0.132%
eU3O8 containing 9,248,000 pounds of
uranium.
The updated PFS estimates that, based on an assumed uranium
selling price of $60 per pound, the
Project will recover an average of approximately 1.4 million pounds
of uranium per year over a 12-year mine life at an average
operating cost of $36.80 per pound of
recovered uranium. Capital expenditures are expected to total
$152.6 million (all $ expressed in
U.S. dollars) during the life of the Project, including
$120.8 million of initial capital,
representing $9.04 per pound of
recovered uranium. Key changes in the updated PFS versus the 2012
PFS include the following. While Probable Mineral Reserves for the
Project did not change (18.4 million pounds of uranium contained in
7.5 million tons of ore with an average grade of 0.123%
U3O8), the total Project Mineral Resources
decreased by 2.4 million pounds of U3O8, all
of which are in the Indicated Mineral Resource category. In
addition, the pre-tax internal rate of rate of return decreased
from 35% to 28%, and the net present value (at a 7% discount rate)
decreased from $173.5 million to
$114.5 million. The lowered economics
are mainly due to a decrease in the assumed uranium sales price
from $65 per pound to $60 per pound, an increase in direct costs from
$32.31 per pound to $36.80 per pound, and an increase in total
capital expenditures from $122.4
million to $152.6 million.
Douglas L. Beahm, P.E., P.G., Principal Engineer of BRS
Engineering, Inc., the author of the technical report, is an
independent Qualified Person as defined by National Instrument
43-101 and has reviewed and approved the content of this press
release.
About Energy Fuels: Energy Fuels is a leading
U.S.-based uranium mining company, supplying
U3O8 to major nuclear utilities. The Company
also produces vanadium from certain of its projects, as market
conditions warrant. Its corporate offices are in Lakewood, Colorado – a part of the
Denver Metro Area, and all of its
assets and employees are in the United
States. Energy Fuels holds three of America's key uranium
production centers, the White Mesa Mill in Utah, the Nichols Ranch In-situ Recovery
("ISR") Project in Wyoming, and
the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only
conventional uranium mill operating in the U.S. today, has a
licensed capacity of over 8 million pounds of
U3O8 per year, and has the ability to produce
vanadium when market conditions warrant. The Nichols Ranch ISR
Project is in operation and has a licensed capacity of 2 million
pounds of U3O8 per year. The Alta Mesa ISR
Project is currently on standby. In addition to the production
facilities mentioned above, Energy Fuels also has one of the
largest NI 43-101 compliant uranium resource portfolios in the
U.S., 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: Certain information contained in this news
release constitutes forward-looking information within the meaning
of applicable securities legislation (collectively,
"forward-looking statements"), including any information relating
to: the Company being a leading producer of uranium in the
U.S.; any expectations regarding the resource
estimate, economics, conclusions and assumptions contained in the
preliminary feasibility study for the Sheep Mountain Project; any
expectations regarding future uranium production from the Sheep
Mountain Project and whether such production will be economic;
future uranium price forecasts; and any other statements
regarding Energy Fuels' future expectations, beliefs, goals or
prospects. All statements in this news release that are not
statements of historical fact (including statements containing the
words "expects," "does not expect," "plans," "anticipates," "does
not anticipate," "believes," "intends," "estimates," "projects,"
"potential," "scheduled," "forecast," "budget," and similar
expressions) should be considered forward-looking statements. All
such forward-looking statements are subject to important risk
factors and uncertainties, many of which are beyond Energy Fuels'
ability to control or predict. A number of important factors could
cause actual results or events to differ materially from those
indicated or implied by such forward-looking statements, including
without limitation factors relating to: the Company being a leading
producer of uranium in the U.S.; the Company being a
leading producer of uranium in the U.S.; any
expectations regarding the resource estimate, economics,
conclusions and assumptions contained in the preliminary
feasibility study for the Sheep Mountain Project; any expectations
regarding future uranium production from the Sheep Mountain Project
and whether such production will be economic; future uranium price
forecasts; and other risk factors as described in
Energy Fuels' most recent annual report on Form 10-K and quarterly
financial reports. Energy Fuels assumes no obligation to
update the information in this communication, except as otherwise
required by law. Additional information identifying risks and
uncertainties is contained in Energy Fuels' filings with the
various securities commissions which are available online at
www.sec.gov and www.sedar.com. Forward-looking statements are
provided for the purpose of providing information about the current
expectations, beliefs and plans of the management of Energy Fuels
relating to the future. Readers are cautioned that such statements
may not be appropriate for other purposes. Readers are also
cautioned not to place undue reliance on these forward-looking
statements, that speak only as of the date hereof.
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SOURCE Energy Fuels Inc.