VANCOUVER, British Columbia, Dec. 08, 2020 (GLOBE NEWSWIRE) -- Anfield Energy Inc. (TSX.V: AEC; OTCQB: ANLDF; FRANKFURT: 0AD) (“Anfield” or “the Company”) is pleased to announce that Anfield’s newly-formed subsidiary, Anfield Precious Metals (“APM”), has signed a definitive agreement with Southwest Exploration Inc. (“Southwest”) to acquire a 100% interest in the Newsboy Gold Project (“Newsboy”), located in Maricopa County, Arizona. This acquisition will serve as Anfield’s first step in a revised strategy to leverage its team’s expertise and selectively seek out and acquire advanced US-based assets in commodities in addition to uranium to diversify its portfolio, while continuing to operate in attractive, low-risk U.S. jurisdictions. Anfield’s uranium assets, especially the Charlie project in Wyoming, remain a core focus of the Company. Red Cloud Securities Inc. acted as an advisor to Anfield regarding the transaction.
Corey Dias, Anfield’s CEO commented: "We are excited to execute on our strategic plan of portfolio diversification through the acquisition of the Newsboy gold project. Newsboy is an unheralded gem with a historical gold-silver resource, a significant amount of drill hole data and drill-ready targets that provide the potential for step-change resource expansion. Located in Arizona, it also aligns with our focus on North American-based projects in order to mitigate geopolitical risk. Finally, the creation of APM underscores our belief that further opportunities exist within this sector that will allow Anfield to leverage its team’s expertise to strengthen its asset mix in an accretive way.
Anfield’s primary focus remains on advancing its Wyoming-based Charlie ISR uranium project. While there is some uncertainty in the sector while the transition to a new U.S. Administration takes place, we are confident that the U.S. government remains committed to reviving the domestic uranium market as part of its emerging commitment to meeting climate change objectives. In fact, the recent news regarding the U.S. Senate’s Committee on Environment and Public Works Approving the American Nuclear Infrastructure Act – which includes a U.S. Uranium Reserve Program – provides a positive data point for the future of uranium production in the U.S."
As consideration for Newsboy, Southwest will receive 5 million common shares of Anfield and a 2% net smelter royalty (NSR) on gold and silver production from the project. Anfield has agreed to spending commitments at Newsboy of Cdn$2 million within the first 12 months following the acquisition and an additional Cdn$1 million in the subsequent 12 months. In addition, Southwest will receive certain milestone payments totaling $625,000, should Anfield receive an NI 43-101 resource report, a Preliminary Economic Assessment and Feasibility Study.
Completion of the acquisition of Newsboy, and the issuance of common shares to Southwest, remains subject to the approval of the TSX Venture Exchange. All common shares issuable to Southwest in connection with the acquisition will be subject to restrictions on resale prescribed by applicable securities laws.
The Newsboy Gold Project
The Newsboy Gold Project, located 45 miles northwest of Phoenix, Arizona and 10 miles southeast of Wickenberg in Maricopa County, consists of 2,243 acres of land which is comprised of 35 Federal Lode Claims and 4 State leases.
Between 1987 and 1989, Westmont Mining Company conducted reconnaissance geological mapping, rock chip geochemistry and 102 holes (totaling 7,184 metres) of reverse-core drilling at Newsboy. In 1990, Pima Mining NL drilled 12 diamond core holes (512 metres), 40 reverse core holes (2,000 metres), and completed metallurgical test work, resource and reserve estimates and mine-planning studies.
In 2009, Aurum National Holdings, Ltd. Commissioned North American Environmental Group (NAEG) to produce a report on the Newsboy property which was titled “Technical Report of the Newsboy Gold Property, Maricopa County, Arizona, United States, by Clive R. G. Bailey, dated September 1, 2009.” Anfield considers this a historic report and does not warrant that it meets current NI 43-101 guidance.
Using available data and a cut off grade of 0.02opt Au, NAEG estimated a total in-situ resource of 5.3Mt in the following categories:
- A Measured resource of 2.533Mt at 0.05opt Au and 0.87opt Ag for a total of 127,000oz Au and 2,196,000oz Ag;
- An Indicated resource of 1.076Mt at 0.04opt Au and 0.44opt Ag for a total of 43,000oz Au and 471,000oz Ag; and
- An Inferred resource of 1.719Mt at 0.038opt and 0.45opt Ag for a total of 65,000oz Au and 765,000oz Ag
The NAEG report also identified areas in which the author, based on geologic interpretation, felt the resource could be expanded. The NAEG report also recommended an exploration program for this area. To Anfield’s knowledge these recommendations have not yet been implemented.
Anfield considers these estimates to be historical in nature and cautions that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and Anfield is not treating the historical estimate as current mineral resource or mineral reserves.
Douglas L. Beahm, P.E., P.G. has approved the scientific and technical disclosure, relating to the Newsboy Gold Project, in the news release. He is a Qualified Person as defined in NI 43-101.
About Anfield
Anfield is a uranium and vanadium development and near-term production company that is committed to becoming a top-tier energy-related fuels supplier by creating value through sustainable, efficient growth in its assets. Anfield is a publicly-traded corporation listed on the TSX Venture Exchange (AEC-V), the OTCQB Marketplace (ANLDF) and the Frankfurt Stock Exchange (0AD). Anfield is focused on two asset centers, as summarized below:
Wyoming – Resin Capture and Processing Agreement
Anfield has signed a Resin Capture and Processing Agreement with Uranium One whereby Anfield would process up to 500,000 pounds per annum of its mined material at Uranium One’s Irigaray processing plant in Wyoming.
The Charlie Project, Anfield’s flagship uranium project, is located in the Pumpkin Buttes Uranium District in Johnson County, Wyoming. The Charlie Project consists of a 720-acre Wyoming State uranium lease which has been in development since 1969. An NI 43-101 Preliminary Economic Assessment has been completed for the Charlie Project.
Anfield’s 24 ISR mining projects are located in the Black Hills, Powder River Basin, Great Divide Basin, Laramie Basin, Shirley Basin and Wind River Basin areas in Wyoming. Anfield’s three projects in Wyoming for which NI 43-101 resource reports have been completed are Red Rim, Nine Mile Lake and Clarkson Hill.
Arizona/Utah/Colorado – Shootaring Canyon Mill
Another asset in Anfield’s portfolio is the Shootaring Canyon Mill in Garfield County, Utah. The Shootaring Canyon Mill is strategically located within one of the historically most prolific uranium production areas in the United States, and is one of only three licensed, permitted and constructed conventional uranium mills in the United States.
Anfield’s conventional uranium assets consist of mining claims and state leases in southeastern Utah, Colorado and Arizona, targeting areas where past uranium mining or prospecting occurred. Anfield’s conventional uranium assets include the Velvet-Wood Project, the Frank M Uranium Project, the West Slope Project as well as the Findlay Tank breccia pipe. An NI 43-101 Preliminary Economic Assessment has been completed for the Velvet-Wood Project. The PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment would be realized. All conventional uranium assets are situated within a 200-mile radius of the Shootaring Mill.
On behalf of the Board of Directors
ANFIELD ENERGY INC.
Corey Dias, Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Anfield Energy, Inc.
Clive Mostert
Corporate Communications
780-920-5044
contact@anfieldenergy.com
www.anfieldenergy.com
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