Uranium discovery in South Texas.
enCore Energy discovers high-grade uranium mineralization at South Texas's Alta Mesa East Project.
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enCore Energy Corp. has struck high-grade uranium at its Alta Mesa East Project in South Texas, with one drill hole hitting 8.5 feet of mineralization at 0.199% uranium oxide and a Grade Thickness of 1.69 — well above the 0.3 GT industry threshold for profitable extraction, according to enCore Energy. The company's Executive Chairman William Sheriff said the results "support our thesis" and the goal is to "confirm mineralization at levels that will enable Alta Mesa East to directly feed the fully operational Alta Mesa Central Processing Plant."
Six drill rigs are active at the 5,900-acre site, operating on 400- to 500-foot spacing at depths between 400 and 520 feet. All mineralization sits within the Pliocene Goliad Formation, Stock Titan reported. The results push enCore closer to extending the life of its processing plant — the only one of its kind currently running in the United States alongside its Rosita facility.
From Chevron Discovery to enCore's $120 Million Bet
Uranium was first found at Alta Mesa in the late 1970s by Chevron Minerals, which spotted uranium roll fronts using oil and gas well logs. The site produced nearly 5 million pounds of uranium oxide between 2005 and 2013 before low prices shut it down. enCore bought the project from Energy Fuels Inc. for $120 million in February 2023, according to Benzinga.
In August 2025, enCore added the adjacent 5,900-acre Tacubaya land parcel — now called Alta Mesa East — specifically to extend the life of its Central Processing Plant. By June 1, 2026, initial drilling had already confirmed mineralization stretching 3,700 feet east of the existing wellfields. The latest results, released June 16, show even stronger intercepts in a second phase of drilling.
How ISR Mining Works and Why Texas Loves It
enCore uses In-Situ Recovery, or ISR — a method that pumps oxygenated groundwater through uranium-bearing sandstone underground. The dissolved uranium flows back to the surface for processing. No open pits. No blasting. Benzinga noted the process uses natural groundwater and oxygen, leaving a much smaller surface footprint than traditional mining.
Texas has a well-defined permitting framework for this method, and in 2025 the state legislature passed bills to speed up uranium permits, calling nuclear power "carbon-free" and "reliable." The Alta Mesa Central Processing Plant can handle up to 1.5 million pounds of uranium per year, plus 0.5 million pounds of drying capacity, according to ADVFN.
Russian Ban and $101 Uranium Push U.S. Producers Forward
Uranium spot prices hit $101.26 per pound in early 2026 — the highest in two years. A 2024 U.S. ban on Russian uranium imports created a supply gap that is driving utilities toward domestic producers like enCore. The company reported a surprise Q1 2026 profit of $0.03 per share, beating analyst expectations, according to Stock Titan.
Cantor Fitzgerald holds a "Speculative Buy" rating on the stock with a $4.50 price target, citing "notable improvement" in operational leverage. CEO Paul Goranson, who has deep history with the Alta Mesa asset, put it plainly: "We are doing that at a time when our competitors are just starting." Boss Energy Limited holds a 30% stake in the Alta Mesa project alongside enCore.
Environmental Concerns Shadow the Drilling Boom
Not everyone is celebrating. The Sierra Club's Lone Star Chapter and the Multicultural Alliance for a Safe Environment argue that Texas laws are "weak" and that revived uranium operations threaten shallow aquifers used by local ranchers. The Nuclear Regulatory Commission classifies ISR impacts as "small," but critics say long-term groundwater monitoring remains insufficient, according to ADVFN.
Some Wall Street analysts also urge caution. Analysts have flagged the "permit gap" — the lag between finishing construction and starting production — as the biggest risk to ISR scaling. Additional drill results from Alta Mesa East are expected through Q3 2026, with six rigs still active on site as of mid-June.
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