enCore Energy Corp. (NASDAQ: EU) (TSXV: EU) ("enCore"), America's Clean Energy Company™, reports that it has filed a new S-K 1300 Technical Report Summary ("TRS") for its Dewey-Burdock Project ("Project") located in South Dakota, USA, with the United States (U.S.) Securities & Exchange Commission ("SEC"). This filing discloses an updated mineral resource and preliminary economic assessment for the Company's key pipeline In-Situ Recovery ("ISR") uranium project located in South Dakota. The report provides the following:
- The Dewey-Burdock Project has received its Source Material License from the U.S. Nuclear Regulatory Commission ("NRC"), its Aquifer Exemption and its Class III and V Underground Injection Control ("UIC") Permits from the U.S. Environmental Protection Agency ("EPA") Region 8.
- Measured and Indicated Resources for the Project are 17,122,147 lbs. eU3O8 or 7,388,222 tons at 0.12% average grade eU3O8.
- Inferred Resource for the Project are 712,624 lbs. eU3O8 or 656,546 tons at 0.06% eU3O8.
- A preliminary economic assessment of the Project, excluding the Inferred Resource, and using the current cost environment, which demonstrates robust economics for the Project with an after-tax Net Present Value ("NPV") of $133.6 million using an 8% discount rate and a project Internal Rate of Return ("IRR") of 33%.
Paul Goranson, enCore's Chief Executive Officer, stated, "This S-K 1300 Technical Report Summary for our Dewey-Burdock Project continues to demonstrate the Project's robust economics for supporting enCore's uranium production pipeline. At a time when continued and unprecedented geopolitical events demonstrate the value of domestically produced uranium to support America's increasing demand for energy, we expect that the Dewey-Burdock Project has the potential to become a significant supplier of fuel for clean and reliable nuclear power."
Prior to January 1, 2025, as a Canadian domiciled company, the mineral resource for the Dewey-Burdock Project has been disclosed solely under National Instrument 43-101. As of January 1, 2025, as a U.S. domestic issuer, enCore Energy Corp. is now also reporting all mineral resources in accordance with Item 1302 of Regulation S-K ("S-K 1300"). S-K 1300 was adopted by the SEC to modernize mineral property disclosure requirements for mining registrants and to align U.S. disclosure requirements for mineral properties more closely with current industry and global regulatory standards. The mineral resource estimates set forth in this TRS have not previously been reported under the S-K 1300 format.
This TRS was prepared under S-K 1300 and filed with the SEC through EDGAR on Form 8-K. In addition, a Canadian technical report, entitled "Dewey-Burdock Project, South Dakota, USA, National Instrument 43-101 Preliminary Economic Assessment Technical Report", dated January 6, 2025 (the "Canadian Technical Report") was filed with Canadian securities regulators on SEDAR. The TRS and Canadian Technical Report were prepared by SOLA Project Services, LLC of Casper, Wyoming, with Stuart Bryan Soliz, P.G., Principal of SOLA Project Services, LLC being the Qualified Person for the purposes of National Instrument 43-101.
Dewey-Burdock Project
The Dewey-Burdock Project is an advanced-stage uranium exploration project located in southwest South Dakota and forms part of the northwestern extension of the Edgemont Uranium Mining District, about 13 miles north-northwest of Edgemont and is wholly owned by enCore. The Project is amenable for extraction of uranium using In-Situ Recovery technology ("ISR") (see below). enCore controls over 16,000 acres in the area, of which over 10,500 acres are within the Project's permit boundary. Mineral title is controlled by federal mining claims and private lease agreements.
Results of the Preliminary Economic Assessment ("PEA")
The scenario used for the economic assessment for the Dewey-Burdock Project assumes a specific timeline in order to determine the appropriate economic results. It assumes that permitting and licensing actions are ongoing and forecasted completion is Q3 2026. Within the PEA, engineering is anticipated to commence by early 2026, and construction of the Dewey-Burdock ISR Uranium Central Processing Plant ("CPP") along with wellfield construction is anticipated to commence early in 2027. The PEA does not include any portion of the inferred resource. Using these assumptions, the PEA provides the following economic estimates:
- Estimated total capital costs: $264.2 M over the life of the Project;
- The estimated operating cost is expected to be $23.81/lb of U3O8 including CPP and wellfield operations, administrative costs, reclamation and decommissioning;
- 80% recovery of in situ mineral resources is expected;
- Pre-tax NPV: $180.1M with IRR 39%, net cash flow $476.8M;
- After-tax NPV: $133.6M with IRR 33%, net cash flow $363.4 M.
Current and future activities to proceed on schedule:
- Finalizing state and federal permitting and licensing work;
- Core drilling and analysis to finalize design plans and recovery parameters.
Expected Production Facility Design and Capacity Parameters:
- The CPP is to be constructed on the Dewey portion of the project area; it will have Ion Exchange ("IX")recovery trains and yellowcake processing facilities;
- A satellite facility is to be constructed on the Burdock portion of the project area where IX resin is to be transported to the CPP for processing into yellowcake;
- Total flow capacity of 4,000 gpm;
- Annual capacity to process 1 million pounds of uranium per year;
- Over 14 million pounds of expected uranium recovery based on current plans.
Technical information in this news release was approved by John M. Seeley, Ph.D., P.G., C.P.G., enCore's Manager of Geology and Exploration, and a Qualified Person of the Company and a Qualified Person as defined in NI43-101. Stuart Bryan Soliz, P.G., Principal of SOLA Project Services, LLC was the Qualified Person under National Instrument 43-101 that prepared the Canadian Technical Report.
