LITTLETON, Colo., April 23, 2020 /PRNewswire/ -- Ur-Energy
Inc. (NYSE American:URG) (TSX:URE) ("Ur-Energy") is pleased to
announce that the United States Nuclear Fuel Working Group
("NFWG") established by President Trump released its report today
detailing the steps required to revitalize the domestic uranium
mining and broader nuclear industries.
In January 2018, the two
legitimate remaining U.S. domestic uranium producers, Ur-Energy
USA Inc. and Energy Fuels
Resources (USA) Inc., filed a
Section 232 Petition with the Department of Commerce seeking an
investigation into the impact of uranium imports on national
security. As a direct result of the ensuing investigation, in
July 2019, President Trump took
action to establish the NFWG to "examine the current state of
domestic nuclear fuel production to reinvigorate the entire nuclear
fuel supply chain. . .." The most relevant recommendations in the
report for the uranium mining sector are:
- Beginning in 2020, the U.S. government should make direct
purchases of 17 to 19 million total pounds of
U3O8 to establish a uranium reserve. These
purchases would provide direct support to the front end of the fuel
cycle and help re-establish our nation's critical
capabilities.
- As included in the President's Fiscal Year 2021 Budget Request,
during the first year, it is expected that the reserve would
directly support the operation of at least two U.S. uranium mines
and the reestablishment of active domestic conversion
capabilities.
- Restart the U.S.'s sole conversion plant beginning no later
than 2022 and produce 6,000 to 7,500 tons of UF6.
- Restart domestic enrichment in the 2023 timeframe with at least
25% of material being unobligated. By law, unobligated material
must be sourced domestically.
- Support the Department of Commerce's efforts to extend the
Russian Suspension Agreement to protect against future uranium
dumping. The government should consider lowering the cap on
Russian imports.
- Create a level playing field for all energy sources in power
markets and encourage FERC to improve competition in the wholesale
energy markets.
- Enable the NRC to deny imports of nuclear fuel fabricated in
Russia or China for national security purposes.
Ur-Energy's Chairman and CEO Jeff
Klenda stated, "We are grateful for the President's
leadership on this matter and are excited to see the results of the
NFWG's holistic review of the entire industry. As the NFWG's
recommendations are implemented, we will enjoy a revitalized
nuclear industry and, consequently, a reduced reliance on nuclear
imports from our nation's geostrategic rivals. While awaiting
today's report, we have maintained operational readiness at our
fully-permitted Lost Creek Mine with experienced technical and
operational staff and a well-maintained plant. More than six and a
half years into production at Lost Creek, we are still producing in
the first mine unit and the initial three header houses of the
second mine unit. Ur-Energy is prepared to rapidly expand uranium
production at Lost Creek, to an annualized runrate of one million
pounds. And, soon we will add production from our Shirley
Basin Mine."
As discussed in our operational update from April 20, 2020, Ur-Energy continues production
operations at its Lost Creek uranium in-situ recovery project in
south-central Wyoming. At this
time, the COVID-19 pandemic has caused no interruption of our
production operations at Lost Creek. We have taken additional
safety precautions as directed by the government and health
officials, and are able to report that our workforce remains
healthy. The Lost Creek facility has the constructed and licensed
capacity to produce up to two million pounds of
U3O8 per year and the previously-reported
mineral resources to feed the processing plant for many years to
come. A ramp-up of production at Lost Creek will continue with
further development in the fully-permitted first two mine units,
where there are an estimated 4.3 million pounds
U3O8 (Measured (2.9Mlbs) and
Indicated (1.4Mlbs) categories) remaining, and thereafter into
ten additional mining areas as defined in the Lost Creek Property
Preliminary Economic Assessment, as amended, which together hold an
added 7.13 million pounds Measured (3.68Mlbs) and Indicated
(3.46Mlbs) U3O8 and 3.9 million pounds
U3O8 characterized as Inferred.
With future development and construction in mind, our current
staff members were retained as having the greatest level of
experience and adaptability allowing for an easier transition back
to full operations. Lost Creek operations can increase to full
production rates in as little as six months following a go
decision, simply by developing additional header houses within the
fully permitted MU2. Development expenses during this time are
estimated to be approximately $14
million and are almost entirely related to MU2 drilling and
header house construction costs. Lost Creek does not require any
significant capital expenditures in order to increase production.
After the initial development expenditures, revenues from new
appropriately-priced contracts should cover further development
activities. The Lost Creek plant has been routinely maintained to
be fully ready to receive additional flows for increased production
when warranted. This operating strategy will allow us to control
production costs, minimize development expenditures, maximize cash
flows and maintain the operational flexibility to respond to market
conditions. We are therefore better positioned, with lower ramp-up
costs – and less associated dilution – than other uranium recovery
operators or the build-out stories which are prevalent in our
depressed market.
Our Shirley Basin project, with
certain licenses and authorizations in place and all others
expected by mid-summer 2020, has a reported mineral resource of
nearly 9 million pounds U3O8 in Measured (7.5Mlbs) and
Indicated (1.3Mlbs) categories, as set forth in the Shirley Basin
Preliminary Economic Assessment.
As we are able to further review the report and learn specifics
about implementation, we will provide additional updates as
appropriate.
NI 43-101 Review of Technical Information: Michael Mellin, Ur-Energy Lost Creek Mine
Geologist, P.Geo. and Qualified Person as defined by NI 43-101,
reviewed and approved the technical information contained in this
news release.
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 2.6 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 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 & CEO
866-981-4588
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., the timing for implementation of the recommendations
in the NFWG report and whether the initial understandings set forth
here are fully accurate; determination of future
development and construction priorities at Lost Creek and beyond;
the ability to readily and rapidly ramp-up production operations at
Lost Creek; timing for the receipt of remaining regulatory
authorizations for Shirley Basin,
and to commence operations at the site; whether our cost
projections for ramp up activities at both sites are correct, and
whether we will bear such costs with low associated dilution; the
technical and economic viability of Lost Creek and Shirley Basin as set forth in their respective
preliminary economic assessments, including the estimates of
mineral resources at each project; and the outcome of the budget
appropriations process related to the establishment of the national
uranium reserve) 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 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/presidents-us-nuclear-fuel-working-group-releases-plan-to-revitalize-the-domestic-uranium-mining-industry-301046376.html
SOURCE Ur-Energy Inc.