Anfield Resources Acquires Strategic US Uranium Assets; Aiming To Become Near-term Uranium Producer To Complement Its Current Copper Production30 Oct 2013
VANCOUVER, BRITISH COLUMBIA–(Oct. 30, 2013) – Anfield Resources Inc. (ARY-V) (“Anfield” or “the Company”) is pleased to announce that it has acquired a number of uranium assets in the uranium-producing regions of San Juan County, Utah and Mohave County, Arizona from MAG Exploration Services Inc (“MAG”).
These assets consist of 26 mining claim groups representing 133 unpatented mining claims on federal land located pursuant to applicable law. Within each of the Utah districts of San JuanCounty where property was acquired, there has been historical uranium production. Moreover, in some cases, the acquired properties themselves not only include past-producing uranium mines but also sit in close proximity to currently-producing uranium mines. Finally, all of the acquired assets within San Juan County, Utah are within a 75-mile radius of Energy Fuels Inc.’s White Mesa mill, the only operating conventional uranium mill in the US. The locations of the acquired uranium assets are shown here:
“The strategy of Anfield Resources is to acquire strategic resource assets – on a commodity-agnostic basis – which can generate near-term revenue and cash flow,” commented Anfield CEO Corey Dias. “We believe that these uranium assets fall within the purview of that strategic focus. In fact, we will largely be following the same approach that has proved successful at our copper asset in Chile, whereby we provide raw material to a third-party processing plant, or mill, in exchange for a discounted price. Typically, the biggest hurdles facing junior mining companies relate to the expense involved in finding a way to process their raw materials. Therefore, by acquiring resource assets in close proximity to a functioning processing facility we are able to avoid the hurdles facing the vast majority of junior mining companies. We know that uranium mills will be looking for raw materials, especially given the impending expiration of the HEU agreement between Russia and the US this November. This factor, combined with the number of nuclear reactors proposed, planned or under construction worldwide, point to a shortfall in uranium raw materials, and represents a tremendous opportunity for Anfield”.
Below is a summary of the acquired uranium assets. Of note, all Utah historical production figures in this release are as reported in Gloyn, R.W. et al, Mineral, Energy, and Groundwater Resources of San Juan County, Utah, Utah Geological Survey (1995) and all Arizona historical production figures in this release are as reported in Wenrich, Karen J. et al, Uranium In Arizona, in Geologic Evolution of Arizona, Arizona Geological Society Digest 17 (1989.) The presence of economic uranium mineralization in the Utah and Arizona Districts is not necessarily indicative on economic uranium mineralization on the Anfield properties.
White Canyon Uranium District
The acquisition includes seven claim groups and 22 individual claims situated in the White Canyon Uranium District in western San Juan County, Utah. The White Canyon Uranium District is estimated to have produced more than 11,000,000 lbs U3O8, with an average grade of 0.24% U3O8. The District is also home to Energy Fuels Inc.’s Daneros Project, a current/recent Uranium producer, as well as the historically-producing Happy Jack mine.
Moab Uranium District
The acquisition includes five claim groups and 37 individual claims situated in the Moab Uranium District in northern San Juan County, Utah. The Moab Uranium District is located in the heart of the Paradox Basin, and produced an estimated 3,276,000 lbs U3O8 with an average U3O8 grade of 0.29% and 1.15% V2O5 One of the properties in the acquisition, the Yellow Circle, has been estimated to have had approximately 1,000,000 lbs U3O8 in historic production.
Dry Valley Area
The acquisition includes five claim groups and 23 individual claims situated in the Dry Valley Area of the Monticello Uranium District in eastern San Juan County, Utah. Significant amounts of Uranium and Vanadium have been produced from the area. Total past production in this area is estimated at 1,525,000 lbs U3O8 and 12,662,000 V2O5, with an average U3O8 grade of 0.18% U3O8 and 1.35% V2O5 Significant past producers in the Dry Valley Area include the Frisco Twin Mine and the Geneva Mine.
The acquisition includes 8 claim groups consisting of 29 individual claims situated in the Montezuma Canyon Area of the Monticello Uranium District in eastern San Juan County, Utah. Total past production in this area is estimated at 88,000 lbs U3O8 and 775,000 lbs V2O5, with an average U3O8 grade of 0.24% and 0.31% V2O5.
Date Creek Basin
The Date Creek Basin (DCB) project consists of 24 unpatented mining claims situated in Mohave County, Arizona, about 110 miles southeast of Kingman, Arizona in the Date Creek Basin, which is a historic Uranium producing region. A number of companies explored the DateCreekBasin property and the immediate vicinity in the 1960s-1970s, including Hecla Mining, Getty Oil, Homestake Mining, and Public Service Company of Oklahoma, with a combined total of 443 exploration drill holes. The most recent exploration was conducted in 2007, resulting in 35 exploration drill holes. Production from the DCB was reported between 1955 and 1959 at 33,593 lbs U3O8 with an average grade of 0.16%.
Positive signals in the uranium market include: 1) the expiration of the HEU agreement between Russia and the US, which could lead the US to seek between 20Mlbs and 25Mlbs of uranium in the open market; 2) the push by China to increase its annual uranium consumption from 19Mlbs today to 73Mlbs by 2030; and 3) the recent, and significant, growth in the number of proposed nuclear reactors worldwide, including oil-rich nations such as Kuwait and Saudi Arabia.
The Company acquired the uranium assets by entering into an asset purchase agreement with MAG in which it agreed to issue 1.5 million common shares to MAG upon TSX approval, the shares to be escrowed for 3 years and making the following cash payments to MAG totaling $600,000 USD according to the following schedule: $100,000 upon TSX approval and subsequent financing, $150,000 on the first anniversary, $150,000 on the second anniversary, and $200,000 on the third anniversary.
About Anfield Resources Inc.
Anfield is a publicly traded corporation listed on the TSX-Venture Exchange (EQX-ARY-V) and is engaged in mineral exploration, development and production in the United States and Chile. Its focus is on acquiring and developing an array of strategic mineral projects, including further developing its nascent copper production operation in Chile and its uranium assets in Utah and Arizona, and its longer-term focus on the development of its Arizona-based copper properties. To find out more about Anfield, visit its website atwww.anfieldresources.com.
R. Tim Henneberry, P.Geo., Advisor to Anfield is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors
ANFIELD RESOURCES INC.
Corey Dias, Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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