Anfield Energy Demonstrates the Economic Viability of its Velvet-Wood and Slick Rock Uranium and Vanadium Projects

VANCOUVER, British Columbia, March 30, 2023 – Anfield Energy Inc. (TSX.V: AEC; OTCQB: ANLDF; FRANKFURT: 0AD) (“Anfield” or the “Company”) is pleased to report the results of a combined preliminary economic assessment (“PEA”) for both its Utah-based Velvet-Wood Uranium and Vanadium Project (“Velvet-Wood”) and its Colorado-based Slick Rock Uranium and Vanadium Project (“Slick Rock”). The PEA titled, “The Shootaring Canyon Mill and Velvet-Wood and Slick Rock Uranium Projects, Preliminary Economic Assessment” (PEA, 2023), will be published on SEDAR within 45 days. These two projects are located proximal to one another within the prolific Uravan Mineral Belt, and within close distance of the Company’s [permitted] Shootaring Canyon Mill (“Shootaring”) which will act as a centralized mineral processing facility in the PEA. The independent PEA was prepared in accordance with National Instrument 43-101 standards of disclosure for mineral properties. 

Highlights include:

• The PEA indicates a pre-tax project internal rate of return (“IRR”) of 40% and a net present value (“NPV”) of US$238 million, based on a discount rate of 8% and a uranium price of US$70 per pound, along with a vanadium price of US$12 per pound.

• Average annual production of approximately 750,000 pounds of uranium and 2.5 million pounds of vanadium per year is estimated over the 15-year mine life;
• The combined feed of the Velvet-Wood and Slick Rock mines is designed to meet the existing tonnage capacity at Shootaring of 750 tons per day. Additional tonnage capacity would be available after year 8 of the plan.
• Estimated mill-related capital expenditures at Shootaring, including 25% contingency amount for each item, of: 1) US$31.4 million for general upgrades; 2) US$13.4 million to install a modern vanadium circuit; and 3) US$20 million to update the tailings management facility.
• Estimated mine-related capital expenditures, including engineering and design, mine facilities, mine equipment, and the reopening of the Velvet decline and the sinking of two production shafts at Slick Rock with a 25% contingency, of: 1) US$15.3 million for Velvet-Wood; and 2) US$27.2 million for Slick Rock.

Anfield CEO, Corey Dias, stated, “We are extremely pleased with the outcome of this PEA as it provides Anfield with evidence of the true potential of both Velvet-Wood and Slick Rock within Anfield’s uranium and vanadium production model. Critically, the future addition of our West Slope project to Anfield’s production model will require little incremental capital expenditure, as Shootaring’s restart costs will have already been borne by both Velvet-Wood and Slick Rock.

“We have been keen to highlight the economic value of combining our assets into one cohesive development project, and the subsequent availability of excess uranium and vanadium production capacity at Shootaring over the life of the mill. We view this excess capacity as providing important additive value through the potential for future integration of other uranium and vanadium projects in the area, such as our West Slope Project, as well as potential toll-milling opportunities.

“The prospect of Shootaring becoming the next operational conventional uranium and vanadium mill in the United States is significant both economically as well as with respect to security of supply for utilities. This PEA not only represents a significant milestone for Anfield but also outlines a path towards commercial development of its core uranium and vanadium assets. Anfield is clearly well-positioned to benefit from an improving uranium market as nuclear energy becomes a more integral part of the global transition towards electrification.”

The Velvet-Wood project area covers approximately 2,140 acres, including unpatented mining claims and a State of Utah mineral lease related to the Velvet and Wood mine areas. In addition, the Slick Rock project area covers approximately 4,860 acres including 293 unpatented mining lodes claims. The Shootaring area covers approximately 265 acres of surface ownership and approximately 905 acres of mineral leases.

Shootaring Mill

The Shootaring Mill was licensed and constructed by Plateau Resources and operated in 1982. U.S. Energy and Uranium One were also previous owners of the Shootaring Mill. The mill has not been decommissioned and has been under care and maintenance since cessation of operations. The mill license has been maintained and Anfield is currently conducting engineering and design studies for both the refurbishment of the mill and tailings facility in support of converting the license from its status of care and maintenance to operations.

Velvet-Wood

Between 1979 and 1984, Atlas Minerals mined approximately 400,000 tons of ore from the Velvet Deposit at grades of 0.46% U₃O₈ and 0.64% V₂O₅, recovering approximately 4 million pounds of U₃O₈ and 5 million pounds of V₂O₅.

The current mineral resources (PEA, 2023) of the combined Velvet and Wood historical mines have been estimated to comprise 4.6 million pounds of eU₃O₈, at a grade of 0.29% eU₃O₈ (measured and indicated resource), and 552,000 pounds of eU₃O₈, at a grade of 0.32% U₃O₈ (inferred resource) with a vanadium-to-uranium ratio of 1.4 to 1.

Surface Stockpiles

In addition to the estimated mineral resource at Velvet-Wood, Anfield controls mineralized stockpiles from past mining at two locations: 1) one stockpile at the Patty Ann mine area near the historic Velvet mine; and 2) several stockpiles near the Shootaring mill. The volumes and uranium content of the stockpiles were estimated from volumetric surveys and sampling conducted by BRS in March, 2015. The PEA includes the stockpiles located near the Shootaring mill only. In total these stockpiles are estimated to contain approximately 77,500 tons of material at an average grade of 0.161% U₃O₈ and contain approximately 250,000 pounds of uranium.

Slick Rock

Slick Rock is located in the Uravan Uranium Belt region of Colorado. The PEA, 2023 estimates 1.7 million tons containing some 7.7 million pounds eU₃O₈, with a vanadium to uranium ratio of 6 to 1.

Project Economics

The PEA provides for a two-year pre-production period. The first year’s forecasted capital expenditures of approximately US$24 million include initial mill and mine permitting and licensing, an updated mining and reclamation plan, and initiation of mine development. The second year’s capital expenditures, forecasted at US$88 million (including a 25% contingency), include completion of the construction of mine facilities and purchasing of equipment, and refurbishment of the Shootaring uranium and vanadium mill. Total capital for Life Of Mine is estimated at US$130 million, including sustaining capital.  

The PEA indicates a pre-tax IRR of 40% at a uranium price of US$70 per pound and US$12 per pound of vanadium. The pre-tax NPV of the project at an 8% discount rate at the aforementioned prices is US$238 million.

NI 43-101 Disclosure

This combined PEA completed for Velvet-Wood and Slick Rock, using centralized processing at Shootaring, has been authored by Douglas L. Beahm, P.E., Harold H. Hutson, P.E., P.G., Carl D. Warren, P.E., P.G., of BRS Inc. and Terence (Terry) McNulty, P.E., D. Sc., of T.P. McNulty and Associates Inc. The authors have reviewed and approved the technical content of this news release.

Results of the PEA represent forward-looking information. This economic assessment is preliminary in nature and it includes inferred mineral resources that are considered too speculative, geologically, to have the economic considerations applies to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized. Conditions and parameters of the project are subject to change based on the final filing of the PEA on SEDAR within 45 days of this release. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.

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 its conventional asset centre, as summarized below:

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, Colorado, and Arizona, targeting areas where past uranium mining or prospecting occurred. Anfield’s conventional uranium and vanadium assets include the Slick Rock Project, the Velvet-Wood Project, the Frank M Uranium Project, the West Slope Project, the Long Park Project as well as the Findlay Tank breccia pipe. All conventional uranium assets are situated within a 200-mile radius of the Shootaring Mill.

On behalf of the Board of Directors

ANFIELD ENERGY INC.
Corey Dias, Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact:
Anfield Energy Inc.
Clive Mostert
Corporate Communications
780-920-5044
[email protected]
www.anfieldenergy.com