Uranium Energy Corp (NYSE: UEC) has ramped up its uranium production schedule at the Christensen Ranch in-Situ Recovery operations (ISR) in Wyoming.
The company reported on Friday that all the planned startup milestones, including hiring and training for its processing plant and the mine itself have been achieved to ensure the acceleration could proceed on schedule.
Production began at Christensen Ranch’s previously operated Mine Unit 10 on August 6th. So far, uranium concentrations have met expectations and are expected to increase in the coming weeks.
About 40 per cent of the total workforce comes from Johnson County. Additional employees come from Campbell, Converse, Carbon, Laramie, and Natrona Counties in Wyoming. Furthermore, the first shipment of yellowcake is expected in November or December 2024, aligning with the Company’s fiscal Q2, which ends on January 31, 2025.
The Irigaray Central Processing Plant (CPP) is located about 15 miles northwest of Christensen Ranch. It will process the uranium recovered from Christensen Ranch. Irigaray holds a license for a capacity of 2.5 million pounds of U3O8 per year. The company anticipates this to boost this capacity to 4.0 million pounds annually.
Serving as the central hub, the Irigaray CPP supports four ISR projects in the Powder River Basin of Wyoming.
“The Christensen Ranch ISR Mine has successfully restarted and we are in full growth mode with initial recoveries from Mine Unit 10 to be followed with Mine Units 7 and 8 in the coming months,” said Donna Wichers, vice president of Wyoming Operations.
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The government has depleted its stockpiles
UEC is the largest, diversified uranium company in North America. It’s focused on low-cost, environmentally friendly ISR mining projects in the United States and high-grade conventional projects in Canada.
The company operates two production-ready ISR hub-and-spoke platforms in South Texas and Wyoming. These are anchored by fully operational CPPs and supported by seven U.S. ISR uranium projects, all with major permits in place.
Additionally, UEC has diversified its holdings, including one of the largest physical uranium portfolios of U.S.-warehoused U3O8 and a major equity stake in Uranium Royalty Corp (TSX: URC).
“Production from stable jurisdictions is valued in today’s volatile world and has become a renewed priority in utility purchasing strategies,” said Scott Melbye, executive vice president.
Additionally, Melbye said that unobligated U.S. origin uranium is essential for powering the U.S. nuclear navy. However, government stockpiles have been significantly depleted over the past several decades. He highlighted the U.S. Department of Energy’s recent purchases for the Strategic Uranium Reserve as a clear example of prioritizing domestic uranium needs.
“The U.S. nuclear utility fleet produces almost 20 per cent of the country’s electricity and is the world’s largest uranium consumer with purchases of over 50 million pounds last year. U.S. production has been virtually non-existent for many years, suffering from price insensitive imports via foreign state-owned enterprises that undermined domestic mining and investment,” said Amir Adnani, President and CEO.
Adnani noted the evolving situation is due to a series of bipartisan initiatives by the U.S. government to boost domestic uranium production.
Uranium Energy has expanded into the Athabasca and Thelon Basins
Uranium Energy Corp has also strategically expanded its presence into two of Canada’s most promising uranium regions, the Athabasca Basin and the Thelon Basin.
In the Athabasca Basin, located in northern Saskatchewan, UEC’s key properties include the Christie Lake Project, positioned near the prolific McArthur River Mine; the West Bear Project, which also offers cobalt resources; and the Hidden Bay Project, providing opportunities to explore high-grade uranium deposits.
Meanwhile, in the less explored but geologically similar Thelon Basin in Nunavut, UEC is focused on capitalizing on the region’s potential as an emerging uranium district.
The company has interest in the Kiggavik Project, located in the Kivalliq Region of Nunavut. The project consists of two sites: the Kiggavik site, which contains three deposits, and the Sissons Site, with two deposits.
Several companies are actively exploring and developing uranium resources around the Kiggavik Project. Nearby, the Angilak Project by ATHA Energy Corp (TSXV: SASK) (FRA: X5U) (OTCQB: SASKF), focuses on high-grade uranium deposits to the southeast. Meanwhile, Cameco Corporation (NYSE: CCJ) (TSX: CCO) and Denison Mines Corp (TSX: DML) (NYSE: DNN) have historically pursued exploration targets within the Baker Lake Basin.
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Wyoming is more than just uranium
Wyoming’s uranium resources pale in comparison to the high-grade deposits found in Canada’s Athabasca and Thelon Basins.
The Athabasca Basin, in particular, is renowned for its extraordinarily rich uranium deposits. The grades there are often 10 to 100 times higher than those found in Wyoming. Similarly, the Thelon Basin, though less explored, shows great promise with geological similarities to the Athabasca Basin.
In contrast, Wyoming’s deposits are generally lower in grade, requiring more extensive and costly extraction processes, which makes them less competitive on the global stage when compared to the superior quality of uranium found in these Canadian basins.
Wyoming’s polymetallic mining options extend beyond uranium, encompassing significant deposits of other valuable metals, including gold and copper.
The state’s geological formations offer opportunities for extracting these metals alongside uranium, enhancing the economic viability of mining operations. US Gold Corp. (NASDAQ: USAU) is actively involved in mining gold in Wyoming, specifically at its CK Gold property.
Another prominent player is GFG Resources (TSXV: GFG), which operates the Rattlesnake Hills Project in Central Wyoming.
ATHA Energy Corp. and US Gold Corp are sponsors of Mugglehead news coverage
