The Christensen Ranch ISR operations, known for their prior production capabilities, are fully permitted and stand ready to contribute once again to the uranium supply chain. The production process will be supported by the Irigaray Central Processing Plant (CPP), a fully operational facility with a current licensed capacity of 2.5 million pounds of U3O8 per year. This plant serves as a central hub for four fully permitted ISR projects in the Powder River Basin of Wyoming, including Christensen Ranch.
Uranium Energy Corp has scheduled the first production for August of this year, with funding secured through existing cash reserves. The company's approach of remaining 100% unhedged allows it to sell produced uranium at prevailing spot market prices, which, as of January 15, 2024, stood at $106 per pound U3O8, as reported by UxC.
Looking ahead, Uranium Energy Corp will be providing further details on the expected volumes for the first year of production. A critical aspect of the pre-production phase is the recruitment and training of additional operations personnel. This step is crucial for a successful ramp-up of uranium production, with the company aiming to hire from local communities such as Buffalo, Gillette, Casper, Kaycee, and Wright.
Amir Adnani, the President and CEO of Uranium Energy Corp, expressed his enthusiasm for this milestone, stating, "This is the moment we have been working towards for over a decade, having acquired and further developed leading U.S. and Canadian assets with an exceptional, deeply experienced operations team."
He highlighted the favorable market conditions, citing various supply shocks that have bolstered the uranium market, with recent prices surpassing the $100 per pound level. Adnani emphasized, "With this exciting backdrop, we are pleased to announce our production restart in Wyoming."
Further expanding on the company's strategic plans, Adnani mentioned initiatives to resume production at their South Texas Hub and Spoke platform, promising more updates as milestones are achieved.
In preparation for this production restart, extensive work was undertaken at the Christensen Ranch wellfields and satellite processing plant in 2023. These efforts included the reinstallation of equipment, reattachment of piping, and various electrical testing, repairs, and upgrades.
Additional progress has been made, including the development of a detailed wellfield startup plan, drilling to identify additional resources, and an application to the Wyoming Department of Environmental Quality to expand the Irigaray CPP's licensed capacity from 2.5 to 4 million pounds U3O8 per year. Operations will initially resume in Mine Units (MU) MU7, MU8, and MU10, as shown in Figure 1.
The technical aspects of this news release have been validated by Andrew Kurrus, P.Geo., Vice President of Resource Development for the Company, ensuring compliance with Regulation S-K 1300.
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