Energy Fuels expands Arizona uranium holding

05 November 2015

Energy Fuels has taken full ownership of the Wate high-grade uranium project in northern Arizona through the acquisition of a 50% interest in the project from Anfield Resources for cash and shares.

According to an NI 43-101-compliant technical report released in March, Wate has 1.12 million pounds of U3O8 (431 tU) in inferred mineral resources with an average grade of 0.79%. It is a breccia pipe uranium deposit, similar to those found at Energy Fuels' Arizona 1, Pinenut and Canyon mines.

Anfield received $275,000 in cash and 92,906 common shares from Energy Fuels for its share in the project. Anfield will also receive an additional cash payment of $275,000 plus shares worth $275,000 as future permitting milestones are met.

Energy Fuels acquired 50% of Wate from Vane Minerals in February for a total of $1.75 million in cash, promissory notes and royalties. Anfield became the joint owner of the project on 1 September after its acquisition of the Shootaring Canyon uranium mill and a portfolio of conventional US uranium assets, including Wate, from Uranium One.

Wate is located on land owned by the State of Arizona and is at an advanced stage of permitting, Energy Fuels said, and it expects to receive the main permit for the mine - a mineral lease granting it the right to mine, ship ores and conduct all support operations - in 12 to 18 months. Once the mineral lease is granted, Energy Fuels will need to obtain further approvals including aquifer protection and air quality permits before development and mining can begin.

Canyon is fully permitted, and Energy Fuels recently resumed work on shaft-sinking operations that had been on hold since September 2013. Energy Fuels anticipates processing the output from both Canyon and Wate at its White Mesa uranium mill in Utah.

Energy Fuels president and CEO Stephen Antony said the company was "extremely pleased" to acquire Anfield's interest in Wate. "The Wate project is a well-known, high-grade breccia pipe deposit that fits nicely into our existing uranium portfolio," he said.

Researched and written
by World Nuclear News