LAKEWOOD, CO, Jan. 10, 2017 /PRNewswire/ - Energy Fuels Inc.
(NYSE MKT: UUUU; TSX: EFR) ("Energy Fuels" or the "Company"), a
leading producer of uranium in the United
States, is pleased to announce that the U.S. Bureau of Land
Management (the "BLM") has issued a Final Environmental Impact
Statement (the "EIS") and Record of Decision (the "ROD") for the
Company's 100%-owned Sheep Mountain Project located in the Crooks
Gap Mining District of central Wyoming. The Sheep Mountain
Project is a large-scale, formerly-producing, conventional uranium
mine with the potential to become a long-term uranium production
center in a higher price environment. As previously announced, the
Company also holds a mine permit (the "Mine Permit") for the
project, which was issued by the State of
Wyoming in July 2015. The
issuance of the EIS, the ROD and the Mine Permit are the last major
government approvals required to commence mining at this project,
as the Company continues to evaluate options for processing the
resources that may be mined at the project, including toll
processing at other facilities in the region and the licensing and
construction of its own onsite facility.
According to an April 2012
preliminary feasibility study (the "PFS") prepared in accordance
with Canadian National Instrument 43-101 – Standards of Disclosure
for Mineral Projects ("NI 43-101"), the Sheep Mountain Project is
estimated to hold approximately 12.9 million tons of Indicated
Mineral Resources with an average grade of 0.117%
eU3O8 containing approximately 30.3 million
pounds of uranium. Included in the Indicated Mineral
Resources, the project is estimated to hold approximately 7.5
million tons of Probable Mineral Reserves with an average grade of
0.123% eU3O8 containing approximately 18.4
million pounds of uranium. The PFS also estimates that the
Sheep Mountain Project can produce up to 1.5 million pounds of
uranium per year over a 15-year mine life.
Stephen P. Antony, President and
CEO of Energy Fuels stated: "We are obviously pleased that the
BLM issued the Final EIS and ROD for the Sheep Mountain
Project. We now have all the major government approvals needed
to begin mining this project, as we continue to evaluate how best
to process the mined resources into finished uranium product. While
the project is not planned to go into production in the near-term,
our costs to hold the property and permits for the Sheep Mountain
Project are relatively low. Therefore, it represents an important,
low-cost aspect of Energy Fuels' optionality and leverage to rising
uranium prices. Because it typically requires many years to acquire
the major government approvals for uranium projects, permitted
projects like Sheep Mountain will be among the first to produce
uranium that can be placed into sales contracts with nuclear
utilities as prices improve. For these reasons, we believe
that permitting new projects and holding existing permitted
projects have the strong potential to create real value for Energy
Fuels' shareholders. In the meantime, we intend to continue to
evaluate the licensing of an onsite processing facility for the
Sheep Mountain Project, seek an agreement with a nearby processing
facility, or potentially sell the asset at a price that recognizes
the value of the existing resources and permits."
About Energy Fuels: Energy Fuels is a
leading integrated US-based uranium mining company, supplying
U3O8 to major nuclear utilities. Energy
Fuels holds three of America's key uranium production centers, the
White Mesa Mill in Utah, the
Nichols Ranch Processing Facility in Wyoming, and the Alta Mesa Project in
Texas. The White Mesa Mill is the only conventional uranium
mill operating in the U.S. today and has a licensed capacity of
over 8 million pounds of U3O8 per
year. The Nichols Ranch Processing Facility is an ISR
production center with a licensed capacity of 2 million pounds of
U3O8 per year. Alta Mesa is an ISR
production center currently on care and maintenance. Energy
Fuels also has the largest NI 43-101 compliant uranium resource
portfolio in the U.S. among producers, and uranium mining projects
located in a number of Western U.S. states, including one producing
ISR project, mines on standby, and mineral properties in various
stages of permitting and development. The Company also
produces vanadium as a co-product of its uranium production from
certain of its mines on the Colorado Plateau, as market conditions
warrant. The Company's common shares are listed on the NYSE
MKT under the trading symbol "UUUU", and on the Toronto Stock
Exchange under the trading symbol "EFR".
Stephen P. Antony, P.E., President & CEO of Energy
Fuels, is a Qualified Person as defined by Canadian
National Instrument 43-101 and has reviewed and approved the
technical disclosure contained in this news release.
Cautionary Note Regarding Forward-Looking
Statements: Certain information contained in this
news release, including any information relating to: the Company
being a leading producer of uranium in the U.S.; the
potential for the Sheep Mountain Project to become a long-term
uranium production center in a higher price environment; the EIS
and ROD being the last major government approvals required to
commence mining at the project; estimates of resources and reserves
at the project; estimated rates of production for the project, if
put into production; the costs to hold the project; the project
potentially being among the first to produce uranium as prices
improve; the potential for the project to create value for Energy
Fuels shareholders; the ability of the Company to license an onsite
processing facility, enter into an agreement with a nearby
processing facility to process any mined resources, or the ability
to sell the project at a price that recognizes the existing
resources and permits; and any other statements regarding
Energy Fuels' future expectations, beliefs, goals or prospects;
constitute forward-looking information within the meaning of
applicable securities legislation (collectively, "forward-looking
statements"). All statements in this news release that are not
statements of historical fact (including statements containing the
words "expects", "does not expect", "plans", "anticipates", "does
not anticipate", "believes", "intends", "estimates", "projects",
"potential", "scheduled", "forecast", "budget" and similar
expressions) should be considered forward-looking
statements. All such forward-looking statements are subject to
important risk factors and uncertainties, many of which are beyond
Energy Fuels' ability to control or predict. A number of
important factors could cause actual results or events to differ
materially from those indicated or implied by such forward-looking
statements, including without limitation factors relating to: the
Company being a leading producer of uranium in the U.S.; the
potential for the Sheep Mountain Project to become a long-term
uranium production center in a higher price environment; the EIS
and ROD being the last major government approvals required to
commence mining at the project; estimates of resources and reserves
at the project; estimated rates of production for the project, if
put into production; the costs to hold the project; the project
potentially being among the first to produce uranium as prices
improve; the potential for the project to create value for Energy
Fuels shareholders; the ability of the Company to license an onsite
processing facility, enter into an agreement with a nearby
processing facility to process any mined resources, or the ability
to sell the project at a price that recognizes the existing
resources and permits; and other risk factors as described
in Energy Fuels' most recent annual report on Form 10-K and
quarterly financial reports. Energy Fuels assumes no
obligation to update the information in this communication, except
as otherwise required by law. Additional information
identifying risks and uncertainties is contained in Energy Fuels'
filings with the various securities commissions which are available
online at www.sec.gov and www.sedar.com. Forward-looking
statements are provided for the purpose of providing information
about the current expectations, beliefs and plans of the management
of Energy Fuels relating to the future. Readers are cautioned
that such statements may not be appropriate for other
purposes. Readers are also cautioned not to place undue
reliance on these forward-looking statements, that speak only as of
the date hereof.
Cautionary note to United
States investors concerning estimates of measured, indicated
and inferred resources. This news release contains
certain disclosure that has been prepared in accordance with the
requirements of Canadian securities laws, which differ from the
requirements of U.S. securities laws. Unless otherwise
indicated, all reserve and resource estimates included in this news
release have been prepared in accordance with NI 43-101 and the
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
classification system. Canadian standards, including NI
43-101, differ significantly from the requirements of U.S.
securities laws, and reserve and resource information contained in
this news release may not be comparable to similar information
disclosed by companies reporting only under U.S. standards. In
particular, the term "resource" does not equate to the term
"reserve" under SEC Industry Guide 7. United States investors are cautioned not to
assume that all or any of Measured or Indicated Mineral Resources
will ever be converted into mineral reserves. Investors are
cautioned not to assume that all or any part of an "Inferred
Mineral Resource" exists or is economically or legally
minable. Energy Fuels does not hold any Reserves as that term
is defined by SEC Industry Guide 7. Please refer to the
section entitled "Cautionary Note to United States Investors
Concerning Disclosure of Mineral Resources" in the Company's Annual
Report on Form 10-K dated March 15,
2016 for further details.
SOURCE Energy Fuels Inc.