enCore Energy owns and operates three of the four licensed uranium production facilities in Texas. Each of enCore’s facilities are fully licensed and constructed, 100%-owned, and are past-producing uranium production facilities in Texas, a known and safe ISR uranium jurisdiction. There are currently only 11 licensed ISR plants in the United States.
enCore Energy is focused on executing our production plan in South Texas starting at the Rosita ISR Uranium Central Processing Plant (CPP) and Wellfield in 2023, to be closely followed by the Alta Mesa ISR Uranium CPP and Wellfield in 2024. Both Central Processing Plants (CPPs) and Wellfields have licensed and permitted processing facilities and production areas. enCore’s operational plan is to produce uranium derived from multiple remote Satellite IX operations, in turn to be processed at one of our CPPs. enCore’s three CPPs are strategically located in north-central, central, and southern portions of south Texas.
The Rosita ISR Uranium Central Processing Plant (CPP) and Wellfield is enCore’s initial focus for production in November 2023. The Rosita CPP is located on a 270-acre surface tract, 100% owned by enCore, located central to the mining lease area. The Rosita CPP will receive uranium-loaded resins from various remote south Texas projects and satellite wellfields.
Initial production of uranium from the Rosita CPP, commenced in 1990 and continued until July 1999. During that time, 2.65 million pounds of U3O8 were produced. It was originally designed and constructed to operate as an up-flow ion exchange facility, in a similar manner to the Kingsville Dome CPP. Resin was processed at the Rosita CPP, and the recovered uranium was precipitated into slurry, which was then transported to Kingsville Dome for final drying and packaging. Production was halted in July of 1999 due to depressed uranium prices, and it resumed in June 2008. Technical difficulties, coupled with a sharp decline in uranium prices, led to the decision to suspend production activities in October 2008. No production has occurred at the Rosita CPP and Wellfield since that time.
During 2007-2008, upgrades were made to the processing equipment and additions to the facility were installed, including revisions to the elution and precipitation circuits, and the addition of a full drying system. Construction terminated when the plant was 95% complete due to production and price declines. The current plant is designed to have an operating capacity of 800,000 pounds of U3O8 per year when production commences. One satellite ion exchange system is in place at the Rosita Wellfield, but it only operated for a short period of time in 2008. A second satellite ion exchange system will be constructed to accommodate expected production from the wellfield that is currently under construction.
On November 1, 2022, the Company announced that it had completed the refurbishment of the Rosita CPP, a key step toward the goal of the Company becoming the next producer of American uranium. In April 2023, the wellfield for Rosita Extension was completed, and the installation of the surface and electrical infrastructure commenced. The construction of the 1,000 GPM satellite IX system to service the Rosita Extension wellfield commenced in May 2023. The construction of the surface infrastructure, including pipelines, oxygen supply, manifolds, metering, and electrical connections continued through the third quarter.
Rosita Wellfield
The Rosita Project is comprised of four Texas Commission on Environmental Quality (TCEQ) authorized production area authorizations (PAA). Production areas 3 and 5 contain limited uranium resources. The company completed the final phase of TCEQ required stabilization in production areas 1 and 2. The Company began plugging wells in production areas 1 and 2 in 2014 and completed those activities in 2016. Completion of the surface reclamation in production areas 1 and 2 was temporarily halted in 2019 and resumed in early 2020 with completion anticipated in 2023, pending acceptance by the TCEQ. The Company received approval of production area 5, authorizing injection in the Rosita Project Extension wellfield in September.
In November 2023, the Company received approval from TCEQ for the renewal of its radioactive material license for the Rosita Project. The underground injection control permit, issued on October 14, 2014, remains in good standing. Production could resume in areas already included in existing production area authorizations. As new areas are proposed for production, additional authorizations from TCEQ under the permit will be required. The waste disposal well permit has been renewed.
Uranium mineralization at the Rosita Wellfield occurs as roll-fronts hosted in porous and permeable sandstones of the Goliad Formation, at depths ranging from 125 to 350 feet below the surface. Additional potential for roll-front mineralization exists between 500 and 700 feet in the Oakville Formation and is the subject of current exploration efforts.
Satellite Operation for the Rosita CPP and Wellfield
Rosita Project Extension, Duval County, Texas -
The Company has advanced wellfield development within the Rosita Project radioactive materials license and injection permit boundaries. The mineral resources in this area were never produced and present a rapid opportunity for early production. The Company is completing installation of production patterns in the production area and has been followed quickly by the installation of the necessary infrastructure to operate with a satellite ion exchange system. Production will commence in November 2023.
Rosita South, Duval County, Texas – enCore announced positive results from its on-going uranium delineation and exploration drill programs at its 100% owned Rosita South Wellfield. The Wellfield is adjacent to the Rosita CPP. The Rosita South Wellfield area provides one of the most optimal sources of satellite feed for the Rosita CPP. Thirty-two drill holes were reported for a total of approximately 11,000 feet including 20 delineation drill holes and 12 exploration drill holes. The exploration drilling has identified 8 mineralized sands plus an additional 4 potentially mineralized sands, all within 800 feet of the surface, which provide opportunities for discovery of future uranium resources across the entire Rosita Wellfield. Delineation drill results established an extension of mineralization in the future Production Area which supports the start-up of production. Further work on this project area has been deferred as drilling commenced on the Rosita Extension and the Company’s Alta Mesa Uranium Project. Further evaluation of historic and current data is in progress to prioritize prospective resource areas within the project area.
Butler Ranch Wellfield, Karnes Couty, Texas –
enCore acquired the Butler Ranch Wellfield from Rio Grande Resources in 2014, as part of a larger property exchange. The property is comprised of non-contiguous fee leases that cover an area of about 438 acres of mineral rights. The Wellfield is in the southwestern end of Karnes County, Texas, about 45 miles southeast of the city of San Antonio, and 12 miles northwest of the town of Kenedy. The Wellfield is situated in the southwestern end of the Karnes County uranium mining district, which was one of the largest uranium production areas in Texas.
Uranium mineralization at Butler Ranch occurs in the form of roll-front deposits hosted primarily in sandstones of the Jackson Group, including the Deweesville and Stones Switch sandstone members of the Whitsett Formation. Some mineralization in the area also occurs as tabular bodies associated with lignite (carbonaceous material) or in somewhat permeable units in the Conquista Clay.
Butler Ranch Project, Karnes County, Texas –
The Company acquired the Butler Ranch Project from Rio Grande Resources in 2014, as part of a larger property exchange. The property is comprised of non-contiguous fee leases that cover an area of about 438 acres of mineral rights. The Project is in the southwestern end of Karnes County, Texas, about 45 miles southeast of the city of San Antonio, and 12 miles northwest of the town of Kenedy. The Project is situated in the southwestern end of the Karnes County uranium mining district, which was one of the largest uranium production areas in Texas.
Upper Spring Creek Project, Live Oak and Bee Counties, Texas -
The Company acquired several mineral properties located in South Texas, within the area generally described as the Upper Spring Creek Project (USC) area. The Project is currently comprised of two distinct areas: USC-Brown Area (Live Oak County) and USC Brevard Area (Live Oak and Bee Counties). The USC-Brown Area Project is currently comprised of both Company-owned properties and both non-contiguous and contiguous fee leases that cover an area of approximately 510 acres of surface and mineral rights, and the Company is actively acquiring additional mineral properties for this Project. The USC Brevard Area is currently comprised of a single lease of approximately 274 acres of surface and mineral rights. As with USC Brown Area, the Company is actively acquiring additional mineral properties for this Project. These properties are intended to be developed as satellite ion-exchange plants that will provide loaded resin to the Rosita CPP.
The Company advises that it is not basing its production decisions at Alta Mesa CPP or Rosita CPP 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.
The Company has determined to proceed with a production decision based on past operations at the Alta Mesa CPP and Rosita CPP, including past ISR operations in the known mineral resource areas.
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