Anfield Energy Inc. (TSX-V:AEC, OTCQB:ANLDF) has announced that BRS Engineering has begun a preliminary economic assessment (PEA) for its Slick Rock uranium and vanadium project in the prolific Uravan region of Colorado.
The Vancouver-based company said the Slick Rock property is close to its West Slope uranium and vanadium project and holds a historical inferred resource of 2.5 million tons at 0.228% uranium and 1.37% vanadium, returning 11.6 million pounds of uranium and 69.6 million pounds of vanadium. Between 1957 and 1983, Slick Rock produced 2.2 million pounds of uranium and 13.9 million pounds of vanadium, Anfield added.
“We are excited at the prospect of both confirming, and improving upon, the Slick Rock PEA results previously issued, especially given that the results will consider the use of our wholly-owned conventional mill – Shootaring – for the purpose of producing both uranium and vanadium from Slick Rock ores,” Anfield CEO Corey Dias said in a statement.
READ: Anfield Energy doubles contiguous claim portfolio in Artillery Peak project area, near its Shootaring Canyon Mill
"We believe that Anfield remains well-positioned to create further shareholder value with regard to its undervalued uranium and vanadium assets through the upgrading of its resource assets,” Dias added. “Our two-fold strategy includes a near-term focus on uranium and vanadium production from our primary assets – Velvet-Wood, West Slope and Slick Rock – while our longer-term projects – such as Frank M, Findlay Tank and Artillery Peak – are expected to provide the company with a secondary production pipeline to be leveraged once our primary mines are depleted.”
Anfield noted that a 2014 PEA issued by Slick Rock’s previous owner, Uranium Energy Corporation (UEC), stated a pre-tax project internal rate of return (IRR) of 33% and a net present value of US$63.5 million, based on a discount rate of 7% and a uranium price of US$60 per pound, along with a vanadium price of US$10 per pound.
The company said it is treating the previous mineral resource estimates (MREs) and PEA reports as historic in nature, adding that work necessary to independently verify the classification of the MREs and the PEA in accordance with National Instrument 43-101, verified by a qualified person, and in compliance with CIM standards has not been completed.
“The prospect of Shootaring becoming the next operational conventional uranium and vanadium mill in the United States is significant both economically as well as with respect to surety of supply for utilities,” Dias continued. “The Slick Rock PEA will not only represent a significant milestone for Anfield but will also outline a path towards commercial development of this property, alongside Anfield’s Velvet-Wood and West Slope projects. Anfield is clearly well-positioned to benefit from an improving uranium market.”
Anfield is a uranium and vanadium development and near-term production company that is committed to becoming a top-tier energy-related fuels supplier by creating value through sustainable, efficient growth in its assets.
A key asset in Anfield’s portfolio is its wholly-owned Shootaring Canyon Mill in Garfield County, Utah. The Shootaring Canyon Mill is strategically located within one of the historically most prolific uranium production areas in the US and is one of only three licensed uranium mills in the US.
Anfield’s conventional uranium assets consist of mining claims and state leases in southeastern Utah, Colorado, and Arizona, targeting areas where past uranium mining or prospecting occurred. Anfield’s conventional uranium assets include the Velvet-Wood Project, the Frank M Uranium Project, the West Slope Project, as well as the Findlay Tank breccia pipe.
Contact the author at stephen.gunnion@proactiveinvestors.com