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Ur-Energy Inc. (TSX:URE,NYSEMKT:URG) announced a new and increased mineral resource estimate for its Lost Creek property in Wyoming. The new estimate came from an updated estimate in Mine Unit 1 as well as new resources encountered in a recent exploration drill program at the property, which consists of six contiguous areas totaling about 42,000 acres.
Ur-Energy Inc. (TSX:URE,NYSEMKT:URG) announced a new and increased mineral resource estimate for its Lost Creek property in Wyoming. The new estimate came from an updated estimate in Mine Unit 1 as well as new resources encountered in a recent exploration drill program at the property, which consists of six contiguous areas totaling about 42,000 acres.
As quoted in the press release:
The new resource estimate results from analyses of data from an additional 85 close-spaced wells and core holes, the detailed remapping of mineralized trends within ten sand horizons, and the lowering of grade-thickness (GT) cut-offs from 0.30 to 0.20 within the Company’s GT contouring resource estimation technique. These recalculations and analyses estimate MU1 mineral resources to be increased by 2.308 million pounds of uranium, averaging 0.058 percent U3O8. This represents a 95 percent increase to the MU1 resources reported in the December 30, 2013 National Instrument 43-101 technical report authored by TREC, Inc. and titled”Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming.”
Exploration drilling was conducted during Q1 2015 immediately south and adjacent to MU1 within the Lost Creek and LC East Projects. Ninety-one exploratory holes, totaling 55,085 feet of drilling, were completed for the purpose of characterizing three previously-identified mineralized sand units (FG, HJ and KM). Exploration drilling was conducted along drill hole fences spaced at 400-foot intervals along projected mineralized trends. Thirty-four of the 91 drill holes encountered uranium intercepts with GTs of 0.20 or stronger. Because of the relatively wide-spaced drilling, the application of the CIM Definition Standards resulted in the majority of the new resources being classified as Inferred Resources. Using a 0.20 GT cut-off, Company geologists estimated a total of 100,000 new pounds of Measured and Indicated Mineral Resources and 300,000 new pounds of Inferred Mineral Resources. The 150-hole exploration drilling program was suspended in compliance with Wyoming State Sage Grouse seasonal restrictions and is anticipated to be completed during third quarter 2015.
A breakdown of the additional resources from the exploration drilling follows:
Jeffrey Klenda, executive director and acting CEO of Ur-Energy, commented:
I regard this increase in resource as being highly significant because it is derived primarily from our actual production experience. Together with solid drill results thus far in our exploration program, this furthers our 2015 objective to identify increased resources and define operational scalability at Lost Creek.
Click here to read the full Ur-Energy Inc. (TSX:URE,NYSEMKT:URG) press release.