Ur-Energy (NYSE-A: URG; TSX: URE) has restarted uranium mining operations at its Shirley Basin project in central Wyoming, the first uranium mining at the site since 1992 and one of the latest uranium operations in the United States to come online.
Uranium bearing solution is now being captured from Mine Unit 1 at Shirley Basin after the successful completion of significant construction, wellfield installation, and permitting. The in-situ recovery (ISR) project in the Shirley Basin district, widely regarded as the birthplace of ISR mining in the 1960s, is now returning to active operations amid a nuclear energy renaissance, the company said. The project is about 250 km north of state capital Cheyenne.
“Launching initial operations marks a pivotal achievement in Ur-Energy’s growth strategy and plan to expand U.S. uranium production capacity,” Ur-Energy CEO Matt Gili said in a release. “Two years ago, we committed to building out this project. Today, we have successfully brought a historically significant uranium district back to life, demonstrating disciplined execution of our strategy.”
US uranium hotspot
Wyoming has emerged as the United States’ dominant uranium output jurisdiction, with the state hosting most of the country’s producing uranium mines. Mostly currently producing mines in Wyoming use ISR, a method that involves injecting a solution underground through wells to separate uranium from ores, and then pumping it the surface for processing.
Ur-Energy’s production milestone comes as the uranium sector has been boosted this year as countries seek cleaner energy sources and technology companies try to procure contracts for power-hungry AI data centres.
Company shares gained 6% to C$2.43 apiece on Thursday afternoon in Toronto, valuing the company at $961.6 million. The stock has traded in a 12-month range of 94 to $3.30.
Ramping up
Uranium concentrations in recovered solutions are expected to increase over time as wellfield is further conditioned and all production circuits are brought online, the company said. Ur-Energy expects to transport uranium loaded resin to its Lost Creek facility for processing this summer, subject to an additional regulatory inspection and approval.
The Shirley Basin project has licensed annual wellfield and toll processing capacity of up to 2 million lb. equivalent of uranium oxide (U₃O₈) for a mine life of about nine years across shallow mining units. The project hosts 9.1 million measured and indicated lb. grading about 0.22% eU₃O₈.
Uranium is captured in an ion exchange resin and transported to the company’s Lost Creek facility for final processing, drying, and packaging. That facility is about 100 southwest of Shirley Basin.
Historic ISR district
This transitions the company’s second ISR mine from development to initial operations and represents a significant expansion of Ur-Energy’s U.S. uranium production capacity, the company said.
The Shirley Basin uranium mine was operated by Pathfinder Mines from the 1960s until 1992, when the mine closed due to low uranium prices. Ur-Energy acquired Pathfinder in 2013 and worked to rebuild the conventional project into an ISR mine and acquire the needed permits.
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