• Project Summary
  • Royalty Description
  • Recent Updates
  • Project History

The Roca Honda Project is a Development stage, conventional uranium project located in New Mexico, USA, approximately three miles northwest of San Mateo, New Mexico and covers approximately 4,440 acres. The Roca Honda Project is 100% owned by Strathmore Resources (US) Ltd., a wholly owned subsidiary of Energy Fuels Inc. ("Energy Fuels").

Energy Fuels also owns the White Mesa Mill, an existing conventional uranium mill located near Blanding, Utah, approximately 275 miles from the Roca Honda Project.

Mineral Resources – Sections 9, 10, and 16 – As of December 31, 2021 (100% Basis)
Measured Indicated Inferred
Tons (Mt) Grade
(% U3O8)
Content (MLbs. U3O8) Tons (Mt) Grade
(% U3O8)
Content
(MLbs. U3O8)
Tons (Mt) Grade
(% U3O8)
Content (MLbs. U3O8)
0.210 0.48 1.98 1.30 0.48 12.58 1.20 0.47 11.21

 

Mineral Resources – Section 17 – As of December 31, 2021 (100% Basis)
Measured Indicated Inferred
Tons (Mt) Grade
(% U3O8)
Content (MLbs. U3O8) Tons (Mt) Grade
(% U3O8)
Content
(MLbs. U3O8)
Tons (Mt) Grade
(% U3O8)
Content (MLbs. U3O8)
      0.34 0.45 3.06 0.32 0.42 2.64
Notes On Mineral Resources:
  1. SEC S-K definitions were followed for all Mineral Resource categories. These definitions are also consistent with CIM (2014) definitions in NI 43-101.
  2. Mineral Resources are estimated at a U3O8 cut-off grade of 0.19% U3O8
  3. A minimum mining thickness of six feet was used, along with $241/ton operating costs, $65/lb U3O8 price, and 95% recovery.
  4. Bulk density is 0.067 ton/ft3 (15.0 ft3/ton or 2.14 t/m3).
  5. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
  6. Mineral Resources are 100% attributable to EFR and are in situ.
  7. Numbers may not add due to rounding.

 (1) Technical Report on the Roca Honda Project, McKinley County, State of New Mexico, U.S.A., with an effective date of February 22, 2022, prepared for Energy Fuels Inc. and authored by SLR International Corporation.

The Roca Honda Royalty is equal to 4% of the gross value from the sale of U3O8 produced from Section 17 of the Roca Honda Project, less certain specified deductions, including sales brokerage, transportation costs, state severance taxes imposed on the value of product sold, weighting, sampling and assaying charges at the converter and penalties, surcharges or deductions levied by the converter. "Section 17" refers to section 17 of Township 13N/Range 8W, comprising 640 acres of the 4440 acres (14%) of the Roca Honda Project.

The Roca Honda Royalty was created pursuant to a royalty deed dated July 31, 2015 between Strathmore Resources (US) Ltd. and Uranco Inc., a wholly owned subsidiary of Westwater Resources Inc (subsequently enCore Energy). The Roca Honda Royalty is subject to the right of the payor to purchase the royalty for US$5,000,000 at any time prior to the first royalty payment becoming due thereunder.

The Roca Honda Royalty does not apply to the entire project area for the Roca Honda Project. The royalty currently applies to approximately 640 acres, or approximately 14% of the current project area. In the most recent technical report with an effective date of February 22, 2022, on the Roca Honda project, Energy Fuels states a total of 3.06 Mlbs of Indicated resources and an additional 2.64 Mlbs of Inferred resources on Section 17 as at December 31, 2021.

Energy Fuels has disclosed that it expects a Record of Decision to be issued by the United States Forest Service in 2021. In such annual report, Energy Fuels disclosed that other major permits required for the Roca Honda Project included a Permit to Mine to be issued by the New Mexico Mining and Minerals Division, a Discharge Permit to be issued by the New Mexico Environment Department and a Mine Dewatering Permit to be issued by the New Mexico State Engineer's Office. 

Energy Fuels published an update Technical Report with an effective date of February 22, 2022. The report states updated NI 43-101 and SEC S-K compliant resources that now include Section 17, totalling 17.6 Mlbs of U3O8 (1.85 Mt at an average grade of 0.48% U3O8) in the Measured and Indicated categories, as well as an additional 13.8 Mlbs (1.51 Mt at an average grade of 0.46% U3O8) in the Inferred category as at December 31, 2021.

A proposed production schedule has the mineralization from Section 17 mined in the first three years of the mine life, with a total of 4.23 Mlbs of U3O8 produced.

The information below regarding project milestones and recent developments for the Roca Honda Project has been summarized from the Roca Honda Technical Report(1), a copy of which is available under Energy Fuels' profile on SEDAR (www.sedar.com), and from Energy Fuels' public disclosure.

Mineralization was initially discovered in the area of the Roca Honda Project in 1970 by Kerr-McGee Oil Industries. The project claims were acquired by Strathmore Minerals Corp. in 2004.

In August 2013, Energy Fuels acquired a 60% interest in the Roca Honda Project through the acquisition of Strathmore Minerals Corp. and in May 2016 acquired the remaining 40% interest in the Roca Honda Project from Sumitomo Corporation. Strathmore Resources (US) Ltd. acquired Section 17 in 2015 from Uranco Inc., a wholly owned subsidiary of Westwater Resources Inc. (subsequently enCore Energy).