CORPUS
CHRISTI, Texas, April 11,
2022 /CNW/ - enCore Energy Corp.
("enCore" or the "Company") (TSXV: EU), (OTCQB:
ENCUF) is pleased to announce positive results from its on-going
uranium delineation and exploration drill programs at its 100%
owned Rosita South project. The Rosita South project is adjacent to
enCore's licensed past-producing Rosita In-Situ Recovery (ISR)
Uranium Processing Plant (Rosita Plant), Texas. The Rosita South area provides one of
the most optimal source of future feed for the Rosita Plant. The
Company has recently added a 3rd drill rig with 2
additional rigs expected to begin in the near term.
Highlights of the Rosita South uranium delineation and
exploration drill programs include:
- 32 drill holes reported for a total of ~11,000 feet including
20 delineation drill holes and 12 exploration drill holes;
- The exploration drilling has identified 8 mineralized sands
plus an additional 4 potentially mineralized sands, all within 800
feet of the surface, which provide opportunities for discovery of
future uranium resources across the entire Rosita project
- Delineation drill results established an extension of
mineralization in the Production Area which supports the start-up
of the Rosita Plant expected next year.
To view the project map and geologic section:
https://bit.ly/3NXX1Fl.
"We are pleased with the initial results from the on-going drill
programs which have been designed to expand known mineralization at
Rosita South and explore for new deposits at depth. The results
indicate enhanced potential for further uranium mineralization not
only from the previously known shallow deposits but more
importantly the virtually untested numerous stacked mineralized
sands underlying the licensed production area," said William M. Sheriff, Executive Chairman. "The
potential of multiple stacked uranium mineralized units can be
compared in concept to oil and gas where there are commonly
multiple pay zones (oil and gas bearing units) in a producing well
or in many gold systems where near surface gold deposits overlay
one or more deeper-rooted structures or units with gold
mineralization. The addition of more drill rigs will increase the
pace and breadth of both our delineation of known mineralization
and exploration of these deeper mineralized sands."
Uranium Delineation Drilling
Program
Twenty drill holes for a total of 4,030 feet were designed to
in-fill and confirm known mineralization at Rosita South. The
current drilling has extended uranium mineralization over 300 feet
laterally beyond the previously known limits of ISR amenable
uranium mineralization.
South Rosita Project – Selected
Delineation Drill Results
Drill
Hole
|
Sand
|
Grade
|
Thickness
|
Grade Thickness
(GT)*
|
SRC-22-4
|
UA-(upper-A)
|
0.04
|
6.0
|
0.240
|
SRC-22-14
|
UA
|
0.087
|
6.5
|
0.563
|
SRC-22-17
|
LA-(lower-A)
|
0.209
|
5.0
|
1.046
|
SRC-22-18
|
UA-&
LA
|
0.069
0.131
|
7.0
1.5
|
0.485
0.197
|
SRC-22-19
|
LA
|
0.089
|
4.5
|
0.399
|
All intercepts are
between 117 and 145 feet below surface in saturated sands (required
for ISR). The water table is
located approximately 70-80 feet below surface.
|
|
*Grade Thickness, or
GT, is defined as the product of the mineral grade (at the
.02% U3O8 cutoff) multiplied by the
thickness of the mineralization at or above the cutoff value. GT
values of 0.3 and above are considered to be the
minimum for inclusion in a wellfield. Values of 0.45 are
considered typical ISR ore-grade for shallow deposits. The
highest GT encountered during this program was 1.05 in hole number
SRC-22-17. Select intercepts are presented in
thetable above.
|
Uranium Exploration Drill
Program
Twelve deeper exploration holes, totaling 7,380 feet, were
designed to test for uranium bearing sands below the known shallow
mineralized sands at Rosita South. The success of this
exploration program has been made possible through the recently
acquired access to more than 1,500 drill logs and historical
geological data from Mobil Energy Minerals Company, Moore Energy
Corporation and URI, Inc.
The evaluation of this newly-acquired data led to the 12 drill
holes which intercepted highly anomalous down-hole gamma radiation
indicative of uranium mineralization from 8 mineralized sands and
an additional 4 potentially mineralized sands within the
Goliad and Oakville formations. All of these sands
lie within 800 feet of surface beneath the project area. Previous
ISR recovery in the Rosita Production Area was confined to the
shallowest of these units, leaving the lower sandstone units
essentially untested. "Acquisition and archiving of historical
exploration data has been an important part of our corporate
strategy from the beginning and promises to save us millions of
dollars in exploration expense as we go forward with our expansion
plans," Sheriff noted.
Rosita Central Uranium Processing
Plant (Rosita Plant)
enCore's Rosita Plant, located approximately 60 miles from
Corpus Christi, Texas, is a
licensed, past-producing in-situ recovery (ISR) uranium plant
currently under refurbishment. With a completion deadline at
the end of Q2/2022, the plant is on schedule and on budget to meet
a 2023 production target. The Rosita Plant is designed to process
uranium feed from multiple satellite operations, all located in the
South Texas area and is 1 of 11
licensed uranium processing plants in the
United States, 2 of which are owned by enCore Energy.
The Company also advises it has appointed Red Cloud Securities
Inc. and Red Cloud Financial Services Inc. (together "Red Cloud")
to provide the Company with a range of capital markets advisory
services. Red Cloud is a
Toronto-based financial services
company that provides assistance to mineral exploration and mining
companies in accessing capital markets and enhancing their
corporate profile. Under the engagement, Red Cloud will be paid a fee of $10,000 per month for the services it will render
for a one year period.
Quality Assurance/Quality
Control
All drill holes are 5.625 inch diameter rotary-mud holes.
Each hole is logged with electrical and gamma methods upon
completion. Any anomalous gamma readings are followed up with
Prompt Fission Neutron (PFN) surveys which provide direct and
accurate in-situ uranium values eliminating any concerns over
disequilibrium. The Company owns and operates 2 logging
trucks and 5 PFN tools.
Many uranium deposits have a degree of disequilibrium, whereby
the radioactivity measured in drill holes using traditional gamma
methods does not accurately correspond to ore grade, due to the
continued decay of uranium daughter products including potassium,
thorium, lead and bismuth relative to radium (Ra226), a
significant gamma emitter. Traditionally, accurate uranium values
are determined by chemical assay of drill core which is time
consuming and expensive.
Without accurate uranium values, the potential to make
inaccurate estimates of mineralization on both the high and low
side is ever present. PFN analysis is instantaneous and
accurate eliminating potential errors by using neutron activation
to directly detect and quantify uranium content in place down the
drill hole.
The PFN tool creates very fast neutrons (14MeV) and fires
108 neutrons per second. Therefore, the neutrons
emitted by the PFN tool excite, at an atomic level, in-situ uranium
atoms in the drill hole, creating fast (epithermal) neutrons and
slow (thermal) neutrons. The ratio of epithermal to thermal
neutrons is proportional to uranium, allowing the
U3O8 ore grade to be accurately
calculated. This provides a relatively inexpensive and
instantaneous means for accurate assaying in-situ ore grades over
large areas, and allows for accurate ore body mapping, resource
estimation, and wellfield planning.
Mark Pelizza, MSc. Geo. Eng.,
CPG-11821, a Director for the Company, and a Qualified Person under
NI 43-101, has approved the technical disclosure in this news
release.
About enCore Energy
Corp.
enCore Energy is rapidly advancing towards becoming the next
producer of American uranium. With approximately 90 million pounds
of U3O8 estimated in the measured and
indicated categories and 9 million pounds of U3O8 estimated in the
inferred category1, enCore is the most diversified
in-situ recovery uranium development company in the United States. enCore is focused on
becoming the next uranium producer from its licensed and
past-producing South Texas Rosita Processing Plant by 2023. The
South Dakota-based Dewey Burdock and Wyoming Gas Hills projects
offer mid-term production opportunities with significant
New Mexico uranium resource
endowments providing long-term opportunities. 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.
____________________________
1
|
Mineral resource
estimates are based on technical reports prepared in accordance
with NI43-101 and available on SEDAR as well as company websites at
www.encoreuranium.com.
|
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PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: Certain information in this news release
constitutes forward-looking statements under applicable securities
laws. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "potential", "believe", "intend" or the negative of these
terms and similar expressions. Forward-looking statements in this
news release include, but are not limited to, statements relating
to the intended use of the net proceeds of the Offering and the
completion of any capital project or property acquisitions.
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; inability to access additional
capital; the ability of enCore to implement its business
strategies; and other risks. Readers are cautioned not to place
undue reliance on forward-looking statements as there can be no
assurance that the plans, intentions or expectations upon which
they are placed 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.