TSX.V:EU
OTCQB:ENCUF
www.encoreuranium.com
CORPUS
CHRISTI, Texas, Aug. 10,
2022 /CNW/ - enCore Energy Corp.
("enCore" or the "Company") (TSXV: EU) (OTCQB: ENCUF)
today announced a panel of the U.S. Court of Appeals for the
Circuit of the District of
Columbia issued an opinion in a case brought by the Oglala
Sioux Tribe against the U.S. Nuclear Regulatory Commission (NRC).
The Oglala Sioux Tribe had challenged the NRC's decision to grant
Powertech Uranium (USA), Inc.
(Powertech), a wholly-owned subsidiary of enCore Energy Corp.
(enCore), a license to extract uranium at its Dewey Burdock In-Situ
Recovery ("ISR") Uranium Project in South
Dakota. Today the panel ruled that the NRC's actions were
lawful, affirming its decision to issue the license to
Powertech.
To view the Opinion, which may be appealed by the Oglala Sioux
Tribe, please visit:
https://www.cadc.uscourts.gov/internet/opinions.nsf/E4FBC75E78CE05F08525889900538B63/$file/20-1489-1958435.pdf
The Dewey Burdock Project,
South Dakota
The Company's 100% owned Dewey Burdock Project is an
in-situ recovery ("ISR") uranium project located in the
Edgemont uranium district,
South Dakota and is comprised of
12,613 surface acres and 16,962 net mineral acres. In December 2020, the Company filed an amended and
restated NI 43-101 compliant independent Technical Report and
Preliminary Economic Assessment ("PEA")2.
|
Dewey Burdock
Project ISR Mineral Resource Estimate1
|
Measured
Resources
|
Indicated
Resources
|
Measured plus
Indicated Resources
|
Inferred
Resources
|
|
Tons
|
5,419,779
|
1,968,443
|
7,388,222
|
645,546
|
|
Average grade
(% U3O8)
|
0.132
|
0.072
|
0.116
|
0.055
|
|
Average thickness
(feet)
|
5.56
|
5.74
|
5.65
|
5.87
|
|
Average grade-thickness
("GT")
|
0.733
|
0.413
|
0.655
|
0.324
|
|
Uranium (pounds) at a
0.20 GT cut-off
|
14,285,988
|
2,836,159
|
17,122,147
|
712,624
|
Initial capital expenditures are estimated at $31.7 million. The Dewey Burdock Project is
forecast to produce 14.3 million pounds of
U3O8 over its 16 years of production and the
projected cash flows of the Dewey Burdock Project are expected to
be positive in the second year of production, two years after the
commencement of construction.
The Dewey Burdock PEA resulted in a pre-income tax NPV of
$171.3 million at a discount rate of
8% and an IRR of 55% compared to a post-income tax NPV of
$147.5 million at a discount rate of
8% and an IRR of 50%. The Dewey Burdock PEA post-income tax
calculations do not include a corporate level assessment of income
tax liabilities; taxes have only been calculated at the Dewey
Burdock Project level. The estimate of income tax at the corporate
level is subject to a number of additional considerations that have
not been factored in when calculating income taxes at the project
level, including, but not limited to, the capital structure to
finance the Dewey Burdock Project, which has not yet been
determined and loss carry forwards available at the corporate
level.
The Dewey Burdock PEA estimated uranium prices of $55/lb U3O8, direct cash
operating costs of $10.46 per pound
of production and royalties and local taxes (excluding property
tax) of $5.15 per pound of
production. The total pre-income tax cost of uranium production is
estimated to be $28.88 per pound of
production. Income taxes are estimated to be $3.39 per pound of production.
Details of the assumptions and parameters used with respect to
the Dewey Burdock PEA, including information on data verification,
are set out in the "NI 43-101 Technical Report Preliminary Economic
Assessment, Dewey-Burdock Uranium ISR Project, South Dakota, USA", dated December 22, 2020, with an effective date of
December 3, 2019, by Yovich, M., PE
and S. Cutler, PG, a copy of which is available under the Company's
profile at www.sedar.com. The Dewey Burdock mineral resource
estimate includes resources in the measured, indicated and inferred
classes. However, Yovich and Cutler (2020) concluded the resources
in the inferred class are considered too speculative geologically
to have the economic considerations to be included in the PEA. The
Dewey Burdock PEA is preliminary in nature; there is no certainty
that the Dewey Burdock PEA will be realized. Mineral resources that
are not mineral reserves do not have demonstrated economic
viability.
William Paul Goranson,
P.Eng. Chief Executive Officer, Director and a Qualified
Person under NI 43-101, has approved the technical disclosure in
this news release.
About enCore Energy
Corp.
With approximately 90 million pounds of
U3O8 estimated in the measured and indicated
categories and 9 million pounds of U3O8
estimated in the inferred category1, enCore is the most
diversified in-situ recovery uranium development company in
the United States. enCore is
focused on becoming the next uranium producer from its licensed and
past-producing South Texas Rosita Processing Plant by 2023. The
South Dakota-based Dewey Burdock
project and the Wyoming Gas Hills project offer mid-term production
opportunities, with significant New
Mexico uranium resource endowments providing long-term
opportunities. The enCore team is led by industry experts with
extensive knowledge and experience in all aspects of ISR uranium
operations and the nuclear fuel cycle. enCore is committed to
engaging and working with local communities and indigenous
governments to create positive impact from corporate
developments.
|
1 Mineral
resource estimates are based on technical reports prepared in
accordance with NI43-101 and available on SEDAR as well as company
websites at www.encoreuranium.com.
|
|
2 Dewey
Burdock Preliminary Economic Assessment: Woodard & Curran and
Rough Stock Mining Services (the "Dewey Burdock PEA") with an
effective date of December 3, 2019.
|
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION 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.
|
CAUTIONARY NOTE
REGARDING FORWARD-LOOKING STATEMENTS: Certain information in
this news release constitutes forward-looking statements under
applicable securities laws. Any statements that are contained in
this news release that are not statements of historical fact may be
deemed to be forward-looking statements. Forward-looking statements
are often identified by terms such as "may", "should",
"anticipate", "expect", "potential", "believe", "intend" or the
negative of these terms and similar expressions. Forward-looking
statements in this news release include, but are not limited to,
statements relating to the intended use of the net proceeds of the
Offering and the completion of any capital project or property
acquisitions. Forward-looking statements necessarily involve known
and unknown risks, including, without limitation, risks associated
with general economic conditions; adverse industry events; future
legislative and regulatory developments; inability to access
additional capital; the ability of enCore to implement its business
strategies; and other risks. Readers are cautioned not to place
undue reliance on forward-looking statements as there can be no
assurance that the plans, intentions or expectations upon which
they are placed will occur. Such information, although considered
reasonable by management at the time of preparation, may prove to
be incorrect and actual results may differ materially from those
anticipated. Forward-looking statements contained in this news
release are expressly qualified by this cautionary
statement.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/encore-energy-confirms-us-court-of-appeal-decision-affirming-the-dewey-burdock-license-to-extract-uranium-301603303.html
SOURCE enCore Energy Corp.
