Energy Fuels Inc.

Energy Fuels Inc.

April 03, 2007 08:00 ET

Energy Fuels Acquires Strategic Claim Blocks to Expand Whirlwind Mine Acreage

TORONTO, ONTARIO--(CCNMatthews - April 3, 2007) - Energy Fuels Inc. (TSX:EFR) ("Energy Fuels" or "the Company") is pleased to announce the acquisition of 157 uranium lode claims in two separate blocks containing approximately 3,200 acres, adjacent to the Company's Whirlwind Mine claims near Gateway, Colorado. These newly acquired properties are among those identified in the Whirlwind Property NI 43-101 Technical Report dated January 3, 2007, as having the potential to significantly expand the minable resource in the area of the Whirlwind Mine. As reported in earlier releases, the Whirlwind Mine has underground workings and infrastructure in place and environmental permitting is at an advanced stage.

The 45 lode claims in the Crosswind claim block are contiguous with the east side of the Whirlwind claim group. The Crosswind resource lies at the same stratigraphic horizon as the Whirlwind deposit and is potentially accessible from the Whirlwind Mine workings. Exploration drilling is planned to confirm this continuity. Several of Union Carbide's former "Rajah" Group Mines are located within the Crosswind claim block. This claim block was estimated by Union Carbide to have historical resources of 250,000 lbs U3O8 and 800,000 lbs V2O5 at reported grades of 0.23% and 0.70% respectively. The estimates relied upon exploration work done by Union Carbide in 1991 and supported by an evaluation performed within the last year by Company geologists of other deposits drilled by Pioneer Uravan Inc. in the late 1970's. Energy Fuels' geologists were personally acquainted with the geologists preparing the historical estimates, and the methods used, and believe them to be reliable. These resource estimates are not NI 43-101 compliant but were taken into account in evaluating the claims.

The 112 lode claims in the Farwest claim block are contiguous with the north and west sides of the Whirlwind Claims. Energy Fuels has also acquired historical data along with these claims which are being evaluated at this time. Mineral resources that may ultimately be identified on the Farwest claims are also expected to lie at the same stratigraphic horizon as the Whirlwind Mine workings. The Farwest resource may also be accessible from the Whirlwind Mine, though this potential is not as certain as for the Crosswind resource. There are several small historical mines located within the claim group on the outcrop of the mineralized channel, including the Lumsden Group Mines, the Lost Dutchman Mine, and portions of the La Sal and Bonanza Mines. Drilling is planned for 2007 to explore the extent of the mineralized channel beyond the outcrop area.

With the acquisition of these two claim groups, Energy Fuels owns or controls nearly the entire area surrounding the Whirlwind Mine. This region of western Colorado, is known as the Beaver Mesa/John Brown Uranium District, and has historically produced at least 7.4 million lbs U3O8 and 23.8 million lbs V2O5 as reported in Colorado Geological Survey Bulletin 40 (1978). U.S. Atomic Energy Commission production records through 1971 and unpublished reports of the U.S. Bureau of Mines from 1977 provide the basis for this report. The Company expects to access resources identified in the Beaver Mesa/John Brown District from the Whirlwind decline, as well as from the other historical mines within the claim groups.

Energy Fuels would also like to clarify its March 19 press release in which it was announced that the Company had acquired the Calamity Mesa and Hop Creek claim blocks. That release stated that, "historical drilling at Hop Creek suggests there may be in excess of 250,000 pounds of U3O8 present," and that "Historical drilling on the Hop Creek property was conducted by Mineral Recovery Corp." Note that the 250,000 pound estimate is based on drilling results and work done in the 1978 - 1984 timeframe and that one of the Company's geologists personally directed exploration of this property for Mineral Recovery Corp. and considers the estimate to be reliable.

Stephen P. Antony, P.E., a Qualified Person as defined by National Instrument 43-101 has reviewed and approved the content of this press release.

Energy Fuels Inc. is a Toronto-based uranium and vanadium mineral exploration and development company with more than 30,000 acres of highly prospective uranium and vanadium property located in the States of Colorado, Utah and Arizona. The Company, through its wholly-owned Colorado subsidiary, Energy Fuels Resources Corporation, has assembled this property portfolio along with a first class management team, including highly skilled technical mining and milling professionals based in Lakewood and Nucla, Colorado and Kanab, Utah.

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements and forward looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia, Alberta and Ontario Securities Commissions.

'George E.L. Glasier', President & CEO

(The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.)

Contact Information

  • Energy Fuels Inc.
    Dan Barnholden
    Investor Relations
    (416) 625-2334
    Energy Fuels Inc.
    Gary Steele
    Investor Relations
    (303) 974-2147 or Toll Free: 1-888-864-2125
    (416) 214-2727 (FAX)