Anfield Energy Inc. (TSXV: AEC) has received positive results from 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.
These two projects are located proximal to one another within the prolific Uravan Mineral Belt, and within close distance of the company’s [permitted] Shootaring Canyon Mill which will act as a centralized mineral processing facility in the PEA.
Highlights include:
- The PEA indicates a pre-tax project internal rate of return (IRR) of 40% and a net present value (NPV) of US$238M, based on a discount rate of 8% and a uranium price of US$70/lb , along with a vanadium price of US$12/lb.
- Average annual production of approximately 750,000lbs of uranium and 2.5Mlbs of vanadium per year is estimated over the 15-year mine life;
- The combined feed of the Velvet-Wood and Slick Rock mines is designed to meet the existing tonnage capacity at Shootaring of 750t/d. Additional tonnage capacity would be available after year 8 of the plan.
- Estimated mill-related capital expenditures at Shootaring, including 25% contingency amount for each item, of: 1) US$31.4M for general upgrades; 2) US$13.4M to install a modern vanadium circuit; and 3) US$20M 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$15.3M for Velvet-Wood; and 2) US$27.2M for Slick Rock.
“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,” CEO, Corey Dias, said.
“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.
“We view this excess capacity as providing important additive value through the potential for future integration of other uranium and vanadium projects in the area, such as our West Slope Project, as well as potential toll-milling opportunities.
“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 security of supply for utilities. 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.”
The Velvet-Wood project area covers approximately 2,140 acres, including unpatented mining claims and a State of Utah mineral lease related to the Velvet and Wood mine areas. In addition, the Slick Rock project area covers approximately 4,860 acres including 293 unpatented mining lodes claims. The Shootaring area covers approximately 265 acres of surface ownership and approximately 905 acres of mineral leases.
For further information please to visit: https://anfieldenergy.com/
