Anfield Resources Inc. Provides Update Regarding its Uranium Assets12 May 2016
VANCOUVER, BRITISH COLUMBIA – May 12, 2016 – Anfield Resources Inc. (TSX.V: ARY) (FRANKFURT: 0AD)(“Anfield” or “the Company”) is pleased to provide an update on its uranium assets. On September 1, 2015 Anfield announced the acquisition of the Shootaring Canyon Uranium Mill, one of only three licensed, permitted and constructed conventional uranium mills in the United States, and a portfolio of conventional mining assets from Uranium One.
Since the closing of the Uranium One transaction, Anfield has made significant progress in advancing the project. The Utah Division of Waste Management and Radiation Control (“UDWMRC”), following its extensive review and a public hearing, formally transferred the Shootaring Canyon Uranium Mill’s Radioactive Materials License (“RML”) and the Groundwater Quality Discharge Permit from Uranium One Americas Inc. to Anfield, and Anfield is now preparing an RML renewal application to extend its term. The Company also continues to work with BRS Inc., an engineering firm, to complete a Preliminary Economic Assessment of the Velvet-Wood Mine. In addition, the Company has increased its focus on the acquired Henry Mountains property, an area which includes Anfield’s Frank M mine. Finally, the Company has also initiated a review of a sampling and survey program related to the surface stockpiles acquired in the Uranium One transaction.
Corey Dias, Anfield’s CEO stated, “We continue to make progress with advancing our uranium assets. We believe the steps we have taken are providing Anfield with a solid base from which to incorporate the development of the Shootaring Canyon Mill. Overall, we remain positive with regard to the uranium market. Primary production cannot meet present-day consumption. Moreover, only 35% of the uranium consumed over the past three years has been replaced with long-term contracting, which means that uncovered demand is likely to be a significant concern moving forward. We feel that Anfield is well positioned to play a role in addressing the future uranium supply and demand imbalance.”
About Anfield’s Properties
Anfield is an energy metals exploration, development and near-term production company that is committed to becoming a top-tier energy-related fuels supplier by creating value through sustainable, efficient growth in its energy metals assets. Anfield is a publicly-traded corporation listed on the TSX-Venture Exchange (ARY-V) and the Frankfurt Stock Exchange (0AD). Anfield is focused on the development of projects, as summarized below:
Shootaring Canyon Uranium Mill
The Shootaring Canyon Uranium Mill is one of only three licensed, permitted and constructed conventional uranium mills in existence in the U.S., with the other two held by BHP Billiton (Sweetwater) and Energy Fuels Inc. (White Mesa). Located approximately 48 miles (77 kilometers) south of Hanksville, Utah, the Shootaring Canyon Mill is a conventional acid-leach facility that is permitted to process up to 750 tonnes of ore per day, with a capacity to process up to 1,000 tonnes per day. The mill was built in 1980 and during its period of operation it processed and sold 27,825 pounds of U3O8. It ceased operation with the collapse of the uranium price in the early 1980s.
The Velvet-Wood Project is one of the most advanced conventional uranium projects in the U.S. Between 1979 and 1984, approximately 400,000 tons of ore were mined from the Velvet Deposit at grades of 0.46% U3O8 and 0.64% VO5 (recovering approximately 4 million pounds of U3O8 and 5 million pounds of V2O5).
Some underground infrastructure is already in place at the Velvet mine including a 3,500-foot long, 12’ x 9’ decline to the resource. The remaining mineral resources of the combined Velvet and Wood mines have been estimated to comprise 4.6 million pounds of U3O8 at a grade of 0.29% U3O8 (measured and indicated resource) and 552,000 pounds of U3O8 at a grade of 0.32% U3O8 (inferred resource).
|Area/Classification||Tons||Average Grade % eU3O8||Pounds U3O8|
|Velvet Measured Mineral Resource||362,600||0.27||1,966,000|
|Velvet Indicated Mineral Resource||71,200||0.38||548,000|
|Wood Indicated Mineral Resource||377,000||0.28||2,113,000|
|TOTAL MEASURED AND INDICATED MINERAL RESOURCE||810,800||0.29||4,627,000|
|TOTAL INFERRED MINERAL RESOURCE||87,000||0.32||552,000|
(Source: Velvet-Wood Mine Uranium Project, San Juan County, Utah USA 43-101 Mineral Reserve and Resource Report, Author: BRS Inc.; Date: 11/14/2014)
Frank M Deposit
The Frank M deposit, located approximately 12 km north of the Shootaring Canyon Mill, has an historic indicated mineral resource estimate of 2.2 million pounds of U3O8 at a grade of 0.101% U3O8 .
(Source: Frank M Uranium Project, 43-101 Mineral Resource Report, Garfield County, Utah USA; Author: BRS, Inc.; Date: 8/10/2008).
Anfield is not treating the Frank M historical estimate as current mineral resources or mineral reserves. A qualified person has not yet done sufficient work to classify the historical estimate as current mineral resources or mineral reserves.
This historical resource estimate was developed based on analysis of radiometric data from 838 historic holes and chemical assay from 17 historic core holes. The historical estimate also utilizes nine additional core holes that were drilled in 2007 to provide data verification and equilibrium evaluation. The grade thickness contour method was used to develop the resource estimates, evaluating grade thicknesses ranging from 0.10 to 1.00. The results disclosed in the table above are based on a grade thickness of 0.25.
The Frank M historical estimate was prepared by BRS, Inc., a well-known mineral exploration and mining consulting firm using the standards of CIM Indicated Mineral Resources. Thus, the Company considers the historical estimate to be reliable.
Anfield intends to work with the same group to complete sufficient verification drilling at Frank M to bring the historical estimate to a current Indicated Mineral Resource.
The Transaction also contains a number of royalty arrangements on projects held by publicly-traded companies that have the potential to be an additional source of income for Anfield. The royalty projects are not currently in production, and no royalty would be due to Anfield until commencement of production. The royalty arrangements are summarized as follows:
-2% to 4% sliding scale production royalty on Azarga Uranium Corporation’s (formerly Powertech (USA) Inc.) Dewey Burdock project in Custer and Fall River Counties, South Dakota.
-2% net smelter returns royalty on Western Uranium Corporation’s San Rafael project in Emery County, Utah.
-2% to 4% sliding scale gross value royalty on Energy Fuels Inc.’s Whirlwind project in Grand County, Utah.
-1% royalty on Energy Fuels Inc.’s Energy Queen project in San Juan County, Utah.
Anfield currently holds two surface stockpiles. One of the stockpiles is located at the Shootaring Canyon Mill, with a historical estimate of 250,000 pounds of U3O8 at an average grade of 0.13% U3O8. (Source: Definitive Cost Estimate for the Restart of Shootaring Canyon Mill, Ticaboo, Utah, Lyntek Incorporated, 7/28/2008.) The other surface stockpile is located in the Lisbon Valley, having a historical mineral resource estimate of approximately 165,000 pounds of U3O8 at an average grade of 0.09% U3O8. (Source: Technical Report on the Lisbon Valley Uranium Properties Utah, Roscoe Postle Associates Inc., 9/12/2005.)
These surface stockpiles are significant, in that they represent potential mill feed sources with no mining costs and very low removal costs.
Anfield is not treating the historical estimates of the surface stockpiles as current mineral resources or mineral reserves. A qualified person has not yet done sufficient work to classify the historical estimate as current mineral resources or mineral reserves.
Anfield cannot guarantee the reliability of these historical estimates, as the parameters, assumptions and methods used to estimate the historical resource are not known.
Anfield intends to conduct a sampling program and survey, in accordance with CIM standards and terminology, to determine the grade and tonnage of material present in the stockpiles, and to upgrade the historical estimates to a current resource.
On behalf of the Board of Directors
ANFIELD RESOURCES INC.
Corey Dias, Chief Executive Officer
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