LITTLETON, Colo., April 26, 2012 /PRNewswire/ -- Ur-Energy
Inc. (TSX:URE, NYSE Amex:URG) ("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:
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.
- 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.