Energy Fuels Inc. (TSX-EFR) (“Energy Fuels” or the “Company“) announced today that the Company purchased a mining lease (the “Crain Lease”) in southeast Utah’s Sage Plain District from Uranium Energy Corp. (“UEC”) for $500,000 (CAD), together with the provision for a future overriding royalty. The Crain Lease is located on approximately 640- acres in San Juan County, Utah, and is near the historic Calliham and Sage Mines which are properties already controlled by Energy Fuels.
Energy Fuels immediately assigned the Crain Lease to Colorado Plateau Partners, LLC (“CPP”), a 50/50 joint venture of Energy Fuels and Lynx-Royal JV, LLC (“Lynx-Royal”) formed to explore and develop mineral resources in the Sage Plain District and other nearby areas. Lynx-Royal has paid $250,000 (CAD) to Energy Fuels to convey the Crain Lease to the CPP joint venture, reducing Energy Fuels’ net expenditure to $250,000. As the contractual operator of any mines developed by CPP, Energy Fuels will receive all production from this property as mill feed for the Company’s proposed Piñon Ridge uranium/vanadium mill (“Piñon Ridge”).
The Crain Lease has historic mineral resources estimated to be 225,000 lbs. U3O8 and 1.5 million lbs. V2O5. The combined historic resource in the potential mining unit created by the Crain Lease and other properties owned or controlled by Energy Fuels and CPP is approximately 1.5 million lbs. U3O8 and 10.7 million lbs. V2O5. These historic resource estimates are based on drilling performed by Umetco Minerals, Pioneer Uravan, and Truchas Ltd. in the 1970’s and 1980’s, and are deemed reliable by Energy Fuels’ geologists. The Company will immediately evaluate the data package acquired as part of this property purchase, and complete a 43-101 technical report by the end of the year.
The Crain property resource block is accessible through historic mine workings on Energy Fuels’ Calliham property acquired earlier this year. Engineering studies are currently underway to rehabilitate and develop the resources in this district. Preliminary mine permitting activities will begin with the State of Utah, within the next 30 days. The Calliham/Sage Plain resources will evolve into Energy Fuels’ third fully permitted and production-ready mining project over the next year.
The Sage Plain properties are located within economic trucking distance (about 70 highway miles) of Piñon Ridge, which received a Final Radioactive Materials License from the State of Colorado on March 7, 2011. This License is the most important governmental approval required to build and operate the Piñon Ridge Mill.
Steve Antony, President and CEO of Energy Fuels commented, “The Sage Plain District historically produced significant quantities of uranium and vanadium. In fact, the vanadium content of the resource is up to nine times higher than the uranium content. Our recent acquisitions in this proven area are important steps toward bringing these mining properties back into production and providing additional feed for the Piñon Ridge Uranium and Vanadium Mill.”
Stephen P. Antony is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this press release.
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About Energy Fuels: Energy Fuels Inc. is a uranium and vanadium mineral development company actively rehabilitating and developing formerly producing mines. With more than 38,000 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 32,000 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 technical mining and milling professionals based in Lakewood and Naturita, 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
Toll free: 1-888-864-2125