LITTLETON, Colo., Jan. 11, 2018 /CNW/ -- Ur-Energy Inc.
(NYSE American:URG, TSX:URE)(the "Company" or "Ur-Energy") is
pleased to provide the following operational results for fourth
quarter 2017, and to announce a webcast regarding 2017 Operational
Results and current events in the uranium industry, to be held on
Friday, January 19, 2018, at
9:00 a.m. MT / 11:00 a.m. ET.
Highlights
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Lost Creek
Operations
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Units
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2017
Q1
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2017
Q2
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2017
Q3
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2017
Q4
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2017
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|
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|
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U3O8 Captured
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('000
lbs)
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79.3
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65.3
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52.8
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68.0
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265.4
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U3O8 Dried &
Drummed
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('000
lbs)
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74.4
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70.8
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48.3
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60.5
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254.0
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U3O8 Sold (from production)
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('000
lbs)
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50.0
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31.0
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180.0
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0.0
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261.0
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U3O8 Sold (from purchased
lbs)
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('000
lbs)
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200.0
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210.0
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109.0
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0.0
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519.0
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Average Flow
Rate
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(gpm)
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2,403
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2,378
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2,188
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2,244
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2,302
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U3O8 Head Grade
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(mg/l)
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32
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27
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23
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29
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|
28
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Lost Creek Uranium Production and Sales
For the
quarter, 67,982 pounds of U3O8 were captured
within the Lost Creek plant, 60,461 pounds of
U3O8 were packaged in drums and 73,367 pounds
of U3O8 drummed inventory were shipped out of
the Lost Creek processing plant. At December
31, 2017, inventory at the conversion facility was
approximately 94,077 pounds U3O8.
In 2017, sales totaled $38.3
million from 780,000 pounds sold. Our overall price per
pound sold averaged $49.09. There
were no spot sales during the year. A total of 261,000 pounds were
sold from Lost Creek production. Additionally, we delivered 519,000
purchased pounds into contractual obligations. Purchases for these
deliveries averaged $21.35 per
pound.
Lost Creek Production Operations in Mine Unit 1 and
Development of Mine Unit 2
Lost Creek celebrated its fourth
anniversary of operations in August. At year-end 2017, we have
captured approximately 2.4 million pounds
U3O8 and have delivered approximately 2.2
million pounds of Lost Creek production to our customers. At this
time, our first mine unit ("MU1") has recovered nearly 89% of the
estimated under-pattern resource, based upon the revised and
updated Lost Creek Preliminary Economic Assessment (as amended,
February 2016, the "PEA"). This is
compared to an accepted industry standard of 70% to 80% recovery of
under-pattern resource. As well, project economics in the PEA were
based on an 80% recovery.
Drilling and other construction work to develop the first three
header houses in Mine Unit 2 ("MU2") commenced in early
April 2017, allowing us to bring the
first header house online in late August. Operations in the second
header house in MU2 are expected to commence this week; we
anticipate the third header house will come online in Q1 2018. We
are pleased to report that to date MU2 has exhibited similar
production characteristics to MU1. In addition, operational
modifications have allowed for higher sustained production flows
supporting efficient future wellfield operations as well as optimum
recovery rates.
Our Class V water system worked well throughout its first year
of operations. This system is the first of its kind at an ISR
uranium facility, having received all permitting and other
authorizations at year-end 2016. Allowing for onsite disposal of
fresh permeate (i.e., clean water) into shallow Class V
wells, this system also permits us to recycle significant amounts
of what would normally be considered waste water. Ultimately, the
system reduces injection requirements in our Class I deep disposal
wells and extends the life of those very valuable assets.
Guidance for 2018
For 2018, we expect to deliver
470,000 pounds into our term contracts at an average price of
approximately $49 per pound. We
have scheduled 370,000 pounds to be delivered in Q1 2018. We will
provide further guidance for 2018 production and other operational
matters in our Annual Report on Form 10-K, which is currently
anticipated to be filed on Friday, March 2,
2018.
January 19, 2018
Webcast
A webcast and teleconference will be held on
Friday, January 19, 2018 at
9:00 a.m. (MT) / 11:00 a.m. (ET) to provide an operational update
and discuss current events in the uranium industry. A Q&A
session will follow the presentation. Those wishing to participate
by phone can do so by calling:
US Toll-free
Number
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1-877-226-2859
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Canada Toll-free
Number
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1-855-669-9657
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International
Number
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1-412-542-4134
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Ask to be joined into the Ur-Energy call.
The call is being webcast by PR Newswire. The webcast can be
accessed 10 minutes prior to the call. Pre-registration and
participation access is available by clicking here or by copying
the following URL into your web browser:
https://www.webcaster4.com/Webcast/Page/1186/24157.
If you are unable to join the call, a link will be available
following the webcast on the Company's website
www.ur-energy.com.
About Ur-Energy
Ur-Energy is a uranium mining company
operating the Lost Creek in-situ recovery uranium facility
in south-central Wyoming. We have
produced, packaged and shipped more than two million pounds from
Lost Creek since the commencement of operations. Applications are
under review by various agencies to incorporate our LC East project
area into the Lost Creek permits, and 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 American under the symbol "URG" and on
the Toronto Stock Exchange under the symbol "URE." Ur-Energy's
corporate office is 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 CEO
+1 720-981-4588
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; timing
to bring the additional header houses in MU2 online; whether MU2
production results will compare with those in MU1 at Lost Creek;
and whether adjustments of production rates will be necessary or
appropriate) 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, fluctuations in
commodity prices; capital and other costs varying significantly
from estimates; failure to establish estimated resources and
reserves; the grade and recovery of uranium 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;
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.