Dallas, Texas – enCore Energy Corp. (NYSE American: EU|TSXV: EU) (the “Company” or “enCore”) today provides an update from the South Texas Alta Mesa In-Situ Recovery (ISR) Uranium Central Processing Plant and Wellfield. Upgrades and refurbishments continue to advance as planned and on schedule for the 2024 resumption of uranium production1.
The Company also announces further positive results from the wellfield delineation drill program and a continuing advancement of the newly discovered mineralized zone at the Alta Mesa wellfield.
Site and production resumption work at the Rosita ISR Uranium Central Processing Plant and Wellfield (Rosita CPP) also remains on schedule for 2023 production.
The Alta Mesa ISR Uranium Central Processing Plant (Alta Mesa CPP) is advancing towards a restart of production and presently completing minor scheduled renovations with equipment upgrades and refurbishments underway.
A thorough equipment evaluation determined 90% of the piping and valves are operational with limited maintenance requirements. enCore is managing all refurbishments on site where feasible to proactively manage supply chain risks and costs. Longer lead time for non-critical supplies are ordered as part of supply chain management to ensure plant production start-up timelines are well managed.
Staffing of key management positions at Alta Mesa started in earnest in Q1/2023 followed by the recruitment of an operations team experienced in South Texas ISR operations.
Paul Goranson, enCore’s Chief Executive Officer added “The enCore operations team has made steady progress in restoring the Alta Mesa CPP towards a 2024 restart of production while also installing the Production Authorization Area (PAA-7) wellfield.
enCore’s management team has dealt with similar start-up challenges in the past, and we have been very realistic about anticipated cost increases and challenging workforce recruitment.
We have been strategic in our efforts to recruit skilled management and operators with previous experience at the Alta Mesa CPP and Wellfield. Our strategy also included building a skilled team to successfully expand our activities across our portfolio of ISR uranium projects.”
There are currently eight (8) drill rigs in full operation at the Alta Mesa Wellfield, increased from six (6) rigs as wellfield delineation and completion has progressed. The wellfield drilling operations, delineating the roll front mineralization within Production Authorization Area 7 (PAA-7), which commenced in March 2023, are advancing rapidly with 192 holes drilled since our previous update.
In total, 272 drill holes have been completed through August 21, 2023. A previously producing mineralized Middle C sand, extracted through PAA-3, was discovered within PAA-7. Continued drilling within PAA-7 has returned positive results of Middle C sand mineralization in seventeen (17) holes, within PAA-7, with Grade Thickness (GT) values ranging from 0.2 to 0.792 in seven (7) of the holes announced in this release.
Continued drilling along trend is expected to expand and delineate this new mineralized sand and is anticipated to increase the overall mineralization within PAA-7.
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. To date, thirty-three (33) holes have been cased with five (5) holes completed. Two (2) drill rigs are currently casing with one (1) drill rig focused on completion activities. An additional drill rig will be moving to completion activities in the coming weeks.
To view the Alta Mesa project maps and enCore Energy’s South Texas projects please visit: bit.ly/3fV9fTg.
Significant Alta Mesa wellfield drilling program highlights include:
Alta Mesa In-Situ Recovery (ISR) Uranium Central Processing Plant (“Alta Mesa CPP”) & Wellfield
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 Texas. Alta Mesa will be enCore’s second producing location following resumption of uranium production at the South Texas Rosita ISR Uranium Central Processing Plant (“Rosita CPP”) scheduled for 2023.
Total operating capacity is 1.5 million lbs. U3O8 (uranium) per year. 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 include:
- The Alta Mesa CPP is enCore’s third fully licensed production facility, along with Rosita and Kingsville Dome CPP’s, all located in the business-friendly state of Texas. There are only eleven (11) licensed and constructed uranium production facilities in all of the United States (US);
- Advancing the Alta Mesa CPP, in conjunction with planned production in 2023 at the Rosita CPP, will cement enCore Energy’s position as the early leader in In-Situ Recovery (ISR) uranium production in the United States;
- 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.
1,2 Represents that portion of the in-place mineral resource that are estimated to be recoverable within existing wellfields. Wellfield recovery factors have not been applied to indicated and inferred mineral resources. As reported in the NI-43-101 Technical Report Summary for the Alta Mesa Uranium Project, Brooks and Jim Hogg Counties, Texas, USA completed by Doug Beahm, PE, PG, of BRS Engineering. (Effective January 19, 2023).
The Company advises that it is not basing its production decisions at Alta Mesa or Rosita 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 these two production facilities 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.
In addition, the mineral resource at Alta Mesa includes inferred resources which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.
The Company has determined to proceed with a production decision based on past operations at Alta Mesa and Rosita, including past ISR operations in the known mineral resource areas.
John M. Seeley, Ph.D., P.G., C.P.G., enCore’s Manager of Geology and Exploration, and a Qualified Person under NI 43-101, has reviewed and approved the technical disclosure in this news release on behalf of the Company.
About enCore Energy Corp.
enCore Energy Corp., America’s Clean Energy Company™, is committed to providing clean, reliable, and affordable domestic nuclear energy by becoming the next United States uranium producer in 2023. enCore solely utilizes In-Situ Recovery (ISR) for uranium extraction, a well-known and proven technology co-developed by the leaders at enCore Energy. In-Situ Recovery extracts uranium in a non-invasive process using natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium. Uranium production is planned at enCore’s licensed and past-producing South Texas Rosita Processing Plant in 2023, and at its licensed and past-producing South Texas Alta Mesa Processing Plant in 2024.
Future projects in enCore’s production pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming, along with significant uranium resource endowments in New Mexico 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.
enCore diligently works to realize value from other owned assets, including our proprietary uranium database that includes technical information from many past producing companies, from our various non-core assets, and by leveraging our ISR expertise in researching opportunities that support the use of this technology as applied to other metals.
enCore is also committed to working with local communities and indigenous governments to create positive impact from corporate developments.
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