IsoEnergy Reopens the Underground and Initiates Comprehensive Work Program at the Tony M Mine in Utah
Rhea-AI Summary
IsoEnergy (TSX: ISO, OTCQX: ISENF) has successfully reopened the main decline at the Tony M uranium mine in Utah on July 26, 2024. The company is initiating a comprehensive work program to restart uranium production in 2025. Key highlights include:
1. Ongoing rehabilitation by Tomcat Mining, expected to take 8-10 weeks.
2. Engagement of top-tier consultants SRK Consulting and Call & Nicholas for ventilation and ground control plans.
3. Upcoming underground and surface mapping, including a LiDAR survey.
4. Planned technical and economic study to establish production rates and costs.
5. Expansion of land position in the Henry Mountains by over 400%.
CEO Philip Williams emphasized the strategic importance of restarting production amid rising uranium prices and growing demand for nuclear power.
Positive
- Successful reopening of the Tony M mine's main decline, indicating good condition of underground infrastructure
- Engagement of top-tier consultants SRK Consulting and Call & Nicholas for critical mine planning aspects
- Planned LiDAR survey and mapping to improve mine planning and potentially optimize operations
- Guaranteed access to the White Mesa Mill through a toll milling agreement, providing a significant operational advantage
- 440% increase in IsoEnergy's Henry Mountain land package, expanding potential uranium resources
Negative
- 8-10 week rehabilitation period may extend depending on ground conditions encountered
- Significant work and investment required before production can restart in 2025
News Market Reaction 1 Alert
On the day this news was published, ISENF declined 4.21%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Expands land position in the Henry Mountains by over
Highlights
- Successful Reopening of the Underground – The main decline at Tony M is now reopened with initial observations of underground conditions indicating that the main decline and underground equipment shops are in good condition (Figure 1).
- Rehabilitation in Progress – Tomcat Mining is carrying out the rehabilitation of the underground, which includes scaling, installation of ground support and ventilation systems (Figure 2). This work is expected to take 8 to 10 weeks depending on the ground conditions encountered.
- Top Tier Consultants Engaged
- SRK Consulting Limited, a leading international mining consulting firm, has been working with the Company on the design and implementation of the ventilation plans.
- Call & Nicholas, Inc., an international mining consulting firm that specializes in geological engineering, geotechnical engineering, and hydrogeology, is working with the Company on the design and implementation of the ground control plans.
- Underground and Surface Mapping Commencing Shortly – As sections of the underground are made safe for entry, it is expected that the exploration/geology team will enter the Mine and begin to map the orebody from underground. This work, which will include a LiDAR survey, which is expected to commence in 3 weeks and will take approximately 1 month to complete.
- Upcoming Technical / Economic Study – Following completion of the rehabilitation and mapping programs, the Company intends to complete a technical and economic study, establishing production rates, operating and capital costs.
IsoEnergy CEO and Director Philip Williams stated, "The reopening of underground at Tony M is an important step in restarting production and establishing IsoEnergy as a near-term uranium producer. Long-term uranium prices have nearly doubled, from
Tony M Mine Work Program
Over the last year, the Company has been working toward reopening the Tony M underground for access. Ensuring safe operations is paramount to the Company. The Company has engaged with the
The main portals were opened July 26 and Tomcat Mining has begun to assess ground conditions and work its way into the underground. While the Company estimates 8-10 weeks of rehabilitation work, this will be dependent on conditions encountered.
As sections of the underground are made safe for entry, it is expected that the exploration/geology team will enter the mine and begin to map out the orebody from underground. The Company is also in the process of contracting a surveying company to complete a LiDAR survey of the complete underground at Tony M, the first time any such survey has been completed at the Mine. This will be an important tool in the future mine planning at Tony M.
IsoEnergy has guaranteed access to the White Mesa Mill by way of a toll milling agreement with Energy Fuels, providing a significant advantage to the Company. The White Messa Mill is the only operational conventional uranium mill in the
Staking
The Flatiron area was acquired by staking 370 claims and winning bids on two
About Tony M Mine
The Tony M Mine is located in eastern
Uranium and vanadium mineralization at the Tony M mine is hosted in sandstone units of the Salt Wash Member of the Jurassic age Morrison Formation, one of the principal hosts for uranium deposits in the Colorado Plateau region of
Tony M has the following current mineral resource estimate:
Table 1: Summary of Mineral Resources – Effective Date September 9, 2022
Classification | Tons | Grade | Contained Metal |
Indicated | 1,185,000 | 0.28 | 6,606,000 |
Inferred | 404,000 | 0.27 | 2,218,000 |
Notes: | |
1. | Reported in the Technical Report on the Tony M Project, Utah, USA Report for NI 43-101, prepared for |
2. | CIM (2014) definitions were followed for all Mineral Resource categories. |
3. | Uranium Mineral Resources are estimated at a cut-off grade of |
4. | The cut-off grade is calculated using a metal price of |
5. | No minimum mining width was used in determining Mineral Resources. |
6. | Mineral Resources are based on a tonnage factor of 15 ft3/ton (Bulk density 0.0667 ton/ft3 or 2.14 t/m3). |
7. | Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. |
8. | Past production (1979-2008) has been removed from the Mineral Resource. |
9. | Totals may not add due to rounding. |
10. | Mineral Resources are |
Qualified Person Statement
The scientific and technical information contained in this news release was reviewed and approved by Dean T. Wilton: PG, CPG, MAIG, a consultant of IsoEnergy who is a "Qualified Person" (as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects).
About IsoEnergy Ltd.
IsoEnergy Ltd. (TSXV: ISO) (OTCQX: ISENF) is a leading, globally diversified uranium company with substantial current and historical mineral resources in top uranium mining jurisdictions of
IsoEnergy also holds a portfolio of permitted, past-producing conventional uranium and vanadium mines in
X: @IsoEnergyLtd
www.isoenergy.ca
Neither the TSX Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, statements with respect to the expected condition of the main decline and underground equipment shops at Tony M; planned rehabilitation and work program, the expected timing and potential results and benefits thereof; expectations regarding the timing and completion of a LIDAR survey at Tony M; expectations regarding the preparation and timing of a plans for the potential restart of mining operations at Tony M; the Company's ongoing business plan, sampling, exploration and work programs. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on numerous assumptions, including among others, that the results of planned exploration activities are as anticipated, the price of uranium, the anticipated cost of planned exploration activities, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company's planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves, the limited operating history of the Company, the influence of a large shareholder, alternative sources of energy and uranium prices, aboriginal title and consultation issues, reliance on key management and other personnel, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, availability of third party contractors, availability of equipment and supplies, failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals and the risk factors with respect to the Company set out in the Company's annual information form in respect of the year ended December 31, 2023 and other filings with the Canadian securities regulators and available under IsoEnergy's profile on SEDAR+ at www.sedarplus.ca.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
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SOURCE IsoEnergy Ltd.
FAQ
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