Anfield Energy: Results of PEA for Uranium and Vanadium Projects

Anfield Energy Inc. (TSX.V: AEC) (OTCQB: ANLDF) reported the results of a combined Preliminary Economic Assessment (PEA) for both its Utah-based Velvet-Wood Uranium and Vanadium Project and its Colorado-based Slick Rock Uranium and Vanadium Project. The PEA titled, “The Shootaring Canyon Mill and Velvet-Wood and Slick Rock Uranium Projects, Preliminary Economic Assessment” (PEA, 2023), will be published on SEDAR within 45 days. These two projects are located proximal to one another within the prolific Uravan Mineral Belt, and within close distance of Anfield’s [permitted] Shootaring Canyon Mill which will act as a centralized mineral processing facility in the PEA.

The independent PEA was prepared in accordance with National Instrument 43-101 standards of disclosure for mineral properties.

Highlights include:

  • Net Present Value of $238 million at $70 uranium and $12 Vanadium
  • Uranium mill restart supported by current resources
  • Annual production of 750,000 pounds of Uranium and 2.5 million pounds of vanadium per year
  • Estimated mill-related capital expenditures at Shootaring, including 25% contingency amount for each item, of: 1) US$31.4 million for general upgrades; 2) US$13.4 million to install a modern vanadium circuit; and 3) US$20 million to update the tailings management facility.
  • Estimated mine-related capital expenditures, including engineering and design, mine facilities, mine equipment, and the reopening of the Velvet decline and the sinking of two production shafts at Slick Rock with a 25% contingency, of: 1) US$15.3 million for Velvet-Wood; and 2) US$27.2 million for Slick Rock.

Anfield CEO, Corey Dias, stated,

“We are extremely pleased with the outcome of this PEA as it provides Anfield with evidence of the true potential of both Velvet-Wood and Slick Rock within Anfield’s uranium and vanadium production model.”

“Critically, the future addition of our West Slope project to Anfield’s production model will require little incremental capital expenditure, as Shootaring’s restart costs will have already been borne by both Velvet-Wood and Slick Rock.”

“We have been keen to highlight the economic value of combining our assets into one cohesive development project, and the subsequent availability of excess uranium and vanadium production capacity at Shootaring over the life of the mill.”

“This PEA not only represents a significant milestone for Anfield but also outlines a path towards commercial development of its core uranium and vanadium assets. Anfield is clearly well-positioned to benefit from an improving uranium market as nuclear energy becomes a more integral part of the global transition towards electrification.”

Shootaring Mill

The Shootaring Mill was licensed and constructed by Plateau Resources and operated in 1982. U.S. Energy and Uranium One were also previous owners of the Shootaring Mill. The mill has not been decommissioned and has been under care and maintenance since cessation of operations. The mill license has been maintained and Anfield is currently conducting engineering and design studies for both the refurbishment of the mill and tailings facility in support of converting the license from its status of care and maintenance to operations.

Velvet-Wood

Between 1979 and 1984, Atlas Minerals mined approximately 400,000 tons of ore from the Velvet Deposit at grades of 0.46% U3O8 and 0.64% V2O5, recovering approximately 4 million pounds of U3O8 and 5 million pounds of V2O5.

The current mineral resources (PEA, 2023) of the combined Velvet and Wood historical mines have been estimated to comprise 4.6 million pounds of eU3O8, at a grade of 0.29% eU3O8 (measured and indicated resource), and 552,000 pounds of eU3O8, at a grade of 0.32% U3O8 (inferred resource) with a vanadium-to-uranium ratio of 1.4 to 1.

Surface Stockpiles

In addition to the estimated mineral resource at Velvet-Wood, Anfield controls mineralized stockpiles from past mining at two locations: 1) one stockpile at the Patty Ann mine area near the historic Velvet mine; and 2) several stockpiles near the Shootaring mill. The volumes and uranium content of the stockpiles were estimated from volumetric surveys and sampling conducted by BRS in March, 2015. The PEA includes the stockpiles located near the Shootaring mill only. In total these stockpiles are estimated to contain approximately 77,500 tons of material at an average grade of 0.161% U3O8 and contain approximately 250,000 pounds of uranium.

Slick Rock

Slick Rock is located in the Uravan Uranium Belt region of Colorado. The PEA, 2023 estimates 1.7 million tons containing some 7.7 million pounds eU3O8, with a vanadium to uranium ratio of 6 to 1.

Project Economics

The PEA provides for a two-year pre-production period. The first year’s forecasted capital expenditures of approximately US$24 million include initial mill and mine permitting and licensing, an updated mining and reclamation plan, and initiation of mine development. The second year’s capital expenditures, forecasted at US$88 million (including a 25% contingency), include completion of the construction of mine facilities and purchasing of equipment, and refurbishment of the Shootaring uranium and vanadium mill. Total capital for Life Of Mine is estimated at US$130 million, including sustaining capital.

The PEA indicates a pre-tax IRR of 40% at a uranium price of US$70 per pound and US$12 per pound of vanadium. The pre-tax NPV of the project at an 8% discount rate at the aforementioned prices is US$238 million.

Anfield Energy is a market awareness client of Capital 10X.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

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