Welcome!

News Feed Item

Ur-Energy Provides 2013 Operational Results

LITTLETON, Colo., Jan. 31, 2014 /PRNewswire/ -- Ur-Energy Inc. (TSX:URE, NYSE MKT:URG)  ("Ur-Energy" or the "Company") is pleased to report operational results for the fourth quarter and for the year ended December 31, 2013.  Major highlights include the following:

  • Completed construction and initiated production at the Lost Creek Project;
  • Drummed and sold first uranium product;
  • High production grades exceed expectations;
  • Lost Creek Property resource updated;
  • Lost Creek Preliminary Economic Assessment updated;
  • Closed $34 million Wyoming state bond loan;
  • Acquired Pathfinder Mines Corporation;
  • Closed $5 million private placement, and closed $5 million loan facility redraw.

(Logo:  http://photos.prnewswire.com/prnh/20110913/LA67628LOGO)

Operational Highlights for Lost Creek



Quarter

Full Year



2013

Q3

2013

Q4

2013






U3O8 Captured

('000 lbs)

49.2

141.2

190.4

U3O8 Dried & Drummed

('000 lbs)

Nil

131.2

131.2

U3O8 Sold

('000 lbs)

Nil

90.0

90.0






Average Flow Rate

(gpm)

1,114

694

860

U3O8 Head Grade

(mg/l)

65

211

145

Average U3O8 Daily Production

(lbs/day)

820

1,535

1,252

Ur-Energy Chief Executive Officer Wayne Heili stated, "We have achieved significant progress toward our strategy of growing the Company through production and resource base expansion.  By executing on our plan we have demonstrated the commercial potential of the Lost Creek production facilities while increasing the resources held by the Company at Lost Creek and elsewhere.  With these objectives met, Ur-Energy looks forward to continued growth in 2014."

Uranium Production

The Company completed construction of an innovative state-of-the-art in-situ uranium recovery facility at the Lost Creek Project.  Uranium production activities were initiated in August after receiving operational clearance from the U.S. Nuclear Regulatory Commission.  In September, the daily recovery rate surpassed 2,200 pounds of U3O8 at a flow rate of 1,800 gallons per minute.  The production flow was sourced from three header houses in the first mine unit.  The production head grade exceeded technical projections by reaching levels above 200 mg/l U3O8 in early October.  The production flow rate was reduced and controlled at a substantially lower level to effectively manage the rate of product being delivered to the plant while the new plant and water management systems continued to be commissioned.  At year end, the daily production generated from the well field operations equaled 2,700 pounds U3O8 per day derived from approximately 830 gallons per minute of production at a grade of 270 mg/l U3O8.  While initial grades and production rates have significantly exceeded expectations and provide a positive indicator for future production at the project, it remains too soon to determine if these results are sustainable in the long term.  The Company will provide further production guidance concurrent with the release of its first quarter 2014 results.

In early December 2013, the first drums of finished yellowcake product were shipped from Lost Creek and later that month the Company recorded its first uranium sales.  Dried and drummed production from the Project totaled approximately 131,200 pounds of U3O8 in 2013, with 90,000 of the pounds being sold to our customers at an average price of approximately $63 per pound.

Exploration and Evaluation

Substantial new geologic data was gathered during the installation of Lost Creek's first mine unit and by means of a limited exploration program on the Lost Creek Property.  As a result, the estimated mineral resource for the Lost Creek Property was updated in November 2013.  The following table summarizes the current resource and the percentage change from the April 2012 estimate.

November 2013

Resource

Average Grade

Short Tons

Pounds

Increase(Decrease) from April 2012

Category

(% eU3O8)

(X 1000)

(millions)

(%)






Measured

0.057

4,292

4.85

16

Indicated

0.048

4,039

3.81

(8)

Inferred

0.051

4,718

4.74

65

Following the announcement of the updated resource estimate, the preliminary economic assessment was updated in December 2013.  The analysis estimates the Lost Creek Project will generate net cash flow over its life, before income tax, of $319.7 million with an internal rate of return of 74.5% and a net present value of $198.3 million applying an eight percent discount rate.  The Preliminary Economic Assessment of The Lost Creek Property, Sweetwater County, Wyoming, December 30, 2013 may be accessed at http://www.ur-energy.com/technical-reports/.

Financing and Acquisition Activity

In October 2013, the $34 million Wyoming taxable industrial development revenue bond loan was closed.  The proceeds of the bond loan were used to repay Lost Creek construction debts held by our commercial bankers, RMB Australia Holdings ("RMBAH").  The Wyoming bond loan includes the following terms:  four quarterly interest only payments commencing January 1, 2014 at a fixed rate of 5.75% per annum and 28 quarterly principal and interest payments commencing January 1, 2015.  The loan is secured by the Lost Creek assets.

In December 2013, Pathfinder Mines Corporation was acquired under revised terms for cash consideration of approximately $6.6 million, of which $1.3 million had been previously paid in 2012, and a 5% gross royalty capped at $6.6 million.  At certain uranium prices, the royalty cap may be reduced to $3.7 million or eliminated altogether.  Pathfinder's core assets include the Shirley Basin property, the Lucky Mc property, a substantial data package covering a variety of properties in multiple states and a licensed and operating 11e.(2) by-product disposal facility.  The Company is anxious to integrate the Pathfinder assets into its portfolio.  Operation of the by-product disposal facility has already been assumed by the Company.  A technical report of the Shirley Basin property resources has also been initiated.  The resource estimate is anticipated to be completed in Q3 2014.

To facilitate the acquisition of Pathfinder, the Company completed a $5.1 million equity private placement with certain accredited investors and a $5.0 million redraw of an existing loan facility with RMBAH.  The redrawn loan facility includes the following terms:  scheduled repayments commencing March 31, 2014 at the rate of $1.25 million per quarter plus interest at the rate of LIBOR plus 7.5% per annum.  The loan facility is secured by the Pathfinder assets.

About Ur-Energy

Ur-Energy is a junior 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 capacity.  Ur-Energy engages in the identification, acquisition, exploration development, and operation of uranium projects in the United States and Canada.  Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol "URE" and on the NYSE MKT under the symbol "URG".  All currency figures in this announcement are in US dollars unless otherwise stated.  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

[email protected]            


[email protected]

Cautionary Note to U.S. Investors Concerning Resource Estimates

This press release 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.  Moreover, the SEC normally only permits issuers to report mineralization that does not constitute SEC compliant "reserves" as in-place tonnage and grade without reference to unit measures.  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 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 projected cash flow and internal rate of return for the Lost Creek Project and anticipated completion of a technical report on the Shirley Basin 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 described in the public filings made by the Company at sedar.com and 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.

SOURCE Ur-Energy Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...