LITTLETON, Colo., April 13, 2017 /PRNewswire/ -- Ur-Energy
Inc. (NYSE MKT:URG, TSX:URE)(the "Company" or "Ur-Energy") is
pleased to provide the following operational results for first
quarter 2017.
Highlights
Lost
Creek Operations
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Units
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2017 Q1
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2016 Q4
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|
|
|
|
|
U3O8 Captured
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('000
lbs)
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79.3
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|
103.6
|
U3O8 Dried &
Drummed
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('000
lbs)
|
74.4
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|
111.1
|
U3O8 Sold (from
production)
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('000
lbs)
|
50.0
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|
100.0
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|
|
|
|
|
Average Flow
Rate
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(gpm)
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2,403
|
|
2,559
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U3O8 Head Grade
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(mg/l)
|
32
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|
39
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Lost Creek Uranium Production and Sales
For the
quarter, 79,340 pounds of U3O8 were captured
within the Lost Creek plant. 74,382 pounds of
U3O8 were packaged in drums and 72,643 pounds
of U3O8 drummed inventory were shipped out of the Lost Creek
processing plant. At March 31, 2017,
inventory at the conversion facility was approximately 113,528
pounds U3O8. During the quarter, sales
totaled $14.8 million on contract
sales of 250,000 pounds at an average price of $59.28 per pound, or 145% above the average spot
price for the same period of $24.17
per pound. In addition to the 50,000 pounds of Lost Creek
production, we purchased 200,000 pounds at an average cost of
$20.08 per pound, and delivered a
total of 250,000 pounds into our contractual commitments.
Production rates at Lost Creek during the quarter were in line
with guidance. These rates were achieved despite extreme winter
conditions in Wyoming, which
prevented routine operations for many days during the period.
Notwithstanding the weather and site conditions, we achieved
average flow rates during the first quarter of 2017 that exceeded
the average for all of 2016, which was 2,274 gpm. We also
successfully commenced operations of our Class V water disposal and
recycling circuit.
Vice President Operations, Steve
Hatten, noted that "Lost Creek continues to outperform our
expectations. We recognize that we have a unique and very special
deposit here – with production remaining at approximately 25,000
pounds per month, even after being in production for three and a
half years and providing more than two million pounds of shipped
material. We look forward to completion of the current development
work, which will enable us to begin production from the first three
header houses of Mine Unit 2."
Following the end of the quarter, we recognized a safety
milestone, as 12 months have passed with no lost-time
accidents. This achievement speaks highly of the commitment
and diligence of our Lost Creek team.
As previously disclosed, we implemented a further reduction in
force during the quarter, with a total of eight lay-offs occurring
from our three locations (Lost Creek, Casper and Littleton offices). The reduction was
primarily focused on those departments not directly related to
production. The estimated reduction in labor costs attributable to
this action will be approximately $0.8
million per year.
Continuing Guidance for 2017
We expect to have
contract sales of 241,000 pounds U3O8 in 2017
Q2 at an average price of $49 per
pound. We plan to purchase 210,000 of those pounds at an average
cost of $23 per pound. The balance
will be delivered from Lost Creek production. The 2017 Q2
production target for Lost Creek is between 60,000 and 75,000
pounds dried and drummed. Our production rate may be adjusted based
on continuing operational matters and other indicators in the
market.
Following advance purchasing and planning activities in March,
drilling and other construction work to develop the first three
header houses in Mine Unit 2 ("MU2") commenced in early April. We
expect to bring the first MU2 header house on line in 2017 Q3.
We will provide further guidance for the upcoming quarter and
year in our Form 10-Q, which is currently anticipated to be filed
on Friday, May 5, 2017.
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 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
Jeffrey Klenda, Chair
and CEO
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866-981-4588
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Jeff.Klenda@ur-energy.com
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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 first MU2 header houses online; the ability to meet
production targets for second quarter 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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visit:http://www.prnewswire.com/news-releases/ur-energy-provides-2017-q1-operational-results-300439201.html
SOURCE Ur-Energy Inc.