ANFIELD RESOURCES INC. ANNOUNCES ACQUISITION OF COLORADO URANIUM ASSETS
2014-05-08 09:40 ET - News Release
Mr. Corey Dias reports
Anfield Resources Inc. is continuing its strategic investment in uranium assets with the acquisition of 239 unpatented mining claims in 49 mining claim groups on federal land in Colorado, located pursuant to applicable law, from Alamosa Mining Corp. The acquisition gives Anfield access to mineral rights on over 4,800 acres (1,943 hectares) in four separate districts within the Uravan Mineral Belt, a region with prolific past uranium and vanadium production. Anfield's uranium portfolio now consists of 600 unpatented mining claims in 113 claim groups in Utah, Colorado and Arizona, and 9 mineral leases on Utah State Trust Land. Moreover, the Company now has access to mineral rights on over 17,500 acres (7,082 hectares) in Utah and Colorado in districts where historical uranium and vanadium production reached over 37 million pounds and 100 million pounds, respectively.
The acquisition represents a significant increase in Anfield's uranium footprint, and further advances the strategy of targeting mineralized areas with past uranium production or historical underground workings, as at least one uranium prospect or past-producing uranium mine has been identified within each acquired claim group. The claims all lie within a 100-mile (161 km) radius of Energy Fuels Inc.'s White Mesa mill, the only operating conventional uranium mill in the US, which would facilitate the Company's aim of toll milling in order to generate near-term cash flow. The claims are also within a 35-mile (56 km) radius of the Energy Fuels Inc.'s proposed Pinion Ridge Mill. Although construction of that mill is currently on hold, it is reported as being fully permitted. We are pleased to acquire such prospective uranium assets in Colorado to complement our uranium holdings in Utah," stated Anfield CEO Corey Dias. "We believe that there is a significant opportunity to both identify and advance targeted properties in Colorado in a similar fashion to what we have recently commenced in Utah at our Firefly Mine Complex".
Below is a summary of the acquired uranium assets based on district within the Uravan Mineral Belt, with historical production data provided by district. Note that production data is for a limited time frame, and actual production may have been substantially higher.
Slick Rock District
The new acquisition includes fifteen claim groups consisting of 105 individual claims situated in the Slick Rock District in western San Miguel County, Colorado. Between 1956 and 1965, production in this district totalled 5,291,289 lbs of U3O8 and 37,708,517 lbs V2O5, with an average grade of 0.25% U3O8 and 1.8% V2O5.
Western Gypsum Valley District
The new acquisition also includes fifteen claim groups consisting of 43 individual claims situated in the Western Gypsum Valley District in western Montrose and San Miguel Counties, Colorado. Between 1956 and 1965, production in this district totalled 144,213 lbs of U3O8 and 1,127,747 lbs V2O5, with an average grade of 0.24% U3O8 and 1.91% V2O5.
The new acquisition also includes ten claim groups consisting of 45 individual claims situated in the Paradox District in western Montrose County, Colorado. Between 1956 and 1965, production in this district totalled 1,492,764 lbs of U3O8 and 8,366,789 lbs V2O5, with an average grade of 0.28% U3O8 and 1.56% V2O5. The Paradox District extends into eastern Utah, and includes Anfield's previously acquired Firefly Mine Complex property.
The new acquisition also includes nine claim groups consisting of 46 individual claims situated in the Gateway District in southern Mesa County, Colorado. No production data has been located for this district for the same time period as the other districts mentioned above. The district, however, is home to Energy Fuel's Whirlwind Project. The Energy Fuels March 2011 Technical Report states the numerous underground mines on and immediately adjacent to the Whirlwind Project produced 7,000,000 lbs U3O8 and 24,000,000 lbs V2O5 through 1990. The district is also home to Energy Fuel's Torbyn Project. The Energy Fuels January 2009 Technical Report states the numerous underground mines on and immediately adjacent to the Torbyn Project produced 294,969 lbs U3O8 and 1,103,328 lbs V2O5 through 1978.
Unless otherwise specified, production figures in this news release are as reported in Mineral Resources in San Juan County, Utah and Adjacent Areas, Utah Geological and Mineralogical Survey Special Studies 24 (II) (1969).
The Company acquired the uranium assets by entering into an asset purchase agreement with Alamosa in which it agreed to issue 1,950,000 common shares to Alamosa upon TSX approval, and making the following cash payments to Alamosa totalling US$600,000 according to the following schedule: US$100,000 upon signing, US$150,000 on the first anniversary, US$150,000 on the second anniversary, and US$200,000 on the third anniversary.