enCore Energy Encounters Highest Grade Drill Results at Alta Mesa Uranium Project; Provides Status on South Texas Production Operations
enCore Energy Encounters Highest Grade Drill Results at Alta Mesa
Uranium Project; Provides Status on South Texas Production Operations
NASDAQ:EU
TSXV:EU
www.encoreuranium.com
DALLAS
,
March 18, 2024
/CNW/ -
enCore Energy Corp.
(NASDAQ: EU) (TSXV: EU) (the "
Company
" or "
enCore"
), a domestic uranium producer, today
announced the highest grade drill results to date since drilling activities restarted from the Alta Mesa Project in
South Texas
. These results significantly exceed the
cutoff grade thickness requirements for In-Situ Recovery ("ISR") of uranium. The Company also reports that work to advance the Alta Mesa Uranium Central
Processing Plant and Wellfield ("Alta Mesa") towards production is advancing on schedule.
Highlights include:
Drilling from Alta Mesa's Production Area Authorization ("PAA") provides results that range up to a grade thickness of 8.4 with a maximum thickness of 13.5
feet. The cutoff grade thickness for ISR in
South Texas
is generally accepted to be 0.3 with grade thickness being the relevant factor in determining
reasonable prospects for economic extraction;
The Alta Mesa ISR Uranium Central Processing Plant ("CPP") upgrades and refurbishments are advancing on schedule for the planned early 2024 resumption
of uranium production;
Initial production from Alta Mesa's PAA-7 wellfield will have a total of 59 production wells with 36 extraction wells and 23 injection wells that form the startup
production patterns. 57 of these are completed with the last two wells scheduled for completion over the next few days. The wells are being prepared for
connection to the pipeline to the CPP;
Production from the wellfield at Alta Mesa will be increasing as additional production patterns are completed following the initial 59 wells and duplicate the
process used for the initial Alta Mesa startup in 2005. Drilling and well installation for the follow-on production patterns is already well underway and will
continue as CPP capacity is reached; and
As previously reported, uranium production from the Rosita Uranium CPP, which commenced in
November 2023
and has completed its first shipment of
uranium, continues to maintain expected production levels.
Paul Goranson, enCore Energy's Chief Executive Officer, stated: "We are extremely pleased with the drilling results from Alta Mesa. Cutoff grade thickness for
ISR operations in
Texas
are generally 0.3 GT for economic extraction. With drilling returning a significant number of GTs in production delineation holes in excess
of 3.0 with a high of 8.4, we are becoming increasingly optimistic that our contained uranium will exceed estimates contained in the 2023 technical report that cited
GTs averaging 0.59 to 0.68 for each of the specific ore horizons. Indeed, we are confirming higher grade portions of the mineralized zone than initially estimated
from broader spaced drilling as proposed in the 2023 technical report. Having directed the initial development and operation of Alta Mesa for a private company in
2005, I have observed that this project has historically consistently exceeded expectations. We look forward to returning Alta Mesa to production in the coming
weeks."
Wellfield delineation drilling commenced in the spring of 2023 at the Alta Mesa Project PAA-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
" stated that PAA-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 (GT is defined as grade multiplied by intercept thickness) ranging from 0.59 to 0.68 GT using a 0.3 GT cutoff. As has been observed
from historic drilling at Alta Mesa, 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 broader spaced drilling programs. The table of drilling results below confirm that observation, and the results exceed the
historical observations for PAA-7, to date. As drilling continues during additional wellfield development in PAA-7, we expect that we will continue to observe results
that could lead to an average GT for the area significantly higher than the average GT reported in the technical report.
To view the Alta Mesa CPP and Wellfield and Rosita CPP maps please visit:
bit.ly/3fV9fTg
.
Alta Mesa Uranium Central Processing Plant ("CPP") Development Update
At the Alta Mesa Uranium CPP, enCore has met most of the key objectives for the refurbishment of the processing circuits necessary for the planned early 2024
restart. Work remaining includes final inspection of the ion exchange ("IX") columns, testing the precipitation tanks, completing tie-in of the scrubber system, and
installation and testing of the process circuit instrumentation. The yellowcake drying circuit upgrades are advancing with the filter press support infrastructure and
yellowcake storage hoppers on site. Refurbishment and testing of the yellowcake drying system is progressing with that work scheduled to be completed just
prior to the anticipated production restart timelines. The bulk chemical systems for the IX elution process have been installed and tested. The electrical systems
including transformers and motor control centers have been completed.
Within PAA-7, enCore is installing injection and production wells in the wellfield and has completed installation of the electrical transmission lines necessary for
initial start-up and the pipelines to connect the wellfield to the Alta Mesa CPP. All necessary equipment for the start-up of production in the PAA-7 wellfield has
been received or has been ordered with a confirmed delivery schedule. Wellfield construction activities are well advanced with 100% of well manifold, electrical,
and oxygen distribution systems at the wellfield modules are completed. The pipeline booster pump stations are scheduled for installation by the end of March
2024.
Alta Mesa Wellfield Drilling Update
The wellfield drilling operations , which commenced in
March 2023
, are advancing rapidly with 126 holes drilled since the previous update (
January 17, 2024
). In
total, 571 drill holes have been completed through
March 8
th
, 2024. There are currently six (6) drill rigs in full operation at Alta Mesa, with contracts anticipated for
additional rigs expected at site by the end of
March 2024
.
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 as additional patterns are prepared for ramped up production. Over 140 holes have been cased or are scheduled to be cased with an additional 75
holes under review by geological staff for possible casing.
Significant Alta Mesa Wellfield Drilling Results
Drill Hole
Goliad Sandstone Horizon
Depth
(ft)
Grade %
U
3
O
8
Thickness
(feet)
Grade
Thickness
(GT)
Total
Hole GT
172-95
LCL-1
515.5
0.275
3.5
0.967
171-97
LCU-1
489.0
0.281
2.0
0.562
181-93
LCL-2
521.0
0.174
2.5
0.434
172-96
LCU-2
505.0
0.196
5.5
1.077
181-91
LCL-1
518.0
0.667
4.5
3.041
172-96
LCU-1
488.5
0.101
3.5
0.353
182-96
LCU-2
510.0
0.594
5.5
3.266
185-113
LCU-2
504.0
0.311
13.5
4.197
184-112
LCU-2
505.5
0.340
10.5
3.567
184-112
LCL-1
522.0
0.267
7.0
1.869
181-93
LCL-1
515.0
0.512
10.0
5.118
181-91
LCL-1
513.0
0.760
11.0
8.356
181-92
LCL-1
511.5
0.368
3.5
1.287
170-102
LCU-2
496.0
0.171
6.5
1.113
184-96
LCU-2
511.0
0.263
3.5
0.920
170-104
LCU-1
490.5
0.250
4.0
1.002
170-105
LCU-2
500.0
0.113
4.5
0.508
171-98
LCL-1
503.5
0.291
7.0
2.038
185-112
LCL-2
527.5
0.660
4.0
2.64
181-90
LCU-1
496.0
0.265
7.0
1.853
183-96
LCL-1
521.0
0.426
5.0
2.130
172-96
LCL-1
512.0
0.169
2.0
0.338
185-113
LCU-1
502.0
0.465
12.0
5.579
170-100
LCL-1
511.5
0.147
2.5
0.368
181-92
LCL-1
513.5
0.660
9.0
5.935
172-94
LCL-1
519.5
0.093
3.5
0.326
183-96
LCU-2
504.5
0.135
10.5
1.417
LCL-2
530.0
0.192
5.0
0.961
2.378
185-112
LCU-2
503.5
0.140
2.5
0.350
174-95
LCL-1
524.5
0.106
4.5
0.479
180-92
LCU-1
495.0
0.251
7.5
1.884
-
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 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 will be enCore's second producing location. On
February 23, 2024
, the Company concluded the sale of a 30% interest in the Alta Mesa Project to Boss
Energy Limited (ASX:BOE; OTCQX:BQSSF), a leading Australian emerging ISR uranium producer, to form a joint venture ("JV") managed by enCore.
Consideration received was
$60 million USD
plus an additional
$10 million USD
as a placement into enCore's shares. The proceeds from this sale will enable
enCore to accelerate its production timelines across its entire pipeline of production targeted assets.
Total operating capacity at the Alta Mesa CPP is 1.5 million lbs. U
3
O
8
(uranium) per year with an additional drying 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:
The Alta Mesa CPP is enCore's third fully licensed production facility, along with the Rosita CPP and Kingsville Dome CPP, 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).
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 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 newest
uranium producer in
the United States
. Uranium production commenced at enCore's licensed and past-producing South Texas Rosita Central In-Situ Recovery
("ISR") Uranium Processing Plant ("CPP") in
November 2023
with work underway for a planned Q2/2024 restart of uranium production at its licensed and past-
producing South Texas Alta Mesa CPP. 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 solely utilizes ISR for uranium extraction, a well-known and proven technology co-developed by the leaders at
enCore Energy. ISR extracts uranium in a wellfield using natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.
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. 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.
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.
The Company advises that it is not basing its production decisions at the Rosita CPP and Alta Mesa CPP 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 this
production facility 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. The Company has determined to proceed with a production decision based on past operations
at the Alta Mesa CPP, including past ISR operations in the known mineral resource areas.
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. Such forward-looking statements include statements regarding extraction,
processing and sales of uranium at Rosita, Alta Mesa and future operations. 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 manage operations at its projects; the ability of enCore to implement its business strategies; including commencement of production at Alta
Mesa in the planned time frames or at all; the expansion of operations to satellite locations; 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 access to capital risks in
connection with the Agreement and otherwise, 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 public filings, including its annual information
form. 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.sedarplus.c
a
. 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:
William M. Sheriff, Executive Chairman, 972-333-2214, [email protected], www.encoreuranium.com
CO: enCore Energy Corp.
CNW 07:00e 18-MAR-24