1. business and industrial
2. energy
3. nuclear power

enCore Energy Corp.
February 2015
DISCLAIMER
©2015 enCore Energy Corp., All rights reserved. Unless otherwise noted, “enCore” and all other marks used in this presentation are trademarks of enCore Energy (the “Company”).
Any reproduction or dissemination of any feature of this presentation, in whole or in part, or any use of this presentation for any unlawful purposes, is strictly prohibited.
The technical contents of this presentation were reviewed and approved by Mr. Mark C. Shutty, CPG, a Qualified Person as defined by National Instrument 43-101 and a consultant
for the Company.
This presentation contains certain statements that may be deemed "forward-looking statements". Information set forth may involve forward-looking statements under applicable
securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business
and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might",
"could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; are
forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the following risks: risks identified in the management discussion and analysis section of the Company’s interim and most recent
annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. Forward-looking statements are made based on
management's beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if
these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue
certainty to forward-looking statements.
The information provided in this presentation is provided solely for general knowledge purposes. This presentation is not intended to be a comprehensive review of all matters and
developments concerning the Company and the Company assumes no responsibility for its completeness, accuracy and currency. Although information used in this presentation is
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current information please refer to the Company's filings on SEDAR (www.sedar.com) or contact the Company.
THIS PRESENTATION IS PROVIDED “AS IS” WITHOUT ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND, INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT
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the Company can only be made by a broker-dealer registered in all jurisdictions in which such an offer is being made and only if such offer is otherwise made in accordance with all
applicable securities laws, regulations, and rules of any kind whatsoever. The information in this presentation is not intended in any way to qualify, modify or supplement any
prospectus or other information disclosed under the corporate and securities legislation of any jurisdiction applicable to the Company. No securities commission has in any way
passed on any of the information contained in this presentation.
THE FOREGOING LIMITATIONS AND DISCLAIMERS APPLY REGARDLESS OF THE CAUSES OR CIRCUMSTANCES GIVING RISE TO THE LOSS, DAMAGE, CLAIM OR LIABILITY, EVEN IF
SUCH LOSS, DAMAGE, CLAIM OR LIABILITY IS BASED UPON BREACH OF CONTRACT (INCLUDING, WITHOUT LIMITATION, A CLAIM OF FUNDAMENTAL BREACH OR A BREACH OF A
FUNDAMENTAL TERM), TORT (INCLUDING, WITHOUT LIMITATION, NEGLIGENCE) OR STRICT LIABILITY.
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INVESTMENT OVERVIEW
A proven team with unique abilities to provide turn-key services including:
• Exploration;
• Development;
• Licensing and permitting;
• Production;
• Product marketing.
• Uranium developer/explorer with a primary land package in New Mexico, USA
and additional properties in Wyoming, USA
• Key properties, including Crownpoint and Hosta Butte, are 100% owned with no
holding costs or work commitments
• Crownpoint and Hosta Butte are large ISR-amenable uranium deposits, with
over 30 million pounds of uranium mineralization, located in the United States
• Insiders and management own +35% of the company and are committed to
increasing shareholder value
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enCore Energy Corp.
The Nuclear Industry
Fuel Cycle
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NUCLEAR FUEL CYCLE – THE BASICS
1.
Uranium is mined at grades as low as 0.02% U308 before being dried into
“yellowcake”
2.
The yellowcake is then sent to a series of enrichment facilities to increase
the grade to 3-5% U235 for loading into fuel rods and ultimate use in nuclear
reactors
3.
The fuel rods are the basis for powering nuclear reactors and often require
refueling every 1-3 years. There are various types
4.
Once the uranium has been used, it is sent to a storage facility and the
nuclear reactor is taken off-line in order to insert new fuel rods, loaded with
enriched uranium (3-5% U235) before restarting the reactor
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KEY NUCLEAR ADVANCES
• Westinghouse’s AP1000 reactor has passive-safety features designed to
automatically shut down if necessary and its simple design includes fewer
components to lower construction costs for new reactors
• Small Modular Reactors (SMR) are designed to be about a third of the size of a
traditional reactor and will significantly reduce capital costs while enabling
nuclear power to be more widespread
• ThorCon liquid fuel reactor designed by Martingale slated for production by
2020
• Ceramic fuel pellets to ensure fuel rods cannot melt down in non-PBR reactor
designs
• New Pebble Bed Reactors (PBR) are specifically designed to operate at high
temperatures, in ranges previously thought to create accident condition
• China began construction of the first PBR reactor in 2012
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ISR RECOVERY PROCESS
•
ISR mining has far less
environmental impact and is lower
cost than conventional mining
•
A solution, consisting primarily of
water and dissolved oxygen, is
injected into the ground to reverse
the natural process that deposited
the uranium
•
ISR mining grades typically range
from 0.04% to 0.15% U3O8 while
high grade underground mines can
range up to +20% U3O8
•
A safe and proven method for lowgrade uranium extraction
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CURRENT US ISR MINES IN PRODUCTION(3)
enCore Energy’s Crownpoint & Hosta Butte project has more mineralized material,
and at higher grades, than the largest producing US ISR mine
enCore Energy's Key ISR Amenable Deposits
Indicated Resources
Inferred Resources
Crownpoint & Hosta Butte(a)
26.6 mm lbs @ 0.105%
6.1 mm lbs @ 0.110%
US Producing ISR Mines
Smith-Highland(b)
Crow Butte(b)
Willow Creek(c)
Lost Creek(d)
Nichols Ranch(e)
La Palangana(f)
Alta Mesa
Measured and Indicated Resources
21.8 mm lbs @ 0.06%
14.6 mm lbs @ 0.27%
16.9 mm lbs @ 0.078%
8.6 mm lbs @ 0.052%
2.9 mm lbs @ 0.114%
1.1 mm lbs @ 0.135%
Unavailable
Inferred Resources
7.9 mm lbs @ 0.05%
2.9 mm lbs @ 0.12%
0.14 mm lbs @ 0.068%
4.7 mm lbs @ 0.051%
n/a
1.2 mm lbs @ 0.176%
Unavailable
*Mineral resources presented above are based on the most recent available data for each company and do not reflect subsequent changes related to production and exploration activities.
**Mineral Resources are not mineral reserves and do not have demonstrated economic viability.
a) NI 43-101, Technical Report, Crownpoint & Hosta Butte , McKinley County, New Mexico, prepared by BRS Engineering, dated May 14, 2012. Crownpoint & Hosta Butte hosts
Indicated resource of 12.7 Mt of 0.105% eU3O8 totaling 26.6 M lbs, Inferred resource of 2.8 Mt of 0.110% eU3O8 totaling 6.1 M lbs.
b) Smith-Highland project contains a Measured resource of 1.7 Mt of 0.10% eU3O8 totaling 4 M lbs, Indicated resource of 1.1 Mt of 0.06% eU3O8 totaling 17.8 M lbs, Inferred
resource of 6.9 Mt of 0.05% eU3O8 totaling 7.9 M lbs. Crow Butte project contains a Measured resource of 1.1 Mt of 0.24% eU3O8 totaling 6.0 M lbs, Indicated resource of 1.4
Mt of 0.29% eU3O8 totaling 8.6 M lbs, Inferred resource of 1.1 Mt of 0.12% eU3O8 totaling 2.9 M lbs.
c) Indicated resource of 9.8 Mt of 0.06% eU3O8 totaling 16.9 M lbs plus an Inferred resource 0.09 Mt of 0.14% eU3O8 totaling 0.14 M lbs eU3O8
d) Measured resource of 4.3 Mt of 0.056% eU3O8 totaling 4.9 M lbs, Indicated resource of 4.0 Mt of 0.048% eU3O8 totaling 3.8 M lbs, inferred resource of 4.7 Mt of 0.051%
eU3O8 totaling 4.7 M lbs.
e) Indicated resource of 1.3 Mt of 0.114% eU3O8 totaling 2.9 Mlbs.
f)Measured resource of 0.00 Mt of 0.158% eU3O8 totaling 0.002 M lbs, Indicated resource of 0.4 Mt at a grade of 0.134% eU3O8 totaling 1.0 M lbs, Inferred resource of 0.3 Mt of
0.176% eU3O8 totaling 1.2 M lbs
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enCore Energy Corp.
The Uranium Market
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GLOBAL URANIUM MARKET
•
Currently there are 437 nuclear reactors operating which consume ~148 mm lbs of U3O8(1)
•
An additional 72 reactors are under construction representing ~17% near-term demand growth
•
Annual uranium production from mines is ~130 mm lbs of U3O8, meaning there is primary
supply-demand deficit(2)
•
Uranium prices are near 10-year lows despite a strong demand outlook and reduced mine
supply
•
As a result of the supply-demand fundamentals, many analysts are projecting much
higher prices
437
Reactors
Operating
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507
Reactors Operating &
Under Construction
994
Reactors Operating, Under
Construction, Planned and Proposed
GLOBAL URANIUM PRODUCTION & DEMAND
Future supply growth is challenged by artificially low prices due to over
production from 1945-1990 resulting in excess stockpiles
Increased dependence on mine supply vs dwindling stockpiles likely to result in
a sustainable rise in uranium prices rather than short-term price spikes
80,000
Production
Demand
70,000
60,000
Significant Depletion of
Stockpiles
50,000
40,000
30,000
Excess Production Leads
to Large Stockpiles
20,000
10,000
0
1945
1950
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1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010 2012
CURRENT MINE SUPPLY – GEOPOLITICAL RISK
Russia is a major vertically integrated participant in the uranium/nuclear sector
and, along with China, exerts immense control of global uranium resources and
mine production
Asia Produces 52% of Global Production
Kazakhstan
Russia
Uzbekistan
China
Ukraine
38%
5%
4%
3%
2%
Africa Produces 18% of Global
Production
Niger
Namibia
Malawi
South Africa
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8%
7%
2%
1%
US URANIUM DEMAND
USA is the world’s largest
producer of nuclear power
The country's 100 nuclear
reactors produced 790 billion
kWh in 2013, ~20% of total
electrical output(1)
The US imports over 90% of its
uranium demand(2)
America’s Nuclear Reactors
Russia, China and Kazakhstan
control most of the world’s
uranium
enCore Energy owns one of the largest US uranium projects
amenable to low cost in-situ recovery (ISR) methods.
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COUNTRIES INVESTING IN NUCLEAR POWER
Global Nuclear Power Reactor New Builds
250
Proposed
Planned
200
Under Construction
Operating
150
100
50
0
China
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Russia
India
Japan
France
South
Korea
Ukraine
Canada
Saudi
Arabia
NEW REACTOR DEMANDS – GLOBAL GROWTH
Global Nuclear Power Reactor New Builds Are Increasing
250
Planned
Under Construction
200
150
100
50
0
2007
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2008
2009
2010
2011
2012
2013
2014
US REACTORS UNDER CONSTRUCTION
After nearly 30 years with no new reactors under construction the US is
expanding its nuclear energy capacity to meet growing energy demand
Westinghouse’s AP1000 reactor model is based on a simplified plant design with
enhanced safety features.
Reactors currently permitted and under construction include:
Reactor
Location
Capacity
Watts Bar-2
Tennessee
1,218 Mw PWR
Pressurized water system
Vogtle-3
Georgia
1,250 Mw AP1000
Pressurized water system
Vogtle-4
Georgia
1,250 Mw AP1000
Pressurized water system
V.C.
Summer-2
South Carolina 1,250 Mw AP1000
Pressurized water system
V.C.
Summer-3
South Carolina 1,250 Mw AP1000
Pressurized water system
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Model
Cooling
INDUSTRY ANALYSTS FORECAST ~$63/LB U308
Consensus forecast is for U308 prices to double from current levels
$75
$70
$63
$65
CIBC
$60
Cantor Fitzgerald
$57
Credit Suisse
$55
Dundee
$47
$50
Haywood
Laurentian Bank
$45
$40
UxC
Paradigm Capital
$39
RBC Capital
Raymond James
$35
Scotiabank
$30
Average Price
$25
2015
2016
2017
2018
Source: Uranerz
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POTENTIAL LIMITATIONS FOR URANIUM PRICES
While uranium prices are at levels significantly below the operating costs of many current
and planned mines, there are potential limitations to future price increases
Reprocessing: It is possible for uranium to be reprocessed and reused in nuclear fuel
cycles. However, due to the low cost of uranium and increased instability from
reprocessing most operators decide to purchase new uranium.
Enrichment from underfeeding: Enrichment faciltities can, if there is spare capacity,
evaluate a cost trade-off between purchasing less uranium and applying more processing
capabilities to create the same end product.
Mixed Oxide Fuel: A new fuel based on reprocessed plutonium and uranium. Accounts for
less than 5% of all fuels due to prohibitive cost of reprocessing plutonium and uranium.
Thorium: Abundant slightly radioactive material with conceptual potential for use instead
of uranium. Not currently being used by any reactors and requires significant R&D to
evaluate its commercial potential.
Breeder reactors: Potential for this reactor design to produce more fuel than it consumes;
however, more than 60 years and billions of dollars in research have been unable to
unlock the potential.
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enCore Energy Corp.
The Company
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SHARE STRUCTURE
Management previously led Energy Metals Corp. from a <$1 million
market capitalization to a $1.8 billion market cap, before being acquired
by Uranium One Inc.
Market Capitalization (@ $0.03)*
$1.7 mm
Shares Issued and Outstanding
57.2 mm
Fully Diluted
61.1 mm
48%
10%
Institutions
Management
Retail
Key Shareholders
•
•
•
•
Till Capital (24.2%)
•
NZ Uranium (6.8%)
Seabridge Gold (11.6%)
* As at January 11, 2015
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William M. Sheriff (9.3%)
Pat DiCapo, founder of
PowerOne (5.2%)
43%
TECHNICAL EXPERTISE – THE SUCCESS FACTOR
Technical Expertise:
• Few experts in the nuclear fuel cycle are available as the last major
technological push was in the 1970s and few endured the many market
cycles due to reliance on stockpiled uranium
• In 2001 there were less than 400 persons employed the nuclear/uranium
sector according to the US Department of Energy
• Without technical expertise, new production supply will be hindered
regardless of price movement and the transition from uranium explorer to
an effective uranium developer and miner will be challenging
• enCore and its team have expertise in all aspects of the nuclear fuel
cycle particularly pertaining to the front end (i.e. mine development,
engineering, permitting and attracting supply contracts)
• Energy Metals Corp., utilized a similar strategy to become a large
uranium production company before being acquired by Uranium One Inc.
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LEADERSHIP
William M. Sheriff, MSc
Chairman
An entrepreneur and visionary with over 30 years experience in the minerals industry and the securities
industry, Mr. Sheriff serves as the Chairman of enCore Energy Corp. Mr. Sheriff also co-founded and
presently serves as Chairman and Chief Executive Officer of Till Capital Ltd. Prior to founding Till Capital
Ltd. and its predecessor Golden Predator Corp. Mr. Sheriff was a pioneer in the uranium renaissance as
co-founder and Chairman of Energy Metals Corp., and was responsible for compiling the largest domestic
uranium resource base in US history before the company was acquired by Uranium One Corp for
$1.8Bllion. Mr. Sheriff holds a BSc degree (Geology) from Fort Lewis College, Colorado and an MSc in
Mining Geology from the University of Texas-El Paso and owns one of the largest privately held mining
databases in the world.
Dr. Dennis Stover
Chief Executive Officer and Director
Dr. Stover has a 40 year career focused on direct involvement with commercial uranium exploration,
project development, and mining operations. Until his retirement in 2011, Dr. Stover served as Executive
Vice President, Americas for Uranium One, Inc. where he oversaw commercial development of Uranium
One’s substantial U.S. uranium assets as well other uranium assets in the Americas. Previous to this
position, he served as Chief Operating Office for Energy Metals Corporation (EMC) and was instrumental
in advancing its US assets prior to its sale to Uranium One, Inc. Dr. Stover holds BSC, MSC, and PhD
degrees in Chemical Engineering from The University of Michigan as well as a BA in Chemistry from
Kalamazoo College. An author of numerous papers regarding In–Situ Uranium Recovery, he has coauthored three IAEA Guidebooks and Manuals related to both Acidic and Alkaline Uranium ISL
technology. He is the author of six United States Patents concerning various aspect of in situ recovery of
uranium and reservoir restoration. Dr. Stover is a member of numerous professional societies.
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LEADERSHIP
Richard M. Cherry
Director
Mr. Cherry is a veteran executive of the nuclear industry, having worked for several leading companies
in the areas of uranium mining, production, conversion, marketing and power generation operations for
40 years. He is currently employed as a consultant to the uranium mining industry. Mr. Cherry
previously served as President and CEO of Cotter Corporation and Nuclear Fuels Corporation, both
affiliates of General Atomics Corporation. Mr. Cherry was responsible for all aspects of Cotter’s mining
and milling operations in Colorado, including uranium and vanadium ores with over 200 employees.
His participation in Nuclear Fuels Corporation made him responsible for the worldwide uranium
marketing efforts for all General Atomics’ affiliates. Mr. Cherry holds an M.S. in Mechanical
Engineering from Wichita State University and a B.S. in Engineering Physics from the University of
Oklahoma. He is a Licensed Professional Engineer (State of Kansas) and a Member of the American
Nuclear Society and has made presentations at industry conferences including the Nuclear Energy
Institute.
Mr. Mark Pelizza
Director
Mr. Pelizza has spent 37 years in the uranium industry with direct project experience including the Alta
Mesa, Benavides, Kingsville Dome, Longoria, Palangana, Rosita, West Cole and the Vasquez
projects, all in Texas. He was also responsible for the permitting and licensing of the Church Rock,
Crownpoint and Unit 1 projects in New Mexico and the North Platte project in Wyoming. Currently, Mr.
Pelizza is the Principal of M.S. Pelizza & Associates. He previously served as Sr. Vice President of
Health, Safety and Environmental Affairs with Uranium Resources, Inc. He has also previously
worked with Union Carbide Corp. Mr. Pelizza received his B.S. in Geology from Fort Lewis College
and his M.S. in Geological Engineering from the Colorado School of Mines. He is a licensed
Professional Geoscientist in Texas. He is the Past Chairman of the Texas Mining and Reclamation
Association and the Past Chairman of the Uranium Producers of America.
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LEADERSHIP
Nathan A. Tewalt
Director
Mr. Tewalt served as the CEO of Wolfpack Gold Corp. and has over 25 years of experience in
exploration and executive management positions in the Western United States. Prior to its merger
with Silver Predator Corp., Mr. Tewalt founded Nevgold Resource Corp. in 2007 and Columbian Mines
Corporation in 2006, serving as Chief Executive Officer for both companies. In 2006, as President and
CEO of Standard Uranium Inc., Mr. Tewalt completed a private company acquisition in Texas that
resulted in the uranium explorer progressing from a private start-up in 2003, gaining a public listing in
2004, and winding up as a successful buy-out in 2006 by Energy Metals Corp. (subsequently acquired
by Uranium One for $1.8B). Prior to Standard Uranium, he was the co-founder and Chief Executive
Officer of Great Basin Gold Ltd., where he and his exploration team discovered the Midas-style vein
system and completed the Hollister “Ivanhoe” Mine acquisition. Mr. Tewalt is a Registered Geologist
(Washington) specializing in Nevada-style precious metals systems.
William B. Harris
Director & Audit Chair
Mr. Harris is a partner in Solo Management Group, LLC, an investment and management consulting
partnership. Mr. Harris is currently a member of the board of directors and Audit Committees of Till
Capital Ltd., EMC Metals Corp., enCore Energy Corp. and Silver Predator Corp. He was previously a
board member of Energy Metals Corporation, Chairman and Executive Committee member of the
American Fiber Manufacturers Association, and President and Chief Executive Officer of Hoechst
Fibers Worldwide, the global acetate and polyester business of Hoechst AG. At Hoechst Fibers
Worldwide, Mr. Harris managed the business’ $5 billion operation, comprised of 21,000 employees
and production locations in 14 different countries. Mr. Harris is a graduate of Harvard College, BA in
English, and Columbia University Graduate School of Business, MBA in finance. He is a Trustee of the
Williamstown (MA) Theatre Festival.
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LEADERSHIP
Douglas Underhill, PhD, MSc, MBA, CPG
Chief Geologist
Dr. Underhill is a consulting geologist with 40 years of international experience with natural resource exploration,
development and analysis, 30 years with a specific emphasis on uranium. He is an internationally recognized uranium
expert, with broad based knowledge in all phases of both commercial and International Atomic Energy Agency (“IAEA”)
uranium programs. His specialties range from world uranium geology and resources, resource estimation, through ISL
technology and supply-demand analysis. Dr. Underhill has a PhD Geology from McMaster University (Ontario,
Canada); an MBA from Colorado State System (USA); an MSc Geology from McGill University (Montreal, Canada);
and a BA Geology from the University of Connecticut (USA). He has made presentations on uranium resources,
production and supply-demand on five continents, and advised governments, including the USA, Australia and China,
on uranium resources and production technology.
Mr. Gordon R. Peake, CPL
Director of Lands
Mr. Peake previously served as Vice‐President of Lands for Uranium One Americas, Inc. from 2007 to 2010 and with
Energy Metals Corporation (US) from 2004 until 2007. He brings over 40 years of experience in natural resource
exploration, development and production having worked with major and junior mining companies acquiring and
managing surface and mineral rights for uranium and other metals. Mr. Peake is a Certified Professional Landman
designation from the American Association of Professional Landmen (“AAPL”).
Mr. Joseph Harrington
Advisory Committee Member
Mr. Harrington serves as the Vice President of Business & Strategic Development with Alexco Environmental Group, he
previously served as the CEO and Founder of Green World Science, and the patent inventor of the heavy metals
immobilization treatment technology now owned by Alexco Resource Corp. Prior to his role at Alexco, Mr. Harrington
was the Vice President of the mining and metals business for ARCADIS, conducted research and development for
controlled release fertilizers, fuel ethanol, phosphate mineral processing and bioremediation technologies for the J.R.
Simplot Company. Mr. Harrington previously served on the advisory board of Energy Metals Corporation. Mr. Harrington
graduated summa cum laude from the University of Idaho in 1996 with majors in Chemistry and Microbiology and
completed his graduate work at the University of Idaho in 1998 in Metallurgical Engineering.
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UNIVERSE OF URANIUM STOCKS
Market Cap Per Pound of Uranium Resources
$11 $9
$7
$1.60+
$1.40
$6 $4
$4
$3
$2
$2 $2
$2
Producer
Production Visibility
(significant licensed assets)
Resource/Exploration
$1.20
$1.00
$0.80
$0.60
$0.40
$0.06 per lb
$0.20
$0.00
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PROJECT PORTFOLIO
Turnercrest
Wild Buck Coal Hill
35-75
Crownpoint &
Hosta Butte
McKinley
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Treeline
NEW MEXICO: LARGEST DOMESTIC URANIUM PRODUCER
•
New Mexico’s Grants Uranium District has produced ~350 mm lbs of U3O8, or nearly 40%
of all uranium mined in the US
•
There are more than 400 mm lbs of U3O8 mineralization remaining within the Grants
Uranium District making it one of the largest uranium districts globally
•
The last mine shut down in 2002 as U3O8 prices were <$10 per lb; several projects are
being advanced towards production including Roca Honda, Churchrock and Cebolleta
•
Japanese conglomerate Sumitomo entered into a JV agreement in 2007 to acquire 40% of
the Roca Honda project and invest an additional $50 million in development costs
•
URENCO completed construction of a $1.5 billion dollar enrichment facility, the first new
facility in more than 30 years in the US
•
The US Department of Energy has spent billions on the US’s only underground nuclear
repository located near Carlsbad (WIPP currently in operation)
•
Los Alamos National Laboratory is a leading nuclear research facility in New Mexico with a
$2.2 billion dollar annual budget
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NEW MEXICO REGIONAL OVERVIEW
•
enCore has 100% ownership
of deeded mineral rights
over 100,000 acres within
the Grants Uranium District
with no holding costs
•
Grants Uranium District is
one of the top five largest
historic producers globally
•
Significant “roll-front” type
deposits amenable to ISR
are present
•
Land packages are often non-contiguous as a result of railroad land grants from the 1800s
•
Combination of higher uranium prices and environmentally friendly ISR recovery process will
likely increase ease of permitting and development
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CROWNPOINT & HOSTA BUTTE PROJECT
Crownpoint Section 19, 29 (100%) and 24 (60%)
•
Current Indicated resource totaling 16.1 mm lbs plus an
inferred resource of 1.5 mm lbs(a)
•
Located within two miles of Uranium Resources’ (URRE)
licensed processing facility
•
Sandstone-hosted roll-front deposits amenable to ISR
recovery
A view of the URRE processing facility located on Section 24
Hosta Butte Section 3, 9 & 11 (100%)
•
Current Indicated resource of 10.5 mm lbs plus an
Inferred resource of 4.6 mm lbs(a)
•
Significant resources, partially permitted under URRE’s
Nuclear Regulatory Commission License to recover up to
3 mm lbs per year
•
Located within five miles of URRE licensed processing
facility
•
Preliminary metallurgical testing by Conoco indicates
likely amenable to ISR recovery
a) NI 43-101, Technical Report, Crownpoint & Hosta Butte , McKinley County, New Mexico, prepared by BRS Engineering, dated May 14, 2012. Crownpoint & Hosta Butte
hosts Indicated resource of 12.7 Mt of 0.105% eU3O8 totaling 26.6 M lbs, Inferred resource of 2.8 Mt of 0.110% eU3O8 totaling 6.1 M lbs.
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CROWNPOINT & HOSTA BUTTE PROJECT(4)
•
Three shafts for underground production were established in the 1980s along with support facilities before
uranium prices declined sharply
•
Over 700 holes drilled totaling more than 400,000 meters, predominately drilled by Conoco
•
Mineralization is hosted within four separate stratigraphic horizons over within Morrison Formation, which
is approximately 360 feet thick
•
Individual trends may continue for more than 2,000 feet or more with typical thickness ranging from 100 to
300 feet
•
Underlying gross royalty of 3% on uranium sales
Crownpoint and Hosta Butte Mineral Resource Estimate (4)
Crownpoint
Hosta Butte
Resource
Category
Million Tons
Grade eU3O8%
Attributable U3O8 (mm lbs)
Indicated
Indicated
7.88
4.80
0.102
0.109
16.1
10.5
12.68
0.105
26.6
0.71
2.05
0.105
0.112
1.5
4.6
2.76
0.110
6.1
Total Indicated
Crownpoint
Hosta Butte
Total Inferred
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Inferred
Inferred
URRE: CHURCHROCK SECTION 8 FEASIBILITY STUDY(5)
In 2012 Uranium Resources Inc. completed a Feasibility Study on the Churchrock Section
8 project located with in the Grants Uranium District.
This is the only recent economic study for a proposed ISR mine in New Mexico.
Category
Churchrock Section 8
Uranium Mineralization
6.5 mm lbs
Grade
0.11%
Initial CAPEX
~$35 million
Average Annual Revenue*
$44 million
Direct Operating Cost
$20-23 per lb
*Based on $59.50 uranium
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100% OWNED MCKINLEY PROPERTIES
•
100% interest in mineral
rights covering 113,000
acres (45,700 ha) of fee
simple lands,
approximately 210
sections, or partial
sections, within 17
townships
•
The McKinley
Properties cover an
expansive area of
patented mineral rights
with geology favorable
for uranium
mineralization typical of
the Grants Uranium and
Crownpoint Districts
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ADDITIONAL PROPERTIES
Treeline (New Mexico)
•
Includes a sandstone hosted uranium deposit
discovered by Conoco Inc. in 1978
•
Historic resource of approximately 1.5 million pounds of
U3O8 contained in 593,448 tons at a grade of 0.13%
eU3O8(2) *
*(The Company’s QP has not done sufficient work to classify
the historical estimate as a current mineral resource, and
the Company is not treating the historical estimate as a
current mineral resource.)
35-75, Wild Buck and Turnercrest (Wyoming)
•
These projects have the potential for ISR amenable
deposits in the Eocene Wasatch Formation or the
Paleocene Fort Union Formation
Coal Hill (Wyoming)
•
Lies west of and adjacent to the Smith Ranch ISR
uranium mine operated by Cameco Resources, a
subsidiary of Cameco Corporation, and to the north of
the 35-75 Project
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Wyoming
INVESTMENT OVERVIEW
A proven team with unique abilities to provide turn-key services including:
• Exploration;
• Development;
• Licensing and permitting;
• Production;
• Product marketing.
• Uranium developer/explorer with a primary land package in New Mexico, USA
and additional properties in Wyoming, USA
• Key properties, including Crownpoint and Hosta Butte, are 100% owned with no
holding costs or work commitments
• Crownpoint and Hosta Butte are large ISR-amenable uranium deposits, with
over 30 million pounds of uranium mineralization, located in the United States
• Insiders and management own +35% of the company and are committed to
increasing shareholder value
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REFERENCES
1)
2)
3)
World Nuclear Association, World Nuclear Power Reactors & Uranium Consumption, as of December 2014.
U.S. Energy Information Administration, Domestic Uranium Production Report – Annual Report.
a) Cameco, 2013 Report on Resources.
b) Uranium One, Mineral Resource and Mineral Reserve Estimate, as of June 30, 2013
c) NI 43-101, Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming,
prepared by TREC, Inc. dated December 30, 2013.
d)NI 43-101, Technical Report, Nichols Ranch Property, Johnson and Campbell Counties, Wyoming, completed
by Kurtis Brown, Senior Vice President of Exploration for Uranerz Energy Corp, dated June 5, 2009
e) NI 43-101, Technical Report on Resources, Uranium Energy Corp. Palangana ISR Uranium Project, Deposits PA1, PA-2 and Adjacent Exploration Areas, Duval County, Texas prepared by SRK Consulting, 2010.
4) NI 43-101, Technical Report, Crownpoint & Hosta Butte , McKinley County, New Mexico, prepared by BRS
Engineering, dated May 14, 2012
5) Uranium Resources News Release dated December 31, 2012
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CONTACTS
William M. Sheriff, Chairman
Cell: 972-333-2214
[email protected]
Dennis Stover, CEO
Cell: 405-306-3491
[email protected]
Investor Relations
11521 N. Warren St.
Hayden, Idaho
USA, 83835
T: 208 635 5415
[email protected]
www.encoreenergycorp.com
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