Energy Fuels to Focus on Lower Cost Uranium Production
18 October 2012 - 10:00AM
Marketwired
Energy Fuels Inc. (TSX:EFR) ("Energy Fuels" or the "Company") today
announced that, following an evaluation of its operations and
various production sources, the Company will shift its short-term
focus toward lower cost sources of U3O8 production within its asset
portfolio. Specifically, Energy Fuels will concentrate on mining
its lower cost, high-grade breccia pipes in northern Arizona and on
processing alternate feed materials at the White Mesa Mill which
have no associated mining cost.
As a result of this revised production strategy, Energy Fuels
will be placing the Beaver and Daneros properties on the Colorado
Plateau on standby over the course of the first quarter of FY 2013.
In addition, the Company will cease mining at the Pandora property
on the Colorado Plateau during the second quarter of FY 2013,
pending the depletion of its identified uranium and vanadium
resources. Energy Fuels will closely monitor market conditions and
evaluate reopening the Beaver and Daneros mines at the appropriate
time. Core mining expertise will be retained at these locations
during the standby period.
For FY 2013, Energy Fuels expects production from the White Mesa
Mill in Blanding, Utah to be between 1,000,000 and 1,100,000 lbs.
of U3O8 and between 2,000,000 and 2,200,000 lbs. of V2O5. Mining is
expected to continue at the Company's Arizona 1 property during the
first three quarters of FY 2013. In addition, mining is expected to
commence at the Pinenut property in Arizona during the second
quarter of FY 2013. The White Mesa Mill is expected to continue
processing alternate feed materials during FY 2013.
Commenting on these developments, Energy Fuels' President and
CEO Stephen Antony said, "Energy Fuels is well-equipped to adjust
our operations to address market conditions. Within our portfolio
of assets, we have lower cost sources of production, such as the
high-grade breccia pipe mines in the Arizona Strip and the ability
to process alternate feed materials at the White Mesa Mill for
which there is no mining cost. In addition, we have term contracts
with multiple utilities which enable the Company to sell
significant quantities of U3O8 at a substantial premium to the
current spot price. These assets will play a particularly important
role in how we manage our business at this time, when the current
U3O8 spot price, in our view, does not reflect the strong
fundamentals of the uranium sector over the medium- to long-term.
Although our Colorado Plateau properties will be placed on standby
for the time being, we will maintain these assets with the ability
to resume production in a timely fashion upon commodity prices
improving. In addition, we will continue to invest in development
projects that will keep Energy Fuels as the leading US uranium
producer, including the development of the Canyon mine in Arizona
and the continuation of permitting activities at our Sheep Mountain
project in Wyoming."
About Energy Fuels: Energy Fuels is America's largest
conventional uranium and vanadium producer, supplying nearly a
third of the uranium produced in the U.S. The company operates the
White Mesa Mill, which is the only conventional uranium mill
currently operating in the U.S., capable of processing 2,000 tons
per day of uranium ore. Energy Fuels has projects located
throughout the Western U.S., including producing mines and mineral
properties in various stages of permitting and development.
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.
Contacts: Energy Fuels Inc. Curtis Moore Investor Relations
(303) 974-2140 or Toll free:
1-888-864-2125investorinfo@energyfuels.com www.energyfuels.com
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