Anfield Resources Inc. Signs Letter of Intent to Develop Vanadium
Vancouver, British Columbia / TheNewswire / August 22, 2016 -- Anfield Resources Inc. (TSX.V: ARY) (OTCQB:ANLDF) (FRANKFURT: 0AD)("Anfield" or "the Company"), is pleased to announce that it has entered into a letter of intent ("LOI") with Aileron Ventures Ltd. ("Aileron") to identify and exploit the potential of the contained vanadium by-product resulting from the uranium production of Anfield's feedstock ore, and to determine the commercial feasibility of constructing a vanadium processing circuit and dedicated infrastructure to upgrade vanadium pentoxide and/or vanadium based electrolyte at Anfield's Shootaring Mill.
Under the terms of the LOI, Aileron will have a one year evaluation period to explore and evalurate the vanadium assets and to determine the commercial viability of permitting, designing and constructing a vanadium circuit at the Shootaring Mill. At the end of the evaluation period Aileron will have 30 days in which to exercise an option to acquire the rights to purchase up to 70% of Anfield's vanadium production by providing a binding commitment to provide funding for the permitting, design and construction of the vanadium circuit at the Shootaring Mill.
The historical vanadium market focused on its ability to strengthen steel and other alloys, along with increased use in the aerospace and military markets. However, with the greater awareness of the risks associated with climate change and GHGs, vanadium has become a significant player in the energy market. Vanadium has the ability to store mass energy via vanadium flow batteries (VFBs), which strengthens the renewable energy proposition of both wind and solar power. Industry spending on energy storage is expected to be approximately US$75 billion in 2016, reaching US$200 billion in 2020 alone.
Corey Dias, Anfield's CEO, commented, "We are pleased with this new opportunity to exploit the vanadium production potential of our assets. While this is not our core focus, we are nevertheless committed to seeing effective and profitable development and production of vanadium resources contained and commingled in our feedstock ore. This development would have a positive effect on our uranium production through by-product credits which would reduce our overall operating costs. Further, we look forward to significant opportunities presented by the nascent energy storage industry utilizing vanadium as a key element."
The agreement between the parties in the LOI is conditional upon a number of factors, including: 1) the negotiation and execution of definitive agreements between Anfield and Aileron setting out the terms and conditions of any transaction; 2) approvals from the respective boards of directors; and 3) receipt of all necessary regulatory and contractual consents and approvals.
Anfield and Aileron have agreed to work in good faith over the next 30 days to negotiate a definitive agreement, and have agreed that it is in their respective best interests to cooperate and collaborate fully with each other to ensure the success of the arrangements set out in the LOI and future agreements.
About Anfield
Anfield is an energy metals exploration, 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 energy metals assets. Anfield is a publicly-traded corporation listed on the TSX-Venture Exchange (ARY-V), the OTCQB Marketplace (ANLDF) and the Frankfurt Stock Exchange (0AD).
About Anfield's Properties
Velvet Wood. The Velvet-Wood Project is one of the most advanced conventional uranium projects in the U.S. Between 1979 and 1984, approximately 400,000 tons of ore were mined from the Velvet Deposit at grades of 0.46% U3O8 and 0.64% V2O5, recovering approximately 4 million pounds of U3O8 and 5 million pounds of V2O5.
The remaining mineral resources of the combined Velvet and Wood mines have been estimated to comprise 4.6 million pounds of U3O8at a grade of 0.29% U3O8 (measured and indicated resource) and 552,000 pounds of U3O8 at a grade of 0.32% U3O8 (inferred resource). A vanadium resource has not yet been calculated. (Source: Velvet-Wood Mine Uranium Project, San Juan County, Utah USA 43-101 Mineral Reserve and Resource Report, Author: BRS Inc.; Date: 11/14/2014)
Henry Mountains. Henry Mountains lies within twelve miles of the Shootaring Canyon mill. Based on historical production and resources hosted by the Salt Wash Member of the Jurassic Morrison Formation, US Energy identified geological targets within two areas of the Henry Mountains. Combined the potential of these two target areas is 5 million tons grading 0.3% U3O8 to 0.4% U3O8 containing 30 to 40 million pounds of U3O8 and 0.5% V2O5 to 0.6% V2O5 containing 50 to 60 million pounds of V2O5.
US Energy Corporation ("USE") stated that the potential quantity and grade of the exploration targets were conceptual in nature and there was no assurance the targets would be further defined by further exploration drilling. Further, Anfield Resources Inc. has been unable to verify the data and further states that the presence of uranium mineralization and geological targets on the USE property are not necessarily indicative of similar mineralization on the Anfield Resources Inc. Henry Mountains property.
About Aileron
Aileron is a company focused on developing and producing vanadium to be utilized in the burgeoning market of advanced energy storage technologies utilizing vanadium as the key element.
About US Energy
US Energy Corporation is a publicly-traded U.S.-based company which is focused on the development of oil and gas assets. USE previously held a number of U.S.-based uranium assets.
On behalf of the Board of Directors
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 Resources Inc.
Clive Mostert
Corporate Communications
780-920-5044
info@anfieldresources.com
www.anfieldresources.com
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