TSX.V:
EU
OTCQB:ENCUF
www.encoreenergycorp.com
CORPUS CHRISTI, Texas,
June 24, 2021 /CNW/ - enCore
Energy Corp. (TSXV: EU) (OTCQB: ENCUF) (the
"Company" or "enCore") is pleased to announce the
results of a Preliminary Economic Assessment ("PEA") for the
company's recently consolidated Juan
Tafoya and Marquez projects located in the Grant's Uranium
District in northwest New Mexico. This is the first PEA for
the projects as this is the only time in recent history that the
two contiguous mineralized properties have been held under the same
company. The PEA was constructed based on a combined and
updated NI 43-101 Technical Report using an Indicated resource of
7.1 million tons at a grade of 0.127% eU3O8
for a total of 18.1 million pounds of
U3O8.
The PEA reports the Net Present Value ("NPV") for the project
that ranges from $20.9 million using
$60.00 per pound of yellowcake
(U3O8) to $71.2
million using $70.00 per pound of yellowcake with
internal rate of returns ("IRR") ranging from 17% to 39% with
corresponding yellowcake prices; these scenarios are pre-tax and
assume a 7% discount rate. The break-even price of production is
estimated to be $56.00 per
pound.
"This initial PEA enables enCore to illustrate the
economic opportunities of the combined Juan
Tafoya and Marquez deposits which have been consolidated
with the Westwater Resources transaction completed at year end
2020. This report assumed conventional underground operation
and recovery through a newly constructed conventional mill, though
the authors did acknowledge that further research may prove the
property amenable to either in-situ recovery ("ISR") or heap leach
processing; either of which would have a positive material impact
on the economic conclusions of the current PEA." said Paul Goranson, Chief Executive Officer. "This
study points to the economic importance of our conventional assets
in New Mexico, with further work
it may well be determined that some, or conceivably most, of the
uranium at Juan Tafoya-Marquez might be amenable to lower cost
recovery options including ISR or heap leaching."
The PEA evaluated the economics of mining at Juan Tafoya-Marquez
through underground mining and on-site processing (milling) to
produce yellowcake. The study has an effective date of June 9, 2021, and was prepared by Douglas L.
Beahm, P.E, P.G., of BRS Inc. in cooperation with Terence P.
McNulty, P.E., PhD, of McNulty and Associates.
PEA Summary Mine Plan and Operating Assumptions
Total Tons
mined
|
6,033,000
|
Total Tons Waste
mined
|
1,392,000
|
Total Tons of
Resource mined
|
4,641,000
|
Total Pounds
Yellowcake ( U3O8 )
Contained
|
12,184,000
|
Average Diluted Grade
% U3O8
|
0.188%
|
Total Pounds
U3O8 Recovered @ 95% recovery
|
11,575,000
|
Life of
Mine
|
15 years
|
PEA Summary Capital and Operating Costs
Initial Capital
Costs (including contingency)
|
|
Mine Direct
Capital
|
$42,110,000
|
Mill and Tailings
Capital
|
$37,200,000
|
Total LOM Capital
Costs
|
$79,310,000
|
Life of Mine Cost Summary
Cost
Center
|
Total Cost US$
(x1,000)*
|
Cost per Pound
Recovered US$
|
OPEX Mine
|
$308,000
|
$26.62
|
OPEX Mill
|
$184,000
|
$15.90
|
Decommissioning and
Reclamation
|
$13,000
|
$1.11
|
Taxes and
Royalties
|
$53,000
|
$4.55
|
TOTAL OPEX
(LOM)
|
$558,000
|
$48.10*
|
PEA Summary Economics at $60.00/lb. Yellowcake
(U3O8)
Pre-tax and Royalty
NPV at 7%
|
$20,595,000
|
Pre-tax and Royalty
IRR
|
17%
|
Post Tax and Royalty
NPV at 5%
|
$18,473,000
|
Post Tax and Royalty
IRR
|
16%
|
Post Tax
payback
|
5.0 years
|
Total LOM
Revenue
|
$694,474,000
|
Total LOM Direct
Costs
|
$523,699,000
|
Total LOM
Royalties
|
$33,566,000
|
Total LOM
Taxes
|
$3,225,000
|
Total cash Flow after
taxes and royalties
|
$54,674,000
|
Cash Cost ($/lb.
U3O8)
|
$42.53
|
The base case summarized above assumes the owner will purchase
all mining equipment. The base case assumes mining and
milling at an average rate of 1000 tons per day year-round
Sensitivities
U3O8 Price
US$/lb
|
$60
|
$65
|
$70
|
Pre-Tax NPV 5%
$000
|
$20,914
|
$50,970
|
$71,199
|
Pre-Tax
IRR
|
17%
|
30%
|
39%
|
Mineral Resources
The mineral resources used in this PEA include Indicated mineral
resources estimated by Douglas
Beahm. The resources are found in two different
stacked sands currently identified on the Juan Tafoya-Marquez
property. Mineralization occurs in a third upper sand but is
insufficiently defined to be included in this report. The
in-situ estimates used electronic logs from 926 drill holes and
over 575,809 meters of drilling.
Indicated Mineral Resources
Indicated Mineral
Resources
|
|
|
|
Minimum 0.60
GT
|
TONS
|
%eU3O8
|
Pounds
|
C Sand
|
1,426,355
|
0.156
|
4,455,706
|
D Sand
|
5,685,244
|
0.120
|
13,678,258
|
TOTAL
|
7,111,599
|
0.127
|
18,133,964
|
ROUNDED TOTAL (x
1,000)
|
7,100
|
0.127
|
18,100
|
Disclosure
The PEA is only summarized in this press release as an initial
high-level review of the project the complete detailed report will
be filed on SEDAR within 30 days of this press release. The
PEA is preliminary in nature. There is no guarantee that the
project economics described in this report will be achieved.
Qualified Persons
The independent qualified persons responsible for preparing the
Juan Tafoya-Marquez Preliminary Economic Assessment are Douglas L.
Beahm, P.E., P.G., of BRS Inc. and Terence
P. McNulty, of McNulty and Associates.
Douglas H. Underhill, PhD, CPG,
enCore's Chief Geologist, is the Company's designated Qualified
Person (QP) for this news release within the meaning of NI 43-101
and has reviewed and validated that the information contained in
the release is consistent with that provided by the QP's
responsible for the PEA.
About enCore Energy Corp.
enCore Energy Corp. is a
U.S. domestic uranium developer focused on becoming a leading
in-situ recovery (ISR) uranium producer. The Company is led by a
team of industry experts with extensive knowledge and experience in
the development and operations of in situ recovery uranium
operations. enCore Energy's opportunities are created from the
Company's transformational acquisition of its two South Texas production facilities, the
changing global uranium supply/demand outlook and opportunities for
industry consolidation. These short-term opportunities are
augmented by our strong long term commitment to working with local
indigenous communities in New
Mexico where the company holds significant uranium resources
including the NI 43-101 resources at the partially permitted
Crownpoint-Hosta Butte property and the NI-43-101 resources at the
Juan Tafoya-Marquez property.
www.encoreenergycorp.com
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.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein. This press release contains projections and forward-looking
information that involve various risks and uncertainties regarding
future events. Such forward-looking information can include without
limitation statements based on current expectations involving a
number of risks and uncertainties and are not guarantees of future
performance. There are numerous risks and uncertainties that could
cause actual results and the Company's plans and objectives to
differ materially from those expressed in the forward-looking
information. Actual results and future events could differ
materially from those anticipated in such information. These and
all subsequent written and oral forward-looking information are
based on estimates and opinions of management on the dates they are
made and are expressly qualified in their entirety by this notice.
Except as required by law, the Company assumes no obligation to
update forward-looking information should circumstances or
management's estimates or opinions change.
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SOURCE enCore Energy Corp.