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enCore Energy acquires Texas uranium project from Energy Fuels

Published by , Editorial Assistant
Global Mining Review,


enCore Energy Corp. has announced the closing of the acquisition of the Alta Mesa In-Situ Recovery uranium project from Energy Fuels Inc. The transaction provides enCore with three licensed uranium in-situ recovery (ISR) processing plants and positions enCore as a leading US-focused ISR uranium company with the proven management expertise required to advance multiple production opportunities within its portfolio.

Highlights:

Alta Mesa includes a fully-licensed and constructed ISR processing facility that has an operating capacity of 1.5 million lb/yr of uranium. Between Alta Mesa, Rosita and Kingsville Dome, all fully licensed for production, enCore’s ISR processing facilities have a combined potential processing capacity of 3.6 million lb/yr of uranium.

  • Alta Mesa is host to a measured and indicated resource of 3.41 million lb. U3O8 (1.57 million t at an average grade of 0.109% U3O8) and an inferred resource of 16.79 million lb. U3O8 (7.0 million t at an average grade of 0.120% U3O8). Abundant exploration upside exists within the Alta Mesa land package around the existing defined resource areas, which enCore will prioritise.
  • Alta Mesa will diversify enCore’s South Texas operations into a 3rd fully licensed production facility, along with Rosita and Kingsville Dome, all located in the business-friendly state of Texas. enCore’s mid- and long-term production potential is further fuelled by a pipeline of projects with Dewey-Burdock in South Dakota, Gas Hills in Wyoming and additional projects in New Mexico. There are only 11 licensed production facilities in the United States.
  • Alta Mesa is currently on standby and ready to resume production. The facility can reach commercial production levels with limited required capital within an estimated 10 months of a production decision.
  • Control of a large private land package totalling 203 292 contiguous acres, including 4575-acres currently under a lease and mining permit and 198 717 acres under a lease-option and exploration/testing permit.
  • The acquisition will further cement enCore’s position as a dominant ISR uranium company and near-term future producer in the US. 
  • Alta Mesa’s operations are located on private land, with 100% of minerals privately owned, and in a supportive jurisdiction with primary regulatory authority residing with the State of Texas.
  • The Alta Mesa ISR processing facility is a fully permitted and constructed past-producing ISR operation, with a previous well-established track record of lower cost uranium production. The project is fully permitted for uranium extraction upon installation of the next wellfield.
  • Alta Mesa has extensive exploration potential across an area that has previously identified uranium mineralisation.
  • Alta Mesa produced a total of 4.6 million lb. of uranium between October 2005 and November 2013, including 1 million lb/yr of uranium over a two-year period.
  • With low holding costs, Alta Mesa provides fully permitted lower-cost production scalability that can be brought into production quickly to provide a domestic energy source for the United States.

William M. Sheriff, Executive Chairman of enCore, stated:

"Alta Mesa is a key acquisition in enCore’s development into the dominant ISR uranium producer in the state of Texas. With its more immediate plan of restarting Rosita in later 2023 and greatly expanding its production profile with the start-up of Alta Mesa in early 2024, our goal of becoming a 3 million lb/yr per year domestic producer from a consolidated base of operations within a 100-mile radius of Corpus Christi, Texas is well underway. This Texas platform positions the company well for its continued growth not only in Texas, but with planned operations in South Dakota, Wyoming and ultimately New Mexico. We are all looking forward to a dynamic and rewarding 2023. On behalf of the Board of Directors we extend congratulations to the enCore team for a major achievement."

Paul Goranson, CEO and Director of enCore, further added:

"With the completion of this transaction enCore is more than doubling our production capacity in South Texas. As we advance towards our 3Q23 production goal at our Rosita ISR Uranium Processing Plant, we will commence work at the Alta Mesa project with plans to restart production in 2024 with installation of a fully permitted wellfield. The strong technical team at enCore is excited to get started at Alta Mesa. Our collective South Texas operations puts us on the path to becoming a leading producer of uranium in the US."

Read the article online at: https://www.globalminingreview.com/mining/17022023/encore-energy-acquires-texas-uranium-project-from-energy-fuels/

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