November 30, 2010
Energy Fuels Inc. (TSX-EFR) (“Energy Fuels” or the “Company“), an advanced uranium and vanadium exploration and development company, announced today that it has entered into an agreement with Uranium One to acquire two Utah State Mineral Leases and 13 unpatented claims accessible from the Energy Queen Mine, located near La Sal, Utah. The addition of these properties will increase Energy Fuels’ holdings in the area by 1,400 acres, resulting in a contiguous property block at the Energy Queen totaling 3000 acres. Based on Union Carbide Corp. maps developed from drilling performed in the late 1970’s, one of these newly acquired Utah State parcels contains historic resource (not NI 43-101 compliant) of 184,000 lbs. U3O8 and 800,000 lbs. V2O5 within 4,000 feet of underground development planned for the Energy Queen Mine by Energy Fuels.
The Energy Queen is a fully permitted uranium mine currently on care and maintenance. Energy Fuels holds 29 unpatented claims in the area to the west of the original mine site. The Uranium One properties adjoin these claims on the north, west, and south sides and contain the historic producing Rattle Snake Mine as well as other past producers. All of these additional properties are within economic mining distance of the workings planned for the Energy Queen Mine, and may potentially be produced through the existing shaft. Energy Fuels is preparing an internal Preliminary Economic Assessment on the combined properties.
Steve Antony, President and CEO commented, “This acquisition, combined with a steadily rising uranium price, recently moving up through $60/lb. in the spot market, clearly enhances the economic viability of putting the Energy Queen Mine into production. Consolidating the land position around this fully permitted mine is obviously accretive to our production plans for the area and part of our overall strategy to consolidate the entire Uravan Mineral Belt. Our planned Piñon Ridge Mill location is in the heart of this past producing region and we are positioning the Company to be the leading producer in the area.”
This is a non-cash transaction. Uranium One will assign these three parcels and any pertinent data to EFR in exchange for electronic copies of specific historic data in EFR’s possession of interest to Uranium One. Uranium One will also retain an overriding royalty of 1% on any production from the acquired properties.
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Stephen P. Antony, President and CEO, and a Qualified Person as defined by National Instrument 43-101 has reviewed and approved the content of this press release.
Energy Fuels Inc. is a uranium and vanadium mineral development company actively rehabilitating and developing formerly producing mines. With more than 44,000 acres of highly prospective uranium and vanadium property located in the states of Colorado, Utah, Arizona, Wyoming, and New Mexico, and exploration properties in Saskatchewan’s Athabasca Basin totaling approximately 40,000 additional acres, the Company has a full pipeline of additional development prospects. Energy Fuels, through its wholly-owned Colorado subsidiary, Energy Fuels Resources Corporation and its British Columbia subsidiary, Magnum Uranium Corp., has assembled this property portfolio along with a first class management team, including highly skilled techn*-ical mining and milling professionals based in Lakewood and Nucla, Colorado and Kanab, Utah.
This news release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and “Forward Looking Information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time-to-time with the British Columbia, Alberta and Ontario Securities Commissions.
FOR FURTHER INFORMATION PLEASE CONTACT:
Energy Fuels Inc.
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