LITTLETON, Colo., July 14, 2016 /CNW/ -- Ur-Energy Inc.
(NYSE MKT:URG, TSX:URE) (the "Company" or "Ur-Energy") is pleased
to provide the following operational results for second quarter
2016.
Highlights
Lost Creek
Operations
|
|
Units
|
2016 Q1
|
|
2016 Q2
|
|
2016 YTD
|
|
|
|
|
|
|
|
U3O8 Captured
|
('000
lbs)
|
159.3
|
|
133.3
|
|
292.6
|
U3O8 Dried &
Drummed
|
('000
lbs)
|
173.8
|
|
130.3
|
|
304.1
|
U3O8 Sold
|
('000
lbs)
|
75.0
|
|
187.0
|
|
262.0
|
|
|
|
|
|
|
|
Average Flow
Rate
|
(gpm)
|
1,853
|
|
2,210
|
|
2,032
|
U3O8 Head Grade
|
(mg/l)
|
82
|
|
58
|
|
70
|
Lost Creek Uranium Production and Sales
For the
quarter, 133,341 pounds of U3O8 were captured
within the Lost Creek plant. 130,308 pounds
U3O8 were packaged in drums and 148,714
pounds U3O8 of drummed inventory were shipped
out of the Lost Creek processing plant. At June 30, 2016, inventory at the conversion
facility was approximately 135,723 pounds
U3O8. During the quarter, sales totaled
$6.7 million with two contract sales
totaling 137,000 pounds at an average price of $39.35 per pound, and one spot sale of 50,000
pounds at a price of $27.00 per
pound.
Production rates at Lost Creek during the quarter were near
projected levels as we continued to operate header houses 1 through
12 throughout the quarter and began to see initial production from
header house 13 late in the quarter. As scheduled, the thirteenth
and final originally-planned header house in Mine Unit 1 (MU1) was
brought online late in May. The header house, and its related
patterns of production wells, includes certain refinements in
design and well completion techniques in an effort to increase
injectivity for even greater well performance. Although many
analyses are ongoing, results of HH 13's first month of operation
are thus far validating these refinements. Permitting of the Class
V water treatment systems continues with the goal to enhance waste
water capacities. We expect permitting to be completed in the third
quarter. In addition, routine plant and wellfield maintenance
continued as scheduled. While lower than the previous quarter,
plant head grades from MU1 header houses continue to be
significantly higher than originally projected. The decrease is
related to normal projected declines as well as the addition of new
production fluid from HH 13. Grades from HH 13 have subsequently
risen to 88 mg/l.
Corporate Activities
As previously announced,
reductions in workforce were implemented in June due to continuing
depressed uranium market conditions. Twelve employees were laid
off, and several remaining employees were asked to change job
responsibilities or carry additional responsibilities. Transitions
are ongoing and operations at Lost Creek have been
uninterrupted.
Continuing Guidance for 2016
The Q3 2016 production
target for Lost Creek is 140,000 – 170,000 pounds
U3O8 dried and drummed. Our production rate
may be adjusted based on continuing operational refinements, and
indicators in the market, including uranium spot market pricing and
other factors.
About Ur-Energy
Ur-Energy is a uranium mining company
operating the Lost Creek in-situ recovery uranium facility
in south-central Wyoming. The Lost
Creek processing facility has a two million pounds per year
nameplate design capacity. We have begun to submit applications for
permits and licenses to operate at our Shirley Basin Project.
Ur-Energy is engaged in uranium mining, recovery and processing
activities, including the acquisition, exploration, development and
operation of uranium mineral properties in the United States. Shares of Ur-Energy trade
on the NYSE MKT under the symbol "URG" and on the Toronto Stock
Exchange under the symbol "URE." Ur-Energy's corporate office is
located in Littleton, Colorado;
its registered office is in Ottawa,
Ontario. Ur-Energy's website is www.ur-energy.com.
FOR FURTHER INFORMATION, PLEASE CONTACT
Jeffrey Klenda, Chair and
Executive Director
866-981-4588
Jeff.Klenda@ur-energy.com
Cautionary Note Regarding Forward-Looking
Information
This release may contain "forward-looking
statements" within the meaning of applicable securities laws
regarding events or conditions that may occur in the future
(e.g., continuing results of Lost Creek operations,
including the refinements in header house 13; the ability to meet
production targets for third quarter and whether adjustments of
production rates will be necessary; the timing and results of
various permitting activities) and are based on current
expectations that, while considered reasonable by management at
this time, inherently involve a number of significant business,
economic and competitive risks, uncertainties and contingencies.
Factors that could cause actual results to differ materially from
any forward-looking statements include, but are not limited to,
capital and other costs varying significantly from estimates;
failure to establish estimated resources and reserves; the grade
and recovery of ore which is mined varying from estimates;
production rates, methods and amounts varying from estimates;
delays in obtaining or failures to obtain required governmental,
environmental or other project approvals; inflation; fluctuations
in commodity prices; delays in development and other factors
described in the public filings made by the Company at
www.sedar.com and www.sec.gov. Readers should not place undue
reliance on forward-looking statements. The forward-looking
statements contained herein are based on the beliefs, expectations
and opinions of management as of the date hereof and Ur-Energy
disclaims any intent or obligation to update them or revise them to
reflect any change in circumstances or in management's beliefs,
expectations or opinions that occur in the future.
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SOURCE Ur-Energy Inc.