Anfield Energy Inc. (TSXV: AEC; Nasdaq: AEC) has completed the first underground blast in roughly four decades at its Velvet-Wood uranium and vanadium project in Utah.
The blast follows the company’s receipt of a permit from the US Bureau of Alcohol, Tobacco, Firearms and Explosives. It marks another step in the rehabilitation of the historic mine, which last produced in 1984.
Underground Rehabilitation Advances
Anfield said it has rehabilitated the first 700 feet of the Velvet-Wood decline. Work completed to date includes installing rock bolts and wire mesh, building underground roads, removing waste rock, surveying and installing ventilation and utilities.
The infrastructure includes a surface ventilation fan, ducting, an air compressor, water and air lines, electrical power and communications.
The blast represents development work rather than the resumption of commercial mining. Anfield did not disclose the amount or type of material removed or announce that ore production had begun.
Dewatering Work Remains
Construction of a water-treatment plant and installation of a dewatering pump are nearing completion. Anfield expects testing and sampling to begin within the coming weeks.
The company plans to conduct a 60-day testing and reporting period before dewatering the historic underground workings. It estimates that the remaining portion of the decline could be dewatered within three weeks of active pumping, while the wider underground workings could require two to three months.
Those timelines are estimates and remain subject to construction, testing, regulatory and operating risks.
Anfield previously targeted a return to production at Velvet-Wood by the end of 2026. Its latest announcement did not repeat that target or say whether the remaining water-treatment and dewatering work will affect the schedule.
Project Forms Part of Hub-and-Spoke Plan
Velvet-Wood is intended to supply Anfield’s Shootaring Canyon Mill under a wider hub-and-spoke uranium and vanadium development strategy.
An updated preliminary economic assessment filed in June covers Velvet-Wood, the Slick Rock project and six mines in the company’s West Slope complex. It contemplates processing material from the projects at Shootaring.
The PEA estimates average annual production of approximately 1.3 million pounds of uranium and 6.4 million pounds of vanadium over a proposed 15-year mine life. Those projections apply to the combined group of projects rather than Velvet-Wood alone.
The assessment uses assumed prices of US$100 per pound for uranium and US$9 per pound for vanadium. Its economic projections are sensitive to commodity prices, development costs, financing and execution.
Production Has Not Resumed
The first blast advances access and rehabilitation at Velvet-Wood, but further testing, dewatering and underground development remain necessary before sustained mining can begin.
The PEA is preliminary and includes inferred mineral resources considered too speculative to support economic conclusions normally associated with mineral reserves. No mineral reserves have been established, and the project’s projected production and economics have not been demonstrated through commercial operation.
Sources
- Anfield Energy Completes First Underground Blast at Velvet-Wood
- Anfield Energy Receives ATF Blasting Permits
- Anfield Energy Completes Phase One Surface Construction
- Anfield Energy Files Updated Preliminary Economic Assessment
Editorial Disclosure
This article was prepared from publicly available information issued by Anfield Energy Inc. and related technical disclosures. Mining Markets Report did not receive compensation from Anfield Energy for preparing or publishing this article and has no disclosed business relationship with the company.
The author and publisher do not hold securities in Anfield Energy Inc. as of the publication date.
Statements concerning water-treatment testing, dewatering, underground development, production timing, output and project economics are forward-looking and remain subject to regulatory, technical, financing, construction, operating and commodity-price risks.
The preliminary economic assessment includes inferred mineral resources and does not establish mineral reserves or guarantee that commercial production will begin. This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Readers should conduct their own due diligence and consult a qualified financial professional. Read the full Mining Markets Report disclaimer.
