Energy Fuels to Continue Uranium Production at Pinenut Mine Into 2015 Due to Favorable Mining Conditions and Low Costs
April 23 2014 - 7:00AM
Marketwired
Energy Fuels to Continue Uranium Production at Pinenut Mine Into
2015 Due to Favorable Mining Conditions and Low Costs
TORONTO, ONTARIO and LAKEWOOD, COLORADO--(Marketwired - Apr 23,
2014) - Energy Fuels Inc. (NYSEMKT:UUUU)(TSX:EFR) ("Energy Fuels"
or the "Company") is pleased to announce that it has revised its
previous guidance and currently expects to continue mining at its
100% owned Pinenut Mine through 2014 and into the 1st quarter of
2015. Previously, the Company had provided guidance that it
expected production at the Pinenut Mine to be placed on standby by
mid-2014, with all ore produced from the mine through mid-2014
being milled at the Company's White Mesa Mill in 2014. However, as
a result of favorable mining conditions and lower than expected
costs, the Company now expects to continue mining at Pinenut
through 2014 and into the 1st quarter of 2015, at which point the
economic uranium resource is expected to be depleted, subject to
the potential discovery of additional resources through planned
underground exploration. All production from mid-2014 through the
depletion of the economic resource will be stockpiled on the
surface at the mine, pending improvements in market conditions at
which time it would be transported to the White Mesa Mill for
processing into U3O8. Under current economic conditions, the
Company has no plans to mill such additional ore in 2014.
Accordingly, the Company's guidance of finished U3O8 production for
2014 totaling 500,000 pounds remains unchanged.
The Company's decision to continue mining the Pinenut mine to
depletion was based on favorable mining results at the mine and the
ability, through continued mining, to avoid mine standby costs and
the costs associated with re-starting production at a future date.
At the current time, Energy Fuels expects to mine approximately
250,000 lbs. of additional U3O8 from the Pinenut Mine from mid-2014
to 2015 which will be stockpiled at the mine.
Northern Arizona's "breccia pipes" contain the highest-grade
uranium deposits in the U.S., and among the highest grade uranium
deposits in the World, outside of Canada. As a result, these
projects are among the lowest cost sources of uranium production in
Energy Fuels' portfolio. The Canyon Mine and EZ Complex are
additional high-grade "breccia pipe" deposits held by the Company
in northern Arizona.
Stephen P. Antony, President and CEO of Energy Fuels commented,
"Like many breccia pipe mines, the Pinenut Mine has exceeded our
expectations. Therefore, we made the decision to continue mining at
Pinenut through this year and into 2015. Our low cost investment in
this extra production will provide Energy Fuels with additional
optionality and potential liquidity as the expected uranium market
recovery occurs. We also believe these results highlight the fact
that Energy Fuels has lower cost sources of production in our
portfolio, both from our Arizona mines and our alternate feed
material business, and the flexibility to respond to changing
market conditions."
In addition, as previously announced, the Company expects to
resume conventional ore processing at the White Mesa Mill in
mid-May 2014 for two to three months. This production, along with
current inventories and spot market purchases, is expected to allow
the Company to meet its current delivery obligations through 2015
and beyond. The Company has three premium-priced contracts with
three utilities. The contracts call for 800,000 pounds of U3O8
deliveries during 2014 at an average price of $58.42 per pound of
which 300,000 pounds will be purchased in the spot market for
delivery to one customer. This pricing represents a significant
premium to the current spot price of $33 per pound. The pricing
under all three of these contracts is currently at their floors.
Therefore, if the spot or term uranium price continues to fall, the
Company's realized prices under these contracts will not fall.
However, if spot or term prices rise to certain levels, the Company
will be in a position to realize benefits from an improving
market.
Stephen P. Antony, P.E., President & CEO of Energy
Fuels, is a Qualified Person as defined by NI 43-101 and
has reviewed and approved the technical disclosure contained in
this document.
About Energy Fuels: Energy Fuels is currently
America's largest conventional uranium producer, which supplied
approximately 25% of the uranium produced in the United States in
2013. Energy Fuels operates the White Mesa Mill, which is the only
conventional uranium mill currently operating in the U.S. The mill
is capable of processing 2,000 tons per day of uranium ore and has
a licensed capacity of over 8 million lbs. of
U3O8 per year. Energy Fuels has
projects located in a number of states in the Western U.S.,
including a producing mine, mines on standby and mineral properties
in various stages of permitting and development. The Company's
common shares are listed on the Toronto Stock Exchange under the
trading symbol "EFR" and on the NYSEMKT under the trading symbol
"UUUU".
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This news release contains certain "Forward Looking
Information" and "Forward Looking Statements" within the meaning of
applicable Canadian and United States securities legislation, which
may include, but is not limited to, statements and expectations
with respect to continued production at the Pinenut mine, including
pounds of U3O8, grade and
costs, the potential discovery of additional resources at the
Pinenut Mine, the Company's expectation to transport stockpiled ore
at the Pinenut mine to the White Mesa Mill for processing as market
conditions warrant, the expected cost avoidance through continued
production at the Pinenut Mine, the Company's expectation to resume
conventional ore processing at the White Mesa Mill and expected
production levels in 2014, expectations of a recovery in the
uranium market, and the Company's ability to be in a position to
realize the benefits of an improving market. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "expects" "does not expect",
"is expected", "subject to", "prospective" or "believe", or
variations of such words and phrases, or state that certain
actions, events or results "may", "could", or "will be taken", "be
achieved" or "have the potential to". All statements, other than
statements of historical fact, herein are considered to be
forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements express or implied by the
forward-looking statements. Factors that could cause actual results
to differ materially from those anticipated in these
forward-looking statements are described under the caption "Risk
Factors" in the Company's Annual Information Form dated March 26,
2014, which is available for review on the System for Electronic
Document Analysis and Retrieval at www.sedar.com. Forward-looking
statements contained herein are made as of the date of this news
release, and the Company disclaims, other than as required by law,
any obligation to update any forward-looking statements whether as
a result of new information, results, future events, circumstances,
or if management's estimates or opinions should change, or
otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, the reader is cautioned not to place undue
reliance on forward-looking statements.
Energy Fuels Inc.Curtis H. MooreInvestor Relations(303) 974-2140
or Toll free:
1-888-864-2125investorinfo@energyfuels.comwww.energyfuels.com
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