Anfield Resources Provides Summary of Joint Venture, Royalty Portfolio, and Surface Stockpiles to be Acquired in Uranium One Asset Transaction
VANCOUVER, BC / ACCESSWIRE / February 23, 2015 / Anfield Resources Inc. (ARY.V)(ANLDF) (0AD.F)("Anfield" or "the Company") is pleased to provide a summary of the assets to be acquired upon the closing of the asset purchase with Uranium One. On August 18, 2014, Anfield announced that it had entered into definitive agreements with Uranium One under which Anfield agreed to acquire the Shootaring Canyon Mill and a portfolio of conventional uranium assets from Uranium One (the "Transaction"). In addition to the Shootaring Canyon Mill and the Velvet-Wood Project, the Transaction also includes an impressive portfolio of uranium assets, including a joint venture project with Energy Fuels Inc. (TSX:EFR)(NYSE MKT:UUUU), two surface stockpiles, and a number of royalties on projects held by other publicly traded companies, including Energy Fuels Inc., Azarga Uranium Corp. (TSX:AZZ) and Western Uranium Corporation (CSE:WUC).
The Wate Breccia Pipe Project
Upon closing of the Transaction, Anfield will acquire Uranium One's 50% interest in the high-grade Wate Uranium Project in Arizona held by the Wate Mining Company, LLC, and will become a joint owner with Energy Fuels Inc.
The northern Arizona breccia pipes are generally recognized as being among the highest grade uranium deposits in the world outside of the Athabasca Basin in Canada. In addition to the Wate Project, the Transaction also includes the Findlay Tank Project, another breccia pipe project in northern Arizona.
Royalty Portfolio
The Transaction also contains a number of royalty arrangements on projects held by publicly-traded companies that, subject closing of the Transaction, would have the potential to be an additional source of income for Anfield. The royalty projects are not currently in production, and no royalty would be due to Anfield until commencement of production. The royalty arrangements are summarized as follows:
-2% to 4% sliding scale production royalty on Azarga Uranium Corp.'s Dewey Burdock project in Custer and Fall River Counties, South Dakota.
-2% net smelter returns royalty on Western Uranium Corporation's San Rafael project in Emery County, Utah.
-2% to 4% sliding scale gross value royalty on Energy Fuels Inc.'s Whirlwind project in Grand County, Utah.
-1% royalty on Energy Fuels Inc.'s Energy Queen project in San Juan County, Utah.
Surface Stockpiles
In addition to the approximately 48,000 acres (~19,425 hectares) of uranium properties included in the Transaction, Anfield will also acquire two surface stockpiles. One of the stockpiles is located at the Shootaring Canyon Mill, with a historical estimate of 250,000 pounds of U3O8 at an average grade of 0.13% U3O8. (Source: Definitive Cost Estimate for the Restart of Shootaring Canyon Mill, Ticaboo, Utah, Lyntek Incorporated, July 28, 2008.) The other surface stockpile is located in the Lisbon Valley, having a historical mineral resource estimate of approximately 165,000 pounds of U3O8 at an average grade of 0.09% U3O8. (Source: Technical Report on the Lisbon Valley Uranium Properties Utah, Roscoe Postle Associates Inc., September 12, 2005.) These surface stockpiles are significant, in that they represent potential mill feed sources with no mining costs and very low removal costs.
Corey Dias, CEO of Anfield, states, "We are very pleased that Anfield's carefully-selected U.S. projects are positioned to benefit from the strengthening global uranium market. The assets are synergistic and provide a strategic, stepped approach to production and revenue generation. On completion of the Uranium One transaction, Anfield will own the Shootaring mill, one of only three permitted uranium mills in the U.S., and will have the mineable Velvet-Woods Project nearby. Further, acquiring a 50% interest in the high-grade Wate Project, along with Energy Fuels' partnership in the Project, will enhance our asset mix."
Mr. Dias adds: "Our near-term revenue options will be further strengthened by stockpiled uranium ore and royalty agreements. The acquisition of the surface stockpiles of ore will provide the Company with the option of toll-milling the ore, selling the ore, or using the ore as initial feed for our mill. In addition, we will have an extensive royalty portfolio representing a source of passive revenue upon projects reaching production stage."
About Anfield's Properties
Anfield is an energy metals exploration, 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 energy metals assets. Anfield is a publicly-traded corporation listed on the TSX-Venture Exchange (ARY-V), the OTCQB (ANLDF) and the Frankfurt Stock Exchange (0AD). Anfield is focused on the acquisition and development of an array of strategic energy metals projects as summarized below:
Uranium
Upon the closing of the Transaction, the key asset in Anfield's portfolio will be 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.
Upon the closing of the Transaction, Anfield's uranium assets will consist of mining claims and state leases in southeastern Utah, Colorado, South Dakota and Arizona totaling nearly 65,500 acres (26,507 hectares), targeting areas where past uranium mining or prospecting occurred. Upon the closing of the Transaction, Anfield's uranium assets will include the Velvet-Wood Project, containing a measured and indicated resource of 4.6 million pounds U3O8 at an average grade of 0.29% (Velvet-Wood Uranium Project, 43-101 Mineral Resource Report, Garfield County, Utah, USA dated 14-November-2014, prepared by BRS, Inc.), as well as the Frank M Uranium Project with an indicated resource of 1,095,000 indicated tonnes at 0.101% U3O8 for 2,210,000 pounds (Frank M Uranium Project, 43-101 Mineral Resource Report, Garfield County, Utah USA dated 10-June-2008, prepared by BRS, Inc.). All assets are situated within a 125-mile radius of the Shootaring Mill.
Note on Historical Estimates: Anfield is not treating the historical estimates referred to above as current mineral resources or mineral reserves. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves.
Copper
Anfield also has copper assets in Arizona and Chile, two of the foremost copper producing jurisdictions in the world.
On behalf of the Board of Directors
ANFIELD RESOURCES INC.
Corey Dias, Chief Executive Officer
Neither 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 Resources Inc.
Clive Mostert
Corporate Communications
780-920-5044
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SOURCE: Anfield Resources Inc.
