Lost Creek

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 production facility

Lost Creek Project Operations

Since commencement of operations in 2013, through 2020, 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 2021 H2. 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 main trunkline that services the first five MU2 header houses (“HH”) has been installed, and all of MU2 has been fenced. In addition, during the most recent development program, approximately 45% of the required wells for HH2-4 have been drilled and cased. These earlier development activities in MU2 will allow for a quick ramp up of production.

Lost Creek Property Resource Estimate and PEA

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.

Lost Creek Property map
Lost Creek map

An amended preliminary economic assessment (PEA) pursuant to NI 43-101 was issued February 8, 2016 for the Lost Creek Property.

The current mineral resource estimate for the Lost Creek Property, is 14.6 million pounds in the Measured and Indicated categories, and 6.44 million pounds in the Inferred category before subtracting production to date of 2.7 million pounds (Measured Resource).

Currently, we estimate that the remaining life of mine is between 12 – 15 years, with our existing estimated mineral resources.

Cautionary Statement: This Amended Preliminary Economic Assessment is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is increased risk and uncertainty to commencing and conducting production without established mineral reserves that may result in economic and technical failure which may adversely impact future profitability. The estimated mineral recovery used in this Amended Preliminary Economic Assessment is based on recovery data from wellfield operations to date, as well as Ur-Energy personnel and industry experience at similar facilities. There can be no assurance that recovery at this level will be achieved.

Cautionary Note to U.S. Investors:

The terms “mineral resource,” “measured mineral resource,” “indicated mineral resource,” and “inferred mineral resource” as used in this news release are Canadian mining terms that are defined in accordance with 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 in this news release 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 cautioned not to assume that any part or all of the mineral resources in these categories will ever be converted into Mineral Reserves. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or online at https://www.sec.gov/edgar.shtml.

Mr. Michael Mellin, Ur-Energy and Lost Creek Mine Geologist, a Qualified Person as defined by NI 43-101, has reviewed and approved the technical disclosure contained on this webpage.