Anfield gets greenlight to build uranium mine in Utah

[Ben Graham]

Anfield Energy (NASDAQ: AEC; TSXV: AEC) is one step closer to becoming the next US uranium producer after securing all approvals to begin construction of its Velvet-Wood uranium project in San Juan County, Utah.

The approval, granted by the Utah Department of Oil, Gas and Mining, would allow for the acceleration of mine preparation, construction, and ultimately, production, the company said in a press release issued on Tuesday.

Velvet-Wood is the first mining project that the US Interior Department approved for expedited permitting, as part of President Donald Trump’s national energy emergency declaration earlier this year.

The property combines two separate areas that together hold 4.6 million lb. of uranium oxide equivalent (eU₃O₈) in the measured and indicated category.  The Velvet area hosts a historic mine with 4 million lb. of U₃O₈ production between 1979 and 1984. Once in operation, most of the mining at Velvet-Wood is expected to take place underground, targeting known deposits left from earlier operations.

Anfield’s share price jumped on this positive development, with its Toronto-listed stock gaining 8.5% at C$12.80 apiece for a market capitalization of C$201 million. Its newly listed NASDAQ shares also rose 7%.

According to Anfield, it has been pushing to begin mine construction this year, and the Utah state approval would allow it to commence its near-term plans, including reopening of the mine portal, mine dewatering and construction of surface facilities.

Corey Dias, CEO of Anfield, also noted that the project has a small environmental footprint, which is “advantageous to the company’s aim to pursue near-term production.”

The proposed uranium mine is a key piece of Anfield’s integrated mine-to-mill strategy, underpinned by its Shootaring Canyon mill, one of only three licensed, permitted and constructed conventional uranium mills in the country.