Energy Queen

The Energy Queen Mine, formerly known as the Hecla Shaft, was acquired by Energy Fuels Resources in December, 2006.  The property is located in San Juan County, Utah, between the small community of La Sal and La Sal Junction where Utah State Highway 46 joins U.S. Highway 191.  The property is in the west end of the La Sal trend and is just north of an active uranium and copper district known as Lisbon Valley.  Ore from the mine may be milled at Denison’s White Mesa Mill which is 62 miles away.

This mine property is in very good condition with well developed infrastructure on site.  A head frame; compressor house; mine hoist; and a metal building with shop, warehouse, office, and miner’s shower facilities are all in place.  There is an electric power line running to the site. 

Once permitting issues are resolved, this mine should be capable of producing within a matter of months.  The mine is located on private land and is permitted with the Utah Division of Oil, Gas and Mining. EFRC is currently conducting ground water baseline studies and expects to submit a ground water discharge permit application to the Utah Division of Water Quality in the third quarter of 2007. Remaining environmental permits are in place or can be readily obtained.

EFRC currently forecasts mining the Energy Queen deposit in 2008.

The property was initially joint-ventured by Hecla and Umetco.  Surface rights and minerals are leased from two separate private parties.  The mineral lease covers just over 700 acres.

There are drill indicated resources (NOT NI 43-101 compliant), of 178,150 tons of ore at a grade of 0.22% U₃O₈ and 0.86% V₂O₅, representing approximately 767,000 lbs. U₃O₈ and 3,075,200 lbs. V₂O₅, diluted to a mining thickness.  This indication was calculated by a senior EFRC geologist (Dick White, C.P.G. # 08792) based on Union Carbide/Hecla drillhole maps from the late 1970’s and early 1980’s, as well as a thorough examination of Union Carbide’s core lithology logs.  Because of the experience of the Union Carbide uranium team, the maps are considered to be reliable.  A NI 43-101 compliant technical report is in preparation for the Energy Queen Mine.