Uranium producer Energy Fuels Inc (TSE:EFR, NYSE:UUUU) has been bolstered by a decision to approve an expansion of the La Sal complex of uranium/vanadium mines in Utah.
The complex encompasses a series of past producing mines, currently on standby, along an 11-mile trend in northeast San Juan County, Utah, including the Energy Queen, Beaver/La Sal and Pandora/Snowball mines and the Redd Block and Pine Ridge properties.
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The approval comes from the US bureau of land management (BLM) and the US forest service (USFS) after multi-year analysis.
According to a 2014 NI 43-101 technical report, La Sal holds 1.1mln tons of measured and indicated resources containing 4.1mln pounds of uranium and 21.5mln pounds of vanadium, with an average grade of 0.18% uranium and 0.94% vanadium.
The project also hosts further inferred uranium and vanadium.
"This is particularly important, as the mines and properties comprising the La Sal Complex contain large quantities of uranium resources, along with significant high-grade vanadium resources," said Mark Chalmers, the president and chief executive of Energy Fuels, of the approval.
"We have recently seen vanadium prices increase significantly, and our nearby White Mesa Mill has a long history of producing uranium and vanadium from these mines.
"The environmental assessment prepared for the expansion of this project thoroughly considered all aspects of proposed operations, including environmental protection, transportation, cultural issues, jobs, economic benefits, and environmental justice concerns.
"This project is fully-permitted and constructed, and is currently on standby status, ready to resume mining operations within approximately six months of a production decision, with minimal capital required.
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"We believe these approvals once again demonstrate that Energy Fuels is a responsible operator and an asset to the region.
The firm said the approvals "set the stage" for Energy to grow in the region.
A plan of operations amendment (POA) for the project combined a number of the existing plans and allows for expansion of development rock storage, the drilling of up to 400 exploration holes, the construction of further ventilation shafts, and the reclamation of historic disturbances by previous mine operators, on various areas of the project, the firm told investors.
Between 2007 and 2013, 446,000 tons of mineralised material was mined from the La Sal Complex and processed at the White Mesa Mill.
Also on Monday, Energy Fuels said the BLM also issued the EA, Decision Record, and FONSI (finding of no significant impact) for the expansion of the Daneros mine in Utah, subject to certain specified requirements.
Energy said it expects to file an updated NI 43-101 resource estimate for Daneros in March this year to account for mining activity and new drilling data since the last report was completed.