enCore Energy Provides Update on South Texas Uranium Operations
enCore Energy Provides Update on South Texas Uranium
Operations
NASDAQ:EU
TSXV:EU
www.encoreuranium.com
DALLAS
,
Jan. 17, 2024
/CNW/ -
enCore Energy Corp.
(NASDAQ: EU) (TSXV: EU) (the "
Company
" or "
enCore"
), a uranium
producer, today provides an update on the Company's
South Texas
operations which are advancing on schedule and providing
exceptional drilling results to support future planned production.
Highlights include:
The Alta Mesa In-Situ Recovery (ISR) Uranium Central Processing Plant (CPP) upgrades and refurbishments are advancing
on schedule for the planned early 2024 resumption of uranium production;
The Alta Mesa Project wellfield drilling is providing increasingly positive high-grade results from the wellfield delineation drill
program;
Uranium production from the Rosita CPP which commenced
November 21, 2023
, continues to meet projected start up
production levels. Additionally, the Grand Opening at the Rosita CPP is scheduled on-site for
February 6, 2024
.
Paul Goranson, enCore Energy's Chief Executive Officer, stated: "Our South Texas operations continue to advance on schedule
due to our successful planning to ensure all necessary supplies and equipment were secured well in advance of installation. With
a full complement of people, materials, and equipment in the field, we are well positioned to make our timelines at our second
production facility, Alta Mesa. Additionally, the wellfield drill results are some of the best grades we have encountered to date.
These results support our plan to accelerate and expand the drill program at the Alta Mesa Uranium Project."
To view the Alta Mesa CPP and Wellfield and Rosita CPP maps please visit:
bit.ly/3fV9fTg
.
Alta Mesa CPP Development Update
At the Alta Mesa 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 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 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.
Within Production Authorization Area 7 (PAA-7), enCore is installing injection and production wells in the wellfield, has completed
installation of the electrical transmission lines necessary for initial start-up and is continuing to install 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.
Alta Mesa Wellfield Drilling Update
The wellfield drilling operations, delineating the roll front mineralization within PAA-7, which commenced in
March 2023
, are
advancing rapidly with 78 holes drilled since the previous update (
November 20, 2023
). In total, 445 drill holes have been
completed through
January 4
th
, 2024. There are currently six (6) drill rigs in full operation at the Alta Mesa CPP and Wellfield,
with contracts pending for three (3) additional rigs.
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, ninety-nine (99) holes have been cased with thirty-six (36) injection and
production wells completed. Two (2) drill rigs are currently casing wells and one (1) drill rig focused on well completion
activities. An additional drill rig will be moving to well completion activities in the coming weeks.
In addition to increasing numbers of drill holes and wells with Grade Thicknesses ("GT") over 1.0 in PAA-7, the Middle C unit,
which was found to overlie PAA-7 in 2023 (NR
May 18, 2023
) continues to exhibit unexpected significant grade, and further
drilling along the Middle C trend is increasing the overall mineralization within PAA-7. 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.
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
166-109
MCU-2
418.0
0.165
2.5
0.412
162-116
MCU-1
411.5
0.167
2.0
0.335
169-106
LCU-2
497.0
0.174
8.5
1.476
164-117
LCU-2
491.0
0.193
5.5
1.062
176-92
LCL-1
517.0
0.167
3.0
0.502
175-911
LCL-1
517.0
0.149
4.0
0.598
175-912
LCU-1
499.0
0.116
4.0
0.463
166-109
MCU-1
413.5
0.160
5.0
0.798
181-951
LCU-1
511.0
0.173
6.0
1.039
169-103
LCL-1
514.0
0.444
3.5
1.554
181-952
LCU-2
514.5
0.310
2.5
0.775
166-112
LCL-1
511.5
0.181
2.5
0.452
183-98
LCU-2
509.5
0.141
5.0
0.706
LCL-1
520.5
0.072
6.0
0.429
1.135
167-113
LCU-2
492.5
0.123
3.0
0.368
172-961
MCU-1
418.0
0.098
3.0
0.294
LCU-1
484.0
0.125
2.0
0.250
LCU-2
504.5
0.267
4.0
1.067
1.611
172-962
LCU-2
503.0
0.143
5.0
0.714
LCL-1
516.0
0.201
2.5
0.503
1.217
172-95
LCU-2
503.5
0.334
5.0
1.672
LCL-1
517.5
0.228
2.0
0.455
2.127
172-97
LCU-2
501.0
0.386
5.5
2.121
181-94
LCU-2
512.0
0.256
10.0
2.563
167-108
MCU-1
410.5
0.233
4.0
0.931
171-99
LCL-1
509.0
0.188
2.5
0.471
-
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 % 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 ("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 and work continues to complete the
pending joint venture ("JV") transaction with Boss Energy (
December 6, 2023
) whereby Boss Energy will acquire a 30% interest
in the enCore managed JV for consideration of
$60 million USD
and a placement into enCore shares of
$10 million USD
.
Total operating capacity at the Alta Mesa CPP is 1.5 million lbs. U
3
O
8
(uranium) per year. 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 cut-off)
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)
The Company advises that it is not basing its production decisions at Alta Mesa CPP or Rosita 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 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. The Company has determined to proceed with a production decision based on past operations at
the Alta Mesa CPP and Rosita CPP, 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 as the newest uranium producer in
the United States
. Uranium production commenced at enCore's licensed and
past-producing South Texas Rosita Central Processing Plant ("CPP") in
November 2023
with work underway for a planned 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 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.
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.
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.
The Company advises that it is not basing its production decisions at Alta Mesa CPP or Rosita CPP on a feasibility study of
mineral reserves demonstrating economic and technical viability. The production decision is based on known past 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. The Company has determined to proceed with a production decision based on past operations at the Alta Mesa CPP
and Rosita CPP, including past ISR operations in the known mineral resource areas.
Note on forward looking information:
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 our planned extraction and production 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 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, 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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SOURCE
enCore Energy Corp.
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%SEDAR: 00029787E
For further information:
please contact: William M. Sheriff, Executive Chairman, 972-333-2214, [email protected]
CO: enCore Energy Corp.
CNW 07:00e 17-JAN-24