Anfield Energy Demonstrates the Economic Viability of its Velvet-Wood and Slick Rock Uranium and Vanadium Projects
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Anfield Energy Demonstrates the Economic Viability of its Velvet-Wood and
Slick Rock Uranium and Vanadium Projects
VANCOUVER, BRITISH COLUMBIA – GLOBE NEWSWIRE – March 30, 2023 — Anfield Energy Inc. (TSX.V:
AEC; OTCQB: ANLDF; FRANKFURT: 0AD) (“Anfield” or the “Company”) is pleased to report the results of
a combined preliminary economic assessment (“PEA”) for both its Utah -based Velvet -Wood Uranium
and Vanadium Project (“Velvet -Wood”) and its Colorado -based Slick Rock Uranium and Vanadium
Project (“Slick Rock”) . The PEA titled , “The Shootaring Canyon Mill and Velvet -Wood and Slick Rock
Uranium Projects, Preliminary Economic Assessment” (PEA, 2023), will be published on SEDAR within 45
days. These two projects are located proximal to one another within the prolific Uravan Mineral Belt,
and within close distance of the Company’s [permitted] Shootaring Canyon Mill (“Shootaring”) which
will act as a centralized mineral processing facility in the PEA . The independent PEA was prepared in
accordance with National Instrument 43-101 standards of disclosure for mineral properties.
Highlights include:
• The PEA indicates a pre-tax project internal rate of return (“IRR”) of 40% and a net present value
(“NPV”) of US$ 238 million, based on a discount rate of 8% and a uranium price of US$70 per
pound, along with a vanadium price of US$12 per pound.
• Average annual production of approximately 750,000 pounds of uranium and 2.5 million pounds
of vanadium per year is estimated over the 15-year mine life;
• The combined feed of the Velvet -Wood and Slick Rock mines is designed to meet the existing
tonnage capacity at Shootaring of 750 tons per day. Additional tonnage capacity would be
available after year 8 of the plan.
• Estimated mill-related capital expenditure s at Shootaring , including 25% conting ency amount
for each item, of: 1) US$31.4 million for general upgrades; 2) US$13.4 million to install a modern
vanadium circuit; and 3) US$20 million to update the tailings management facility.
• Estimated mine-related capital expenditures , including engineering and design, mine facilities,
mine equipment, and the reopening of the Velvet decline and the sinking of two production
shafts at Slick Rock with a 25% contingency , of: 1) US$15.3 million for Velvet -Wood; and 2)
US$27.2 million for Slick Rock.
Anfield CEO, Corey Dias, stated, “We are extremely pleased with the outcome of this PEA as it provides
Anfield with evidence of the true potential of both Velvet-Wood and Slick Rock within Anfield’s uranium
and vanadium production model. Critically, the future addition of our West Slope project to Anfield’s
production model will require little incremental capital expenditure, as Shootaring’s restart costs will
have already been borne by both Velvet-Wood and Slick Rock.
“We have been keen to highlight the economic value of combining our assets into one cohesive
development project, and the subsequent availability of excess uranium and vanadium production
capacity at Shootaring over the life of the mill . We view this excess capacity as providing important
additive value through the potential for future integration of other uranium and vanadium projects in
the area, such as our West Slope Project, as well as potential toll-milling opportunities.
“The prospect of Shootaring becoming the next operational conventional uranium and vanadium mill in
the United States is significant both economically as well as with respect to security of supply for
utilities. This PEA not only represents a significant milestone for Anfield but also outlines a path towards
commercial development of its core uranium and vanadium assets . Anfield is clearly well -positioned to
benefit from an improving uranium market as nuclear energy becomes a more integral part of the global
transition towards electrification.”
The Velvet -Wood project area covers approximately 2,140 acres, including unpatented mining claims
and a State of Utah mineral lease related to the Velvet and Wood mine areas. In addition, the Slick Rock
project area covers approximately 4,860 acres includi ng 293 unpatented mining lodes claims. The
Shootaring area covers approximately 265 acres of surface ownership and approximately 905 acres of
mineral leases.
Shootaring Mill
The Shootaring Mill was licensed and constructed by Plateau Resources and operated in 1982. U.S.
Energy and Uranium One were also previous owners of the Shootaring Mill. The mill has not been
decommissioned and has been under care and maintenance since ces sation of operations. The mill
license has been maintained and Anfield is currently conducting engineering and design studies for both
the refurbishment of the mill and tailings facility in support of converting the license from its status of
care and maintenance to operations.
Velvet-Wood
Between 1979 and 1984, Atlas Minerals mined approximately 400,000 tons of ore from the Velvet
Deposit at grades of 0.46% U3O8 and 0.64% V2O5, recovering approximately 4 million pounds of U3O8 and
5 million pounds of V2O5.
The current mineral resources (PEA, 2023) of the combined Velvet and Wood historical mines have been
estimated to comprise 4.6 million pounds of eU3O8, at a grade of 0.29% eU3O8 (measured and indicated
resource), and 552,000 pounds of eU3O8, at a grade of 0.32% U 3O8 (inferred resource) with a vanadium-
to-uranium ratio of 1.4 to 1.
Surface Stockpiles
In addition to the estimated mineral resource at Velvet -Wood, Anfield controls mineralized stockpiles
from past mining at two locations: 1) one stockpile at the Patty Ann mine area near the historic Velvet
mine; and 2) several stockpiles near the Shootaring mill. The volumes and uranium content of the
stockpiles were estimated from volumetric surveys and sampling conducted by BRS in March, 2015. The
PEA includes the stockpiles located near the Shootaring mill only. In total these stockpiles are estimated
to contain approximately 77,500 tons of material at an average grade of 0.1 61% U 3O8 and contain
approximately 250,000 pounds of uranium.
Slick Rock
Slick Rock is located in the Uravan Uranium Belt region of Colorado. The PEA, 2023 estimates 1.7 million
tons containing some 7.7 million pounds eU3O8, with a vanadium to uranium ratio of 6 to 1.
Project Economics
The PEA provides for a two -year pre-production period. The first year’s forecasted capital expenditures
of approximately US$24 million include initial mill and mine permitting and licensing, an updated mining
and reclamation plan, and initiation of mine development . The second year’s capital expenditures,
forecasted at US$88 million (including a 25% contingency), include completion of the construction of
mine facilities and purchasing of equipment, and refurbishment of the Shootaring uranium and
vanadium mill. Total capital for Life Of Mine is estimated at US$130 million, including sustaining capital.
The PEA indicates a pre-tax IRR of 40% at a uranium price of US$70 per pound and US$12 per pound of
vanadium. The pre-tax NPV of the project at an 8% discount rate at the aforementioned prices is
US$238 million.
NI 43-101 Disclosure
This combined PEA completed for Velvet -Wood and Slick Rock, using centralized processing at
Shootaring, has been authored by Douglas L. Beahm , P.E., Harold H. Hutson, P.E., P.G., Carl D. Warren,
P.E., P.G., of BRS Inc. and Terence (Terry) McNulty, P.E., D. Sc., of T.P. McNulty and Associates Inc. The
authors have reviewed and approved the technical content of this news release.
Results of t he PEA represent forward -looking information. This economic assessment is preliminary in
nature and it includes inferred mineral resources that are considered too speculative, geologically, to
have the economic considerations applies to them that would ena ble them to be categorized as mineral
reserves. There is no certainty that the preliminary economic assessment will be realized. Conditions
and parameters of the project are subject to change based on the final filing of the PEA on SEDAR within
45 days of this release. Mineral resources are not mineral reserves as they do not have demonstrated
economic viability.
About Anfield
Anfield is a uranium and vanadium development and near -term production company that is committed
to becoming a top -tier energy -related fuels supplier by creating value through sustainable, efficient
growth in its assets. Anfield is a publicly traded corporation listed on the TSX -Venture Exchange (AEC-
V), the OTCQB Marketplace (ANLDF) and the Frankfurt Stock Exchange (0AD). Anfiel d is focused on its
conventional asset centre, as summarized below:
Arizona/Utah/Colorado – Shootaring Canyon Mill
A key asset in Anfield’s portfolio is the Shootaring Canyon Mill in Garfield County, Utah. The Shootaring
Canyon Mill is strategically located within one of the historically most prolific uranium production areas
in the United States and is one of only three licensed uranium mills in the United States.
Anfield’s conventional uranium assets consist of mining claims and state leases in southeastern Utah,
Colorado, and Arizona, targeting areas where past uranium mining or prospecting occurred. Anfield’s
conventional uranium and vanadium assets include the Slick Rock Project, the Velvet-Wood Project, the
Frank M Uranium Project, the West Slope Project, the Long Park Project as well as the Findlay Tank
breccia pipe. All conventional uranium assets are situated within a 200 -mile radius of the Shootaring
Mill.
On behalf of the Board of Directors
ANFIELD ENERGY INC.
Corey Dias, Chief Executive Officer
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.
Contact:
Anfield Energy Inc.
Clive Mostert
Corporate Communications
780-920-5044
www.anfieldenergy.com