DENVER, CO, May 8, 2018 /PRNewswire/ - Energy Fuels
Inc. (NYSE American: UUUU; TSX: EFR) ("Energy Fuels" or the
"Company"), a leading uranium producer in the
U.S., is pleased to announce that it intends to resume
vanadium recovery operations in 2018, and it expects to recover
significant quantities of currently dissolved vanadium (as
V2O5) from pond solutions at the Company's
White Mesa Mill (the "Mill").
Vanadium prices have risen by more than 400% over the past 24
months to about US$15 per pound
V2O5. Based on extensive test work and
laboratory analysis, the Company has identified significant
concentrations of dissolved vanadium in pond solutions at the Mill,
ranging between 1.4 and 2.0 g/L. Based on current estimates, the
Company believes these pond solutions, which result from past
mineral processing campaigns at the Mill, may contain over four (4)
million pounds of recoverable vanadium (as
V2O5).
The Mill has a long history of conventional vanadium recovery,
most recently producing 1.5 million pounds of vanadium in 2013.
During its 38-year operating history, the Mill has produced over 45
million pounds of vanadium – or over US$500
million of vanadium at today's prices. The Mill is the only
operating conventional uranium recovery facility in the United States, and, at the present time,
is the only operating facility in the
United States with the near-term ability to resume vanadium
recovery.
The Company has a successful recent record of recovering uranium
from pond solutions from the same ponds. During 2017, the Company
produced approximately 308,000 pounds of U3O8
from pond solutions, and in 2018 the Company expects to produce a
further 175,000 to 215,000 pounds of U3O8
from pond solutions. Based on repeatable, bench-scale laboratory
analysis performed to date, the Company believes the dissolved
vanadium in the ponds can be recovered utilizing existing equipment
and process streams at the Mill, in a fashion similar to how the
Mill has been recovering dissolved uranium from the ponds.
If full-scale costs and recoveries are similar to the bench
scale analysis performed to date, the Company would expect to
recover approximately 500,000 pounds of V2O5
in 2018, which, based on current vanadium prices, would be expected
to generate positive net cash flow this year. The Company will then
evaluate its actual 2018 costs and recoveries, and given favorable
results, and depending on prevailing vanadium market conditions,
would expect to continue vanadium production from pond returns in
2019 and 2020. The Company would only continue vanadium recovery
operations in 2018 and subsequent years if vanadium prices
continued to be strong enough to justify production. It should also
be noted that, because the Company's bench scale analysis has not
yet been proven at full scale production, there can be no certainty
of the outcome of the Company's efforts to recover vanadium from
pond returns, and therefore the outcome of this process is
uncertain.
Mark S. Chalmers, President and
CEO of Energy Fuels stated: "Energy Fuels' White Mesa Mill has
historically been a significant producer of vanadium, and today it
is the only operating facility in the
United States with the near-term capability to resume
vanadium production. Due to recent vanadium price strength and
bullish market sentiment, we are evaluating a number of
opportunities to resume cash-flow-positive and sustainable vanadium
recovery, including today's announcement of our campaign to recover
vanadium from the Mill's pond solutions. If this campaign is
successful, Energy Fuels would expect to become a commercial scale
vanadium producer for the next few years, just from pond
solutions.
"For longer term alternatives, we are evaluating other vanadium
production opportunities, including the processing of previously
mined uranium/vanadium stockpiles in the vicinity of the Mill,
processing other vanadium-bearing streams, and, with improved
uranium prices, the re-initiation of conventional uranium/vanadium
mine production from certain of our mines that contain large,
high-grade vanadium resources, including the La Sal and Whirlwind
mines which are currently on standby. If the uranium Section 232
Petition we recently filed with the U.S. Department of Commerce is
successful, we would expect improvements in uranium prices, which
could potentially allow these mines – and others in the region – to
resume commercial uranium and vanadium production, adding further
scale to our vanadium optionality, while also underpinning the
sustainability of the Company's uranium and vanadium production
well into the future."
About Energy Fuels: Energy Fuels is a leading
integrated U.S. uranium mining company, supplying
U3O8 to major nuclear utilities. Its
corporate offices are in Denver,
Colorado, and all of its assets and employees are in the
western United States. 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 in-situ recovery production center with a licensed
capacity of 2 million pounds of U3O8 per
year. Alta Mesa is an in-situ
recovery production center with a licensed capacity of 1.5 million
pounds of U3O8 per year, which is currently
on care and maintenance due to low uranium prices. Energy Fuels
also has the largest 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 in-situ recovery
project, mines on standby, and mineral properties in various stages
of permitting and development. Energy Fuels also produces vanadium
as a by-product of its uranium production from certain of its mines
on the Colorado Plateau, as market conditions warrant. The primary
trading market for Energy Fuels' common shares is the NYSE American
under the trading symbol "UUUU", and the Company's common shares
are also listed on the Toronto Stock Exchange under the trading
symbol "EFR". Energy Fuels' website is
www.energyfuels.com.
Cautionary Note Regarding Forward-Looking
Statements: Certain information contained in this news
release, including any information relating to: the Company being a
leading uranium producer in the U.S.; the Company's intention to
resume vanadium recovery operations in 2018; the Company's
expectation to recover significant quantities of currently
dissolved vanadium from pond solutions; the Company's belief as to
the amount of recoverable vanadium in the ponds, the Company's
expected future uranium production from pond solutions; the
Company's belief that the dissolved vanadium in the ponds can be
recovered utilizing existing equipment and process streams, in a
similar fashion as uranium from the ponds; expected recoveries of
vanadium in 2018; any expectations that vanadium recovery would be
expected to generate positive net cash flows; any expectation as to
continued vanadium production in 2019 and 2020; 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 uranium producer in the U.S.; the Company's
intention to resume vanadium recovery operations in 2018; the
Company's expectation to recover significant quantities of
currently dissolved vanadium from pond solutions; the Company's
belief as to the amount of recoverable vanadium in the ponds, the
Company's expected future uranium production from pond solutions;
the Company's belief that the dissolved vanadium in the ponds can
be recovered utilizing existing equipment and process streams, in a
similar fashion as uranium from the ponds; expected recoveries of
vanadium in 2018; any expectations that vanadium recovery would be
expected to generate positive net cash flows; any expectation as to
continued vanadium production in 2019 and 2020;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.
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SOURCE Energy Fuels Inc.