Ur-Energy Inc. (TSX:URE, NYSE Amex:URG) (“Ur-Energy” or the
“Company”) is pleased to announce that its 2010 exploration
drilling program on its LC South project defined
numerous individual uranium roll front systems occurring within
several stratigraphic horizons. In roll front
systems uranium concentrates as deposits along boundaries between reduced and
oxidized sandstone (also called redox fronts). The
initial recognition of the presence of such zones is the critical first step
in developing uranium resources in a roll-front environment.
Ur-Energy has completed a three-month exploration
drilling program on its 17 square mile (44 square km) LC South property,
which lies immediately south of Ur-Energy’s Lost Creek project.
Lost Creek is currently in the advanced stages of obtaining all necessary
permits to recover uranium by means of In-Situ Recovery (ISR).
Four drill rigs were used for the program. A
total of 159 drill holes, with depths to 1200 feet (366 m), below surface
were completed for a total of 101,270 feet (30,867 m). The objective of the
program was to evaluate host stratigraphic
formations and to better define the location and nature of mineralized roll
fronts. Earlier, a detailed evaluation of Ur-Energy’s extensive
historic exploration drill hole database had
identified roll front environments in the area.
The drilling program confirmed that uranium
mineralization occurs in the same stratigraphic and
roll-front horizons as those present at Lost Creek: the HJ and KM stratigraphic horizons (see
Ur-Energy Press Release dated March 17, 2010). These occur as multiple
stacked mineralized fronts associated with a regional alteration system that
terminates within the LC South property boundaries. In addition, the
drilling program identified deep alteration and uranium mineralization which
demonstrates the strong potential for several additional mineralized roll
fronts in deeper horizons within the property. Examples of these deeper
holes are hole LCS 129 which contained 4 feet (1.2 meters) of 0.067% eU3O8
in the M stratigraphic horizon at 817 feet (249
meters) and hole LCS 131 which contained 4 feet (1.2 meters) of 0.04% eU3O8
in the L stratigraphic horizon at 574 feet (175
meters) and 3.5 feet (1 meter) of 0.033% eU3O8 in the P
stratigraphic horizon at 824 feet (251
meters). The average grade at the Lost Creek project is 0.058% eU3O8, a
grade at which economic recovery by ISR can be achieved.
The results of the 2010 drilling program reinforce the
prospective character of the LC South property as a potential source of
additional resources to supply the Lost Creek ISR facility. Ur-Energy’s
geologic team is currently developing plans for a drilling program which will
further define the identified roll front systems with the goal to develop
resources associated with them.
Bill Boberg, President &
CEO stated “We’ve always considered that the ability to define additional
resources in the area of the Lost Creek project has been one of the strengths
of the project. Because most historic drilling within the area has been
generally in the range of 300 to 500 feet we had only very limited
information on the many additional mineralized stratigraphic
horizons down to depths of 1200 feet, a depth still very amenable to ISR
mining. After starting our 2010 drill program we realized that we
really needed to have a wide-spaced grid of deeper holes to enable us to
better plan future drilling to get the most value from our drilling program
rather than attempting to define additional shallow resources at this time
without knowing what roll fronts might exist at depth. This drilling
program was significant in that it enabled us to better define the presence
of many individual roll front systems contained within multiple stratigraphic horizons to depths of 1200 feet on our LC
South property.”
About Ur-Energy
Ur-Energy is a junior uranium company currently
completing mine planning and permitting activities to bring its Lost Creek
Wyoming uranium deposit into production. Permitting also will allow the
constru
ction of a two-million-pounds-per-year in situ uranium
processing facility. Engineering for the process facility is complete and
mine planning is at an advanced stage for the first two mine units. Ur-Energy
engages in the identification, acquisition and exploration of uranium
properties in both Canada and the United States. Shares of Ur-Energy trade on
the Toronto Stock Exchange under the symbol “URE” and on the NYSE
Amex under the symbol “URG”. Ur-Energy’s corporate office
is located in Littleton, Colorado; its registered office is in Ottawa,
Ontario. Ur-Energy’s website is www.ur-energy.com.
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