Westwater Resources Reports 2018 Results & Energy Minerals Business Update CENTENNIAL, Colo., February 19, 2019 – Westwater Resources, Inc. (“Westwater,” or the “Company”) (Nasdaq: WWR), an energy materials development company, announced its results for fiscal year 2018, and provided an outlook on its energy minerals business development for 2019. Christopher M. Jones, President and Chief Executive Officer, said, “We are pleased with our accomplishments in 2018, including our acquisition and integration of Alabama Graphite Corp., which gives us an advantage in a key component of electrical storage devices. We ended 2018 with the discovery of substantial vanadium mineralization on our existing mineral leases in Alabama. We are making progress on all fronts; many facets of Westwater’s business are developing simultaneously. Collectively, I believe these factors will continue to benefit our business and further advance Westwater all while maximizing shareholder value.” Highlights for 2018 and to Date - RECENT VANADIUM DISCOVERY:
- On November 29, 2018, Westwater announced the discovery of significant levels of vanadium concentrations at several locales within the graphitic schists at the Company’s Coosa Graphite Project (“Coosa Project”).
- On February 19, 2019, concurrent with the issuance of this press release the Company also announced that it has received independent lab results that demonstrated a wide-spread distribution of vanadium mineralization throughout the central portion of the Company’s mineral holdings within the Coosa Project in Alabama. The wide-spread distribution of highly anomalous vanadium mineralization, commonly in association with strong graphite mineralization, points to the need for comprehensive follow-up drilling and trenching to more fully define the ultimate distribution and intensity (grade) of the graphite and vanadium resources of the Coosa Project. Planning is underway for additional core drilling and surface trenching of individual target areas and extensions of known mineralized zones. Additionally, Westwater will initiate a program to evaluate and assess various processing options to economically recover vanadium as a byproduct to graphite.
- GRAPHITE BUSINESS DEVELOPMENT:
- Pilot plant planning for operations remains on-track for 2019.
- Plant start up and initial operations will utilize purchased graphite feedstock, bringing forward revenues and cash flow in time.
- First revenues are expected in 2021.
- Positive cash flow for the graphite business is expected in 2022.
- The mine is planned for construction in 2025, with planned production in 2026 – funded from operating cash flow rather than external financing.
- Net present values are estimated to be $400 - $500 million, depending on contingency.
- Capital expenditures, now including pilot plant studies and final plant design, are estimated at $42.0 million.
- We have over two-dozen Non-Disclosure Agreements in place for discussions with potential customers.
- On September 6, 2018, Westwater announced the successful production of over 4 kilograms of Purified Micronized Graphite (“PMG”). PMG is used as a conductivity enhancement material for a variety of battery applications. Electrical performance testing by an independent lab confirmed that the PMG performs as well as expected. Samples of PMG are being tested by two potential customers.
- Work continues with business, state and local officials in Alabama to site, permit and explore business incentives.
- The Company gave a well-received presentation at Benchmark Mineral Intelligence’s ‘Graphite + Anodes 2018’ Conference, on October 23rd in Newport Beach, California. The presentation included a Company overview and an update on Westwater’s graphite business plan for potential customers.
- LITHIUM EXPLORATION PROJECTS:
- On March 24, 2018, the Company exercised an option to purchase a block of unpatented placer mining claims covering an area of approximately 3,000 acres within the Columbus Salt Marsh area of Esmeralda County, Nevada. The claims adjoin a portion of the Company’s other property holdings at its Columbus Basin Project, expanding the project area within the basin to approximately 14,200 acres.
- The Company continues to develop its water rights positions and geological knowledge on its three highly prospective lithium-enriched brine properties in Nevada and Utah.
- URANIUM PROJECTS: Activities included:
- On September 21st, 2018 the Company made public an analysis of the current uranium market that backs up the Company’s belief that a continued rise in uranium prices is likely. This makes it clear there is strong interest in securing uranium supplies at lower prices as a hedge. Uranium spot prices hit $29.15 per pound on November 19, 2018 its highest level since March 2016. Five-year futures have also risen to over $35/lb. since August.
- Westwater has completed wellfield plugging at the Vasquez Project in Texas and has received certification by the Texas Commission on Environmental Quality (TCEQ). This paves the way for surface reclamation completion and bond release applications in 2019. Reclamation of the waste disposal well and its associated pond, as well as the remainder of the surface is scheduled for completion in 2019.
- At the Rosita Project in Texas, the wellfield Production Areas 1 & 2 are plugged, and surface reclamation in those areas is also expected to be completed in 2019.
- The Company published a new technical report outlining resources on its property holdings at Ambrosia Lake in New Mexico. https://www.westwaterresources.net/investors/...erals-business-update
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