enCore Energy Corp. (NASDAQ: EU) (TSXV: EU) (the “Company” or “enCore”), America’s Clean Energy Company, announces the filing of Technical Report Summaries (“TRS”) prepared in accordance with U.S. Securities & Exchange Commission (“SEC”) Regulation S-K 1300 of the Securities Exchange Act (“S-K 1300”) for four of its key uranium projects: the Alta Mesa Uranium Project (“Alta Mesa Project”), the Mesteña Grande Uranium Project (“Mesteña Grande Project”), the South Texas Integrated Uranium Projects (“South Texas Project”) and the Gas Hills Uranium Project (“Gas Hills Project”). These reports provide updated mineral resource estimates and preliminary economic assessments (“PEA”) in accordance with SEC disclosure requirements.
As of January 1, 2025, enCore is reporting all mineral resources in accordance with Item 1302 of S-K 1300 in addition to Canadian National Instrument 43-101 (“NI 43-101”). S-K 1300 was adopted by the SEC to modernize mineral property disclosure requirements for mining registrants and to align United States (“U.S.”) disclosure requirements for mineral properties more closely with current industry and global regulatory standards. The transition to also reporting under S-K 1300 aligns enCore’s disclosures with U.S. regulatory standards, ensuring consistency and transparency for investors.
About the Alta Mesa Project and Mesteña Grande Project
The Alta Mesa Project, and the Mesteña Grande Project are located in South Texas, USA. The TRS filings prepared under S-K 1300 disclose a mineral resource and preliminary economic assessment* for the Company’s uranium projects located in South Texas. The reports provide the following:
- The Alta Mesa Project’s estimated capital costs are $25.9 M and includes $2.5 M to complete refurbishment of the Alta Mesa Central Processing Plant (“CPP”) and $23.4 M for wellfield development.
- Operating costs are estimated to be $27.44 per pound of U3O8. The basis for operating costs is planned development, production sequence, production quantity, and past production experience. Operating costs include plant and wellfield operations, product transactions, administrative support, decontamination and decommissioning (“D&D”), and restoration.
- Taxes, royalties, and other interests are applicable to production and revenue. Total federal income tax is estimated at $18.8 M for a cost per pound U3O8 of $9.13. The state of Texas does not impose a corporate income tax, but the Alta Mesa Project is subject to property taxes in the form of ad valorem in the amount of $0.62 M or $0.30 per pound of U3O8. The Alta Mesa Project is subject to a cumulative 3.0% surface and mineral royalty at an average life of mine (“LOM”) sales price of $83.43 per lb. U3O8 for $5.4 M or $2.61 per pound.
- The economic analysis assumes that 80% of the mineral resources are recoverable. The pre-tax net cash flow incorporates estimated sales revenue from recoverable uranium, less costs for surface and mineral royalties, property tax, plant and wellfield operations, product transactions, administrative support, D&D and restoration. The after-tax analysis includes the above information plus amortized development costs, depreciated plant and wellfield capital costs, existing and forecasted operating losses to estimate federal income tax.
- Less federal tax, the Alta Mesa Project’s cash flow is estimated at $83.3 M or $42.89 per pound U3O8. Using an 8% discount rate, the Alta Mesa Project’s NPV is $66.4 M. The Alta Mesa Project’s after-tax cash flow is estimated at $64.9 M for a cost per pound U3O8 of $52.03. Using an 8.0% discount rate, the Alta Mesa Project’s NPV is $51.6 M.
- The Mesteña Grande Project’s estimated capital costs are $108.1 M and includes $13.7 M for processing facilities and $94.4 M for wellfield development.
- Operating costs are estimated to be $25.49 per pound of U3O8. The basis for operating costs is planned development, production sequence, production quantity, and past production experience. Operating costs include plant and wellfield operations, product transactions, administrative support, D&D, and restoration.
- Taxes, royalties, and other interests are applicable to production and revenue. Total federal income tax is estimated at $90.1 M for a cost per pound U3O8 of $10.82. The state of Texas does not impose a corporate income tax, but the Mesteña Grande Project is subject to property taxes in the form of ad valorem in the amount of $2.5 M or $0.30 per pound of U3O8. This project is subject to a cumulative 3.6% surface and mineral royalty at an average LOM sales price of $85.48 per lb. U3O8 for $30.0 M or $3.60 per pound.
- The economic analysis assumes that 60% of the mineral resources are recoverable. The pre-tax net cash flow incorporates estimated sales revenue from recoverable uranium, less costs for surface and mineral royalties, property tax, plant and wellfield operations, product transactions, administrative support, D&D and restoration. The after-tax analysis includes the above information plus depreciated plant and wellfield capital costs, to estimate federal income tax.
- Less federal tax, the Mesteña Grande Project’s cash flow is estimated at $366.6 M or $41.48 per pound U3O8. Using an 8% discount rate, the Mesteña Grande Project’s NPV is $205.8 M. The Mesteña Grande Project’s after-tax cash flow is estimated at $276.5 M for a cost per pound U3O8 of $53.18. Using an 8.0% discount rate, the Mesteña Grande Project’s NPV is $154.4 M.
- Both the Alta Mesa Project and the Mesteña Grande Project are located entirely within private land holdings of the Jones Ranch in South Texas. The Jones Ranch is an approximately 380,000-acre ranch that was founded in 1897, and enCore controls over 200,000 of the 380,000 acres with mineral leases and options for uranium exploration and development.
- The Alta Mesa Project is an established In-Situ Recovery (“ISR”) uranium project with a CPP and wellfields undergoing extraction operations in PAA7. The Alta Mesa CPP and mine office are located at the Alta Mesa property approximately 22 miles south of the town of Falfurrias. The Alta Mesa CPP and wellfield operations are located on a 4,598-acre mining lease adjacent to the 198,000+ acres Mesteña Grande exploration option. The Alta Mesa wellfields and CPP are located entirely in Brooks County, Texas.
- The Mesteña Grande Project is an exploration-stage ISR uranium project comprised of multiple prospective areas within the region and primarily located northwest of the Alta Mesa operations within the 198,000+ acre exploration option. enCore plans to develop and advance the Mesteña Grande Project and process uranium at the Alta Mesa CPP. The Mesteña Grande exploration projects are in both Brooks and Jim Hogg Counties, Texas.
- Uranium mineralization at both the Alta Mesa and Mesteña Grande projects occur as roll-front deposits hosted in permeable sandstones of the Miocene Catahoula, the Miocene Oakville, and the Pliocene Goliad Formations. Significant additional potential exists both regionally and within the wellfield boundary within the Goliad Formation at depths between 400 and 600 feet, within the Oakville Formation at depths between 800 and 1300 feet, and within the Catahoula Formation to the west at depths between 450 and 600 feet. Only 5% of the Mesteña Grande Project areas have been explored, with previous exploration efforts having identified 52 linear miles of stacked reduction/oxidation (“REDOX”) fronts, with only 5 miles of the REDOX fronts closely drilled out to date.
