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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 nine months ended September 30, 2014, 446,612 pounds of U3O8 were captured within the Lost Creek plant. 430,832 of those pounds were packaged in drums and 460,462 pounds of the packaged inventory were shipped to a conversion facility where 417,760 pounds were sold to utility customers for sales revenues of $19.9 million.  In addition, the Company recognized sales of $1.2 million and $2.5 million for the three and nine months ended September 30, 2014, respectively, from the delivery during the period by a third party of 200,000 pounds of uranium under contractual delivery commitments assigned to that third party in 2013.  Operational results quarter to quarter are as follows:

2013 Q4

2014 Q1

2014 Q2

2014 Q3

141K lbs captured

199K lbs captured

117K lbs captured

131K lbs captured

131K lbs drummed

171K lbs drummed

134K lbs drummed

126K lbs drummed

$22.42/lb cash cost*

$19.46/lb cash cost*

$20.42/lb cash cost*

$20.09/lb cash cost*

*Excludes $3.05 average severance and ad valorem cost per pound


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. 

 

 

John Cooper, Ur-Energy Project Geologist, P.Geo., SME Registered Member and Qualified Person as defined by National Instrument 43-101, reviewed and approved the technical information contained on this webpage.

20141103