Ur-Energy announced an increase to the mineral resource estimate for its Lost Creek property, the second increase announced for the project in 2015.
Big news came Tuesday for Wyoming uranium miner Ur-Energy (TSX:URE,NYSEMKT:URG), which announced an increase in the mineral resource estimate for its Lost Creek property. The increase is the second announced for the project this year.
On the back of the news, Ur-Energy saw its share price increase 10 percent on the TSX, rounding off the day at $0.77. It saw a similar jump on the NYSE MKT, rising 9.62 percent to reach $0.57.
Overall, analysts are pleased with the announcement. Compared to the company’s June resource estimate, this latest estimate increases the measured resource for Lost Creek by 30 percent, bringing the total to 8.028 million pounds. The indicated resource also saw a boost this second round, climbing by 33 percent, to 5.223 million pounds, while the inferred resource rose by 28 percent, to 6.439 million pounds. The new estimate includes recent drilling done at Lost Creek and a lower grade-thickness (GT) cut off of 0.2.
Taking into account both 2015 mineral resource updates, the company has demonstrated a sizeable resource increase at a low cost, elevating its global resource to 19.7 million pounds grading 0.046 percent U3O8e.
Why is the cut off important?
Ur-Energy first introduced the lower GT cut off in its June 2015 resource estimate for Lost Creek. The lower GT cut off was the result of better-than-expected uranium recoveries from the mining operation since production started in the second half of 2013. According to Ur-Energy, company geologists have now completed the re-estimation of the mineral resource using the lower figure. The result was a net increase of 2.446 million pounds U3O8e in the measured and indicated categories, and a rise of 1.015 million pounds U3O8e in the inferred category.
In a research note, David Sadowski, equity research analyst with Raymond James, highlights that similar to the previous revision, the current revised cut off focuses on Mine Unit 2 (MU2), which is slated to enter production in 2016. “While grades are now lower because of a lower cut-off grade, this methodology is justified by operational experience and the continued strong wellfield recovery being seen at the project, with average head grades into the plant averaging 130 mg/L (weighted by captured pounds; 3Q15 average was 86 mg/L) – far outstripping 47 mg/L design,” Sadowski states.
Likewise, Cantor Fitzgerald’s Rob Chang said in a note, “[w]hile lowering cut-off grades is a classic way to artificially increase resource sizes, we do not view Ur-Energy’s decision to lower its cut-off grade at MU2 with the same skepticism. This is because the Lost Creek asset has consistently outperformed estimates and has proven that the prior cut-off was too conservative. Together with the resource update reflected earlier this year in the June 17, 2015 Technical Report, the Lost Creek Property resources have seen combined 2015 net increases of 4.596M lbs in the Measured and Indicated resource categories, and 1.699M lbs in the Inferred resource category. These figures represent combined, net increases of 53% for Measured and Indicated categories of resource and 36% of Inferred resources.”
Overall, the increased resource estimate for Lost Creek is a positive step for the Wyoming-based miner. The company remains a top pick for Raymond James, and the firm believes it has “solid operating margins in the weak spot price environment.” Sadowski also sees the latest results extending the mine life at Lost Creek from 13 to 15 years. The extended mine life includes concurrent mining of 7 million pounds of uranium at the satellite Shirley Basin project, expected to start in 2018.
Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any of the companies mentioned in this article.
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Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.

The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.

The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
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