Ur-Energy Confirms Increase in Resources and Updates Lost Creek Property Economics
April 28 2012 - 6:35PM
PR Newswire (Canada)
LITTLETON, Colo., April 30, 2012 /CNW/ - Ur-Energy Inc.
("Ur-Energy" or the "Company") is pleased to announce that it has
issued an updated Preliminary Economic Assessment (PEA) for the
Lost Creek Property (the "Property"). This assessment confirms the
45% increase in the Measured and Indicated mineral resources for
the Property announced on April 4, 2012, which is the result of
recent acquisition of lands immediately adjacent to the Lost Creek
Project. (Logo:
http://photos.prnewswire.com/prnh/20110913/LA67628LOGO) Ur-Energy
generated this PEA in accordance with Canadian NI 43-101 Standards
of Disclosure for Mineral Projects (NI 43-101) to provide an
updated mineral resource estimate for the Lost Creek Property
prompted by recent acquisition of adjacent mineral properties. The
new PEA demonstrates the enhanced economic viability of the mineral
resources at the Property. The economic analysis focuses on the
resources within the Lost Creek and LC East Projects due to the
preponderance of data available there. The economic analysis
estimates the Lost Creek Project will generate net earnings over
its life, before income tax, of US$283.0 million from the
production of 7.38 million pounds U3O8. It is estimated that the
Project has a calculated Internal Rate of Return (IRR) of 87% and a
net present value (NPV) of US$181.0 million applying an eight
percent discount rate. The estimated operational cost for the
Project is US$16.12 per pound of uranium produced, while the total
cost of uranium production including all required capital spending
is estimated at US$36.52 per pound. Wayne Heili, President and CEO
of the Company shared "I am extremely pleased with results of
Ur-Energy's latest PEA. Not only have we been able to significantly
expand the mineral resources at the Lost Creek Property, but we
continue to demonstrate its economic viability. Definition of this
Property continues to validate its excellent potential as shown
through continued increases in compliant resources." The April 2012
PEA incorporates all drilling data and analyses of the Company
using the GT contour method, which is well suited for detailed mine
planning and estimates of resources for the type of roll front
mineralization found on the Property. The current mineral resources
are as follows:
_________________________________________________________________________
|Lost Creek Property Mineral Resources as of April 30, 2012 |
|_________________________________________________________________________|
| |MEASURED |INDICATED |INFERRED | |
|_____________________|_____________________|_____________________|
| |AVG |SHORT |POUNDS |AVG |SHORT |POUNDS |AVG |SHORT |POUNDS |
|PROJECT|GRADE|TONS | |GRADE|TONS | |GRADE|TONS | | | | | |(X | |
|(X | | |(X | | |% |(X |1000) |% |(X |1000) |% |(X |1000) | |
|eU3O8|1000) | |eU3O8|1000) | |eU3O8|1000) | |
|_______|_____|_______|_______|_____|_______|_______|_____|_______|_______|
|LOST |0.055|2,692.1|2,942.9|0.058|2,413.8|2,822.4|0.054|937.5
|1,015.7| |CREEK | | | | | | | | | |
|_______|_____|_______|_______|_____|_______|_______|_____|_______|_______|
|LC EAST|0.054|1,158.3|1,255.9|0.043|1,551.3|1,327.0|0.045|910.8
|815.3 |
|_______|_____|_______|_______|_____|_______|_______|_____|_______|_______|
|LC |-----|----- |----- |-----|----- |----- |0.048|413.8 |398.2 |
|NORTH | | | | | | | | | |
|_______|_____|_______|_______|_____|_______|_______|_____|_______|_______|
|LC |-----|----- |----- |-----|----- |----- |0.042|710.0 |602.6 |
|SOUTH | | | | | | | | | |
|_______|_____|_______|_______|_____|_______|_______|_____|_______|_______|
|LC WEST|-----|----- |----- |-----|----- |----- |0.109|17.2 |37.4 |
|_______|_____|_______|_______|_____|_______|_______|_____|_______|_______|
|EN |-----|----- |----- |-----|----- |----- |-----|----- |----- |
|_______|_____|_______|_______|_____|_______|_______|_____|_______|_______|
|GRAND
|0.055|3,850.4|4,198.8|0.053|3,965.1|4,149.4|0.049|2,989.2|2,869.1|
|TOTAL | | | | | | | | | |
|_______|_____|_______|_______|_____|_______|_______|_____|_______|_______|
| | | |MEASURED + |7,815.5|8,348.2| | | | | | | |INDICATED = | | |
| | |
|_______|_____|_______|_____________|_______|_______|_____|_______|_______|
Notes: 1. Sum of Measured and Indicated tons and pounds may not add
to the reported total due to rounding. 2. Mineral resources that
are not mineral reserves do not have demonstrated economic
viability. 3. Based on grade cutoff of 0.02 percent eU3O8 and a
grade x thickness cutoff of 0.30 GT. 4. Typical ISR industry
practice is to apply a GT cutoff in the range of 0.30 which has
generally been determined to be an economical cutoff value. This
0.30 GT cutoff was used in this evaluation without direct relation
to an associated price. 5. Measured, Indicated, and Inferred
Mineral Resources as defined in Section 1.2 of NI 43-101 the CIM
Definition Standards (CIM Council, 2010). 6. The Total Average
Grade for each category is a weighted average of each of the
Projects. The Lost Creek Property is located approximately 90 miles
southwest of Casper, Wyoming. It consists of six contiguous Project
areas: Lost Creek, LC East, LC North, LC South, LC West, and EN.
Including the recent additions to the land position, the Company
now controls approximately 43,500 acres of federal mining claims
and State of Wyoming Leases as shown here. (Photo:
http://photos.prnewswire.com/prnh/20120430/LA97934) Ur-Energy is
currently advancing the Lost Creek Project through the permitting
process. To date, the U.S. Nuclear Regulatory Commission and the
Wyoming Department of Environmental Quality have granted approval
for the Project. The U.S. Bureau of Land Management (BLM) is
continuing its review with an anticipated completion date in the
summer of 2012. The Company plans to begin construction at the Lost
Creek Project during the summer of 2012 followed by production in
the spring of 2013. The LC East resources are also anticipated to
provide production feed to the Lost Creek facility following
further delineation and successful permitting. Cautionary
statement: this 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 Preliminary
Economic Assessment is based on site-specific laboratory recovery
data as well as URE personnel and industry experience at similar
facilities. There can be no assurance that recovery at this level
will be achieved. The full report titled "Preliminary Economic
Assessment of the Lost Creek Property, Sweetwater County, Wyoming,"
dated April 30, 2012 is available on the Company's profile on SEDAR
(www.sedar.com) and on EDGAR (http://www.sec.gov/edgar.shtml). The
PEA is also available on the Company's website at
www.ur-energy.com. This technical report supersedes the February
29, 2012 "Preliminary Economic Assessment of the Lost Creek
Property, Sweetwater County, Wyoming". John Cooper, Ur-Energy
Project Geologist, P.Geo. and SME Registered Member, and a
Qualified Person as defined by NI 43-101, and Catherine Bull,
Ur-Energy Project Engineer, Wyoming P.E., and a Qualified Person as
defined by NI 43-101, have reviewed and approved the technical
disclosure contained in this news release. Mr. Cooper has verified
the sampling, analytical and test data underlying the mineral
resource estimate disclosed in this news release. 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. Investor Concerning Resource Estimates This
press release uses the terms "measured mineral resource",
"indicated mineral resource" and "inferred mineral resource." The
Company advises U.S. investors that while these terms are
recognized and required Canadian regulations, the United States
Securities and Exchange Commission (SEC) does not recognize them.
U.S. 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. U.S. 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 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., the technical and economic viability of the Lost
Creek Project; the further development of the resources to be a
part of the production at the Lost Creek mine; the potential to
develop additional resources on the Lost Creek Property; and, the
receipt and related timing of the final approval from the BLM and
associated timing for the commencement of construction and
production at Lost Creek) 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. Reader 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. SOURCE Ur-Energy Inc. Ur-Energy Inc. CONTACT:
http://www.ur-energy.comhttp://photos.prnewswire.com/prnh/20110913/LA67628LOGOhttp://photos.prnewswire.com/prnh/20120430/LA97934AP
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