Energy Fuels Inc (TSE:EFR, NYSEMKT:UUUU) has discovered more high-grade uranium & copper mineralization at its Canyon mine in northern Arizona.
The latest results average 1.09% U3O8 and 9.61% cent Cu over 734 feet.
The company expects the new discoveries will lead to a deepening of the existing recoverable uranium resource estimate.
It added that it is continuing to evaluate additional zones of high-grade copper mineralization that reside both inside and outside the areas pegged as zones of potentially recoverable uranium mineralization.
“The additional uranium the company is identifying has the potential to significantly lower the production costs of this nearly developed mine to a level that is in-line with the lowest-cost, 'tier one' conventional uranium mines operating in the world today,”the company told investors.
“If the copper can be economically recovered as a by-product of uranium recovery, production costs will drop even further,” it noted.
The company is also making progress toward determining whether copper can be economically recovered at its White Mesa Mill.
Meanwhile, the company reported that at the Canyon mine it has more or less completed the production shaft, the core drilling program to delineate the deposit and additional capital development of the mine.
The latter include some 300 feet of lateral development on the 1,400 foot level.
Energy Fuels’ chief Stephen Antony reported that major capital development activities and associated expenditures have been significantly reduced.
Things definitely seem to be looking up for the company, which earlier this week reported two major stakeholders had expressed a wish to join the board.
READ Energy Fuels welcomes two major shareholders to the board
"We continue to see extraordinary uranium and copper results that, we believe, will increase the size of the recoverable resources, thereby reducing our mining cost," Antony stated.
"Further, Energy Fuels' cost-efficient Canyon mine is at an advanced stage. It is fully permitted, all surface development is in place, we have substantially completed the production shaft and our White Mesa mill is ready to produce uranium from the Canyon mine. As a result, the company has significantly reduced capital expenditures, and when mining resumes, only limited additional capital development will be required," he added.
"The mine is expected to be low cost, as we believe it has forward costs that are in line with the lowest cost, Tier 1 conventional uranium mines operating globally today. The economics have the potential to improve further, as we make progress toward determining the monetization of copper. We look forward to completing our evaluation and releasing a new resource estimate for the Canyon mine later this year," Antony said.