Uranium producer enCore Energy (NASDAQ:EU) has begun production at its Alta Mesa mine in South Texas.

With this development, the company became the only U.S. producer with multiple operational uranium facilities.

"The enCore team has advanced the Alta Mesa project from acquisition in February 2023 to completion of upgrades, wellfield installation, and production in just fifteen months. This effort has brought our second producing asset online, fulfilling our commitment to commence production in the second quarter of 2024," said CEO Paul Goranson.

The company, in a 70:30 joint venture with Australia's Boss Energy (OTCQX:BQSSF), expects the first shipment of yellowcake within the next 60 to 90 days. enCore plans to increase production progressively, aiming for full operational capacity by 2026.

The Alta Mesa CPP has an operating capacity of 1.5 million pounds of uranium oxide annually, with an additional drying capacity of 0.5 million pounds. The project utilizes in-situ recovery (ISR) technology, a non-invasive process that extracts uranium using natural groundwater and oxygen.

Currently, oxygenated water is circulating through the wellfield's injection and extraction wells, directly feeding the CPP. The project has total measured and indicated resources of 3.4 million pounds and total inferred resources of 16.8 million pounds. Historically, the CPP produced nearly five million pounds of uranium between 2005 and 2013 before halting due to low prices.

However, the situation has changed, with uranium prices breaking $100 per pound for the first time in over a decade. The price surge renewed interest in the sector, re-opening abandoned projects and igniting mergers and acquisitions across the board.

JV partner Boss Energy acquired its 30% stake in the project in February for $60 million. In addition to production starting at the 100 %-owned Honeymoon project in Australia, Boss is on track to hit the production target of three million pounds of uranium per year.

"Our timing could hardly be better given the increasingly tight supply and demand fundamentals in the uranium market," said Boss Energy MD Duncan Craib.

The joint venture's focus on leveraging high uranium prices and strategic production locations positions enCore and Boss Energy to capitalize on the revitalized uranium market.

Also read: Freeport-McMoRan Plans Production Ramp-Up: 'It's Just A Matter Of Time' New CEO Says

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