Ur-Energy (TSX: URE) has made a final decision on its fully permitted and licensed Shirley Basin Project in Wyoming. The company has elected to build out the project, which will nearly double its total uranium production capacity.
The build out at Shirley Basin is expected to take approximately 24 months. When completed, the mine is expected to produce approximately 1.0 million pounds of uranium per year, which is based on a flow rate of 6,000 gallons per minute from an in-situ mining operation.
The project is being designed as a satellite plant for Ur-Energy’s Lost Creek ISR facility, with ion exchange resin to be loaded with uranium from the Shirley Basin mine, and then shipped to Lost Creek for processing. Initial facility costs as a result are pegged at just $24.4 million, while pre-operational wellfield development is expected to cost in the neighbourhood of $16.3 million. Overall, operating expenditures for the production of uranium is estimated at $24.40 per pound, before taxes and royalties.
Notably Lost Creek is licensed for total annual production of 2.2 million pounds, of which 1.2 million is permitted for wellfield production, and 1.0 million is allocated to toll processing.
“The decision to build out our Shirley Basin Project is a major milestone for our Company as it will nearly double our annual permitted mine production capacity to 2.2 million pounds while diversifying our supply,” commented John Cash, CEO of Ur-Energy.
Shirley Basin currently has a mineral resource estimate of 8.8 million pounds of measured and indicated uranium at an average grade of 0.23% U3O8.
Ur-Energy last traded at $2.04 on the TSX.
Information for this analysis was found via Sedar and Ur-Energy. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
