SEBOYETA, N.M. – Uranium mining is making a notable comeback in Cibola County, New Mexico, as Canadian companies American Future Fuel Corporation and Premier American Uranium Inc. continue to advance plans for exploration and uranium resource expansion.
This resurgence, centered around the Cebolleta Uranium Project, has garnered significant attention as new partnerships, resource confirmations, and regulatory developments position these companies to capitalize on increasing demand for domestic uranium production.
Key Merger and Strategic Acquisition
On May 28, 2024, shareholders of American Future Fuel Corporation (AMPS) overwhelmingly approved a merger with Premier American Uranium Inc. (PUR).
The companies now form a consolidated entity that holds key uranium assets across three prominent U.S. states—New Mexico, Wyoming, and Colorado. This merger marks a critical milestone for uranium production in the U.S., as the country seeks to reduce reliance on foreign energy sources. This merger is made possible thanks to recent government actions to support the resurgence of uranium as a power source, including the Prohibiting Russian Uranium Imports Act which was signed into law on May 13, which unlocked $2.7 billion in funding to bolster domestic nuclear fuel production.
$2.7 billion. Money that could come to Cibola.
Colin Healey, CEO of Premier American Uranium, remarked on the significance of the merger, emphasizing how the acquisition of American Future Fuel’s assets places PUR in a prominent position within the U.S. uranium market. “The acquisition of American Future Fuel's assets positions Premier American Uranium at the forefront of the U.S. uranium market, giving us a strong foothold in key ura- nium districts at a critical time for the industry,” Healy said in a letter to shareholders.
The combined company is now actively pursuing resource expansion at the Cebolleta site in New Mexico, home to some of the most historically productive uranium deposits in the United States.
Cebolleta Uranium Project: Progress and Exploration
The Cebolleta Uranium Project, located in the Grants Mineral Belt in Cibola County, New Mexico, remains central to these companies’ plans.
Historical data shows that this region has produced 37 percent of all U.S. uranium, making it a prime area for further development. American Future Fuel and PUR have been conducting a multi-phase drilling program to confirm historical resource estimates, with initial drilling results closely matching historical data. The company’s most recent drilling efforts, part of a three-phase confirmation plan, indicate the presence of significant uranium deposits that align with previous assessments.
As of information from PUR as of June 2024, the Cebolleta Project boasts a mineral resource estimate (MRE) of 18.6 million pounds of uranium oxide (U3O8) in indicated resources and 4.9 million pounds in inferred resources. This estimate represents an increase in both the size and quality of previously recorded data, allowing Premier American Uranium to shift focus from confirmation to resource expansion.
Expansion Targets and Exploration
Premier American Uranium is now directing its attention to both brownfield and greenfield exploration targets at the Cebolleta Project. Brownfield exploration, which focuses on extending existing uranium deposits, has highlighted several areas near the historic Jackpile-Paguate mine complex— once one of the largest uranium mines in the U.S.
In addition to these well-known deposits, PUR is assessing new greenfield targets, such as the Piedra Lumbre prospect, east of Saint Anthony, which PUR believes holds untapped potential for further mineralization. These exploration efforts aim to uncover new uranium reserves and contribute to the continued growth of the Cebolleta site.
The focus has largely been on exploration, resource confirmation, and expansion at the Cebolleta Uranium Project. Premier American Uranium is progressing through multiphase drilling programs and regulatory processes, but a definitive timeline for the commencement of mining operations has not been provided yet. They appear to be in the stages of resource development and evaluation, particularly with the recent NI 43-101 compliant mineral resource estimate, which suggests they are still some steps away from starting actual mining.
Global Uranium Market and U.S. Policy Support
The U.S. government's recent legislative actions, coupled with a robust and rapidly growing demand for uranium, have provided a favorable backdrop for PUR’s efforts. With the passage of the Prohibiting Russian Uranium Imports Act and other funding initiatives, the U.S. is placing renewed emphasis on energy independence through nuclear power. PUR aims to capitalize on this trend by advancing both the Cebolleta and Cyclone Projects, the latter of which is located in Wyoming and has also shown promising drilling results.
Just on Monday, in Manhattan, New York City, New York, 14 of the world’s largest financial institutions came together to announce their support for bolstering nuclear energy production. The meeting was Financing the Tripling of Nuclear Energy – Leadership Event, which followed the Net Zero Nuclear Forum which took place during Climate Week in New York City this Monday, September 23.
Institutions attending the event included Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities LLC, Morgan Stanley, Rothschild & Co, Segra Capital Management, and Societe Generale.
“Our collective mission is clear: nuclear energy is clean energy, and if we are to ensure a liveable planet, build secure, sustainable supply chains for clean energy and bolster prosperity around the world, we need to make sure that nuclear energy does its part. I know we can make it happen—as long as we work together,” said John Podesta, Senior Advisor to the US President for International Climate Policy.
Another boon to the future of nuclear energy, the very nuclear plant that helped lay the seeds for the uranium bust in the 80s, Three Mile Island Nuclear Plant in Pennsylvania will soon restart uranium power production. On Friday, September 20, US tech company Microsoft and the plant announced that Nuclear Reactor Unit 1 will be reopened and beginning providing power to Microsoft for Artificial Intelligence purposes.
Timeline of Key Events: American Future Fuel and Premier American Uranium July 29, 2021 Initial Announcement by American Future Fuel (AFF):
American Future Fuel Corporation announces its intentions to establish uranium mining operations in Cibola County, focusing on the Cebolleta Uranium Project.
July 29, 2022 Public Introduction of the Cebolleta Uranium Project:
AFF announces the acquisition of a 100% interest in the Cebolleta Uranium Project, located within the Grants Mineral Belt. The project holds a historical resource estimate of approximately 19 million pounds of uranium.
October 2022 Phase 1 Drilling Begins:
AFF starts its Phase 1 drilling program at the Cebolleta site, focusing on confirming historical uranium resource estimates through radiometric and chemical assays. The program is part of a multi-phase confirmation effort.
May 2023 Leadership Change:
David Suda is appointed CEO of American Future Fuel Corporation, bringing 15 years of experience in capital markets. His leadership aims to drive AFF toward resource development at the Cebolleta site.
August 2023 First Drilling Permit Granted:
AFF receives its first drilling permit for the Cebolleta Uranium Project, marking the start of the company's three-phase confirmation drill program to update the project's resource estimate.
May 28, 2024 AFF Shareholders Approve Merger with Premier American Uranium (PUR):
Shareholders ofAmerican Future Fuel approve a merger with Premier American Uranium Inc., forming a consolidated entity to combine uranium assets in New Mexico, Wyoming, and Colorado. The merger is approved by an overwhelming 99.997 percent of shareholders.
June 24, 2024 Release of NI 43-101 Compliant Resource Estimate for Cebolleta:
A new resource estimate reveals 18.6 million pounds of uranium oxide (U3O8) in indicated resources and 4.9 million pounds in inferred resources. The estimate represents an upgrade in both the size and quality of the uranium resources at the site.
June 27, 2024 Completion of Merger:
The merger between American Future Fuel and Premier American Uranium is finalized. PUR acquires all issued shares of AFF, making AFF a wholly owned subsidiary of PUR. This consolidation grants PUR a strong foothold in key uranium-producing districts, including New Mexico’s Grants Mineral Belt.
July 5, 2024 Shift to Resource Expansion:
PUR shifts its focus from resource confirmation to resource expansion at the Cebolleta Project. The company highlights exploration targets at untested zones, such as the Willie P target and Piedra Lumbre, aiming to increase uranium reserves.
July 26, 2024 Exploration Growth Plans Announced:
PUR outlines several exploration targets within the Cebolleta Project, including the Jackpile extension, St. Anthony deposits, and Sohio areas. These targets are part of PUR’s strategy to unlock further growth and resource potential, with plans to advance toward preliminary economic assessments.