Ur-Energy has issued a preliminary assessment for its Lost Creek property in Sweetwater County, Wyoming in accordance with Canadian National Instrument 43-101 (NI 43-101) for the submission of technical reports on mineral properties.
This technical report prepared by TREC and Behre Dolbear & Company (USA) utilizes all technical data secured from the property.
The purpose of the newly released preliminary assessment (2011 PA) is to provide an independent analysis of the technical and economic viability of the mineral resources of Lost Creek.
The economic analysis estimates that Lost Creek will generate net earnings over the life of the project, before income tax, of $179m.
It is estimated that the Lost Creek project has an internal rate of return (IRR) of 91% and a net present value (NPV) of $118.1m applying an 8% discount rate.
The estimated operational cost for the project is $19.66 per pound of uranium produced while the total cost of uranium production including all required capital spending is estimated at $42.65 per pound.
In order to realize the full economic benefits described in the 2011 PA, the report recommends further development to bring the Lost Creek project into production.
Ur-Energy currently controls approximately 33,794 acres in the property including the project.