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Uranium Resources, Inc. (NASDAQ: URRE) (“URI” or the “Company”), today provided an update on the Company’s activities, its liquidity position and its strategy and outlook for 2012.
Don Ewigleben, President and CEO of URI, commented, “We had quite an eventful first quarter as we entered into a merger agreement to acquire Neutron Energy, Inc. (“Neutron”) in a stock-for-stock transaction, announced a financing agreement that infused $10 million into URI and kicked off a number of ongoing development activities that will position the Company for future production.
“Our near-term priorities are focused on the advancement of Churchrock Section 8, including the evaluation of the financing component for our construction activities and continued discussions with the royalty holders on our Section 8 land.”
Texas Exploration Continuing, Reclamation Stabilization in Progress, and Pond Activities Progressing
Phase II work on the joint Los Finados exploration project with Cameco started in December 2011 and is scheduled to be completed in November 2012. Under Phase II, 9 holes have been drilled at an average depth of 1,300 feet, as well as 6 shallow offset holes. The plan in Phase II is to drill 10 deep holes as well as 34 shallow offset holes. Of the total $1.5 million that was committed by URI to complete Phase II, $1 million is being funded by Cameco who currently has earned a 40% interest in the project and will have 50% interest after Phase II completion.
URI initiated refurbishment of existing equipment on its Kingsville Dome holding ponds to restore full operating activity and extend the operational lifetime. To date, completed work includes the installation of a filter press, installation and testing of process pumps and various structural updates including electrical and steel work, installation of chemical lines and tanks and bringing the dryer up to full operational capacity. The pond efforts are expected to cost approximately $2.9 million and continue through the end of the year. URI believes it may able to generate up to 40,000 to 50,000 pounds of U 3O 8 as a by-product of this activity.
URI has processed approximately 4.3 billion gallons of water associated with the restoration activities at its three most recent South Texas projects through the end of the first quarter. The first round of stability water sample testing occurred during the first quarter at Kingsville Dome (KVD) production areas PA1 and PA2. Groundwater restoration has been completed at the Rosita PA1 and PA2 well fields which are currently being monitored for stability. Final closure on these areas is expected by the third quarter of 2012. Restoration activities continue at KVD PA3 and Vasquez PA1 and PA2.
Churchrock Section 8 Feasibility Study Finalized; Neutron Acquisition Announced
One of URI’s primary focuses in New Mexico continues to be the advancement of its Churchrock Section 8 deposit toward production in the latter part of 2013. This area contains 6.5 million pounds of in-place non-reserve mineralized uranium material and is covered by the Company’s underground injection control permit and reactivated NRC license which covers 27.4 million pounds of in-place mineralized uranium material for the Company’s Churchrock/Crownpoint Project.
URI commissioned an independent engineering firm to validate the economic viability of the property and create future plans of moving this property into production.