Jun 19 2015
Ur-Energy Inc. ("Ur-Energy" or the "Company") is pleased to announce the completion of an independent Technical Report ("Report") for its Lost Creek Property in Sweetwater County, Wyoming, which confirms the increase in mineral resources previously announced, see News Release May 6, 2015. The Report serves to replace the most recent Preliminary Economic Assessment for the Lost Creek Property dated December 30, 2013 (the "2013 PEA").
The purpose of this Report is to update the resource base of the Lost Creek Property with data through March 31, 2015. Included in this disclosure is an increase to the Measured Resources of the Company's operating Mine Unit 1 (MU1). Due to the assessment of drill hole data obtained from recently completed wellfield installation within MU1, 2.308 million pounds of Measured Resources were added to the earlier resource total for MU1 (for a 95% increase to the last reported resource estimate). Experience gained from the higher uranium recoveries during production operations was also factored into this assessment, resulting in lowering the uranium grade X thickness (GT) cut-off used in resource estimation from 0.30 to 0.20. An adjustment to the new mineral resource figure was then made because of the production of approximately 979,000 pounds of uranium from MU1, through March 31, 2015. After taking into consideration the pounds produced, the current Measured Resource for MU1 increased by 1.329 million pounds to a revised total of 3.757 million pounds, a 55% increase to the last reported MU1 resource in the 2013 PEA. This production reconciliation is the only difference in the resources between the Report and an earlier disclosure in the May 6, 2015 news release.
In addition, using this new GT cut-off, 121,000 pounds of Measured and Indicated Resources, along with 296,000 pounds of Inferred Resources were delineated in the Lost Creek Project by exploratory drilling in Q1 2015, adjacent and immediately south of MU1. The exploration drilling program was temporarily suspended, and will recommence in July 2015.
This independent Report for the Lost Creek Property has been prepared for Ur-Energy and its subsidiary, Lost Creek ISR, LLC, by TREC, Inc. (TREC) and Roughstock Mining Services, LLC (Roughstock), in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). Completion of this Report was under the supervision of Mr. Douglass H. Graves, P.E, representing TREC, and Mr. Steve Cutler, C.P.G. (American Institute of Professional Geologists), of Roughstock, a subcontractor to TREC, Inc. Both individuals are independent Qualified Persons as defined by NI 43-101.
The majority of resources within the Lost Creek Property remain as previously estimated using the original 0.30 GT cut-off. Ur-Energy plans to update the other resources within the Lost Creek Property in the near future using the new 0.20 GT cut-off. As well, an updated economic evaluation of the Property, addressing increased resources and an expected longer life of mine, will be completed following the comprehensive resource update. Therefore, the economic assessment of the Property in the Report remains, for now, the same as set forth in the Lost Creek 2013 PEA based upon the mineral resources then identified.
The full report titled "Technical Report for the Lost Creek Property, Sweetwater County, Wyoming" dated June 17, 2015, is available on the Company's profile on SEDAR (www.sedar.com) and is also available on the Company's website at www.ur-energy.com. Messrs. Graves and Cutler, independent qualified persons for the Report, have reviewed and approved the technical disclosure contained in this news release.