IsoEnergy reopens US underground uranium mine

Thursday, 8 August 2024

Initial observations of underground conditions indicate that the main decline and underground equipment shops are in good condition, IsoEnergy Ltd said. Rehabilitation of the underground, including scaling, installation of ground support and ventilation systems, is expected to take 8 to 10 weeks depending on the ground conditions encountered.

The underground rehabilitation work is being carried out by Tomcat Mining. IsoEnergy is also working with international mining consulting firms SRK Consulting Ltd, on the design and implementation of the ventilation plans, and Call & Nicholas Inc, on the design and implementation of the ground control plans.

As sections of the underground are made safe for entry, it is expected that exploration and geological work will begin to map out the orebody from underground. IsoEnergy is also in the process of contracting a surveying company to complete a LiDAR survey of the complete underground at Tony M. This will be the first time any such survey has been completed at the mine and will be an important tool in future mine planning.

The Saskatoon-based company has been working towards reopening the Tony M underground for access over the course of the last year. Site communications have been re-established, and electrical systems have been upgraded and refurbished where necessary, including the installation of "at least" one new generator meeting the US Environmental Protection Agency's Tier 4 emission standards, it said. Several new fans have been installed and will continue to be installed as part of the rehabilitation, and several existing fans are to be refurbished.

The company announced last February its strategic decision to reopen the past-producing mine during the first half of this year, with the aim of restarting uranium production operations in 2025, depending on market conditions. Energy Fuels Inc's White Mesa - the only currently operational conventional uranium mill in the USA - is within trucking distance to Tony M, and IsoEnergy has a toll-milling agreement which guarantees it access to the mill's capacity.

Garfield County Commissioner Jerry Taylor and IsoEnergy COO Marty Tunney underground at Tony M (Image: CNW Group/IsoEnergy Ltd)

IsoEnergy CEO and Director Philip Williams said: "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 USD41/lb U3O8 to USD79/lb U3O8, since we acquired the Tony M, Daneros and Rim Mines in Utah, and with the exceedingly positive global outlook for nuclear power we expect that trend to continue. We believe that proven producing assets in tier one jurisdictions, like Tony M, will be highly coveted by end users making this an ideal time to pursue a restart."

The fully-permitted mine is in Garfield County and is about 66 miles (107 km) from the town of Blanding. It produced nearly one million pounds of U3O8 during two different periods of operation from 1979-1984 and from 2007-2008. It was acquired by IsoEnergy on the company's share-for-share merger with Consolidated Uranium Inc, completed last December. Tony M's current NI 43-101 estimated resources stand at 6.606 million pounds U3O8 (2541 tU) of indicated resources and 2.218 million pounds U3O8 in the inferred resources category.