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Shirley Basin

Shirley Basin Mine Site - Shirley Basin, Wyoming

As a part of the Pathfinder acquisition, we now own the Shirley Basin and Lucky Mc mine sites in the Shirley Basin and Gas Hills mining districts of Wyoming, respectively, from which Pathfinder and its predecessors historically produced more than seventy-one million pounds of uranium, primarily from the 1960s through the 1990s.  The Shirley Basin project is located in Carbon County, Wyoming, approximately 40 miles south of Casper, Wyoming.  Conventional mine operations were suspended by Pathfinder in the 1990s due to low uranium pricing.  

 

Together with property holdings of patented lands, unpatented mining claims, and State of Wyoming and private leases totaling more than 5,500 acres (nearly 3,700 acres at Shirley Basin (approximately 1,500 hectares); approximately 1,800 at Lucky Mc (approximately 750 hectares)), we also acquired all historic geologic, engineering and operational data related to the two mine areas.

The Company completed its Preliminary Economic Assessment on Shirley Basin January 27, 2015. The application for permit was filed 4Q 2015 and work on other applications is underway.  It is estimated that a total of 6.3 million pounds of U3O8 may be produced from the project.

Under the terms of our acquisition of Pathfinder from AREVA in 2013, we were obligated to pay a 5% production royalty on production at the Shirley Basin Project under certain market conditions, if such conditions were triggered prior to June 30, 2016. That contingent royalty was capped to the various triggers and could have been repurchased at our election. On June 30, 2016, the royalty lapsed and was terminated because the market conditions had not been triggered.

The tailings facility at the Shirley Basin site is one of the few remaining facilities in the United States that is licensed by the NRC to receive and dispose of byproduct waste material from other in situ uranium mines. We assumed the operation of the byproduct disposal site and accepted deliveries throughout 2015 under several existing contracts.

 

Cautionary Note to U.S. Investors:  The terms “mineral resource,” “measured mineral resource,” and “indicated mineral resource,” as used on this webpage are Canadian mining terms that are defined in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). These Canadian terms are not defined terms under United States Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC by U.S. registered companies.  The SEC permits U.S. companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Accordingly, note that information contained on this webpage describing the Company’s “mineral resources” is not directly comparable to information made public by U.S. companies subject to reporting requirements under U.S. securities laws.  U.S. investors are urged to consider closely the disclosure in our Annual Report on Form 10-K which may be secured from us, or online at http://www.sec.gov/edgar.shtml.

James A Bonner, Ur-Energy Vice President, Geology, 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.

20160304