Anfield Energy Files its Preliminary Economic Assessment for its Velvet-Wood and Slick Rock Uranium and Vanadium Projects
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Anfield Energy Files its Preliminary Economic Assessment for its Velvet-Wood
and Slick Rock Uranium and Vanadium Projects
VANCOUVER, BRITISH COLUMBIA – GLOBE NEWSWIRE – May 15 , 2023 — Anfield Energy Inc. (TSX.V:
AEC; OTCQB: ANLDF; FRANKFURT: 0AD) (“Anfield” or the “Company”), following on from its March 30,
2023 news release, is pleased to announce that it has filed its preliminary economic assessment (“PEA”)
titled, “The Shootaring Canyon Mill and Velvet -Wood and Slick Rock Uranium Projects, Preliminary
Economic Assessment” on SEDAR. The independent PEA was prepared in accordance with National
Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Highlights include:
• The PEA indicates: 1) a pre -tax project i nternal rate of return (“IRR”) of 40 % and a net present
value (“NPV”) of US$238 million; and 2) a post-tax IRR of 33% and an NPV of $197 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.
• Total weighted -average Direct OPEX (i.e., between Velvet- Wood and Slick Rock) estimated at
US$244 per ton of mined and processed material.
• The total cost to produce saleable uranium and vanadium products (i.e. Direct OPEX per ton plus
CAPEX per ton) is US$290 per ton, compared to an estimated gross value of US$741 per ton
(based on a uranium price of US$70 per pound and 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% contingency 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 pleased to release the final PEA for the combined Velvet-Wood
and Slick Rock uranium and vanadium projects. We believe this robust report under scores the true
potential of both Velvet-Wood and Slick Rock within Anfield’s uranium and vanadium production model.
Our mine and mill complex continues to take greater shape, and the demonstrated viability of this group
of assets confirms our acquisition strategy. We look forward to advancing these assets, and the
Shootaring Canyon mill, to reach commercial production”
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) 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% U3O8 (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 Shoota ring 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.
Total weighted direct operating costs (including mining and handling, haulage and processing, bonding,
royalties and taxes) between Velvet- Wood and Slick Rock is estimated at US$244 per ton of mined and
processed material. The total direct costs (including direct mine costs and CAPEX cost per ton of
processed material) is estimated at US$290 per ton, while the gross value per processed ton of uranium
and vanadium at US$70 per pound of uranium and US$12 per pound of vanadium is US$791.
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 p roject at an 8% discount rate at the aforementioned prices is
US$238 million. On a post-tax basis, the resultant IRR is 33% and the NPV is US$197 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, qualified persons for the purpose of National Instrument 43 -101, have reviewed and approved
the technical content of this news release.
Results of the PEA represent forward -looking information. This economic as sessment 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 enable them to be categorized as mineral
reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral
resources are not mineral reserves as they do not have demonstrated economic viability.
We are also pleased to announce the addition of Ms. Laara Shaffer to Anfield’s Board, effective May 15,
2023. Ms. Shaffer has served as Anfield’s Chief Financial Officer since 2017, and has worked as a public
company executive administrator for over 30 years. She has previously served as Chief Executive Officer
and Director of Oranova Resource Corporation and President and Director of Goldstate Corporation, and
has served as Corporate Secretary of Copper Reef Mining Corporation and Hi Ho Silver Resources.
Finally, she has serve d as a Director of Madison Energy Corporation, Aquila Energy Corp oration, Pro -
Tech Ventures Corporation, Euro-Net Investments Ltd., Compass Gold Corporation, Equinox Exploration
Corporation, Foran Mining Corporation and Southern Pacific Resource Corporation.
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). Anfield 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 w ithin 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