Anfield Energy Inc. (TSX-V: AEC, OTCQB: ANLDF, FRANKFURT: 0AD) (“Anfield” or the “Company”) is pleased to announce, further to its news releases on March 12, 2018, and January 8, 2019, that it has closed its previously-announced transaction (the “Transaction”) with Cotter Corporation (N.S.L.) (“Cotter”) to acquire both the Charlie ISR Uranium Project (the “Charlie Project”) and nine past-producing uranium/vanadium properties in Colorado, collectively known as the West Slope Project (“West Slope Project”).
Anfield’s CEO, Corey Dias, commented: “We are excited to close this transformational transaction. We now look forward to creating both an ISR uranium mine-and-mill complex in Wyoming – underpinned by our resin processing agreement with Uranium One – and a conventional uranium and vanadium mine-and-mill complex – underpinned by Anfield’s Shootaring Canyon mill – within Utah and Colorado. As uranium and vanadium markets continue to trend upwards, buoyed by burgeoning demand and declining supply, we are now even better-positioned for production at the appropriate time”.
Cotter received 11,051,775 common shares of Anfield as consideration for the Transaction, resulting in Cotter now holding a 19.9% ownership interest in the Company. Pursuant to TSX Venture Exchange policies, the deemed value of the Transaction is $1,823,543 (based upon the maximum allowable 25% discount from the market price of Anfield’s common shares immediately following the news release announcing the signing of the Transaction on January 8, 2019).
An early warning report has been filed on SEDAR in connection with the issuance of shares to Cotter. A copy of the report can be obtained under the Company’s profile on SEDAR, or from Cotter by contacting Kenneth Mushinski at (720) 554-6207.
The Charlie Project
Inexco Oil began exploration drilling on the Charlie Project in 1969 and over a two-year period completed 215 holes, comprising 91,000 ft. of drilling. A joint venture was formed with Uranerz USA, Inc. (“Uranerz”) in 1974 and an additional 715 holes were completed, including 57 core holes, totaling 283,906 ft. Cotter acquired the project from Uranerz and proceeded to evaluate it for both conventional open pit and in situ mining methods. Cotter excavated a 200 ft. test pit in 1981 on a small ore zone east of the main trend. Falling uranium prices in the 1980s halted further development on the project.
As part of closing of the Transaction, BRS Engineering has revised its previous uranium resource estimate – commissioned by Anfield – for the Charlie Project. The revised resource estimate includes:
- an Indicated Mineral Resource of 1,255,000 tons of mineralized material with an average grade of 0.123% eU3O8 (equivalent to an Indicated Resource of 3,100,000 pounds of eU3O8); and
- an Inferred Mineral Resource of 411,000 tons of mineralized material with an average grade of 0.12% eU3O8 (equivalent to an Inferred Resource of 988,000 pounds of eU3O8); and
- in addition to the disclosed Mineral Resource, an Exploration Target ranging from 232,000 to 282,000 tons with an average grade ranging from 0.090 to 0.151 %eU3O8 (equivalent to an Exploration Target ranging from 417,000 to 850,000 pounds of eU3O8).
In connection with the revised resource estimate, the Company intends to file an updated technical report in respect of the Charlie Project. Once filed, a copy of the updated technical report will be available under the Company’s profile on SEDAR.
The West Slope Project
The West Slope Project, located in Montrose and San Miguel Counties of southwestern Colorado, consist of nine Department of Energy (DOE) leases, associated with adjacent lode mining claims and leases, covering 6,913 acres on which past uranium production has taken place. Between 1977 and 2006, approximately 1.3Mlbs of uranium and 6.6Mlbs of vanadium were produced from these mines. In 2007, Behre Dolbear was commissioned by Cotter to produce a Technical Report for the West Slope Project (Technical Report on Nine Properties Held by Cotter Corporation in Montrose and San Miguel Counties, Colorado, USA, August 16, 2007). Using available data and using a cut-off of 0.05% uranium, Behre Dolbear estimated an in-place Measured Resource of 2.1Mt of uranium at an average grade of 0.25% for a total of 11Mlbs of uranium and an in-place Measured resource of 1.2Mt of vanadium at an average grade of 1.2% for a total of 53Mlbs of vanadium.
| Historical Resources – West Slope | ||||||
| Intercepts greater than 0.05% U3O8 | ||||||
| U3O8 | V205 | |||||
| Property | Tons (millions) | % | Pounds (millions) | % | Pounds (millions) | |
| JD-6 | 0.16 | 0.15 | 0.48 | 0.75 | 2.4 | |
| JD-7 | 0.77 | 0.26 | 4.0 | 1.1 | 17 | |
| JD-8 | 0.31 | 0.24 | 1.5 | 1.3 | 7.9 | |
| JD-9 | 0.23 | 0.24 | 1.1 | 1.2 | 5.7 | |
| SR-11 | 0.17 | 0.29 | 0.99 | 1.9 | 6.6 | |
| SR-13A | 0.01 | 0.22 | 0.26 | 1.4 | 1.7 | |
| SM-18N | 0.097 | 0.23 | 0.45 | 1.1 | 2.1 | |
| SM-18S | 0.047 | 0.26 | 0.24 | 1.5 | 1.3 | |
| LP-21 | 0.19 | 0.23 | 0.87 | 1.2 | 4.6 | |
| CM-25 | 0.092 | 0.36 | 0.66 | 1.7 | 3.2 | |
| Total | 2.1 | 0.25 | 11 | 1.2 | 53 | |
Anfield considers these estimates to be historical in nature and cautions that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Anfield is not treating these historical estimate as a current mineral resource or mineral reserves.
All securities issued in connection with the Transaction are subject to a four-month-and-one-day statutory hold period prescribed by applicable securities laws. No finders’ fees are payable in connection with the completion of the Transaction.
About Anfield
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 a publicly-traded corporation listed on the TSX-Venture Exchange (AEC-V), the OTCQB Marketplace (ANLDF) and the Frankfurt Stock Exchange (0AD). Anfield is focused on two project centres, as summarized below:
Wyoming – Irigaray ISR Processing Plant (Resin Processing Agreement)
Anfield has also signed a Resin 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 two projects in Wyoming for which NI 43-101 resource reports have been completed are Red Rim and Clarkson Hill.
The Charlie 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.
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 uranium mills in the United States.
Anfield’s conventional uranium assets consist of mining claims and state leases in southeastern Utah 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 (PEA) 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.
About Cotter Corporation
Cotter, a General Atomics (GA) affiliate, is headquartered in Denver, Colorado. Originally incorporated in 1956 in New Mexico as a uranium production company, through its various mining and milling operations, Cotter has produced uranium, vanadium, molybdenum, silver, lead, zinc, copper, selenium, nickel, cobalt, tungsten and limestone.
Douglas L. Beahm, P.E., P.G. has approved the scientific and technical disclosure, relating to the Charlie Project, in this news release. He is a Qualified Person as defined in NI 43-101.
Source: Anfield Energy
