Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
IsoEnergy (TSXV: ISO) will reopen its Tony M mine in Utah and aims to restart uranium mining production operations in 2025.
The decision, IsoEnergy said, is underpinned by rising uranium prices and follows Energy Fuels’ recent announcement to restart its uranium circuit at the White Mesa mill.
Tony M, along with the Daneros and Rim projects, is one of three past-producing, fully-permitted uranium mines in Utah owned by IsoEnergy. It is a large-scale, fully developed and permitted underground mine that previously produced nearly one million lb. of uranium oxide (U3O8) during two different periods of operation, from 1979-1984 and from 2007-2008.
“With the uranium spot price now trading around $100 per pound, we are in the very fortunate position of owning multiple, past-producing, fully permitted uranium mines in the US that we believe can be restarted quickly with relatively low capital costs,” IsoEnergy CEO Phil Williams said in a news release.
IsoEnergy has guaranteed access to the White Mesa mill by way of a toll milling agreement with Energy Fuels. The mill is the only operational conventional uranium mill in the US with licensed capacity of over 8 million lb. of U3O8 per year.
IsoEnergy’s portfolio also includes the Hurricane uranium deposit on its 100%-owned Larocque East property in the eastern Athabasca Basin, Canada. The deposit has an indicated resource of 63,800 tonnes grading 34.5% U3O8, containing 48.5 million lb. of U3O8. There is also an inferred resource of 54,300 tonnes at 2.2% U3O8, for 2.7 million lb. of U3O8.
IsoEnergy also owns three more uranium projects in the Athabasca Basin.
