Category: Uranium

Energy Fuels receives final EIS from BLM for Sheep Mtn

Mr. Stephen Antony reports
The U.S. Bureau of Land Management (BLM) has issued a final environmental impact statement (EIS) and record of decision (ROD) for Energy Fuels Inc.'s 100-per-cent-owned Sheep Mountain project located in the Crooks Gap mining district of central Wyoming. The Sheep Mountain Project is a large-scale, formerly-producing, conventional uranium mine with the potential to become a long-term uranium production center in a higher price environment. As previously announced, the Company also holds a mine permit (the "Mine Permit") for the project, which was issued by the State of Wyoming in July 2015. The issuance of the EIS, the ROD and the Mine Permit are the last major government approvals required to commence mining at this project, as the Company continues to evaluate options for processing the resources that may be mined at the project, including toll processing at other facilities in the region and the licensing and construction of its own onsite facility.
According to an April 2012 preliminary feasibility study (the "PFS") prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), the Sheep Mountain Project is estimated to hold approximately 12.9 million tons of Indicated Mineral Resources with an average grade of 0.117% eU3O8 containing approximately 30.3 million pounds of uranium. Included in the Indicated Mineral Resources, the project is estimated to hold approximately 7.5 million tons of Probable Mineral Reserves with an average grade of 0.123% eU3O8 containing approximately 18.4 million pounds of uranium. The PFS also estimates that the Sheep Mountain Project can produce up to 1.5 million pounds of uranium per year over a 15-year mine life.
Stephen P. Antony, President and CEO of Energy Fuels stated: "We are obviously pleased that the BLM issued the Final EIS and ROD for the Sheep Mountain Project. We now have all the major government approvals needed to begin mining this project, as we continue to evaluate how best to process the mined resources into finished uranium product. While the project is not planned to go into production in the near-term, our costs to hold the property and permits for the Sheep Mountain Project are relatively low. Therefore, it represents an important, low-cost aspect of Energy Fuels' optionality and leverage to rising uranium prices. Because it typically requires many years to acquire the major government approvals for uranium projects, permitted projects like Sheep Mountain will be among the first to produce uranium that can be placed into sales contracts with nuclear utilities as prices improve. For these reasons, we believe that permitting new projects and holding existing permitted projects have the strong potential to create real value for Energy Fuels' shareholders. In the meantime, we intend to continue to evaluate the licensing of an onsite processing facility for the Sheep Mountain Project, seek an agreement with a nearby processing facility, or potentially sell the asset at a price that recognizes the value of the existing resources and permits."
About Energy Fuels:
Energy Fuels is a leading integrated US-based uranium mining company, supplying U3O8 to major nuclear utilities. Energy Fuels holds three of America's key uranium production centers, the White Mesa Mill in Utah, the Nichols Ranch Processing Facility in Wyoming, and the Alta Mesa Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today and has a licensed capacity of over 8 million pounds of U3O8 per year. The Nichols Ranch Processing Facility is an ISR production center with a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is an ISR production center currently on care and maintenance. Energy Fuels also has the largest NI 43-101 compliant uranium resource portfolio in the U.S. among producers, and uranium mining projects located in a number of Western U.S. states, including one producing ISR project, mines on standby, and mineral properties in various stages of permitting and development. The Company also produces vanadium as a co-product of its uranium production from certain of its mines on the Colorado Plateau, as market conditions warrant. The Company's common shares are listed on the NYSE MKT under the trading symbol "UUUU", and on the Toronto Stock Exchange under the trading symbol "EFR".
Stephen P. Antony, P.E., President & CEO of Energy Fuels , is a Qualified Person as defined by Canadian National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this news release.

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