NYSE American:EU
TSXV:EU
www.encoreuranium.com
DALLAS, Sept. 5,
2023 /CNW/ - enCore Energy Corp. (NYSE
American: EU) (TSXV: EU) (the "Company" or "enCore")
today provides an update from the South Texas Alta Mesa In-Situ
Recovery (ISR) Uranium Central Processing Plant and Wellfield.
Upgrades and refurbishments continue to advance as planned and on
schedule for the 2024 resumption of uranium production1.
The Company also announces further positive results from the
wellfield delineation drill program and a continuing advancement of
the newly discovered mineralized zone at the Alta Mesa wellfield.
Site and production resumption work at the Rosita ISR Uranium
Central Processing Plant and Wellfield (Rosita CPP) also remains on
schedule for 2023 production.
The Alta Mesa ISR Uranium Central Processing Plant (Alta Mesa
CPP) is advancing towards a restart of production and presently
completing minor scheduled renovations with equipment upgrades and
refurbishments underway. A thorough equipment evaluation determined
90% of the piping and valves are operational with limited
maintenance requirements. enCore is managing all refurbishments on
site where feasible to proactively manage supply chain risks and
costs. Longer lead time for non-critical supplies are ordered as
part of supply chain management to ensure plant production start-up
timelines are well managed. Staffing of key management positions at
Alta Mesa started in earnest in Q1/2023 followed by the recruitment
of an operations team experienced in South Texas ISR
operations.
Paul Goranson, enCore's Chief
Executive Officer added "The enCore operations team has made steady
progress in restoring the Alta Mesa CPP towards a 2024 restart of
production while also installing the Production Authorization Area
(PAA-7) wellfield. enCore's management team has dealt with similar
start-up challenges in the past, and we have been very realistic
about anticipated cost increases and challenging workforce
recruitment. We have been strategic in our efforts to recruit
skilled management and operators with previous experience at the
Alta Mesa CPP and Wellfield. Our strategy also included building a
skilled team to successfully expand our activities across our
portfolio of ISR uranium projects."
There are currently eight (8) drill rigs in full operation at
the Alta Mesa Wellfield, increased from six (6) rigs as wellfield
delineation and completion has progressed. The wellfield drilling
operations, delineating the roll front mineralization within
Production Authorization Area 7 (PAA-7), which commenced in
March 2023, are advancing rapidly
with 192 holes drilled since our previous update. In total, 272
drill holes have been completed through August 21, 2023. A previously producing
mineralized Middle C sand, extracted through PAA-3, was discovered
within PAA-7. Continued drilling within PAA-7 has returned positive
results of Middle C sand mineralization in seventeen (17) holes,
within PAA-7, with Grade Thickness (GT) values ranging from 0.2 to
0.792 in seven (7) of the holes announced in this release.
Continued drilling along trend is expected to expand and delineate
this new mineralized sand and is anticipated to increase the
overall mineralization within PAA-7.
Further refined delineation drilling within the PAA-7 continues
to establish the exact pattern of injection and recovery wells from
which to maximize production efficiency. To date, thirty-three (33)
holes have been cased with five (5) holes completed. Two (2) drill
rigs are currently casing with one (1) drill rig focused on
completion activities. An additional drill rig will be moving to
completion activities in the coming weeks.
To view the Alta Mesa project maps and enCore Energy's
South Texas projects please visit:
bit.ly/3fV9fTg.
Significant Alta Mesa wellfield drilling program highlights
include:
|
Drill
Hole
|
Goliad Sandstone
Horizon
|
Depth
(ft)
|
Grade %
U3O8
|
Thickness
(feet)
|
Grade
Thickness
(GT)
|
Total
Hole GT
|
|
164-12
|
Lower C-upper
2
|
491.5
|
0.163
|
2.0
|
0.326
|
|
|
Lower C-lower
1
|
500.0
|
0.231
|
7.0
|
1.619
|
1.945
|
|
170-10
|
Lower C-lower
1
|
502.5
|
0.250
|
4.5
|
1.124
|
1.124
|
|
164-11
|
Lower C-lower
1
|
503.5
|
0.239
|
5.0
|
1.193
|
1.193
|
|
167-11
|
Lower C-upper
2
|
490.5
|
0.158
|
11.0
|
1.738
|
1.738
|
|
169-10
|
Lower C-lower
1
|
503.5
|
0.092
|
11.5
|
1.062
|
1.062
|
|
166-11
|
Lower C-upper
2
|
495.5
|
0.259
|
4.5
|
1.167
|
|
|
Lower C-lower
1
|
501.0
|
0.140
|
7.0
|
0.983
|
2.150
|
|
169-104
|
Lower C-upper
2
|
498.0
|
0.196
|
8.0
|
1.569
|
1.569
|
|
165-11
|
Lower C-lower
1
|
507.0
|
0.158
|
6.5
|
1.026
|
1.026
|
|
166-11
|
Lower C-upper
2
|
494.5
|
0.128
|
9.5
|
1.213
|
|
|
Lower C-lower
1
|
504.0
|
0.150
|
4.0
|
0.601
|
1.814
|
|
170-10
|
Lower C-upper
2
|
198.5
|
0.161
|
8.5
|
1.365
|
1.365
|
|
170-10
|
Lower C-upper
2
|
491.5
|
0.112
|
4.0
|
0.450
|
|
|
Lower C-lower
1
|
506.0
|
0.261
|
4.0
|
1.044
|
|
|
Lower C-lower
2
|
513.0
|
0.229
|
6.0
|
1.373
|
2.867
|
|
166-11
|
Lower C-upper
2
|
490.0
|
0.225
|
8.5
|
1.913
|
1.913
|
|
181-95
|
Lower C
-upper1
|
512.0
|
0.346
|
5.5
|
1.903
|
1.903
|
|
172-95
|
Lower C-upper
2
|
508.0
|
0.110
|
3.0
|
0.331
|
|
|
Lower C-lower
1
|
515.5
|
0.313
|
3.0
|
0.938
|
1.269
|
|
172-97
|
Middle
C-lower
|
479.5
|
0.073
|
4.0
|
0.290
|
|
|
Lower C-upper
1
|
491.5
|
0.177
|
9.5
|
1.683
|
|
|
Lower C-upper
2
|
505.5
|
0.075
|
2.5
|
0.187
|
2.160
|
|
172-96
|
Middle
C-upper
|
423.5
|
0.058
|
3.0
|
0.172
|
|
|
Lower C-upper
2
|
503.5
|
0.280
|
3.0
|
0.841
|
|
|
Lower C-lower
1
|
509.0
|
0.108
|
3.5
|
0.379
|
1.392
|
|
168-11
|
Lower C-upper
2
|
495.0
|
0.228
|
13.0
|
2.969
|
|
|
Middle C-
upper
|
417.0
|
0.111
|
2.0
|
0.222
|
|
|
Middle C-
middle
|
422.5
|
0.179
|
1.5
|
0.269
|
3.460
|
|
156-12
|
Middle C-
upper
|
455.0
|
0.272
|
5.5
|
1.496
|
|
|
Lower C-lower
1
|
515.0
|
0.131
|
3.0
|
0.392
|
1.888
|
|
-All
intercepts are located in the PAA-7 which hosts mineralization
within the Goliad Formation. The Company has identified five
saturated (required for ISR), mineralized sandstone horizons
within the Goliad Formation lying approximately 400 to 520 feet
below the surface. The water level is located approximately 120
feet below the surface. Grade Thickness is Grade %
U3O8 multiplied by the thickness of the
mineralization.
|
Alta Mesa In-Situ Recovery (ISR)
Uranium Central Processing Plant ("Alta Mesa CPP") &
Wellfield
The Alta Mesa CPP and Wellfield hosts a fully licensed and
constructed ISR uranium plant, located on 200,000+ acres of private
land in the state of Texas. Alta
Mesa will be enCore's second producing location following
resumption of uranium production at the South Texas Rosita ISR
Uranium Central Processing Plant ("Rosita CPP") scheduled for
2023.
Total operating capacity is 1.5 million lbs.
U3O8 (uranium) per year. The Alta Mesa CPP
historically produced nearly 5 million lbs.
U3O8 between 2005 and 2013, when full
production was curtailed as a result of low uranium
prices.
Alta Mesa CPP and Wellfield highlights include:
- The Alta Mesa CPP is enCore's third fully licensed production
facility, along with Rosita and Kingsville Dome CPP's, all located
in the business-friendly state of Texas. There are only eleven (11) licensed and
constructed uranium production facilities in all of the United States (US);
- Advancing the Alta Mesa CPP, in conjunction with planned
production in 2023 at the Rosita CPP, will cement enCore Energy's
position as the early leader in In-Situ Recovery (ISR) uranium
production in the United
States;
- Alta Mesa CPP's operations are located on private land, with
100% of minerals privately owned, and in a supportive jurisdiction
with primary regulatory authority residing with the state of
Texas;
- The Alta Mesa CPP utilizes well-known ISR technology to extract
uranium in a non-invasive process using natural groundwater and
oxygen, coupled with a proven ion exchange process, to recover the
uranium.
|
Alta Mesa &
Mesteña Grande Mineral
Resource Summary (0.30 GT cut-off)1,2
|
Tons
|
Avg.
Grade
(%
U3O8)
|
Pounds
|
|
Total Measured Mineral
Resource1
|
54,000
|
0.152
|
164,000
|
|
Alta Mesa Indicated
Mineral Resource
|
1,397,000
|
0.106
|
2,959,000
|
|
Mesteña Grande
Indicated Mineral Resource
|
119,000
|
0.120
|
287,000
|
|
Total Measured &
Indicated Resources
|
1,570,000
|
0.109
|
3,410,000
|
|
Alta Mesa Inferred
Mineral Resource
|
1,263,000
|
0.126
|
3,192,000
|
|
Mesteña Grande
Inferred Mineral Resource
|
5,733,000
|
0.119
|
13,601,000
|
|
Total Inferred
Resources
|
6,996,000
|
0.120
|
16,793,000
|
|
1,2
Represents that portion of the in-place mineral resource that
are estimated to be recoverable within existing wellfields.
Wellfield recovery factors have not been applied to indicated and
inferred mineral resources. As reported in the NI-43-101
Technical Report Summary for the Alta Mesa Uranium Project, Brooks
and Jim Hogg Counties, Texas, USA completed by Doug Beahm, PE, PG,
of BRS Engineering. (Effective January 19,
2023).
|
|
The Company advises that it is not basing its production
decisions at Alta Mesa or Rosita on a feasibility study of
mineral reserves demonstrating economic and technical viability.
The production decision is based on known past In-Situ Recovery
(ISR) and processing operations at these two production facilities
and surrounding lands. However, the Company understands that there
is increased uncertainty, and consequently a higher risk of
failure, when production is undertaken in advance of a feasibility
study. In addition, the mineral resource at Alta Mesa includes
inferred resources which are considered too speculative
geologically to have economic considerations applied to them that
would enable them to be categorized as mineral reserves. The
Company has determined to proceed with a production decision based
on past operations at Alta Mesa and Rosita, including past ISR
operations in the known mineral resource areas.
John M. Seeley, Ph.D., P.G.,
C.P.G., enCore's Manager of Geology and Exploration, and a
Qualified Person under NI 43-101, has reviewed and approved the
technical disclosure in this news release on behalf of the
Company.
About enCore Energy
Corp.
enCore Energy Corp., America's Clean Energy Company™, is
committed to providing clean, reliable, and affordable domestic
nuclear energy by becoming the next United States uranium producer in
2023. enCore solely utilizes In-Situ Recovery (ISR) for
uranium extraction, a well-known and proven technology co-developed
by the leaders at enCore Energy. In-Situ Recovery extracts uranium
in a non-invasive process using natural groundwater and oxygen,
coupled with a proven ion exchange process, to recover the uranium.
Uranium production is planned at enCore's licensed and
past-producing South Texas Rosita Processing Plant in 2023, and at
its licensed and past-producing South Texas Alta Mesa Processing
Plant in 2024.
Future projects in enCore's production pipeline include the
Dewey-Burdock project in South
Dakota and the Gas Hills project in Wyoming, along with significant uranium
resource endowments in New Mexico
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 diligently works to realize value from other owned assets,
including our proprietary uranium database that includes technical
information from many past producing companies, from our various
non-core assets, and by leveraging our ISR expertise in researching
opportunities that support the use of this technology as applied to
other metals. enCore is also committed to working with local
communities and indigenous governments to create positive impact
from corporate developments.
|
1 EU
News Release - May 18, 2023
|
|
www.encoreuranium.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 company, and any other statements regarding future
expectations, beliefs, goals or prospects; may constitute
"forward-looking information" and "forward-looking statements"
within the meaning of applicable Canadian and United States securities laws and regulations
(collectively, "forward-looking statements"). All statements in
this news release that are not statements of historical fact
(including statements containing the words "expects", "is
expected", "does not expect", "plans", "anticipates", "does not
anticipate", "believes", "intends", "estimates", "projects",
"potential", "scheduled", "forecast", "budget" and similar
expressions or variations (including negative variations) of such
words and phrases, or statements that certain actions, events or
results "may", "could", "would", "might" or "will" be taken) should
be considered forward-looking statements. All such forward-looking
statements are subject to important risk factors and uncertainties,
many of which are beyond the company's ability to control or
predict. 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; the ability of enCore to
implement its business strategies; and other risks. 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 exploration and
development risks, changes in commodity prices, access to skilled
mining personnel, the results of exploration and development
activities; production risks; uninsured risks; regulatory risks;
defects in title; the availability of materials and equipment,
timeliness of government approvals and unanticipated environmental
impacts on operations; risks posed by the economic and political
environments in which the Company operates and intends to operate;
increased competition; assumptions regarding market trends and the
expected demand and desires for the Company's products and proposed
products; reliance on industry equipment manufacturers, suppliers
and others; the failure to adequately protect intellectual
property; the failure to adequately manage future growth; adverse
market conditions, the failure to satisfy ongoing regulatory
requirements and factors relating to forward looking statements
listed above which include risks as disclosed in the Company's
annual information form filings. Should one or more of these risks
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results may vary materially from
those described herein as intended, planned, anticipated, believed,
estimated or expected. The Company assumes no obligation to update
the information in this communication, except as required by law.
Additional information identifying risks and uncertainties is
contained in filings by the Company 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 management. Such statements may not be
appropriate for other purposes and readers should not place undue
reliance on these forward-looking statements, that speak only as of
the date hereof, as there can be no assurance that the plans,
intentions or expectations upon which they are based 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.
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SOURCE enCore Energy Corp.
