enCore Energy Encounters Highest Grade Drill Results at Alta Mesa Uranium Project; Provides Status on South Texas Production Operations
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Highlights include:
- Drilling from Alta Mesa's Production Area Authorization ("PAA") provides results that range up to a grade thickness of 8.4 with a maximum thickness of 13.5 feet. The cutoff grade thickness for ISR in
South Texas is generally accepted to be 0.3 with grade thickness being the relevant factor in determining reasonable prospects for economic extraction; - The Alta Mesa ISR Uranium Central Processing Plant ("CPP") upgrades and refurbishments are advancing on schedule for the planned early 2024 resumption of uranium production;
- Initial production from Alta Mesa's PAA-7 wellfield will have a total of 59 production wells with 36 extraction wells and 23 injection wells that form the startup production patterns. 57 of these are completed with the last two wells scheduled for completion over the next few days. The wells are being prepared for connection to the pipeline to the CPP;
- Production from the wellfield at
Alta Mesa will be increasing as additional production patterns are completed following the initial 59 wells and duplicate the process used for the initialAlta Mesa startup in 2005. Drilling and well installation for the follow-on production patterns is already well underway and will continue as CPP capacity is reached; and - As previously reported, uranium production from the Rosita Uranium CPP, which commenced in
November 2023 and has completed its first shipment of uranium, continues to maintain expected production levels.
Paul Goranson, enCore Energy's Chief Executive Officer, stated: "We are extremely pleased with the drilling results from
Wellfield delineation drilling commenced in the spring of 2023 at the Alta Mesa Project PAA-7 along a previously defined ore body consisting of stacked roll fronts. The NI 43-101 Technical Report dated
To view the Alta Mesa CPP and Wellfield and Rosita CPP maps please visit: bit.ly/3fV9fTg.
At the Alta Mesa Uranium CPP, enCore has met most of the key objectives for the refurbishment of the processing circuits necessary for the planned early 2024 restart. Work remaining includes final inspection of the ion exchange ("IX") columns, testing the precipitation tanks, completing tie-in of the scrubber system, and installation and testing of the process circuit instrumentation. The yellowcake drying circuit upgrades are advancing with the filter press support infrastructure and yellowcake storage hoppers on site. Refurbishment and testing of the yellowcake drying system is progressing with that work scheduled to be completed just prior to the anticipated production restart timelines. The bulk chemical systems for the IX elution process have been installed and tested. The electrical systems including transformers and motor control centers have been completed.
Within PAA-7, enCore is installing injection and production wells in the wellfield and has completed installation of the electrical transmission lines necessary for initial start-up and the pipelines to connect the wellfield to the Alta Mesa CPP. All necessary equipment for the start-up of production in the PAA-7 wellfield has been received or has been ordered with a confirmed delivery schedule. Wellfield construction activities are well advanced with 100% of well manifold, electrical, and oxygen distribution systems at the wellfield modules are completed. The pipeline booster pump stations are scheduled for installation by the end of
The wellfield drilling operations , which commenced in
Further refined delineation drilling within the PAA-7 continues to establish the exact pattern of injection and recovery wells from which to maximize production efficiency as additional patterns are prepared for ramped up production. Over 140 holes have been cased or are scheduled to be cased with an additional 75 holes under review by geological staff for possible casing.
Significant Alta Mesa Wellfield Drilling Results
Drill Hole |
Goliad Sandstone Horizon |
Depth |
Grade % |
Thickness |
Grade |
Total |
172-95 |
LCL-1 |
515.5 |
0.275 |
3.5 |
0.967 |
|
171-97 |
LCU-1 |
489.0 |
0.281 |
2.0 |
0.562 |
|
181-93 |
LCL-2 |
521.0 |
0.174 |
2.5 |
0.434 |
|
172-96 |
LCU-2 |
505.0 |
0.196 |
5.5 |
1.077 |
|
181-91 |
LCL-1 |
518.0 |
0.667 |
4.5 |
3.041 |
|
172-96 |
LCU-1 |
488.5 |
0.101 |
3.5 |
0.353 |
|
182-96 |
LCU-2 |
510.0 |
0.594 |
5.5 |
3.266 |
|
185-113 |
LCU-2 |
504.0 |
0.311 |
13.5 |
4.197 |
|
184-112 |
LCU-2 |
505.5 |
0.340 |
10.5 |
3.567 |
|
184-112 |
LCL-1 |
522.0 |
0.267 |
7.0 |
1.869 |
|
181-93 |
LCL-1 |
515.0 |
0.512 |
10.0 |
5.118 |
|
181-91 |
LCL-1 |
513.0 |
0.760 |
11.0 |
8.356 |
|
181-92 |
LCL-1 |
511.5 |
0.368 |
3.5 |
1.287 |
|
170-102 |
LCU-2 |
496.0 |
0.171 |
6.5 |
1.113 |
|
184-96 |
LCU-2 |
511.0 |
0.263 |
3.5 |
0.920 |
|
170-104 |
LCU-1 |
490.5 |
0.250 |
4.0 |
1.002 |
|
170-105 |
LCU-2 |
500.0 |
0.113 |
4.5 |
0.508 |
|
171-98 |
LCL-1 |
503.5 |
0.291 |
7.0 |
2.038 |
|
185-112 |
LCL-2 |
527.5 |
0.660 |
4.0 |
2.64 |
|
181-90 |
LCU-1 |
496.0 |
0.265 |
7.0 |
1.853 |
|
183-96 |
LCL-1 |
521.0 |
0.426 |
5.0 |
2.130 |
|
172-96 |
LCL-1 |
512.0 |
0.169 |
2.0 |
0.338 |
|
185-113 |
LCU-1 |
502.0 |
0.465 |
12.0 |
5.579 |
|
170-100 |
LCL-1 |
511.5 |
0.147 |
2.5 |
0.368 |
|
181-92 |
LCL-1 |
513.5 |
0.660 |
9.0 |
5.935 |
|
172-94 |
LCL-1 |
519.5 |
0.093 |
3.5 |
0.326 |
|
183-96 |
LCU-2 |
504.5 |
0.135 |
10.5 |
1.417 |
|
|
LCL-2 |
530.0 |
0.192 |
5.0 |
0.961 |
2.378 |
185-112 |
LCU-2 |
503.5 |
0.140 |
2.5 |
0.350 |
|
174-95 |
LCL-1 |
524.5 |
0.106 |
4.5 |
0.479 |
|
180-92 |
LCU-1 |
495.0 |
0.251 |
7.5 |
1.884 |
|
-
All intercepts are located in the PAA-7 which hosts mineralization within the Goliad Formation. The |
The Alta Mesa CPP and Wellfield hosts a fully licensed and constructed ISR uranium plant, located on 200,000+ acres of private land in the state of
Total operating capacity at the Alta Mesa CPP is 1.5 million lbs. U3O8 (uranium) per year with an additional drying capacity of more than 0.5 million lbs. U3O8. The Alta Mesa CPP historically produced nearly 5 million lbs. U3O8 between 2005 and 2013, when full production was curtailed as a result of low uranium prices.
Alta Mesa CPP and Wellfield highlights:
- The Alta Mesa CPP is enCore's third fully licensed production facility, along with the Rosita CPP and Kingsville Dome CPP, all located in the business-friendly state of
Texas . There are only eleven (11) licensed and constructed uranium production facilities in all ofthe United States (US). - Alta Mesa CPP's operations are located on private land, with 100% of minerals privately owned, and in a supportive jurisdiction with primary regulatory authority residing with the
State of Texas . - The Alta Mesa CPP utilizes well-known ISR technology to extract uranium in a non-invasive process using natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.
|
Tons
|
Avg. Grade (% U3O8) |
Pounds
|
Total Measured Mineral Resource1 |
54,000 |
0.152 |
164,000 |
Alta Mesa Indicated Mineral Resource |
1,397,000 |
0.106 |
2,959,000 |
Mesteña Grande Indicated Mineral Resource |
119,000 |
0.120 |
287,000 |
Total Measured & Indicated Resources |
1,570,000 |
0.109 |
3,410,000 |
Alta Mesa Inferred Mineral Resource |
1,263,000 |
0.126 |
3,192,000 |
Mesteña Grande Inferred Mineral Resource |
5,733,000 |
0.119 |
13,601,000 |
Total Inferred Resources |
6,996,000 |
0.120 |
16,793,000 |
|
Future projects in enCore's production pipeline include the Dewey-Burdock project in
Neither
The Company advises that it is not basing its production decisions at the Rosita CPP and Alta Mesa CPP on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is based on known past In-Situ Recovery (ISR) and processing operations at this production facility and surrounding lands. However, the Company understands that there is increased uncertainty, and consequently a higher risk of failure, when production is undertaken in advance of a feasibility study. The Company has determined to proceed with a production decision based on past operations at the Alta Mesa CPP, including past ISR operations in the known mineral resource areas.
Certain information contained in this news release, including: any information relating to the Company being a leading uranium company, statements regarding future or potential production, and any other statements regarding future expectations, beliefs, goals or prospects; may constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities laws and regulations (collectively, "forward-looking statements"). All statements in this news release that are not statements of historical fact (including statements containing the words "expects", "is expected", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken) should be considered forward-looking statements. Such forward-looking statements include statements regarding extraction, processing and sales of uranium at Rosita,
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