Lost Creek Production
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, water management practices, and advanced instrumentation monitoring and data capture. First sales of Lost Creek yellowcake were made in December 2013. Since production activities began, Lost Creek production has totaled 2.7 million pounds.
Lost Creek Project Operations
Since commencement of operations in 2013, through 2022, production at Lost Creek has totaled approximately 2.7 million pounds of U3O8 from our first two mine units (MU1 and MU2). These are the first two of twelve currently planned mining areas.
We now have nine licensed mine units, with six additional mine units having been added to the Lost Creek license in Q1 2021. We expect to have all permits and authorizations for the additional six mine units (“LC East and KM expansion”) in 2023 H1. The recent license amendment also increases the license limit for annual plant production to 2.2 million pounds U3O8 which includes wellfield production of up to 1.2 million pounds U3O8 and toll processing up to one million pounds U3O8.
The first two mine units at Lost Creek (MU1 and MU2) have all appropriate operating permits. As we await the return of a robust uranium market, we have prepared MU2 and the Lost Creek plant for an efficient transition to full production rates. The main trunkline that services the first five MU2 header houses is installed, and the entirety of MU2 has been fenced. In 2021 Q4, we commenced a drilling and construction program to complete the development of the fourth header house in MU2 (HH2-4). Together with our optimization of plant processes, our ongoing wellfield programs will significantly advance our readiness and shorten the time frame to production when ramp-up occurs.
Lost Creek Property Resource Estimate
The Lost Creek Property represents the composite of six individual contiguous Projects: Lost Creek Project, LC East Project, LC West Project, LC North Project, LC South Project and EN Project. The fully licensed and operating Lost Creek Project is considered the core project while the others are collectively referred to as the Adjoining Projects. The Adjoining Projects were acquired by the Company as exploration targets to provide resources supplemental to those recognized at the Lost Creek Project. Most were initially viewed as stand-alone projects but expanded over time such that collectively they represent a contiguous block of land along with the Lost Creek Project.
We have filed an Initial Assessment Technical Report Summary on our Lost Creek Property, Sweetwater County, Wyoming, USA (the “Lost Creek Report,” as amended, September 19, 2022). The Lost Creek Report not only provides the most recent resource update, but also calculates the Property’s economics assuming a near immediate restart of wellfield development activities and the subsequent ramp-up to a one million pound per year production rate.
The mineral resource estimate for the property is 11.9 million pounds eU3O8 in the Measured and Indicated categories, and 6.6 million pounds eU3O8 in the Inferred category. Lost Creek has produced 2.7 million pounds U3O8 as of December 31, 2022. The mineral resource estimate was reduced to account for production to date of approximately 2.7 million pounds U3O8.