LITTLETON, Colo., July 10, 2015 /PRNewswire/ -- Ur-Energy
Inc. (NYSE MKT:URG, TSX:URE) (the "Company" or "Ur-Energy")
provides the following report of operational results for second
quarter 2015, which includes having drummed and shipped the one
millionth pound of U3O8 from Lost Creek
Project during the quarter.
Highlights
Lost Creek
Operations
|
|
Units
|
2015 Q1
|
|
2015 Q2
|
|
2015 YTD
|
|
|
|
|
|
|
|
U3O8 Captured
|
('000
lbs)
|
192.3
|
|
207.3
|
|
399.6
|
U3O8 Dried &
Drummed
|
('000
lbs)
|
177.1
|
|
183.9
|
|
360.9
|
U3O8 Sold (from
production)
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('000
lbs)
|
146.0
|
|
204.0
|
|
350.0
|
|
|
|
|
|
|
|
Average Flow
Rate
|
(gpm)
|
1,681
|
|
1,840
|
|
1,761
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U3O8 Head Grade
|
(mg/l)
|
110
|
|
108
|
|
109
|
Lost Creek Uranium Production and Sales
In addition to making sales into its term contractual
commitments for the seventh consecutive quarter, Lost Creek made
its first sale into the spot market of 70,000 pounds in June.
Together, contract and spot sales from U3O8
produced at Lost Creek totaled 204,000 pounds at an average price
of $31.21 per pound for sales
revenues of $6.37 million. The
Company also accelerated, from September to April, the delivery of
200,000 pounds at a price of $59.94. To fulfill the delivery, we
purchased 200,000 pounds from a trader at the then-current spot
price, which generated net cash proceeds of approximately
$4.0 million. In total,
product sales for the quarter totaled 404,000 pounds at an average
sales price of $45.08 per pound.
Captured pounds and production flow both continued to increase
quarter-over-quarter. Production was sourced from nine header
houses in the first mine unit for much of the quarter with header
house 10 being brought on line in mid-June. All the initially
planned wells in the first mine unit ("MU1") have been installed
and surface construction of the eleventh header house is under way.
Plant head grades continue to be significantly higher than
originally projected. For the quarter, 207,269 pounds of
U3O8 were captured within the Lost Creek
plant; 183,858 pounds
of U3O8 were packaged in drums;
and 179,672 pounds
of U3O8 of drummed inventory were
shipped from the Lost Creek processing plant to the converter.
Updated Technical Report and Additional Operational
Highlights
During the quarter, the Company's geology and exploration teams
completed their work on an updated mineral resource for MU1 at Lost
Creek, with recognition that a lower grade-thickness (GT) cutoff
was appropriate. The updated mineral resource estimate also
included resources estimated from results of the exploration drill
program initiated south of the production area earlier this year
(see Company news release May 6,
2015). That mineral resource update was then confirmed in an
NI 43-101 Technical Report issued on June
17, 2015. We anticipate completing the remaining 60 holes of
the 150-hole program during third quarter.
Continuing Guidance for 2015
The Q3 2015 production target for Lost Creek is 210,000 pounds
of U3O8 dried and drummed. Our
production rate may be adjusted based on 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. Shirley Basin, our
newest project, is one of the Pathfinder Mines assets we acquired
in 2013. Baseline studies necessary for permitting and licensing of
the project are currently being advanced. 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
Rich Boberg, Senior
Director IR/PR
|
|
Jeffrey Klenda,
Executive Director, Acting CEO
|
866-981-4588
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|
866-981-4588
|
Rich.Boberg@ur-energy.com
|
|
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., future
results of operational activities at the Lost Creek facility;
ability to meet production targets for third quarter) 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.