Ur-Energy Announces Decision to Build Out Shirley Basin Mine

Ur-Energy Inc., based in Littleton, Colorado, has declared its plan to construct the fully permitted and licensed Shirley Basin Project in Carbon County, Wyoming. This venture is propelled by an expanding uranium sales contract book, robust market prices, and the anticipated increase in demand linked to the global shift towards clean nuclear power.

CEO John Cash emphasized that this project marks a significant step for Ur-Energy, promising to nearly double its annual permitted mine production capacity to 2.2 million pounds and enhance supply diversification. The company aims to reintroduce in situ mining technology to Shirley Basin, a site with a rich history in uranium mining.

The new satellite plant, designed for a flow rate of up to 6,000 gallons per minute, aims to produce up to 1.0 million pounds of U3O8 annually. Its construction and the development of the wellfield are expected to take around 24 months, with some components already in progress. This strategic move is estimated to incur an initial facility capital cost of approximately $24.4 million and additional costs for pre-operational wellfield development and ongoing project maintenance.

The Shirley Basin Project resource summary reveals a substantial mineral resource spread over three planned mine units, with an estimated total of 8,816 pounds U3O8 in measured and indicated resources. Acquired from AREVA NC Inc. in 2013, the project has historically been a significant source of uranium production.

The forward-looking statements in the announcement highlight the potential economic viability and job creation expected from the Shirley Basin Project, despite acknowledging the usual risks and uncertainties inherent in such ventures.