Energy Fuels Inc (TSE:EFR, NYSEMKT:UUUU) updated on its underground drill program currently occurring at the company's Canyon mine, which is a high-grade uranium mine being developed by the company in northern Arizona.
The company is continuing to discover large and high-grade areas of uranium mineralization, which the company expects will result in a larger recoverable uranium resource than what is currently described in the existing technical report for the Canyon mine, prepared in accordance with National Instrument NI 43-101, standards for disclosure for mineral projects.
The company is also continuing to discover additional zones of high-grade copper mineralization, both inside and outside the areas of potentially recoverable uranium mineralization.
As has been previously reported, the company has completed all surface development and is currently sinking the production shaft at the Canyon mine. The shaft is nearing completion as it is currently sunk to a depth of approximately 1,400 feet (out of a total planned depth of 1,470 feet). From the shaft, which is being sunk adjacent to the vertically aligned breccia pipe, the company is conducting underground drilling to more accurately define and delineate the deposit. As core holes are completed, the company first conducts a gamma analysis of the drill holes to estimate uranium content. Then, the core material is sent to the company's laboratory at the White Mesa mill for chemical assay.
The results discussed were drilled from the first level (1,000-foot depth) and second level (1,230-foot depth) of the mine.
The new results described appear to be continuing to expand the zones of high-grade uranium mineralization. These results are also confirming the company's belief that the uranium resource is larger than what is reported in the existing technical report. The company is also continuing to intercept very high-grade copper mineralization, indicating that copper appears to occur extensively throughout the deposit. The copper has the potential to improve the economics of this already low-cost uranium mine.
"Core drilling at the Canyon mine continues to produce exciting and, in some cases, unexpected results for both uranium and copper. This is certainly a fascinating deposit that appears to be full of valuable metals in multiple zones. This is particularly exciting as uranium prices are showing recent strength. Kazakhstan, the world's largest producer of uranium, recently announced 10-per-cent production cuts,” said Stephen P. Antony, president and chief executive officer of Energy Fuels.
Meanwhile, broker Rodman & Renshaw reiterated its Buy recommendation on Energy Fuels shares and price target of $5.00.
“While we had initially envisioned Canyon as an eventual high-grade uranium mine, we remain impressed by the continued strong copper grades encountered at the site,” said Rodman in a note.
Energy Fuels shares were up 1.1% at C$2.70 in Toronto and up 2.5% at $2.09 on Wall Street on Friday.