FREE ARTICLE PREVIEW: You are enjoying a free sample of exclusive
subscriber content. There is a limit of three free articles per week.

TABLE OF CONTENTS May 12 - 18, 2014 Volume 100 Number 13 - 0 comments

Water issues arise as Ur-Energy ramps up Lost Creek

TEXT SIZE bigger text smaller text
2014-05-07

Ur-Energy (TSX: URE; NYSE-MKT: URG) is getting the production numbers it expected as it ramps up its Lost Creek uranium project towards commercial production, but water issues at the facility have caused concern.

The company reported first-quarter results from the in-situ recovery uranium facility in south-central Wyoming and showed 171,200 lb. uranium oxide (U3O8) output, which was up over 30% from the same period last year. From that total the company sold 110,000 lb. (up from 90,000 lb. in first-quarter 2013) at an average US$61.12 lb. — which is impressive, considering the spot price for uranium stands at just US$32.50 per lb.

Plant head grades of 179 mg per litre also came in higher than expected.

But there are some concerns at the site. Chief among them are waste water management and deep disposal-well performance issues.

The impact these issues could have on production had Haywood Securities analyst Colin Healey lowering his rating for the stock to a “hold” from a “buy,” and cutting his price target by 20¢ to $1.90.

The deep-disposal wells can’t accept all of the waste water generated from the process plant and from the well-field bleed.

Ur-Energy addressed these concerns at the U.S. Nuclear Regulatory Commission (NRC) regarding its two holding ponds at Lost Creek going over their limits, as outlined in its NRC licence.

To correct the issue and comply with the licence, production flow rates were cut by 35% of the first-quarter average in early April. The move freed up disposal capacity at the deep-disposal wells and helped the company reduce levels in the ponds.

Going forward, Healey is optimistic that the company can reach a more sustainable solution.

“Ur-Energy has viable options to address these issues in the mid-term, as up to three more deep-disposal wells are permitted at Lost Creek, and could be added as needed for an estimated $4 million to $5 million each,” Healey wrote.

Ur-Energy has said little about the waste water management issues, but expects to reach more routine production levels by the end of April.

On April 24 the company’s stock traded for $1.46, off 2% from the previous day’s close on 306,000 shares traded.



© 1915 - 2014 The Northern Miner. All Rights Reserved.

Related News
Ur-Energy confirms historic resource at Shirley Basin
Miners drag down TSX, May 26-30
US stocks finish strong, May 27-30
Related Press Releases
Ur-Energy to Present at the Fourth Annual Euro Pacific Global Investment Conference in New York City September 9th
Ur-Energy Completes Technical Report on Shirley Basin Uranium Project
Ur-Energy Releases 2014 Q2 Financial Results
 

Photos

The in-situ recovery plant at Ur-Energy's Lost Creek uranium project in Wyoming. Credit: Ur-Energy
The in-situ recovery plant at Ur-Energy's Lost Creek ur...

Companies in This Story

Ur-Energy Inc

Properties in This Story

Lost Creek Project



Horizontal ruler
Horizontal Ruler

Post A Comment

Disclaimer
Note: By submitting your comments you acknowledge that Northern Miner has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *



* mandatory fields