SASKATOON, SK, Feb. 29,
2024 /CNW/ - IsoEnergy Ltd. ("IsoEnergy" or the
"Company") (TSXV: ISO) (OTCQX: ISENF) is pleased to
announce its strategic decision to reopen access to the underground
at our Tony M uranium mine ("Tony M" or the "Mine) in
the first half of 2024 ("H1-2024"), with the goal of
restarting uranium production operations in 2025, should market
conditions continue as expected. The decision to advance Tony M is
underpinned by rising uranium prices, the climate of increasing
support and demand for nuclear energy, and the recent announcement
by Energy Fuels Inc. ("EFR") to restart its uranium circuit
at the White Mesa Mill (the "Mill"), with whom IsoEnergy has
a toll milling agreement.
Tony M, along with our Daneros and Rim projects, is one of three
past-producing, fully-permitted, uranium mines in Utah owned by IsoEnergy, and is a large-scale,
fully-developed and permitted underground mine that previously
produced nearly one million pounds of U3O8
during two different periods of operation, from 1979-1984 and from
2007-2008.
Highlights
- Reopening of the Underground and Comprehensive Work
Program – The Company plans to reopen the main decline
into the Tony M mine and gain underground access by the end of
H1-2024. This critical step is expected to facilitate the
assessment of the mine's underground conditions, enable direct
analysis of the uranium mineralization in place, and allow for the
collection of necessary data required to prepare an
efficient mine plan. The work program also includes
underground and surface geological mapping of the sandstone-hosted
uranium and vanadium mineralization to allow for more precise
extraction plans for inclusion in an updated economic study.
- Technical/Economic Study Planned (the "Study") –
The Company intends to complete a Study, which will provide further
details on a potential restart date and a mine plan that will
provide production plans and rates, expected operational costs and
capital requirements.
- Toll-Milling Arrangement
with EFR – IsoEnergy has a toll milling
arrangement with EFR for its Tony M, Daneros, Rim and Calliham
projects, which guarantees the Company access to the White Mesa
Mill, the only operational conventional uranium mill in the U.S. On
December 21, 2023, EFR announced its
plans to restart the White Mesa Mill uranium circuit in 2025. As a
result, and to support additional feed, IsoEnergy intends to
deliver ore to the Mill in time for the restart of the uranium
circuit.
- Commencement into Multi-Asset Production – The
reopening of the Tony M mine is a first step in IsoEnergy's plan to
becoming a multi-asset uranium producer. IsoEnergy is also
evaluating plans to restart operations at the Daneros and Rim
mines, both of which were previous producers of uranium and
vanadium, and are currently permitted for production.
- Staffing up for Re-Opening – The Company has
appointed Josh Clelland to the
position of Director of US Engineering and Operations, to manage
the reopening of the Tony M Mine, and advancement of the Company's
other US-based uranium projects. Josh is a Professional Mining
Engineer with over 20 years of experience in the mining industry,
including significant experience operating in both underground and
open pit environments. He joins us from a major global gold
producer where in his most recent role he was a Superintendent of
Mine Operations. Josh's additional experience includes a Corporate
Development role at a major producer, technical advisory at a major
international mining consulting firm, and research at a Canadian
brokerage firm, during which time Josh earned his Chartered
Financial Analyst designation.
IsoEnergy CEO and Director Phil
Williams stated, "With the uranium spot price now trading
around US$100 per pound1,
we are in the very fortunate position of owning multiple,
past-producing, fully-permitted uranium mines in the U.S. that we
believe can be restarted quickly with relatively low capital costs.
Our existing toll-milling agreement with Energy Fuels
places IsoEnergy in a unique position to become a conventional
uranium producer in the near-term.
Multiple work streams are now underway to move our flagship Tony
M Mine back toward production in 2025, in line with the timing
Energy Fuels has announced for its White Mesa Mill for which
IsoEnergy has a toll milling agreement. Given current and expected
near term uranium market dynamics, we think this restart timing is
ideal and would firmly place us in a very small group of uranium
companies able to deliver uranium production in the near term. I
would also like to welcome Josh to the team. We are fortunate to be
able to attract such high-quality talent, which we believe is a
testament to our projects and vision for the Company."
Figure 1 – Location map of Tony M, Daneros and Rim Mines and the
Sage Plain Project in proximity to Energy Fuel's White Mesa Mill,
the only operational conventional uranium mill in the U.S. with
licensed capacity of over 8Mlbs of U₃O₈ per year, located in
Utah.
_____________________________
|
1 Uranium - Price - Chart -
Historical Data - News (tradingeconomics.com)
|
Tony M Mine Work Program
The Company is continuing to advance plans to reopen the
underground mine workings in preparation for a potential restart of
Tony M. This work program includes updating mine ventilation and
escape plans, maintenance of the existing ventilation fans and
power infrastructure, surveying of the underground mine workings,
rehabilitation of mine workings and ground support as needed, and
upgrading and/or replacement of utilities.
Rehabilitation of the underground is expected to take place
during H1-2024, followed by planned geologic mapping and sampling
alongside mine planning ahead of anticipated completion of the
Study. The Company currently expects to utilize contract mining
initially. In addition to the 18 miles of underground development,
including multiple production headings, the Mine has complete
surface infrastructure in place (Figure 2).
IsoEnergy continues to work with RME Consulting, a leading
international, technical underground mining ventilation and
refrigeration design firm, to oversee the design and implementation
of the ventilation plan and Call & Nicholas, Inc., an
international mining consulting firm that specializes in geological
engineering, geotechnical engineering, and hydrogeology, to assess
the mine's ground conditions.
Figure 2 – Image of large-scale surface infrastructure at the
Tony M Mine, which includes two parallel declines extending 10,200
ft, a power generation station, fuel storage facility, ore bays,
maintenance building, offices, dry facilities and evaporation
pond.
IsoEnergy has guaranteed access to the White Mesa Mill by way of
a toll milling agreement with Energy Fuels, providing a significant
advantage to the Company. The Mill is the only operational
conventional uranium mill in the U.S. with licensed capacity of
over 8Mlbs of U₃O₈ per year. The Mill is within trucking distance
to Tony M. It is an important distinction worth noting that a toll
milling agreement and the selling of ore to EFR/White Mesa are very
different, with toll milling allowing IsoEnergy to participate in
the upside of the uranium price.
About Tony M Mine
The Tony M Mine is located in eastern Garfield County, southeastern Utah, approximately 66 air miles (107
kilometers) west northwest of the town of Blanding and 215 miles (347 kilometers)
south-southeast of Salt Lake City.
The project is the site of the Tony M underground uranium mine that
was developed by Plateau Resources, a subsidiary of Consumer Power
Company, in the mid-1970s.
Uranium and vanadium mineralization at the Tony M mine is hosted
in sandstone units of the Salt Wash Member of the Jurassic age
Morrison Formation, one of the principal hosts for uranium deposits
in the Colorado Plateau region of Utah and Colorado.
Tony M has been estimated to contain the following mineral
resources:
Table 1: Summary of Mineral Resources – Effective Date
September 9, 2022
Classification
|
Tons
(short tons)
|
Grade
(% eU3O8)
|
Contained
Metal
(lbs. eU3O8)
|
Indicated
|
1,185,000
|
0.28
|
6,606,000
|
Inferred
|
404,000
|
0.27
|
2,218,000
|
Notes:
- Reported in the Technical Report on the Tony M Project, Utah,
USA Report for NI 43-101, prepared for Consolidated Uranium Inc. by
SLR International Corporation; Mark B.
Mathisen, Qualified Person, Effective Date September 9, 2022.
- CIM (2014) definitions were followed for all Mineral Resource
categories.
- Uranium Mineral Resources are estimated at a cut-off grade of
0.14% U3O8.
- The cut-off grade is calculated using a metal price of
$65/lb U3O8.
- No minimum mining width was used in determining Mineral
Resources.
- Mineral Resources are based on a tonnage factor of 15 ft3/ton
(Bulk density 0.0667 ton/ft3 or 2.14 t/m3).
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.
- Past production (1979-2008) has been removed from the Mineral
Resource.
- Totals may not add due to rounding.
- Mineral Resources are 100% attributable to IsoEnergy and are in
situ.
Figure 3 – Plan view of the Tony M Mine
Qualified Person
Statement
The scientific and technical information contained in this news
release was reviewed and approved by Dean
T. Wilton: PG, CPG, MAIG, a consultant of IsoEnergy who is a
"Qualified Person" (as defined in National Instrument 43-101 -
Standards of Disclosure for Mineral Projects).
About IsoEnergy Ltd.
IsoEnergy Ltd. (TSXV: ISO) (OTCQX: ISENF) is a leading, globally
diversified uranium company with substantial current and historical
mineral resources in top uranium mining jurisdictions of
Canada, the U.S., Australia, and Argentina at varying stages of development,
providing near, medium, and long-term leverage to rising uranium
prices. IsoEnergy is currently advancing its Larocque East Project
in Canada's Athabasca Basin, which is home to the
Hurricane deposit, boasting the world's highest grade Indicated
uranium Mineral Resource.
IsoEnergy also holds a portfolio of permitted, past-producing
conventional uranium and vanadium mines in Utah with a toll milling arrangement in place
with Energy Fuels Inc. These mines are currently on stand-by, ready
for rapid restart as market conditions permit, positioning
IsoEnergy as a near-term uranium producer.
Neither the TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking
Information
The information contained herein contains "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable Canadian securities
legislation. "Forward-looking information" includes, but is not
limited to, statements with respect to the activities, events or
developments that the Company expects or anticipates will or may
occur in the future, including, without limitation, statements with
respect to the planned work program starting in H1-2024 and
potential results and benefits thereof; plans for the potential
restart of mining operations at Tony M, Daneros and Rim;
expectations regarding the preparation and timing of the
Study; underground sampling program and potential benefits
thereof; expectations regarding the preparation of a potential
vanadium mineral resource estimate; expectations regarding the
potential upgrade of existing mineral resources from "inferred" to
"indicated"; expectations regarding the restart of Tony M;
expectations regarding the preparation and timing of a Preliminary
Economic Assessment; the Company's ongoing business
plan, sampling, exploration and work programs. Generally,
but not always, forward-looking information and statements can be
identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or the negative connotation
thereof or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved" or the negative
connotation thereof.
Such forward-looking information and statements are based on
numerous assumptions, including among others, that the results of
planned exploration activities are as anticipated, the price of
uranium, the anticipated cost of planned exploration activities,
that general business and economic conditions will not change in a
material adverse manner, that financing will be available if and
when needed and on reasonable terms, that third party contractors,
equipment and supplies and governmental and other approvals
required to conduct the Company's planned exploration activities
will be available on reasonable terms and in a timely manner.
Although the assumptions made by the Company in providing
forward-looking information or making forward-looking statements
are considered reasonable by management at the time, there can be
no assurance that such assumptions will prove to be
accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ
materially from any projections of future events or results
expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves, the limited operating history
of the Company, the influence of a large shareholder, alternative
sources of energy and uranium prices, aboriginal title and
consultation issues, reliance on key management and other
personnel, actual results of exploration activities being different
than anticipated, changes in exploration programs based upon
results, availability of third party contractors, availability of
equipment and supplies, failure of equipment to operate as
anticipated; accidents, effects of weather and other natural
phenomena and other risks associated with the mineral exploration
industry, environmental risks, changes in laws and regulations,
community relations and delays in obtaining governmental or other
approvals and the risk factors with respect to the Company set out
in the Company's filings with the Canadian securities regulators
and available under IsoEnergy's profile on SEDAR+ at
www.sedarplus.ca.
Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in the forward-looking information or implied by
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company
undertakes no obligation to update or reissue forward-looking
information as a result of new information or events except as
required by applicable securities laws.
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SOURCE IsoEnergy Ltd.