Metals Update 24/06/2021

IsoEnergy names Thomas tech adviser, Carmichael as VP

IsoEnergy Ltd. has strengthened its technical team with the appointment of David Thomas as technical adviser and Andy Carmichael as vice-president, exploration, effective July 1, 2021, and June 15, 2021, respectively. Also, Elizabeth Williamson has joined IsoEnergy as corporate secretary, effective June 9, 2021.

Tim Gabruch, chief executive officer, commented: “On behalf of the board and management of IsoEnergy, I am excited to announce the addition of Dave Thomas as a key technical adviser to the company. Dave is very well known globally as a leading expert on uranium geology, with particular expertise in Saskatchewan’s Athabasca basin. We are thrilled that Dave is joining IsoEnergy at this stage to assist on all uranium-related matters, on an exclusive basis. With more than four decades of experience, Dave’s knowledge and expertise in this area are second to none.

“We are also very pleased to announce the promotion of Andy to vice-president, exploration. Andy has been an invaluable contributor to all aspects of IsoEnergy’s exploration programs since the inception of the company in 2016 and has played a significant role in putting together the current land package and contributed to the strategy that ultimately led to the discovery of the Hurricane zone. Having Dave and Andy on board will be instrumental to the company going forward, and, combined with NexGen’s ongoing support of our geological programs, IsoEnergy is well positioned for continued exploration success.

“Additionally, IsoEnergy is very happy to add Elizabeth Williamson as corporate secretary. Elizabeth has many years of governance experience, including working with Cameco Corp., where from 2005 to 2013 her focus was on governance compliance and supporting its board of directors. Both Dave and Elizabeth are based in Saskatoon, Sask., which builds on IsoEnergy’s objective to reposition leadership of the company to Saskatchewan — home of our exceptional assets, including the high-grade Hurricane discovery.”

Mr. Thomas stated: “I have watched IsoEnergy with keen interest over the past few years. The company has a top-tier land package, and its exploration approach, resulting in the discovery of the Hurricane zone, has elevated the company to a unique position among some of the top uranium companies. I am excited about the prospects ahead for the company and look forward to providing my experience and expertise to the board and the entire IsoEnergy team.”

Mr. Carmichael commented: “Contributing to IsoEnergy’s success has been very rewarding and the discovery of the Hurricane zone, less than two years after our first exploration program, has been a highlight of my career to date. I am excited for the opportunity to lead our talented team of geologists in exploring our portfolio of highly prospective eastern Athabasca basin uranium projects. Also, having exclusive access to such a highly regarded and experienced geologist such as Dave Thomas represents an incredible opportunity for the company.”

Mr. Thomas is a professional geoscientist with more than 40 years of experience as a practising geologist. From 1980 to 1994 Mr. Thomas held positions in the Saskatchewan Geological Survey including resident geologist in Uranium City as well as a project geologist where he worked on structural and metallogenic studies, with a focus on gold and base metals in the La Ronge and Flin Flon areas of Northern Saskatchewan. In 1994, Mr. Thomas joined Cameco where he held various roles including chief geologist, director of exploration new business and generative group, and director of geoscience. While at Cameco his roles and responsibilities provided significant international involvement and exposure to a wide variety of gold and uranium deposits in a diversity of geographic and geological settings across North America, South America, Africa, Australia, Central Asia, Scandinavia and Russia. Mr. Thomas retired from Cameco in 2018, although remains active as a consultant to mineral exploration companies.

Mr. Carmichael is a professional geoscientist with 17 years of mineral exploration experience. Since 2007 Mr. Carmichael has primarily explored for unconformity-related uranium deposits in the Athabasca basin, which included contributing to the discovery of the Hurricane zone and work at the J zone, Triple R, Phoenix and Gryphon deposits. Mr. Carmichael has also explored for uranium in the Hornby Bay basin, Colorado Plateau and Namibia.

Ms. Williamson has been a lawyer in Saskatchewan for over 20 years. Her governance experience includes several years at Cameco, in the position of director, legal services, governance. She then continued her governance career as the university secretary at the University of Saskatchewan. She is now a sole practitioner at Williamson Law, a law office that she began in 2017. Ms. Williamson has a general practice advising clients on many varied issues, including numerous governance matters.

Stock option grant

The company also announces that is has granted an aggregate of 1.6 million incentive stock options to certain officers, employees and consultants of the company. The options were granted on June 23, 2021, are exercisable at a price of $2.81, vest in three equal annual instalments commencing on the grant date and have a term of five years. The options were issued pursuant to the company’s incentive stock option plan and are subject to regulatory approval.

EnCore Energy files PEA on Juan Tafoya, Marquez

EnCore Energy Corp. has released the results of a preliminary economic assessment (PEA) for the company’s recently consolidated Juan Tafoya and Marquez projects located in the Grant’s uranium district in northwestern New Mexico. This is the first PEA for the projects as this is the only time in recent history that the two contiguous mineralized properties have been held under the same company. The PEA was constructed based on a combined and updated NI 43-101 Technical Report using an Indicated resource of 7.1 million tons at a grade of 0.127% eU3O8 for a total of 18.1 million pounds of U3O8.

The PEA reports the Net Present Value (“NPV”) for the project that ranges from $20.9 million using $60.00 per pound of yellowcake (U3O8) to $71.2 million using $70.00 per pound of yellowcake with internal rate of returns (“IRR”) ranging from 17% to 39% with corresponding yellowcake prices; these scenarios are pre-tax and assume a 7% discount rate. The break-even price of production is estimated to be $56.00 per pound.

“This initial PEA enables enCore to illustrate the economic opportunities of the combined Juan Tafoya and Marquez deposits which have been consolidated with the Westwater Resources transaction completed at year end 2020. This report assumed conventional underground operation and recovery through a newly constructed conventional mill, though the authors did acknowledge that further research may prove the property amenable to either in-situ recovery (“ISR”) or heap leach processing; either of which would have a positive material impact on the economic conclusions of the current PEA.” said Paul Goranson, Chief Executive Officer. “This study points to the economic importance of our conventional assets in New Mexico, with further work it may well be determined that some, or conceivably most, of the uranium at Juan Tafoya-Marquez might be amenable to lower cost recovery options including ISR or heap leaching.”

The PEA evaluated the economics of mining at Juan Tafoya-Marquez through underground mining and on-site processing (milling) to produce yellowcake. The study has an effective date of June 9, 2021, and was prepared by Douglas L. Beahm, P.E, P.G., of BRS Inc. in cooperation with Terence P. McNulty, P.E., PhD, of McNulty and Associates.

The base case summarized above assumes the owner will purchase all mining equipment. The base case assumes mining and milling at an average rate of 1000 tons per day year-round

Mineral Resources

The mineral resources used in this PEA include Indicated mineral resources estimated by Douglas Beahm. The resources are found in two different stacked sands currently identified on the Juan Tafoya-Marquez property. Mineralization occurs in a third upper sand but is insufficiently defined to be included in this report. The in-situ estimates used electronic logs from 926 drill holes and over 575,809 meters of drilling.

Disclosure

The PEA is only summarized in this press release as an initial high-level review of the project the complete detailed report will be filed on SEDAR within 30 days of this press release. The PEA is preliminary in nature. There is no guarantee that the project economics described in this report will be achieved.