Broker Cantor Fitzgerald has repeated a 'buy' on Energy Fuels Inc (TSE:EFR) following its maiden resource at the Alta Mesa recovery project in Texas.
The report showed 1.6million tons in the higher confidence measured and indicated category at 0.111% uranium containing 3.6 million pounds.
In inferred, there was 7mln tons at 0.121% uranium containing 16.8million pounds of uranium.
Cantor said this was almost identical to its estimates and is forecasting production of 125,000 pounds per quarter at a cash cost of US$25 per pound beginning in the fourth quater of 2017
The processing facility, now on standby, is capable of producing 1.5million pounds a year.
Analyst Rob Chang said noted the facility was capable of ramping up to commercial production levels (once uranium pricing firms) within approximately six months.
This would require minimal capital requirements the broker estimates at US$3mln.
The Alta Mesa property has a land package totalling 195,501 contiguous acres, including 4,575-acres currently under a lease and mining permit and 190,926-acres under a lease-option and exploration/testing permit.
Including Alta Mesa, Energy Fuels has three uranium production facilities in the USA and more licensed and operational processing capacity (11.5M lbs of uranium per year) than any other uranium producer in the US.
Cantor targets C$7.05 a share