Ur-Energy Stock

 

Chart for

 

Chart for

Search Ur-Energy.com
Friday
Apr272012

Ur-Energy Reports First Quarter 2012 Results

Littleton, Colorado (PR Newswire – April 27, 2012) Ur-Energy Inc. (TSX:URE, NYSE Amex:URG)  (“Ur-Energy” or the “Company”) announces it has filed the Company’s Unaudited Interim Consolidated Financial Statements and Management’s Discussion & Analysis, for the period ended March 31, 2012, with Canadian securities authorities on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at http://www.sec.gov/edgar.shtml.  These filings may also be accessed on the Company’s website at www.ur-energy.com

About Ur-Energy

Ur-Energy is a junior uranium company currently completing mine planning and permitting activities to bring its Lost Creek Wyoming uranium deposit into production.  Permitting also will allow the construction of a two-million-pounds-per-year in situ uranium processing facility. Engineering for the process facility is complete and mine planning is at an advanced stage for the first two mine units. Ur-Energy engages in the identification, acquisition and exploration of uranium properties in both Canada and the United States. Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE Amex under the symbol “URG”. 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

rich.boberg@ur-energyusa.com     

 

wayne.heili@ur-energyusa.com

 

This release may contain “forward-looking statements” within the meaning of applicable securities laws regarding events or conditions that may occur in the future 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. 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.

 

Click here for PDF of this News Release

Thursday
Apr262012

Ur-Energy Issues Year-End Letter to Shareholders

Littleton, Colorado (PR Newswire – April 26, 2012) Ur-Energy Inc. (TSX:URE, NYSE Amex:URG)  (“Ur-Energy” or the “Company”) issued the following letter to shareholders from President and CEO, Wayne W. Heili. 

Dear Shareholder,

I am pleased to present the year-end report for Ur-Energy.  The Board of Directors and our management truly value and appreciate our shareholders’ continued support and confidence in the Company.

In 2011, global events overshadowed the uranium equity markets and the success of individual companies was often overlooked. In this environment, Ur-Energy’s management elected to focus on strengthening our business fundamentals.  The result is a stronger company with an exciting future that is well positioned to capitalize on the growth of the nuclear power industry. I am excited to share with you the highlights of our corporate accomplishments from 2011 and the first quarter of 2012.  On the strength of those accomplishments, I am looking forward to continued success and the completion of several key milestones in 2012.

Accomplishments in 2011 and Early 2012

I expect 2012 to be filled with significant growth developments for Ur-Energy.  Already this year, the Company acquired substantial property interests and mineral rights adjacent to our Lost Creek Property.  Our dynamic technical team has produced significant expansions of the resource estimate for our flagship property.  The Company took measures to fortify our balance sheet during a period of strength in a generally soft market, and we implemented a marketing strategy that effectively secures a future revenue stream in an uncertain market. 

Lost Creek Property

  • Regulatory Advances: The principal focus of the Company continues to be the advancement of the Lost Creek Project to final licensing.  We were pleased to announce the receipt of our Nuclear Regulatory Commission License for the Lost Creek Project in August 2011.  This accomplishment was followed by the receipt of the Wyoming Department of Environmental Quality Permit to Mine in October.  The Company also received from the US Environmental Protection Agency the approval of an aquifer exemption that allows Class-III injection into the mineralized horizon.  We had been granted our Class-I UIC permit for the necessary waste water disposal wells in 2010.  With the successful conclusion of these major permitting actions, the Company now awaits the only remaining authorization required to commence facility construction from the US Bureau of Land Management (BLM).  While the progress of the BLM’s environmental review did not track with the other major licensing actions, steady progress has been made.  Current guidance from the BLM suggests that the Final Environmental Impact Statement and Record of Decision will be issued during the summer of 2012.

  • Uranium Resource Base Increases:  Efforts initiated in 2011 and reported in early 2012 have resulted in a 58% aggregate growth of the Lost Creek Property Measured and Indicated resources from 5.3 Mlbs U3O8 to 8.35 Mlbs U3O8. We have also added over 2.0 Mlbs U3O8 to our Inferred resource inventory. Our work leads us to conclude that there is significant potential for the continued definition of additional resources through exploration on the Lost Creek Property.  The resource growth was realized through our two-pronged approach to demonstrate the scalability of the Lost Creek Property:
  1. Resource Expansion Drilling: We completed a successful drill program in 2011 that allowed our technical team to upgrade the resources defined on the Lost Creek Property. In February 2012, we completed an update to the NI 43-101 Preliminary Economic Assessment (PEA) of the Lost Creek Property. The PEA expanded the Lost Creek Property Measured and Indicated Resource by 11%.  For the first time, we reported resources that are located within our Lost Creek Property holdings but outside of the Lost Creek Project area.  Our LC North and LC South Projects now each have reported Inferred mineral resources.  As a result, the Inferred Resource at the Lost Creek Property increased by 159%.

  2. Property Acquisitions:  In February 2012, the Company acquired approximately 5,250 acres (2,124 hectares) of property adjacent to the Lost Creek Project in an asset exchange with Uranium One Americas.  The acquired property interests, along with 253 newly staked federal mining claims encompassing approximately 4,430 acres (1,792 hectares) were incorporated into the Lost Creek Property, primarily as our new LC East and LC West Projects.  The Company owns an historic database containing over 1,100 drill holes located on these new project areas.  The database has been utilized to estimate the mineral resources for LC East and LC West without incurring drilling expenses.  On April 4, 2012 the Company announced a 45% increase (from the February PEA) in Measured and Indicated Resources along with a 42% increase in Inferred Resources for the Lost Creek Property.
  • Economic Assessment: Our February 2012 update to the PEA for the Lost Creek Property continues to demonstrate that Lost Creek is technically and economically viable.  The PEA estimates direct operating costs of less than $20/lb which places Lost Creek in the lowest quartile of all uranium production facilities.[1]

  • Project Design Engineering: Current indications are that the final BLM authorization will be on hand in time to begin construction in the summer of 2012.  Ur-Energy is prepared to break ground very soon after this final permitting action.  Our technical group has continued to prepare the detailed engineering and design work for the project facilities along with the initial uranium recovery areas.


[1] Cautionary statement pursuant to NI 43-101: the Preliminary Economic Assessment is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The estimated mineral recovery used in this PEA is based on site-specific laboratory recovery data as well as Company personnel and industry experience at similar facilities.  There can be no assurance that recovery at this level will be achieved.

Company Finance

At year’s end the Company had a cash position of approximately C$23 million with which to advance our robust Lost Creek Project.   In February of 2012 we closed a private placement financing in which we raised an additional C$17 million, further solidifying our healthy balance sheet.

Uranium Sales

The global nuclear industry endured considerable public scrutiny in 2011 following the earthquake, catastrophic tsunami and ensuing nuclear emergency in Japan.  The uranium markets were not insulated from the negative effects of the Fukushima reactor crisis and valuable lessons were gained.  The Company undertook a strategic marketing initiative designed to reduce the Company’s exposure to negative turns in uranium pricing due to unforeseen events.  By January of 2012, Ur-Energy had secured several multi-year supply agreements with major North American Nuclear Utilities.  These contracts feature fixed pricing that will readily support the development plans for the Company’s flagship Lost Creek Project.

The spot uranium market has been soft throughout the second half of 2011 and early 2012 but the basic long-term fundamentals of the uranium market remain bullish.  New reactor growth is significantly outpacing retirement of the oldest reactors in the global fleet with a net result being strong growth in the projected future demand for uranium.  With the spot price stabilized between US$50 and US$52 per pound, and term contract prices reported at US$60, the Company’s marketing strategy seeks to effectively balance the economic and strategic benefits of the spot/term price ratio.

A Look Ahead: 2012 

We expect that the year 2012 holds several major milestones for the Company.  The advancement of our flagship project will take center stage with several exciting developments anticipated. Foremost among them is the expected receipt of our final regulatory approval for the Lost Creek Project.  Project construction will follow with a six to nine month build-out period planned.  If all goes according to schedule, Ur-Energy will become a uranium production company with initial production derived from Lost Creek during the first half of 2013. 

The Company looks to continue its efforts to systematically expand the minable resources that will be accessible to the Lost Creek processing plant.  This objective will be achieved through our ongoing exploration drilling and property acquisition strategies.  Related, we will be releasing an updated Preliminary Economic Assessment which incorporates the recently announced expanded resources at the Lost Creek Property.

Ur-Energy will also continue to target growth in our production profile. The Company holds significant land and resource positions outside of our flagship property that will be closely reviewed for their development potential. The Company is looking to expand its US exploration activities into western Nebraska, having previously secured private leases on approximately 35,000 non-contiguous acres (14,164 hectares). 

Closing Remarks

With the fundamental building blocks of growth in place, I believe that Ur-Energy will be producing a steady stream of positive accomplishments in 2012.  The Company’s superb technical and support team, our solid financial condition, the robust Lost Creek Project, and the potential to expand our mineral resources on the Lost Creek Property and elsewhere will enable us to continue moving steadily ahead with the growth of the Company. 

Finally, I would like to thank all of our employees for their continued contributions and dedication in building this thriving uranium company.  It is their time, energy, thoughts and abilities that have sustained our pace of growth in 2011.

Our Management Proxy Circular and other documents relating to the Ur-Energy Inc. Annual and Special Meeting of Shareholders scheduled for May 10, 2012 are available on our website, here.

As always, we appreciate the support of our existing shareholders and invite new investors to take a look at Ur-Energy.  Building shareholder value is our highest priority.  Stay informed about Ur-Energy in 2012 by visiting our website at www.ur-energy.com. Contact us by emailing info@ur-energy.com or calling +1-866-981-4588.

 On Behalf of the Board,

/a/ Wayne W. Heili                     

Wayne W. Heili                                                   

President and Chief Executive Officer, Director           

 

About Ur-Energy

Ur-Energy is a junior uranium company currently completing mine planning and permitting activities to bring its Lost Creek Wyoming uranium deposit into production.  Permitting also will allow the construction of a two-million-pounds-per-year in situ uranium processing facility. Engineering for the process facility is complete and mine planning is at an advanced stage for the first two mine units. Ur-Energy engages in the identification, acquisition and exploration of uranium properties in both Canada and the United States. Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE Amex under the symbol “URG”. 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

rich.boberg@ur-energyusa.com     

 

wayne.heili@ur-energyusa.com

 

Cautionary Note to U.S. Investors Concerning Resource Estimates

This document 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.  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 document contains “forward-looking statements” within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., the receipt and relative timing of the final regulatory authorizations from the BLM, and related timing for construction and operations; the technical and economic viability of the Lost Creek Project; whether the uranium market will remain bullish; the further development of the resources on the Lost Creek 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. 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.

Click here for pdf of this press release

Wednesday
Apr042012

Lost Creek Property Measured & Indicated Uranium Resources Increase 45%

Littleton, Colorado (PR Newswire – April 4, 2012) Ur-Energy Inc. (TSX:URE, NYSE Amex:URG)  (“Ur-Energy” or the “Company”) is pleased to report an upgrade to the National Instrument (NI) 43-101 Mineral Resource estimate on the Lost Creek Property.  This resource update has been achieved by reviewing the Company’s historical drill-hole database related to property interests recently incorporated into the Lost Creek Property through acquisition and claim staking.  The resource estimate was completed as a part of an update to the Preliminary Economic Assessment now underway for the Lost Creek Property.

The updated compliant resource estimate of 8.35 Mlbs U3O8 in the Measured and Indicated categories represents a 45% increase from the previous estimate dated February 29, 2012.  Resources reported in the Inferred category have also been increased by 42% to an updated total of 2.87 Mlbs U3O8.  The new total resource for the Lost Creek Property is shown in the table below: 

Lost Creek Property Mineral Resources as of April 4, 2012

Category

Avg. Grade

% eU3O8

Tons x1,000

Pounds eU3O8

Millions

Measured

0.055

3,850

4.20

Indicated

0.053

3,965

4.15

Inferred

0.049

2,989

2.87

Notes:

  1. Sum of Measured and Indicated tons and pounds do not add to the reported total due to rounding.
  2. Mineral resources that are not mineral reserves have not demonstrated economic viability.
  3. Based on grade cutoff of 0.02 percent eU3O8 and a grade x thickness cutoff of 0.3 GT.
  4. Typical ISR industry practice is to apply a GT cutoff in the range of 0.3 which has generally been determined to be an economical cutoff value. This 0.3 GT cutoff was used in this evaluation without direct relation to an associated price.
  5. Measured, Indicated, and Inferred Mineral Resources as defined in Section 1.2 of NI 43-101 (the CIM Definition Standards).

Wayne Heili, the Company’s President and CEO commented, “Ur-Energy began accumulating portions of the Lost Creek Property and regional data package in 2005 and has continued building this property by regularly improving the land position.  Our understanding of the local and regional geology has allowed us to continually expand and upgrade the compliant resource base, culminating in the substantially improved estimate announced today.” 

On February 29, 2012 Ur-Energy announced that the Company’s wholly-owned subsidiary NFU Wyoming, LLC had completed an Asset Exchange Agreement with Uranium One Americas, Inc. which provided for the transfer to Ur-Energy of specific federal mining claims and State of Wyoming mineral leases located in the immediate vicinity of Ur-Energy’s Lost Creek Project.  Those property interests, along with 253 recently staked federal mining claims nearby, have been incorporated into the Lost Creek Property as the LC East and LC West Projects.  The Company has completed an initial resource estimate for the LC East and LC West Project areas utilizing a Company-owned database of over 1,100 historic drill and numerous core holes.  The estimated resource is shown in the table below:

New Resources Added to the Lost Creek Property, April 4, 2012*

Category

Avg. Grade

% eU3O8

Tons x1,000

Pounds eU3O8 Millions

Measured

0.054

1,158

1.26

Indicated

0.043

1,551

1.33

Inferred

0.048

928

0.85

*See Notes 1, 2, 3, 4, and 5 above 

The newly incorporated resources constitute a 45% increase in the Measured and Indicated resources (combined) and a 42% increase in Inferred resources.  A majority of the new resources are located in close proximity to the proposed Lost Creek plant site and are contained within the HJ and KM Horizons below the water table at depths ranging from 200 to 500 feet.  Additionally, resources (included above) were also identified in the FG, L and M Horizons.  

While the majority of the mineralization added is contained in the Measured and Indicated categories, reflecting close spaced drilling density, the Company regards the Lost Creek Property as having a high potential for further resource expansion.  Numerous identified roll fronts with ore grade mineralization have relatively low drilling densities associated with them and warrant additional exploration.  Also, most of the historic drilling in this region targeted shallow uranium mineral trends with the intention to conduct open pit mining.  The deeper L, M and N Horizons at Lost Creek and the recently acquired properties have sparse drilling and are presently inadequately tested for their potential as In-Situ Recovery (ISR) candidates.  The Lost Creek Property resources are classic roll-front type deposits in which the uranium is introduced via groundwater flow and precipitated at chemical oxidation/reduction (redox) boundaries after the host rock deposition. 

John Cash, V.P. of Regulatory Affairs, Exploration and Geology stated, “We are delighted that the geologic mapping and resource estimates have confirmed the presence of substantial additional shallow resources as well as numerous exploration targets on the Lost Creek Property.  The Company’s longstanding strategic plan to acquire high potential properties and databases has resulted in a dominant land position with significant resources and potential within the Great Divide Basin.”

A Lost Creek Property map depicting the newly defined project areas is shown below.  The new resources added to the Lost Creek Property are located within the LC East and LC West Project areas.

 

John Cooper, Ur-Energy Production Geologist, P.Geo. and SME Registered Member, and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical disclosure contained in this news release.  Mr. Cooper has verified the sampling, analytical and test data underlying the Mineral Resource estimate disclosed in this news release.  An updated NI 43-101 compliant estimate will be filed in a Preliminary Economic Assessment on SEDAR within 45 days.

 

About Ur-Energy

Ur-Energy is a junior uranium company currently completing mine planning and permitting activities to bring its Lost Creek Wyoming uranium deposit into production.  Permitting also will allow the construction of a two-million-pounds-per-year in situ uranium processing facility. Engineering for the process facility is complete and mine planning is at an advanced stage for the first two mine units. Ur-Energy engages in the identification, acquisition and exploration of uranium properties in both Canada and the United States. Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE Amex under the symbol “URG”. 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

Click here to email Rich     

 

Click here to email Wayne

 

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.  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 further development of the resources to be a part of the production at the Lost Creek mine; the potential to develop additional resources on the Lost Creek Property; the amenability of certain of the resources to in-situ recovery methods; and the technical and economic viability of the Lost Creek Project) 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. 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.

Click here for pdf of this press release

Monday
Mar052012

Ur-Energy Reports 2011 Financial Results 

Littleton, Colorado (PR Newswire – March 05, 2012) Ur-Energy Inc. (TSX:URE, NYSE Amex:URG)  (“Ur-Energy” or the “Company”) announces it has filed the Company’s Annual Information Form and Annual Report on Form 40-F, Consolidated Financial Statements, and Management’s Discussion & Analysis, all for the year ended December 31, 2011, with Canadian securities authorities on SEDAR www.sedar.com and with the U.S. Securities and Exchange Commission at http://www.sec.gov/edgar.shtml. These filings may also be accessed on the Company’s website at www.ur-energy.com. Shareholders of the Company may receive a hard copy of the audited consolidated financial statements, free of charge, upon request to the Company.

About Ur-Energy

Ur-Energy is a junior uranium company currently completing mine planning and permitting activities to bring its Lost Creek Wyoming uranium deposit into production.  Permitting also will allow the construction of a two-million-pounds-per-year in situ uranium processing facility. Engineering for the process facility is complete and mine planning is at an advanced stage for the first two mine units. Ur-Energy engages in the identification, acquisition and exploration of uranium properties in both Canada and the United States. Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE Amex under the symbol “URG”. 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

Click here to contact Rich

 

Click here to contact Wayne

 

This release may contain “forward-looking statements” within the meaning of applicable securities laws regarding events or conditions that may occur in the future 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. 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.

 Click here for pdf of this press release

Friday
Mar022012

Ur-Energy Upgrades Lost Creek Property Mineral Resource Estimate

Littleton, Colorado (PR Newswire – March 02, 2012) Ur-Energy Inc. (TSX:URE, NYSE Amex:URG)  (“Ur-Energy” or the “Company”) is pleased to announce that it has issued a mineral resource update for the Company’s Lost Creek Property.  The Company has prepared a technical report to update the mineral resource estimate following the 2011 drill program and further evaluation of historical drilling records on the Property.  The updated resource estimate results in notable increases of all three categories of mineral resources (Measured, Indicated and Inferred) at the Lost Creek Property.  This result does not yet include an evaluation of the property interests recently acquired and announced on February 29, 2012.  The Company anticipates the preparation of a further update of the mineral resource estimate and the economic analysis of the Lost Creek Property in respect of these new property interests.

Ur-Energy is currently completing mine planning and permitting activities to bring Lost Creek into production.  At this time, the Lost Creek Project awaits the sole remaining regulatory approval, the Record of Decision from the U.S. Bureau of Land Management, in respect of the project’s Plan of Operations.  Based on agency guidance, the Record of Decision should be forthcoming in early summer, 2012.  The Company plans to begin construction at the Lost Creek Project during the summer of 2012 and begin production in the spring of 2013.

Ur-Energy generated this technical report of the Lost Creek Property in accordance with Canadian National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Properties.  This technical report supersedes the March 16, 2011 NI 43-101 Preliminary Assessment prepared by TREC, Inc. and Behre Dolbear & Company (USA), Inc.   The February 29, 2012 technical report presents the following mineral resource estimate using the GT contour method.

Resource Classification

Tons (millions)

Grade (%U3O8)

Pounds U3O8 (millions)

Measured

2.69

0.055

2.94

Indicated

2.41

0.058

2.82

Inferred

2.06

0.052

2.02

  1. Sum of Measured and Indicated tons and pounds do not add to the reported total due to rounding.
  2. Mineral resources that are not mineral reserves have not demonstrated economic viability.
  3. Based on grade cutoff of 0.02 percent eU3O8 and a grade x thickness cutoff of 0.3 GT.
  4. Typical ISR industry practice is to apply a GT cutoff in the range of 0.3 which has generally been determined to be an economical cutoff value.  This 0.3 GT cutoff was used in this evaluation without direct relation to an associated price.
  5. Measured, Indicated, and Inferred Mineral Resources as defined in Section 1.2 of NI 43-101 (the CIM Definition Standards)

 

The resources classified as Measured and Indicated occur entirely within the Lost Creek Project area.  The Lost Creek Project area also has 1.02 million pounds of Inferred Mineral Resource contained in 938,800 short tons with an average grade of 0.054% eU3O8.  No resources had been reported previously for the LC North or LC South Project areas.  However, geologic evaluation of the historic data and wide-spaced testing of fronts during the 2010 and 2011 drilling programs revealed several occurrences of “ore quality” mineralization within those project areas.  As a result, 1.00 million pounds of Inferred Mineral Resource, contained in 1,124,000 short tons with an average grade of 0.045% eU3O8 are reported in the new technical report.  The new Inferred Mineral Resources are mainly the result of wide spaced spot-testing of identified alteration fronts.  As such, additional exploration and close spaced drilling will be pursued to determine their potential.

Ur-Energy Vice President of Exploration John Cash stated, “This is the first time Ur-Energy has reported NI 43-101 compliant resources on the adjoining project areas that make up the Lost Creek Property.  The recognition of these resources demonstrates the potential for resource expansion on Ur-Energy’s greater Lost Creek Property area.”

The economic analysis performed in March 2011 as part of the Preliminary Assessment (TREC) has been verified to be within the sensitivities contemplated at the time.  It was determined that the 2011 economic analysis is still valid, and the review and verification is presented in this Preliminary Economic Assessment.  The analysis is based on the Lost Creek Project main mineral trend resource and production estimates.  The 2011 drilling program was largely focused on areas outside of the main mineral trend and therefore had no significant impact, positive or negative, on the mineral resources that formed the basis of the March 2011 economic analysis completed by TREC, Inc.  Based upon historic drill data owned by the Company as well as data received with the newly acquired properties, Ur-Energy anticipates the release of a further resource estimate and updating of the economics of the Lost Creek Property.

Wayne Heili, President and CEO of the Company stated, “While this technical report affirms both the technical and economic viability of the Lost Creek Project, it also brings the welcome result of a substantial upgrade to the resource base available on the Property.  Ur-Energy’s shareholders can now look forward to forthcoming updates to the Lost Creek Preliminary Economic Assessment that will include the geologic evaluation of our substantial 2012 property acquisitions.”

In compliance with NI 43-101, the reader should be advised that the Preliminary Economic Assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

The full report titled “Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming,” dated February 29, 2012 is available on the Company’s profile on SEDAR (www.sedar.com) and  on EDGAR (http://www.sec.gov/edgar.shtml).

John K. Cooper, SME Registered Member, and Catherine L. Bull, P.E., each a Qualified Person, and authors of the February 29, 2012 “Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming,” have supervised the preparation of and reviewed the technical information in this news release.

 

About Ur-Energy

Ur-Energy is a junior uranium company currently completing mine planning and permitting activities to bring its Lost Creek Wyoming uranium deposit into production.  Permitting also will allow the construction of a two-million-pounds-per-year in situ uranium processing facility. Engineering for the process facility is complete and mine planning is at an advanced stage for the first two mine units. Ur-Energy engages in the identification, acquisition and exploration of uranium properties in both Canada and the United States. Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE Amex under the symbol “URG”. 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

Click here to contact Rich

 

Click here to contact Wayne

 

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 technical and economic viability of the Lost Creek Project (including the projections contained in the preliminary economic analysis); receipt of (and related timing of) the Record of Decision of the US Bureau of Land Management, and the Company’s related timing for commencement of construction and operations; the Lost Creek Project will advance to production and the production timeline; the potential to develop additional resources on the various projects forming the Lost Creek 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. 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.

Click here for pdf of this press release