{"id":2168,"date":"2021-10-25T17:39:04","date_gmt":"2021-10-26T00:39:04","guid":{"rendered":"https:\/\/wordpress-571667-2240626.cloudwaysapps.com\/?post_type=projects&p=2168"},"modified":"2023-08-24T14:47:32","modified_gmt":"2023-08-24T21:47:32","slug":"gas-hills-uranium-project","status":"publish","type":"projects","link":"https:\/\/encoreuranium.com\/projects\/gas-hills-uranium-project\/","title":{"rendered":"Gas Hills Project"},"content":{"rendered":"\t\t
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<\/p>\n

The Company\u2019s 100% owned Gas Hills Project is one of the Company\u2019s development priorities following the focus on production in South Texas. The Project consists of approximately 1,280 surface acres and 12,960 net mineral acres of unpatented lode mining claims, a State of Wyoming mineral lease, and private mineral leases, within a brownfield site which has experienced extensive development including mine and mill site production.<\/p>\n

enCore views its Gas Hills Project as an advanced ISR project which has established scale and grade of ISR amenable uranium resources that have the potential to be highly competitive. The Company has begun the permit process for ISR operation and is continuing analysis of the project.<\/strong><\/p>\n

Between 1953 and 1988, many companies explored, developed, and produced uranium in the Gas Hills uranium district, located in the historic Gas Hills uranium district situated 45 miles east of Riverton, Wyoming., including on lands now controlled by enCore. Three uranium mills operated in the district and two other nearby mills were also fed by ore mined from the Gas Hills district. Cumulative production from the district is in excess of 100 million pounds of U3<\/sub>O8<\/sub>, mainly from open pit, but also from underground and ISR mining. An adjacent project has undertaken sufficient testing for ISR of uranium deposits on their property, received all permits and licenses to operate, and in 2014 received authorization for the company to proceed with development of their project using ISR technology. Startup of the ISR project was deferred because of a downturn in the uranium market price.<\/p>\n

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<\/p>\n

N1 43-101 Estimated Mineral Resources<\/h3>\n

Mineral resource estimates for enCore\u2019s Gas Hills Project were made using information from a total of 4,841 drill holes (i.e. gamma logs from 4,569 drill holes and PFN logs from 272 drill holes.<\/strong><\/p>\n

In August 2021, the Company filed an initial NI 43-101 compliant independent Technical Report and PEA for the Gas Hills Project prepared by WWC Engineering and Rough Stock Mining Services (the \u201cGas Hills PEA\u201d) with an effective date of June 28, 2021. Importantly, an ISR resource estimate was established and supported by numerous hydrology studies confirming that the resources located below the water table are ideally suited for ISR mining techniques.<\/p>\n\n\n\n\n\n\n\n
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Resource
Category<\/strong><\/p>\n<\/td>\n

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Million
Tons<\/strong><\/p>\n<\/td>\n

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Grade eU3<\/sub>O8<\/sub>%<\/strong><\/p>\n<\/td>\n

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Attributable U3<\/sub>O8<\/sub> (M lbs.*)<\/strong><\/p>\n<\/td>\n<\/tr>\n

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Measured & Indicated mineral resource (ISR)<\/p>\n<\/td>\n

\n

3.83<\/p>\n<\/td>\n

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0.101<\/p>\n<\/td>\n

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7.71<\/p>\n<\/td>\n<\/tr>\n

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Inferred mineral resource (ISR)<\/p>\n<\/td>\n

\n

0.41<\/p>\n<\/td>\n

\n

0.052<\/p>\n<\/td>\n

\n

0.43<\/p>\n<\/td>\n<\/tr>\n

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Measured & Indicated mineral resource (non-ISR)<\/p>\n<\/td>\n

\n

3.20<\/p>\n<\/td>\n

\n

0.048<\/p>\n<\/td>\n

\n

3.06<\/p>\n<\/td>\n<\/tr>\n

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Inferred mineral resource (non-ISR)<\/p>\n<\/td>\n

\n

0.12<\/p>\n<\/td>\n

\n

0.030<\/p>\n<\/td>\n

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0.06<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Gas Hills Project Technical Report<\/a><\/p>\n

NI 43-101 Technical Report, Preliminary Economic Assessment, Gas Hills Uranium Project, Fremont and Natrona Counties, Wyoming, USA, completed by WWC Engineering and Rough Stock Mining Services (effective 28 June 2021) (\u201cGas Hills Technical Report and PEA\u201d).<\/em><\/p>\n

The Gas Hills PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Gas Hills PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.<\/p>\n

The PEA indicates a pre-tax NPV of $120.9 million at an 8 percent discount rate with an IRR of 116 percent compared to an after-tax NPV of $102.6 million at an 8 percent discount rate with an IRR of 101 percent. The mine plan and economic analysis are based on the following assumptions:<\/p>\n