Mr. Corey Dias reports
Anfield Energy Provides Corporate Update
Anfield Energy Inc. has provided a corporate update with regard to its operations.
Despite the challenges created by COVID-19, Anfield continues on its path toward low-cost uranium production. To this end, its primary focus remains on the Charlie project in Wyoming.
During 2020, Anfield has advanced its plans to improve its market position:
- Completed transfer of DOE leases from Cotter Corp.:
- Earlier this year, the Department of Energy reviewed and granted Anfield's application to transfer the nine DOE leases held by Cotter in Colorado and designated as the West Slope properties. The company is currently working with the Colorado Department of Reclamation Mining Services on the process of transferring the mining permits held by Cotter for the same properties to Anfield.
- Engaged U1 in settlement discussions regarding outstanding debt:
- Anfield has continued to negotiate with Uranium One over the last year with regard to Anfield's outstanding obligations to Uranium One pertaining primarily to Anfield's conventional hard rock assets, including the Shootaring mill. Given the current state of the uranium market, Anfield's near-term focus is on its ISR-amenable projects, which will continue to drive plans to create the greatest value for the company.
- Raised approximately $3-million in equity:
- Anfield has raised approximately $3-million in equity in 2020 for further work related to the Charlie project and general corporate purposes. The company will continue to be opportunistic with regard to further fundraising.
Corey Dias, Anfield's chief executive officer, commented: "It has been a challenging year in the uranium sector for mining companies, including Anfield. However, we have moved forward on several fronts and this period has presented us with an opportunity to critically review and assess our entire portfolio in relation to uranium market conditions and prospects. We have identified and ranked our assets in terms of both acquisition and carrying cost, along with near-term and medium-term prospects and value to the company. This strategic review has shown us where we currently have some asset value inefficiencies and where we have some opportunities to improve our asset mix, including embracing potential near-term cash flow opportunities elsewhere. Going forward, we will look to realign and right-size our portfolio and create a sustainable and attractive asset mix.
"The company's focus remains on its Charlie project in Wyoming as its primary production target, and believes that its estimated preproduction cost of $6.7-million and its low operating costs and favourable economics, as shown in BRS Engineering's preliminary economic assessment of Charlie, provide an attractive near-term opportunity for the company and its shareholders. This is propitious timing. The commodity price has increased by 20 per cent over the year and we believe it is set for further increases due to production cutbacks in primary supply, the unsustainability of higher-cost uranium production and the support for the uranium sector by the U.S. government."
About Anfield Energy Inc.
Anfield is a uranium and vanadium 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 assets. Anfield is focused on two asset centres, as summarized herein.
Wyoming Irigaray ISR processing plant (resin capture and processing agreement)
Anfield has signed a resin capture and processing agreement with Uranium One whereby Anfield would process up to 500,000 pounds per annum of its mined material at Uranium One's Irigaray processing plant in Wyoming. In addition, the company can both buy and borrow uranium from Uranium One in order to fulfill some or all of its sales contracts.
Anfield's 24 ISR mining projects are located in the Black Hills, Powder River basin, Great Divide basin, Laramie basin, Shirley basin and Wind River basin areas in Wyoming. Anfield's three projects in Wyoming for which NI 43-101 resource reports have been completed are Red Rim, Nine Mile Lake and Clarkson Hill.
The Charlie project, Anfield's flagship uranium project, is located in the Pumpkin Buttes uranium district in Johnson county, Wyoming. The Charlie project consists of a 720-acre Wyoming State uranium lease, which has been in development since 1969. An NI 43-101 preliminary economic assessment has been completed for the Charlie project.
Arizona/Utah/Colorado Shootaring Canyon mill
A key asset in Anfield's portfolio is the Shootaring Canyon mill in Garfield county, Utah. The Shootaring Canyon mill is strategically located within one of the historically most prolific uranium production areas in the United States, and is one of only three licensed, permitted and constructed conventional uranium mills in the U.S.
Anfield's conventional uranium assets consist of mining claims and state leases in southeastern Utah, Colorado and Arizona, targeting areas where past uranium mining or prospecting occurred. Anfield's conventional uranium assets include the Velvet-Wood project, the Frank M uranium project, the West Slope project as well as the Findlay Tank breccia pipe. An NI 43-101 preliminary economic assessment has been completed for the Velvet-Wood project. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment would be realized. All conventional uranium assets are situated within a 200-mile radius of the Shootaring mill.
We seek Safe Harbor.