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Lost Creek

 

On August 2, 2013, the Company began production activities at its Lost Creek Project.  Innovative design and development have focused on employee and environmental safety, recycling of water, and advanced instrumentation monitoring and data capture.  As of October 2013, all production circuits of the plant were commissioned and uranium yellowcake had been processed, dried and packaged.  First sales of Lost Creek yellowcake were made in December 2013.

During the six months ended June 30, 2014, 315,281 pounds of U3O8 were captured within the Lost Creek plant. 304,917 of those pounds were packaged in drums and 333,963 pounds of the drummed inventory were shipped to the conversion facility where 317,760 pounds were sold to utility customers for sales revenues of $13.9 million.  In addition, the Company recognized $1.3 million of sales from the delivery during the period by a third party of 100,000 pounds of uranium under a contractual delivery commitment assigned to that third party in 2013.  Operational results quarter to quarter are as follows:

2013 Q4

2014 Q1

2014 Q2

141K lbs recovered

198K lbs recovered

116K lbs recovered

131K lbs finished product

171K lbs finished product

133K lbs finished product

$21.98/lb cash cost

$19.38/lb cash cost

$22.05/lb cash cost


The Lost Creek Project is part of the larger Lost Creek Property located in the Great Divide Basin, Wyoming which comprises six projects covering a total of approximately 42,000 acres (16,997 hectares): Lost Creek permit area (“Lost Creek Project”), EN, LC South, LC North, LC East and LC West.  The uranium deposit at the Lost Creek Project is referred to as the Main Mineral Trend (“MMT”).  The Company’s East Mineral Trend (the “EMT”) is a second mineral trend of significance.  It was identified by historic drilling on the lands forming LC East.  Although geologically similar, it appears to be a separate and independent trend from the MMT.  Later this year, we will submit applications to amend our current permits and licenses to include production from the EMT at the Lost Creek East project.

Lost Creek currently employs approximately 60 full time employees.  The Company holds long-term sales contracts with several U.S. based nuclear utility companies, spanning the time frame 2013-2019, and anticipates making additional sales into spot market sales agreements.  The uranium produced at the Lost Creek Project will ultimately become the fuel that provides clean energy for the nation’s power grid. 

20140818