Energy Fuels Inc. to Continue Uranium Production at Pinenut Mine

Energy Fuels Inc. (NYSEMKT:UUUU,TSX:EFR) has revised its previous guidance and now expects to continue mining at its wholly owned Pinenut Mine through 2014 and into Q1 of 2015. Energy Fuels previously stated that it expected to place production at the Pinenut Mine on standby by mid-2014, with all ore produced from the mine through mid-2014 being milled at its White Mesa Mill this year. However, due to favorable mining conditions and lower than expected costs, Energy Fuels now expects to continue mining at Pinenut through 2014 and into the 1st quarter of 2015, at which point it is expected that the economic uranium resource will be depleted, subject to the results of planned underground exploration.

As quoted in the press release:

The Company’s decision to continue mining the Pinenut mine to depletion was based on favorable mining results at the mine and the ability, through continued mining, to avoid mine standby costs and the costs associated with re-starting production at a future date. At the current time, Energy Fuels expects to mine approximately 250,000 lbs. of additional U3O8 from the Pinenut Mine from mid-2014 to 2015 which will be stockpiled at the mine.

Energy Fuels CEO, Stephen P. Antony, said:

Like many breccia pipe mines, the Pinenut Mine has exceeded our expectations. Therefore, we made the decision to continue mining at Pinenut through this year and into 2015. Our low cost investment in this extra production will provide Energy Fuels with additional optionality and potential liquidity as the expected uranium market recovery occurs. We also believe these results highlight the fact that Energy Fuels has lower cost sources of production in our portfolio, both from our Arizona mines and our alternate feed material business, and the flexibility to respond to changing market conditions.

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