enCore Energy (TSXV: EU) has doubled the flow capacity at its South Texas Alta Mesa ISR Uranium Central Processing Plant. The doubling of capacity follows the startup of a second ion exchange circuit, which collects uranium from process water pumped from recovery wells in the wellfield.
With the second ion exchange circuit coming online, the total flow capacity and the processing plant has been doubled to 5,000 gallons per minute, which is expected to expand the amount of uranium captured. A third circuit is said to be on site, with recommissioning planned for 2026.
As part of the expansion, additional injection and extraction wells have been installed within Wellfield 7, increasing utilizing of the processing plant to 75%. Additional wells are expected to be brought online to reach capacity and increase the capture of uranium.
A total of 43 injection wells and 36 recovery wells are said to have been added to Wellfield 7 over the past six months, with 17 drill rigs currently focused on expanding uranium extraction at Alta Mesa. Those new wells feed the second circuit at the processing plant, with a total flow rate of 1,450 GPM. A further 13 injection wells and 13 recovery wells are slated to be added to Wellfield 7 over the course of the next six weeks.
However, enCore has identified that the wellfield decline curve at Alta Mesa is steep. 80% uranium capture is being achieved in just over 4 months, meaning much of those new wells are likely nearing depletion already. Typical wellfield decline curves in ISR operations range from 12 to 15 months. enCore has stated that the total capture of uranium at its wells are comparable to these other operations, with the speed difference a result of “differences in physical and chemical properties of the host rock and the process water.”
The aggressive capture rate as a result demands an aggressive drilling and well completion schedule so as to keep uranium production consistent. As part of this, work is also underway to return Wellfield 6 to operation. The wellfield shut down back in 2012/2013, with 370,000 pounds of measured uranium remaining in the field. Development is also occurring at the Upper Spring Creek Project, where permits for a wellfield are expected to be received by year end.
“At any given concentration of dissolved uranium in water, the more solution you pump, the more uranium that can be captured. At the Alta Mesa CPP, we have learned that our extraction process is faster than anticipated, which is expected to be positive for revenue and return on investment. The work on the second IX Circuit and additions to the wellfield have been underway for several months,” commented William Sheriff, Executive Chairman of enCore Energy.
enCore Energy last traded at $2.01 on the TSX Venture.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
