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enCore Energy begins uranium production at Alta Mesa

enCore Energy Corp. (NASDAQ: EU; TSXV: EU) announced on Thursday that it started production at the Alta Mesa Uranium Central Processing Plant (CPP) in South Texas, becoming the only uranium producer in the United States with multiple production facilities in operation.

The company also operates the Rosita in-situ uranium central processing plant, located about 60 miles from Corpus Christi, Texas, where enCore is headquartered. It has a capacity of 800,000 lb. of uranium oxide per year and the ability to expand capacity within the existing license.

enCore anticipates its first shipment of yellowcake from the Alta Mesa Project to occur in approximately 60 to 90 days.

“Our strategy at Alta Mesa is to initiate a phased ramp-up from the wellfield located in Production Authorization Area 7, increasing production progressively and consistently as additional injection and recovery wells are systematically tied into the production lines,” said Paul Goranson, enCore CEO.

“As we continue to increase production from PAA-7, work has commenced on the second new wellfield at Production Authorization Area 8 with a goal of achieving full operational capacity by 2026.”

Only 5% of the Alta Mesa project area has been explored, with 52 linear miles of stacked uranium roll fronts identified; 5 miles of which have been explored to date.

The project operates under a 70/30 joint venture with Boss Energy Limited (ASX: BOE; OTCQX: BQSSF) that is managed by enCore Energy Corp.

Total operating capacity at the Alta Mesa CPP is 1.5 million lbs. U3O8 per year with an additional drying capacity of 0.5 million lbs.

The Alta Mesa CPP historically produced nearly 5 million lbs. of uranium between 2005 and 2013 when production was curtailed as a result of low prices.

Alta Mesa utilizes ISR technology to extract uranium in a non-invasive process using natural groundwater and oxygen.

Shares of enCore rose 3.2% in New York on Thursday morning. The uranium company has a market capitalization of $1.05 billion.

Source: MINING.COM – Read More