Energy Fuels to resume operations at Canyon uranium mine, Arizona

8 February 2015 (Last Updated February 8th, 2015 18:30)

Uranium producer Energy Fuels is preparing to restart active mining operations at Canyon mine, a 'breccia pipe' uranium mine located in northern Arizona, US.

Uranium producer Energy Fuels has started preparations for restarting active mining operations at Canyon mine, a 'breccia pipe' uranium mine located in northern Arizona, US.

During the second quarter of the year, the company expects economic resources at the currently producing Pinenut mine to be depleted, so will begin to shift those personnel to the Canyon mine.

Energy Fuels has also ordered for capital and operational equipment to use during mine development and ore production operations.

At present, surface development equipment such as a headframe, evaporation pond, hoist, environmental controls and an office maintenance facility is in place at the Canyon mine and a shaft of around 275ft has been sunk.

"Over the past six months, uranium spot prices have increased by about 35% and are currently showing strength."

The company hopes to sink an additional 1,200ft, install two ventilation shafts and finish underground development in order to complete the mine.

The Canyon deposit has 1.63 million pounds of uranium with an average grade of 0.98% eU3O8 contained in 83,000t of inferred mineral resources, according to a technical report prepared in-line with National Instrument 43-101 in 2012.

In terms of total tonnage mined, ore grade and pounds of uranium recovered, ongoing ore production at Energy Fuels's Pinenut mine is meeting expectations.

Energy Fuels president and CEO Stephen Antony said: "Over the past six months, uranium spot prices have increased by about 35% and are currently showing strength.

"Production at the Pinenut mine has exceeded our expectations over the past year and I personally thank our miners and mill workers for their professionalism, hard-work and commitment to safety and environmental protection. We look forward to achieving similar success at the Canyon mine."