September 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 Zenith Minerals, LLC (Zenith) to acquire from Zenith US Department of Energy (DOE) Lease C-AM-19 which hosts a historical resource of approximately 400,000 lbs of U3O8 and 2 million lbs of V2O5. The lease, comprising 671 acres on Atkinson Mesa in western Montrose County, Colorado, is contiguous with Energy Fuels’ C-AM-19A DOE lease which was acquired in July, 2009, and is only 33 highway miles from the site for Energy Fuels’ proposed Piñon Ridge Mill. This lease was the site of Union Carbide Corporation’s King Solomon Mine complex which produced over 6 million lbs. U3O8 and 30 million lbs V2O5 over its lifetime until closure in 1985.
As part of this overall agreement, Energy Fuels has also entered into an “Area of Mutual Interest” (AMI) agreement with Zenith covering all of Zenith’s earlier held claims in the Uravan Mineral Belt. In exchange for a 2% overriding royalty payable to Zenith for any production from properties within the defined AMI boundary that may be acquired by Energy Fuels within the next three years, Energy Fuels also will acquire all data held by Zenith in the region. The overriding royalty will only be payable on production from properties determined by Energy Fuels to have sufficient value to be attractive for acquisition, and includes any production from the C-AM-19 DOE lease.
An agreement in principal to execute a Mining Lease Agreement has already been reached with one of the underlying claim holders on a contiguous block of 118 claims within the Zenith AMI and Energy Fuels anticipates that lease will be completed within the next few weeks.
In total, this property agreement with Zenith will add about 600,000 lbs. of historical (not yet NI 43-101 compliant) U3O8 resource to Energy Fuels’ inventory at minimal current cost.
Note that “historical resource” estimates referenced in this release are based on information provided by Department of Energy (DOE) in February, 2008 and historical regional mining and drilling by Union Carbide and others. DOE data from estimates originally prepared by the Atomic Energy Commission (AEC), predecessor to DOE, and based on US Geological Survey and AEC drilling conducted during 1951 – 1953. AEC/DOE do not apply resource categories or qualifiers.
Stephen Antony, President and CEO commented, “We continue to consolidate the region as we move toward a mill licensing decision from the State in January 2011. Our strategy is to build pounds and accumulate uranium/vanadium ore for a central mill which can service the entire Uravan Mineral Belt. This region is an area of prolific historical production and we are positioning the Company to be at the center of activity in the future.”
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.
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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.
Toll free: 1-888-864-2125