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Ur-Energy Completes Preliminary Economic Assessment on Shirley Basin Project
LITTLETON, Colo. , Jan. 27, 2015 /CNW/ -- Ur-Energy Inc. (TSX:URE, NYSE MKT:URG) ("Ur-En...
About this update from Ur-energy Inc.
[{"type":"text","content":"\n\nLITTLETON, Colo., Jan. 27, 2015 /CNW/ --Ur-Energy Inc. (TSX:URE, NYSE MKT:URG) (\"Ur-Energy\" or the \"Company\") announces the completion of a Preliminary Economic Assessment (\"PEA\") for its Shirley Basin Project (\"Project\") in Carbon County, Wyoming. This PEA analyzes the planned development of a commercial satellite uranium in situ recovery (ISR) operation at the Project, combined with existing processing operations at the Company's Lost Creek Mine in Sweetwater County, Wyoming.\n\n\nWestern Water Consultants, Inc., d/b/a WWC Engineering, was retained by the Company and its subsidiary, Pathfinder Mines Corporation (PMC), to oversee and supervise preparation of this PEA, in accordance with Canadian National Instrument 43-101 \"Standards of Disclosure for Mineral Projects\" (NI 43-101). Mr. Benjamin J. Schiffer, P.G. and Mr. Ray Moores, P.E. of WWC Engineering, are the independent Qualified Persons for the PEA.\n\nThe PEA demonstrates the potential viability of satellite ISR operations at the Project. The Project currently has a Source and Byproduct Material License from the U.S. Nuclear Regulatory Commission and a Permit to Mine from the Wyoming Department of Environmental Quality – Land Quality Division. The Company has begun the process of amending this license and permit for ISR operations. The PEA is based on an assumption of construction activities starting in January 2017, with production commencing October 2017. It is estimated that a total of 6.3 million pounds of U3O8 will be produced from the Project.\n\nThe economic analysis estimates the Project will generate net cash flow over its life, before income tax, of US$215.9 million. It is estimated that the Project has a calculated before-tax Internal Rate of Return (IRR) of 117.0% and a before-tax Net Present Value (NPV) of US$146.0 million applying an eight percent discount rate starting in year 2017.  The estimated operating cost for the project is US$14.54 per pound of uranium produced, while the total cost of uranium production including severance taxes and operational and capital spending is estimated at US$31.26 per pound.\n\nSteve Hatten, Vice President Operations of the Company commented \"We are very pleased to confirm the solid prospects for the Shirley Basin Project through the PEA. Production from our latest ...