Ur-Energy Issues Year-End Letter to Shareholders
April 25 2012 - 8:01PM
PR Newswire (Canada)
LITTLETON, Colo., April 26, 2012 /CNW/ - Ur-Energy Inc.
("Ur-Energy" or the "Company") issued the following letter to
shareholders from President and CEO, Wayne W. Heili. (Logo:
http://photos.prnewswire.com/prnh/20110913/LA67628LOGO) Dear
Shareholder, I am pleased to present the year-end report for
Ur-Energy. The Board of Directors and our management truly value
and appreciate our shareholders' continued support and confidence
in the Company. In 2011, global events overshadowed the uranium
equity markets and the success of individual companies was often
overlooked. In this environment, Ur-Energy's management elected to
focus on strengthening our business fundamentals. The result is a
stronger company with an exciting future that is well positioned to
capitalize on the growth of the nuclear power industry. I am
excited to share with you the highlights of our corporate
accomplishments from 2011 and the first quarter of 2012. On the
strength of those accomplishments, I am looking forward to
continued success and the completion of several key milestones in
2012. Accomplishments in 2011 and Early 2012 I expect 2012 to be
filled with significant growth developments for Ur-Energy. Already
this year, the Company acquired substantial property interests and
mineral rights adjacent to our Lost Creek Property. Our dynamic
technical team has produced significant expansions of the resource
estimate for our flagship property. The Company took measures to
fortify our balance sheet during a period of strength in a
generally soft market, and we implemented a marketing strategy that
effectively secures a future revenue stream in an uncertain market.
Lost Creek Property -- Regulatory Advances: The principal focus of
the Company continues to be the advancement of the Lost Creek
Project to final licensing. We were pleased to announce the receipt
of our Nuclear Regulatory Commission License for the Lost Creek
Project in August 2011. This accomplishment was followed by the
receipt of the Wyoming Department of Environmental Quality Permit
to Mine in October. The Company also received from the US
Environmental Protection Agency the approval of an aquifer
exemption that allows Class-III injection into the mineralized
horizon. We had been granted our Class-I UIC permit for the
necessary waste water disposal wells in 2010. With the successful
conclusion of these major permitting actions, the Company now
awaits the only remaining authorization required to commence
facility construction from the US Bureau of Land Management (BLM).
While the progress of the BLM's environmental review did not track
with the other major licensing actions, steady progress has been
made. Current guidance from the BLM suggests that the Final
Environmental Impact Statement and Record of Decision will be
issued during the summer of 2012. -- Uranium Resource Base
Increases: Efforts initiated in 2011 and reported in early 2012
have resulted in a 58% aggregate growth of the Lost Creek Property
Measured and Indicated resources from 5.3 Mlbs U3O8 to 8.35 Mlbs
U3O8. We have also added over 2.0 Mlbs U3O8 to our Inferred
resource inventory. Our work leads us to conclude that there is
significant potential for the continued definition of additional
resources through exploration on the Lost Creek Property. The
resource growth was realized through our two-pronged approach to
demonstrate the scalability of the Lost Creek Property: blockquote
blockquote 1. Resource Expansion Drilling: We completed a
successful drill program in 2011 that allowed our technical team to
upgrade the resources defined on the Lost Creek Property. In
February 2012, we completed an update to the NI 43-101 Preliminary
Economic Assessment (PEA) of the Lost Creek Property. The PEA
expanded the Lost Creek Property Measured and Indicated Resource by
11%. For the first time, we reported resources that are located
within our Lost Creek Property holdings but outside of the Lost
Creek Project area. Our LC North and LC South Projects now each
have reported Inferred mineral resources. As a result, the Inferred
Resource at the Lost Creek Property increased by 159%. 2. Property
Acquisitions: In February 2012, the Company acquired approximately
5,250 acres (2,124 hectares) of property adjacent to the Lost Creek
Project in an asset exchange with Uranium One Americas. The
acquired property interests, along with 253 newly staked federal
mining claims encompassing approximately 4,430 acres (1,792
hectares) were incorporated into the Lost Creek Property, primarily
as our new LC East and LC West Projects. The Company owns an
historic database containing over 1,100 drill holes located on
these new project areas. The database has been utilized to estimate
the mineral resources for LC East and LC West without incurring
drilling expenses. On April 4, 2012 the Company announced a 45%
increase (from the February PEA) in Measured and Indicated
Resources along with a 42% increase in Inferred Resources for the
Lost Creek Property. /blockquote /blockquote -- Economic
Assessment: Our February 2012 update to the PEA for the Lost Creek
Property continues to demonstrate that Lost Creek is technically
and economically viable. The PEA estimates direct operating costs
of less than $20/lb which places Lost Creek in the lowest quartile
of all uranium production facilities.(1) -- Project Design
Engineering: Current indications are that the final BLM
authorization will be on hand in time to begin construction in the
summer of 2012. Ur-Energy is prepared to break ground very soon
after this final permitting action. Our technical group has
continued to prepare the detailed engineering and design work for
the project facilities along with the initial uranium recovery
areas. Company Finance At year's end the Company had a cash
position of approximately C$23 million with which to advance our
robust Lost Creek Project. In February of 2012 we closed a private
placement financing in which we raised an additional C$17 million,
further solidifying our healthy balance sheet. Uranium Sales The
global nuclear industry endured considerable public scrutiny in
2011 following the earthquake, catastrophic tsunami and ensuing
nuclear emergency in Japan. The uranium markets were not insulated
from the negative effects of the Fukushima reactor crisis and
valuable lessons were gained. The Company undertook a strategic
marketing initiative designed to reduce the Company's exposure to
negative turns in uranium pricing due to unforeseen events. By
January of 2012, Ur-Energy had secured several multi-year supply
agreements with major North American Nuclear Utilities. These
contracts feature fixed pricing that will readily support the
development plans for the Company's flagship Lost Creek Project.
The spot uranium market has been soft throughout the second half of
2011 and early 2012 but the basic long-term fundamentals of the
uranium market remain bullish. New reactor growth is significantly
outpacing retirement of the oldest reactors in the global fleet
with a net result being strong growth in the projected future
demand for uranium. With the spot price stabilized between US$50
and US$52 per pound, and term contract prices reported at US$60,
the Company's marketing strategy seeks to effectively balance the
economic and strategic benefits of the spot/term price ratio. A
Look Ahead: 2012 We expect that the year 2012 holds several major
milestones for the Company. The advancement of our flagship project
will take center stage with several exciting developments
anticipated. Foremost among them is the expected receipt of our
final regulatory approval for the Lost Creek Project. Project
construction will follow with a six to nine month build-out period
planned. If all goes according to schedule, Ur-Energy will become a
uranium production company with initial production derived from
Lost Creek during the first half of 2013. The Company looks to
continue its efforts to systematically expand the minable resources
that will be accessible to the Lost Creek processing plant. This
objective will be achieved through our ongoing exploration drilling
and property acquisition strategies. Related, we will be releasing
an updated Preliminary Economic Assessment which incorporates the
recently announced expanded resources at the Lost Creek Property.
Ur-Energy will also continue to target growth in our production
profile. The Company holds significant land and resource positions
outside of our flagship property that will be closely reviewed for
their development potential. The Company is looking to expand its
US exploration activities into western Nebraska, having previously
secured private leases on approximately 35,000 non-contiguous acres
(14,164 hectares). Closing Remarks With the fundamental building
blocks of growth in place, I believe that Ur-Energy will be
producing a steady stream of positive accomplishments in 2012. The
Company's superb technical and support team, our solid financial
condition, the robust Lost Creek Project, and the potential to
expand our mineral resources on the Lost Creek Property and
elsewhere will enable us to continue moving steadily ahead with the
growth of the Company. Finally, I would like to thank all of our
employees for their continued contributions and dedication in
building this thriving uranium company. It is their time, energy,
thoughts and abilities that have sustained our pace of growth in
2011. Our Management Proxy Circular and other documents relating to
the Ur-Energy Inc. Annual and Special Meeting of Shareholders
scheduled for May 10, 2012 are available on our website,
www.ur-energy.com. As always, we appreciate the support of our
existing shareholders and invite new investors to take a look at
Ur-Energy. Building shareholder value is our highest priority. Stay
informed about Ur-Energy in 2012 by visiting our website at
www.ur-energy.com. Contact us by emailing info@ur-energy.com or
calling +1-866-981-4588. On Behalf of the Board, Wayne W. Heili
President and Chief Executive Officer, Director About Ur-Energy
Ur-Energy is a junior uranium company currently completing mine
planning and permitting activities to bring its Lost Creek Wyoming
uranium deposit into production. Permitting also will allow the
construction of a two-million-pounds-per-year in situ uranium
processing facility. Engineering for the process facility is
complete and mine planning is at an advanced stage for the first
two mine units. Ur-Energy engages in the identification,
acquisition and exploration of uranium properties in both Canada
and the United States. Shares of Ur-Energy trade on the Toronto
Stock Exchange under the symbol "URE" and on the NYSE Amex under
the symbol "URG". 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 |
|_______________________________________________________________________________________________________________________________________________________________________________________________________________________________|
|Rich Boberg, Director, IR/PR |Wayne Heili, President and CEO |
|_______________________________________________________________________________________________________________|_______________________________________________________________________________________________________________|
|303-269-7707 |307-265-2373 |
|_______________________________________________________________________________________________________________|_______________________________________________________________________________________________________________|
|866-981-4588 |866-981-4588 |
|_______________________________________________________________________________________________________________|_______________________________________________________________________________________________________________|
|rich.boberg@ur-energyusa.com|wayne.heili@ur-energyusa.com|
|_______________________________________________________________________________________________________________|_______________________________________________________________________________________________________________|
Cautionary Note to U.S. Investors Concerning Resource Estimates
This document uses the terms "measured mineral resource,"
"indicated mineral resource" and "inferred mineral resource." The
Company advises US investors that while these terms are recognized
and required by Canadian regulations, the United States Securities
and Exchange Commission (SEC) does not recognize them. US investors
are cautioned not to assume that any part or all of the mineral
deposits in these categories will ever be converted into mineral
reserves. "Inferred mineral resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their legal and economic feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. US Investors are
cautioned not to assume that all or any part of an inferred mineral
resource exists or is economically minable. Cautionary Note
Regarding Forward-Looking Information This document contains
"forward-looking statements" within the meaning of applicable
securities laws regarding events or conditions that may occur in
the future (e.g., the receipt and relative timing of the final
regulatory authorizations from the BLM, and related timing for
construction and operations; the technical and economic viability
of the Lost Creek Project; whether the uranium market will remain
bullish; the further development of the resources on the Lost Creek
Property;) 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; changes in exchange rates; fluctuations in
commodity prices; delays in development and other factors. 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. (1) Cautionary statement pursuant to NI 43-101: the
Preliminary Economic Assessment is preliminary in nature, and
includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. The estimated mineral recovery used in this PEA is based
on site-specific laboratory recovery data as well as Company
personnel and industry experience at similar facilities. There can
be no assurance that recovery at this level will be achieved.
SOURCE Ur-Energy Inc. Ur-Energy Inc. CONTACT:
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