enCore Energy Corp. announced in mid-March, 2023 that it has made a formal production decision for the resumption of uranium production from the Alta Mesa Processing Plant ("Alta Mesa" or "Plant) in early 2024. Alta Mesa will be enCore’s second producing location following resumption of uranium production at the South Texas Rosita Uranium Processing Plant ("Rosita") scheduled for 2023.
Work underway at the Alta Mesa Processing Plant includes the construction of equipment staging areas and drill pads in the fully permitted Production Authorization Area (PAA), planned for initial production due to its proximal location adjacent to the Plant. Development drilling, production and injection well installation will start this month. Concurrently, enCore’s technical staff are identifying equipment maintenance and limited repair needs at the Alta Mesa Processing Plant involving the ion exchange system, uranium precipitation, drying and packaging circuits in order to restart production after having been on standby since 2013.
Alta Mesa Processing Plant and Project highlights include:
- The Alta Mesa Processing Plant is enCore’s third fully licensed production facility, along with Rosita and Kingsville Dome, all located in the business-friendly state of Texas. There are only 11 licensed and constructed uranium production facilities in all of the United States (US);
- The Alta Mesa Processing Plant can reach commercial production levels with limited required capital, from funds on hand, within an estimated 10 months of today’s announced production decision;
- Advancing the Alta Mesa Processing Plant, in conjunction with planned production in 2023 at the Rosita Uranium Processing Plant, will cement enCore Energy’s position as the early leader in In-Situ Recovery (ISR) uranium production in the US;
- Alta Mesa’s operations are located on private land, with 100% of minerals privately owned, and in a supportive jurisdiction with primary regulatory authority residing with the State of Texas;
- The Alta Mesa Processing Plant utilizes well-known ISR technology to extract uranium in a non-invasive process through the use of natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.
To view the Alta Mesa project maps and enCore Energy’s South Texas projects please visit: https://bit.ly/3fV9fTg .
Paul Goranson, the Company’s Chief Executive Officer said, "My previous experience includes building and successfully operating Alta Mesa. I am confident that we have everything necessary within our control for a production restart, and enCore can quickly advance the project. The enCore team began initial assessment work in November 2022, preparing for the start of work immediately following the closing of the acquisition of the Alta Mesa Processing Plant and Project. It is an exciting time at enCore. Our 2023 startup of production at Rosita and now, the decision to proceed at Alta Mesa, will bring a reliable domestic low carbon energy source to South Texas and the United States when it is most needed."
Alta Mesa Processing Plant and Project
The Alta Mesa project is a fully licensed and constructed ISR uranium project and central processing facility currently on standby, located on over 203,000 acres of private land in the state of Texas. Total operating capacity is 1.5 million lbs U3O8 (uranium) per year. Alta Mesa historically produced nearly 5 million lbs of U3O8 between 2005 and 2013, when full production was curtailed as a result of low uranium prices at the time.
Alta Mesa & Mesteña Grande Mineral Resource Summary will include a 0.30 GT cut-off.
Additionally, further to the Company’s news release dated February 15, 2023 announcing the conversion of 23,277,000 subscription receipts issued on December 6, 2022 at a price of C$3.00 per subscription receipt (the "Subscription Receipt Offering"), the Company advises that it paid an aggregate of C$4,050,000 in cash commissions to Canaccord Genuity Corp. (C$2,025,000), Haywood Securities Inc. (C$810,000), Cantor Fitzgerald Canada Corporation (C$364,500), PI Financial Corp. (C$364,500), Clarus Securities Inc. (C$324,000), and Red Cloud Securities Inc. (C$162,000). 50% of the cash commission was paid on closing of the Subscription Receipt Offering, and the balance of the cash commission (with interest earned thereon) has been released from escrow to the underwriters. The Company also paid an aggregate of C$24,600 in cash commissions to Haywood Securities Inc. (C$12,000) and Canaccord Genuity Corp. (C$12,600) in connection with the non-brokered portion of the Subscription Receipt Offering. For additional information regarding the Subscription Receipt Offering, please see the Company’s news releases dated December 6, 2022 and February 15, 2023.
The Company advises that it is not basing its production decisions at Alta Mesa or Rosita on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is based on known past In-Situ Recovery (ISR) and processing operations at these two production facilities and surrounding lands. However, the Company understands that there is increased uncertainty, and consequently a higher risk of failure, when production is undertaken in advance of a feasibility study. In addition, the mineral resource at Alta Mesa includes inferred resources which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. The Company has determined to proceed with a production decision based on past operations at Alta Mesa and Rosita, including past ISR operations on the known mineral resource areas.
Alternate source of maps: https://encoreuranium.com/wp-content/uploads/2022/11/EU-NR-Alta-Mesa-Acquisition-Maps.pdf
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