Anfield to Acquire Uranium Project with Historical Indicated Uranium Resources of 18.1 Million Pounds from enCore Energy
VANCOUVER, British Columbia, June 06, 2023 (GLOBE NEWSWIRE) -- Anfield Energy Inc. (TSX.V: AEC; OTCQB: ANLDF; FRANKFURT: 0AD) (“Anfield” or “the Company”) is pleased to announce that it has entered into a definitive share purchase agreement, dated June 5, 2023, with enCore Energy Corp. (“enCore”, or “the Seller”) (NYSE American: EU; TSX.V: EU), an arms-length party, to acquire a 100% interest in the Marquez-Juan Tafoya uranium project (“Juan Tafoya”), located in the Grants Uranium Mineral District, 50 miles west-northwest of Alberquerque, New Mexico through the acquisition of enCore’s wholly-owned subsidiary, Neutron Energy, Inc. (“Neutron”).
Juan Tafoya hosts a historical indicated uranium resource, based on a Preliminary Economic Assessment commissioned by enCore, of approximately 7.1MT at an average grade of 0.127% returning 18.1Mlbs, using a minimum 0.60 GT cutoff (Marquez-Juan Tafoya Uranium Project, 43-101 Technical Report, Preliminary Economic Assessment, BRS, Inc., June 2021). While the Company is not treating this resource as a current mineral resource, and a qualified person engaged by the Company has not done sufficient work to classify this resource as current mineral resource, the Company does believe the previous analysis conducted to be reliable and the information to be of assistance to readers.
As consideration for the acquisition of Neutron, enCore will receive 185 million common shares of the Company (“the Consideration Shares”) and C$5 million in cash. The Company has also agreed to grant enCore the right to nominate one Director to the board of directors of the Company, to serve as long as enCore continues to hold at least 10% of the outstanding shares of the Company. During this time, enCore has agreed to vote the Consideration Shares in support of any decisions made by management of the Company.
Completion of the acquisition of Neutron, and the issuance of the Consideration Shares, remains subject to the approval of the TSX Venture Exchange. Following issuance, the Consideration Shares will be subject to statutory restrictions on resale for a period of four-months-and-one-day. No finders’ fees or commissions are owing by the Company in connection with the acquisition.
Corey Dias, Anfield’s CEO commented: “We are very pleased to acquire the Marquez-Juan Tafoya Uranium Project for a number of reasons: first, the advanced nature of the Project’s uranium resource, which is in line with our acquisition strategy of pursuing assets with either historical production or a historical or current resource; second, the size of the deposit, which would both represent Anfield’s largest single uranium project and increase the Company’s uranium resource base by more than 60%; and third, the Company’s expansion into another historically-prolific uranium region which could, in the longer term, serve as both a regional anchor project and Shootaring mill feed. Finally, we are pleased with the addition of enCore as a core shareholder, a company on the cusp of ISR-based uranium production in the US.
“As previously mentioned, we will continue to seek out prospective assets which align with our two-fold strategy of acquiring both near term and longer-term uranium and vanadium assets which will fit into our overall production plan. The near-term strategy centers on our advanced Utah and Colorado uranium and vanadium projects – Velvet Wood, West Slope and Slick Rock – underpinned by our wholly-owned Shootaring Canyon mill, one of only three licensed conventional mills in the U.S. The longer-term production strategy includes the acquisition of complementary assets with potential to feed additional uranium and vanadium resource to our Shootaring Canyon mill. We believe that Juan Tafoya will both complement our existing portfolio of assets and serve as part of our longer-term uranium production strategy.”
About the Marquez-Juan Tafoya Project
The Project is located within the Grants Uranium Mineral District of northwest New Mexico, approximately 50 miles west-northwest of Albuquerque, New Mexico. It consists of two adjacent properties: Marquez and Juan Tafoya, that were previously developed by separate mining companies, Kerr-McGee Corporation and Bokum Resources, respectively. 926 drill holes totaling approximately 1.9 million feet drilled were completed by past operators.
In the 1970s to early 1980s, extensive mineral exploration by drilling defined significant uranium resources on the two properties. Mine and mineral processing infrastructure was constructed by Bokum Resources on the Juan Tafoya portion of the Project, including a 14-foot production shaft (completed to within 200 feet of the mine zone), a 5-foot ventilation shaft, and a partially-built mill processing facility and tailings disposal cell. The surface facilities were dismantled and reclaimed in the early 2000s.
Marquez Property - history
In the early 1970s, Kerr McGee Corporation entered into a mineral lease agreement with the Williams family for the Marquez property. Exploration drilling began in 1973, and in 1978 Tennessee Valley Authority acquired a 50% interest in the property. In the 1980s, the property was returned to the mineral lease holder due to a significant decline in the uranium price. In 2007, the lease was acquired by Strathmore Minerals Corporation. Strathmore was subsequently acquired by Energy Fuels, Inc., who then sold Marquez to enCore.
Juan Tafoya – history
In 1969, Devilliers Nuclear acquired mineral leases in the Juan Tafoya area and began exploratory drilling. In the early 1970s Exxon acquired the rights to 25 small mineral leases in the same area and began exploratory drilling. In 1975, Bokum Resources acquired both the Devilliers lease and the Exxon leases. In 1980, the property was returned to the mineral lease holder due to a significant decline in the uranium price. In 2006-07, Neutron Energy acquired the mineral leases and, in 2012, Neutron was acquired by Uranium Resources, Inc. (subsequently known as Westwater Resources, Inc.) In September 2020, enCore acquired Westwater’s US uranium assets, including the mineral leases to the Juan Tafoya properties.
Qualified Persons
Douglas L. Beahm, P.E., P.G., principal engineer at BRS Inc., is a Qualified Person as defined in NI 43-101 and has reviewed and approved the technical content of this news release.
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 assets include the Velvet-Wood Project, the Slick Rock Project, the West Slope Project, the Frank M Uranium Project, as well as the Findlay Tank breccia pipe. A combined NI 43-101 PEA has been completed for the Velvet-Wood and Slick Rock Projects. The PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and, resultantly, there is no certainty that the included preliminary economic assessment would be realized. All conventional uranium assets are situated within a 200-mile radius of the Shootaring Mill.
Technical Disclosure
Table 1. Anfield’s existing conventional uranium-vanadium project portfolio resources.
Project | Location | Classification | Tons (kt) | Uranium | Contained | Vanadium | Contained | ||
Velvet-Wood | Utah | M & I | 811 | 0.29 | % | 4.6 | - |
| - |
|
| Inferred | 87 | 0.32 | % | 0.6 | 0.404 | % | 7.3 |
West Slope | Colorado | Indicated | 2,452 | 0.142 | % | 6.9 | - |
| - |
|
| Inferred | 2,452 | - |
| - | 0.708 | % | 34.7 |
|
| Historic* | 656 | 0.26 | % | 3.5 | 1.49 | % | 19.5 |
Slick Rock | Colorado | Inferred | 1,760 | 0.224 | % | 7.9 | 1.35 | % | 47.1 |
Frank M | Utah | Historic* | 1,137 | 0.101 | % | 2.3 | - |
| - |
Findlay Tank | Arizona | Historic* | 211 | 0.226 | % | 1.0 | - |
| - |
Date Creek/ | Arizona | Historic* | 2,602 | 0.054 | % | 2.8 |
|
| |
* The Company’s Qualified Person has not done sufficient work to classify these historic estimates as current mineral resources and Anfield is not treating such historical resources as current mineral resources.
Velvet-Wood: The PEA for Velvet-Wood/Slick Rock was authored by Douglas L. Beahm, P.E., P.G. Principal Engineer, of BRS Inc., Harold H. Hutson, P.E., P.G., Carl D. Warren, P.E., P.G., and Terence P. (Terry) McNulty, P.E., D. Sc., of T.P. McNulty and Associates Inc. (May 6, 2023). Mineral resources are not mineral reserves and do not have demonstrated economic viability in accordance with CIM standards. GT cut-off varies by locality from 0.25%-0.50%.
West Slope: NI 43-101 resource estimate for the JD-6, JD-7, JD-8 and JD-9 properties, completed by BRS Inc. (effective March 2022); Historic resource estimate for the SR-11, SR-13A, SM-18 N, SM-18 S, LP-21 and CM-25 properties, completed by Behre Dolbear for Cotter Corporation (August 2007). Indicated and Inferred resources using GT cut-off of 0.1 ft% eU3O8; historic resources using cut-off of 0.05% U3O8.
Slick Rock: The PEA for Velvet-Wood/Slick Rock was authored by Douglas L. Beahm, P.E., P.G. Principal Engineer, of BRS Inc., Harold H. Hutson, P.E., P.G., Carl D. Warren, P.E., P.G., and Terence P. (Terry) McNulty, P.E., D. Sc., of T.P. McNulty and Associates Inc. (May 6, 2023). Mineral resources are not mineral reserves and do not have demonstrated economic viability in accordance with CIM standards. GT cut-off varies by locality from 0.25%-0.50%.
Frank M: Historic Technical Report for Frank M, prepared for Uranium One Americas, was authored by Douglas L. Beahm, P.E., P.G. Principal Engineer of BRS Inc., and Andrew C. Anderson, P.E., P.G. Senior Engineer/Geologist of BRS Inc., dated June 10, 2008. Frank M historic resource used a GT cut-off of 0.25%.
Findlay Tank: Historic Technical Report for Findlay Tank, prepared for Uranium One Americas, was authored by Douglas L. Beahm, P.E., P.G. Principal Engineer of BRS Inc., dated October 2, 2008. Findlay Tank historic resource used a grade cut-off of 0.05% eU3O8.
Artillery Peak: Artillery Peak Exploration Project, Mohave County, Arizona, 43-101 Technical Report, authored by Dr. Karen Wenrich, October 12, 2010. GT cut-off varies by locality from 0.01%-0.05%.
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
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