Ur-Energy Releases PEA for Shirley Basin Project

Ur-Energy Inc. (TSX:URE,NYSEMKT:URG) announced the completion of a PEA for its Wyoming-based Shirley Basin project. It looks at the possibility of combining a commercial satellite uranium in-situ recovery (ISR) operation with existing processing operations at the company’s Lost Creek mine, also in Wyoming.

As quoted in the press release:

The 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.

The 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.

Click here to read the full Ur-Energy Inc. (TSX:URE,NYSEMKT:URG) press release.