enCore Energy Continues to Encounter High Grade Drill Results from the Alta Mesa Uranium Project
enCore Energy Continues to Encounter High Grade Drill Results from the
Alta Mesa Uranium Project
NASDAQ:EU
TSXV:EU
www.encoreuranium.com
DALLAS
,
Oct. 15, 2024
/CNW/ -
enCore Energy Corp.
(NASDAQ: EU) (TSXV: EU) (the "
Company
" or "
enCore"
), a
United States
uranium producer,
announced today on-going positive results from its
Alta Mesa
In-Situ Recovery Central Processing Plant ("CPP") and Wellfield drill program. Drilling, designed
to expand the producing wellfield capacity, continues to significantly exceed the cutoff grade thickness requirements for In-Situ Recovery ("ISR") of uranium.
The Company also reports that production from its first wellfield continues to progress with increases to the number of
Alta Mesa
production and injection wells
on schedule for 2024 and continuing into 2025.
Significant operational highlights include:
Drilling results, to
mid-September 2024
, at Alta Mesa Wellfield 7 (also known as Production Area Authorization 7 or PAA-7), include intercepts with Grade
Thickness ("GT") up to 3.615. Maximum total thickness encountered is 17.5 feet. The cutoff GT for ISR in
South Texas
is generally accepted to be 0.3
with GT being the relevant factor in determining reasonable prospects for economic extraction. GT is defined as grade multiplied by intercept thickness;
The Alta Mesa CPP is processing, on average, 1,700 gallons per minute of pregnant solution from initial patterns in Wellfield 7. Additional injection and
production wells are currently being installed to increase the processing and production rate. The Alta Mesa CPP continues to dry, package and ship
uranium yellowcake (U
3
O
8
);
Production from Alta Mesa Wellfield 7 is expected to increase as additional production patterns are completed and plumbed into the Alta Mesa CPP.
Drilling and wellfield installation for the additional production patterns is well underway and will continue as the Alta Mesa CPP capacity is reached and
maintained.
Wellfield delineation drilling commenced in the spring of 2023 at Alta Mesa Wellfield 7 along a previously defined ore body consisting of stacked roll fronts. The
NI 43-101 Technical Report dated
January 19, 2023
, and titled "Technical Report Summary for the Alta Mesa Uranium Project,
Brooks
and
Jim Hogg
Counties,
Texas, USA
" ("Technical Report") stated that Wellfield 7 contains 1.292 million pounds U
3
O
8
indicated resources and 0.175 million pounds U
3
O
8
inferred resources with an average grade thickness ranging from 0.59 to 0.68 GT using a 0.3 GT cutoff. As has been observed from historic drilling at the Alta
Mesa Project, the density of drilling necessary to install an ISR wellfield provides the opportunity to identify higher grade portions of the ore body than initially
estimated with the broader spaced drilling programs used to support the Technical Report. The Alta Mesa Drilling Table below continues to support that
observation. As drilling continues during additional wellfield development in Wellfield 7, we expect that we will continue to observe results that could lead to an
average GT significantly higher than the average GT reported in the Technical Report.
To view the Alta Mesa CPP and Wellfield maps please visit:
bit.ly/3fV9fTg
.
Alta Mesa Wellfield Drilling Update
The Alta Mesa Wellfield drilling operations , commenced in
March 2023
, are advancing rapidly with 80 holes drilled since the previous update (
March 18, 2024
). In total, 749 drill holes have been completed through
mid-September 2024
. At present there are seven (7) drill rigs in full operation at Alta Mesa, with plans
to double that number over the next twelve (12) months.
Significant Alta Mesa CPP Wellfield 7 Drilling
Drill Hole
Goliad
Sandstone
Horizon
Depth
(ft)
Grade %
U
3
O
8
Thickness
(feet)
Grade
Thickness
(GT)
Total
Hole
GT
164-117
LCU2
491.0
0.162
5.0
0.81
161-119
LCU2
494.0
0.092
9.0
0.828
183-97
LCU2
511.0
0.051
6.5
0.329
174-96
LCU2
508.5
0.129
6.0
0.776
170-100
LCU2
508.0
0.145
3.0
0.435
LCL1
515.0
0.069
3.5
0.242
0.677
181-93
LCL1
517.0
0.424
7.5
3.179
180-89
LCU1
497.5
0.211
7.5
1.580
163-118
LCU2
494.5
0.125
6.0
0.752
172-97
LCL1
507.5
0.185
2.0
0.370
161-118
LCU1
485.5
0.111
2.5
0.277
LCL1
503.0
0.055
5.5
0.301
0.578
172-96
LCU2
507.5
0.157
8.0
1.260
171-100
LCU1
489.5
0.106
6.0
0.633
172-97
LCL1
507.5
0.185
2.0
0.370
162-117
LCU2
495.5
0.179
5.0
0.895
161-1182
LCU1
489.0
0.138
5.5
0.758
LCU2
495.0
0.238
12.0
2.857
3.615
171-95
LCU2
502.5
0.137
5.5
0.756
181-92
LCU1
495.0
0.362
5.0
1.811
181-90
LCU2
501.0
0.141
3.5
0.493
177-88
LCU2
503.0
0.203
4.5
0.912
183-96
LCL1
522.0
0.108
6.0
0.647
LCL2
529.0
0.291
9.0
2.617
3.264
172-98
LCU2
500.0
0.236
4.0
0.946
181-91
LCL1
518.0
0.306
6.5
1.988
191-89
LCU2
510
0.201
3.5
0.705
173-96
LCL1
516.5
0.130
3.5
0.454
171-96
LCU1
488.5
0.228
6.5
1.485
176-90
LCU2
508.5
0.134
3.5
0.468
193-112
LCL2
534.0
0.235
7.0
1.644
181-89
MCM1
427.0
0.125
3.5
0.439
163-118
LCU1
493.5
0.092
3.0
0.275
LCU2
499.0
0.472
4.5
2.125
2.400
-
All intercepts are located in the Alta Mesa Wellfield 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 535 feet below the surface. The water level is
located approximately 120 feet below the surface. Grade Thickness is Grade % U
3
O
8
multiplied by the
thickness of the mineralization.
ISR recoverable uranium with a Grade Thickness of >0.3 is considered
suitable for inclusion in a wellfield.
Alta Mesa
In-Situ Recovery ("ISR") Uranium Central Processing Plant ("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
is enCore's second producing location and operates under a 70/30 joint venture between enCore Energy Corp. and Boss Energy Limited
(ASX:BOE; OTCQX:BQSSF) with enCore Energy as the managing operator.
Total operating capacity at the Alta Mesa CPP is 1.5 million lbs. U
3
O
8
(uranium) per year with an additional drying and packaging capacity of more than 0.5
million lbs. U
3
O
8
. The Alta Mesa CPP historically produced nearly 5 million lbs. U
3
O
8
between 2005 and 2013, when full production was curtailed as a result of
low uranium prices.
Alta Mesa CPP and Wellfield highlights:
Alta Mesa CPP's operations are located on 200,000 acres of 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 cutoff)
1,2
Tons
Avg. Grade
(% U
3
O
8
)
Pounds
Total Measured Mineral Resource
1
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)
.
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 fuel for nuclear energy as the only
United
States
uranium producer with multiple production facilities in operation. The enCore team is led by industry experts with extensive knowledge and experience in
all aspects of In-Situ Recovery ("ISR") uranium operations and the nuclear fuel cycle. enCore solely utilizes ISR for uranium extraction, a well-known and
proven technology co-developed by the leaders at enCore Energy.
Following upon enCore's demonstrated production success in
South Texas
, future projects in the production pipeline include the Dewey-Burdock project in
South Dakota
and the Gas Hills project in
Wyoming
. The Company holds other assets including significant
New Mexico
resources, non-core assets and
proprietary databases. enCore is committed to working with local communities and indigenous governments to create positive impact from corporate
developments.
www.encoreuranium.com
Cautionary Note Regarding Forward Looking Statements:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
Certain information contained in this news release, including: any information relating to the Company being a leading uranium company, statements
regarding future or potential production, 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; including achieving expected levels of production
at Rosita and Alta Mesa in the planned time frame or at all; 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; litigation risks; 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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For further information:
For further information please contact: William M. Sheriff, Executive Chairman, 972-333-2214, [email protected]
CO: enCore Energy Corp.
CNW 07:00e 15-OCT-24