|From: LoneClone||4/4/2019 8:57:48 PM|
|Global Atomic Announces Further Assay Results from DASA Project|
April 03, 2019 13:12 ET | Source: Global Atomic Corporation
Figure 1 DASA mineralized zones and underground conceptual mine workings as per the PEA
Figure 1 DASA mineralized zones and underground conceptual mine workings as per the PEA
Global Atomic Corporation
TORONTO, April 03, 2019 (GLOBE NEWSWIRE) -- Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX-V: GLO, FRANKFURT: G12) is pleased to report further assay results from holes drilled in 2018 at its DASA project, Republic of Niger. An updated mineral resource estimate is now underway, and will be published in the second quarter of 2019.
Hole DADH389 returned 96.0 meters (“m”) grading 2,570 ppm (0.26%) U3O8 from 492.0m to 589.0m in the Tegama Hill Main Zone, including 3.5m grading 29,222 ppm (2.92%) U3O8 from 546.5m to 550.0m
Hole ASDH552 returned 37.5m grading 7,131 ppm (0.71%) U3O8 from 244.0m to 281.5m in the Flank Zone
Hole ASDH563 returned 22.52% U3O8 over 3.5m hole ASDH563, from 235.5m to 239.0m in the Flank Zone Stephen G. Roman, President and CEO, commented, “DASA drill results continue to define an extraordinary sandstone hosted, Tier 1, uranium deposit. The consistency of the structure, high grades and thickness, make it amenable to large scale mining with low operating costs. DASA is the first major uranium discovery in Niger that is mineralized in three horizons, the Carboniferous, Triassic, and Jurassic.”
DASA Drilling Update:
In 2018, Global Atomic drilled 59 holes in a combination of diamond (DD), rotary destructive (RD) and rotary destructive with diamond tails (RD + DD). The drilling targeted mineralization in the Flank Zone and also extensions of mineralization to the northeast, southwest, and at depth, for a total of 26,450m.
Four holes were previously reported ( see Press Release, January 23, 2019) and the results from 10 of the final 34 holes are reported as ‘Highlighted Intersections’ in Table 1. One diamond hole, ASDH126B is being used for metallurgical test work. ASDH126B was drilled vertically through the Flank Zone. The probe assay result for ASDH126B were reported in May, 2018 and returned 204.1m grading 8,063ppm (0.81%) eU3O8 from 58.5m to 262.6m. The DASA deposit remains open along strike both to the northeast and to the southwest.
Table 1. Highlighted intersections from DASA
| || ||Incl.||250||253.5||3.5||23,668||2.37|
| || ||2||101.5||149.5||48||1,695||0.17|
| || ||Incl.||147||148||1||52,474||5.25|
| || ||Incl.||115.2||142.5||27.3||2,405||0.24|
| || ||Incl.||553||563||10||17,237||1.72|
| || ||Incl.||554||557.5||3||51,885||5.19|
| || ||Incl.||502||513.5||11.5||2,955||0.3|
| || ||Incl.||512||512.5||0.5||42,805||4.28|
| || ||4||521.5||557.5||36||1,075||0.11|
| || ||Incl.||537||538.5||1.5||5,240||0.52|
| || ||Incl.||542.5||550||7.5||18,095||1.81|
| || ||Incl.||543.5||544.5||1||25,412||2.54|
| || ||Incl.||547.5||549.5||2||44,132||4.41|
| || ||Incl.||585||588||3||6,034||0.6|
| || ||Incl.||512.5||517||4.5||16,601||1.66|
| || ||Incl.||491.5||501.5||10||3,556||0.36|
| || ||Incl.||511||517.5||6.5||4,889||0.49|
| || ||Incl.||513||515.5||2.5||8,063||0.81|
|Tegama South Zone||ASDH542||2350NW||2||344.5||359||14.5||1,828||0.18|
| || ||incl.||353||358.5||5.5||2,814||0.28|
| || ||Incl.||120||128||8||2,249||0.22|
| || ||Incl.||123.5||124.5||1||3,685||0.37|
All drill holes were tested with a downhole radiometric gamma probe during 2018, and 38 were sent for chemical assay at ALS Global, Vancouver. The ALS Global laboratory has an upper assay limit of 17.62% U3O8. Ultra high grade samples, that exceeded ALS Global upper limits, were sent to the SGS Lakefield laboratory in Ontario and are reported in percentage U3O8, not parts per million. Two ultra high grade intervals were returned, as shown in Table 2 below.
Table 2. Ultra high grade results
|Zone||Hole ID||Section||Horizon||From (m)|| ||To (m)|| ||Length (m)|| ||U3O8 %|| |
|Flank Zone||ASDH543||1950NW||1||234.0|| ||234.5|| ||0.5|| ||21.36%|| |
|ASDH563||1950NW||1||235.5|| ||239.0|| ||3.5|| ||22.52%|| |
CSA Global are in the process of updating the Mineral Resource Estimate (MRE) including recent results and then finalizing a new mine plan in a Feasibility Study to be released in Q4. The Feasibility Study will be based on commencing mining operations with shipments to Orano Mining under the MOU signed July 17, 2018.
George A. Flach, Vice President of Exploration, P.Geo. is the Qualified Person (QP) as defined in NI 43-101 and has prepared, supervised the preparation of, and approved the scientific technical disclosure in this news release.
About Global Atomic
Global Atomic Corporation is a TSX Venture listed company providing a unique combination of high grade uranium development and cash flowing zinc concentrate production.
The Company’s Uranium Division includes six exploration permits in the Republic of Niger covering an area of approximately 750 km2. Uranium mineralization has been identified on each of the permits, with the most significant discovery being the DASA deposit situated on the Adrar Emoles III concession, discovered in 2010 by Global Atomic geologists through grassroots field exploration.
Global Atomics’ Base Metals Division holds a 49% interest in Befesa Silvermet Turkey, S.L. (“BST”) joint venture, which operates a processing facility, located in Iskenderun, Turkey, that converts Electric Arc Furnace Dust (“EAFD”) into a high-grade zinc oxide concentrate which is sold to zinc smelters around the world. The Company’s joint venture partner, Befesa Zinc S.A.U. (“Befesa”, listed on the Frankfurt exchange under ‘BFSA’), holds a 51% interest in and is the operator of the BST joint venture. Befesa is a market leader in EAFD recycling, capturing approximately 50% of the European EAFD market with facilities located throughout Europe and Korea.
BST is well underway with an expansion project to significantly modernize and expand its processing plant in Turkey. The expansion is targeted to double annual production of zinc from 30 million lbs to 60 million lbs and is supported by EAFD supply currently available for processing in Turkey. The new plant is scheduled for completion by September 2019.
The information in this release may contain forward-looking information under applicable securities laws. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Global Atomic’s development potential and timetable of its operating, development and exploration assets; Global Atomic’s ability to raise additional funds necessary; the future price of uranium; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", “targets”, "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Global Atomic to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Global Atomic and in its public documents filed on SEDAR from time to time.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Global Atomic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Global Atomic does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Global Atomic’s annual and interim MD&As.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
?A figure accompanying this announcement is available at globenewswire.com
More articles issued by Global Atomic Corporation More articles related to: Company Announcement
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|To: LoneClone who wrote (18151)||4/4/2019 9:11:05 PM|
|Uranium Participation Corporation Reports Financial Results for the Year Ended February 28, 2019|
CNW GroupApril 4, 2019
TSX Trading symbol: U
TORONTO, April 4, 2019 /CNW/ - Uranium Participation Corporation ("UPC" or the "Corporation") today filed its Financial Statements and Management's Discussion & Analysis ("MD&A") for the year ended February 28, 2019. Both documents can be found on the Company's website ( www.uraniumparticipation.com) or on SEDAR ( www.sedar.com). The highlights provided below are derived from these documents and should be read in conjunction with them. All amounts are in Canadian dollars, unless otherwise noted. View PDF version
Selected financial information:
| || || || || |
| || ||February 28, |
| ||February 28, |
|Net asset value (in thousands) |
|Net asset value per common share |
|U3O8 spot price(1) (US$) |
|UF6 spot price(1) (US$) |
|Foreign exchange rate (US$ to CAD$) |
| ||1.3169 |
| ||1.2809 |
|(1) Spot prices as published by Ux Consulting Company, LLC ("UxC"). |
The net gain for the year ended February 28, 2019 was mainly driven by unrealized net gains on investments in uranium of $174,201,000 and income from uranium relocation agreements of $541,000, offset by operating expenses of $4,090,000 (2018 – net loss due to unrealized net losses on investments in uranium of $29,368,000, realized losses on the sale of conversion components of $4,079,000, and operating expenses of $4,038,000, slightly offset by income from uranium relocation agreements of $224,000).
Unrealized net gains on investments in uranium during the year ended February 28, 2019 were mainly due to the increase in the spot price for uranium. The spot prices during the fiscal year increased from US$21.25 per pound U3O8 and US$62.00 per KgU as UF6 at February 28, 2018, to US$28.00 per pound U3O8 and US$87.00 per KgU as UF6 at February 28, 2019. The unrealized net gain on investments in uranium was also positively impacted by a 3% increase in the U.S. dollar to Canadian dollar exchange rate during fiscal 2019. Unrealized net losses on investments in uranium during the year ended February 28, 2018 were mainly due to the decrease in spot prices from US$22.25 per pound U3O8 and US$64.00 per KgU as UF6 at February 28, 2017, to US$21.25 per pound U3O8 and US$62.00 per KgU as UF6 at February 28, 2018. The unrealized net loss on investments in uranium was also negatively impacted by a 3% decrease in the U.S. dollar to Canadian dollar exchange rate during fiscal 2018.
During the fourth quarter of fiscal 2019, the Corporation recorded an unrealized net loss on investments in uranium of $30,577,000 and a net loss for the period of $32,171,000. The unrealized net loss on investments in uranium was predominantly driven by the decrease in the spot price of uranium from US$29.10 per pound U3O8 and US$89.25 per KgU as UF6 at November 30, 2018, to US$28.00 and US$87.00, respectively at February 28, 2019. The unrealized net loss on investments in uranium was also negatively impacted by a 1% decrease in the U.S. dollar to Canadian dollar foreign exchange rate in the period. During the fourth quarter of fiscal 2018, the Corporation recorded an unrealized net loss on investments in uranium of $10,703,000 and a net loss for the period of $16,284,000, predominantly driven by the decrease in the spot price of uranium from US$22.00 per pound U3O8 and US$62.00 per KgU as UF6 at November 30, 2017, to US$21.25 and US$62.00 respectively at February 28, 2018, as well as the 1% decrease in the U.S. dollar to Canadian dollar foreign exchange rate in the period. During the fourth quarter of fiscal 2018, the Corporation also recognized a realized loss on the sale of conversion components of $4,079,000.
Total equity increased to $655,778,000 at February 28, 2019, from $463,329,000 at February 28, 2018. The increase in equity was due to the net proceeds of the Company's $23,009,200 equity financing, which resulted in the issuance of 5,612,000 common shares, as well as the net gain for the year.
The Corporation had an effective tax rate of nil for the years ended February 28, 2019 and February 28, 2018, primarily due to the Corporation's available tax shelter giving rise to a net deductible temporary difference – for which the Corporation does not recognize deferred tax assets.
Taken together, UPC's NAV per share increased to $4.75 at February 28, 2019, from $3.50 at February 28, 2018.
Current Market Conditions
Aftershocks echoing throughout the nuclear fuel industry from the 2011 Fukushima Daichii nuclear incident, which led to the multi-year shutdown of all nuclear power generation in Japan, have produced several years of challenging market conditions. In fiscal 2019, however, several significant industry events have helped set the stage for sustained positive change in future years. Stability and a rising uranium price is a welcome change for the nuclear fuel industry, which has been plagued by volatility and a sustained multi-year decline in both the spot price and long-term contract price of uranium. During fiscal 2019, the uranium price declined from approximately US$21.25 per pound U3O8 (at the beginning of the year) to an intra-year low of US$20.50 per pound U3O8 in April 2018, before strengthening and climbing steadily through the balance of the fiscal year to end the 2019 fiscal year at US$28.00 per pound U3O8.
The recent strength in the market has been supported, in part, by a number of events on the supply side. Most significant of these events was Cameco Corp's ('Cameco') announcement that the temporary shutdown of the McArthur River mine would become indefinite, with the timing of a restart dependent on future contracting and market conditions. Tied to this statement was Cameco's confirmation of its continued commitment to meeting existing customer obligations by purchasing large volumes of uranium in the spot market. National Atomic Company Kazatomprom ('Kazatomprom') added to this supply-side shift by keeping its promise to curtail its own production, resulting in a 20% reduction from previously planned production levels. Kazatomprom also indicated that they will maintain this reduced level of production in calendar years 2019 and 2020. Other curtailment efforts have also occurred – including Paladin Energy Ltd. placing its Langer Heinrich operation in Namibia on care and maintenance. The primary production landscape changed further with the decision by Rio Tinto to sell its 68.2% share in the Rössing operation in Namibia to China National Uranium Corporation. This sale does not create a fundamental change to supply and demand in the near term, but it does likely mean that Rössing production, which had been a staple of western utilities for decades, will now likely be destined for Chinese consumption going forward.
According to the World Nuclear Association ('WNA'), as at the end of the 2019 fiscal year, there are 445 nuclear reactors operable in 30 countries. These reactors can generate almost 396 gigawatts of electricity ('GWe'), which equates to approximately 10% of the world's electrical requirements and 21% of electrical requirements in Organisation for Economic Co-operation and Development ('OECD') member countries. As at February 28, 2019, are also 57 nuclear reactors under construction in 15 countries, with the principal drivers of this expansion being China (13 reactors under construction), India (7), Russia (6), South Korea (5), UAE (4) and the United States (4). In addition, there are another 126 reactors currently being planned around the world. Importantly, in February 2019, the Chinese government announced, after a brief hiatus in the approval of new reactor projects in that country, the preliminary approval for the construction of four new domestically designed HPR1000 reactors.
According to UxC's Q1 2019 Uranium Market Outlook ('Q1 2019 Outlook'), global nuclear power capacities are projected to increase to 462 reactors, generating approximately 453 GWe in 35 countries by 2035. In the Q1 2019 Outlook, UxC estimates base case demand in 2019 to be 195 million pounds U3O8. UxC also estimates that annual uranium demand could grow to 210 million pounds U3O8 under their base case for 2035, and to more than 290 million pounds U3O8 in their high case for the same period.
The Japan story remains a slow moving one, but generally positive. Japan's restart effort continues to advance, with the country finally beginning to make meaningful progress in bringing its nuclear fleet back online. In fiscal 2019, Japan increased its total number of nuclear reactors in operation to nine, proving that there is a path to restart in the country. Perhaps more important was the fact that while Japan has struggled with timely restarts over the past eight years, the global nuclear energy industry has continued to advance and has now grown such that the current level of global nuclear power generation has recovered to the pre-Fukushima levels. From this point forward, additional Japanese restarts can be seen as an added bonus to global nuclear generation.
The steady price rise in fiscal 2019 can also be attributed to the high volume of uranium transacted in the spot market. In calendar year 2018, spot market volumes set a record – exceeding 88 million pounds U3O8 and surpassing the previously recorded high of 56 million pounds U3O8 in 2011. While certain nuclear utilities looked to take advantage of low-priced uranium available in the market, the increase in transaction volume was mostly fueled by producer and trader buying resulting from production cutbacks, as well as renewed interest from financial investors speculating in the physical market. While spot market volumes exceeded expectations, long-term contracting in the market continued to lag. Market participants have entered into long term contracts for less than 400 million pounds of U3O8 over the past five years – a period in which consumption exceeded 800 million pounds U3O8.
While uncertainty surrounding Fukushima has started to fade and signposts suggesting that buyers are planning to begin long-term contracting have emerged, a Section 232 trade petition in the United States has brought renewed uncertainty to the market over the last several months. The petition was submitted to the US Department of Commerce ('DOC') at the end of fiscal 2018 by US uranium producers Energy Fuels Inc. and UR Energy Inc., requesting that the DOC investigate whether uranium imports into the United States are detrimental to that country's national security. Uncertainty from the Section 232 trade petition has gradually increased as we approach the conclusion of the DOC investigation. The companies who introduced the trade petition proposed a 25% domestic purchase quota for US utilities as a potential remedy; however, the DOC has the discretion to propose any remedy that it may consider appropriate, ahead of a final decision by the US President as to the implementation of any trade measure. It is expected that the findings of the DOC, as well as an ultimate decision by the US President on whether a remedy will be imposed and what it will look like, could be announced as early as the second calendar quarter of 2019. The overhang created by this potential trade action has had a direct impact on utility procurement, especially those based in the US – causing them to retreat from the market until the impact of the petition is better understood. This slowed purchasing led UxC to revise its projections in its Q1 2019 Outlook, such that cumulative uncovered nuclear utility requirements are now 1.6 billion pounds of U3O8 through 2035.
Other important demand-side events in fiscal 2019 have contributed to shifting market sentiment including positive news from some of the world's leading economies. In November, France released its anticipated energy plan, answering questions that had emerged regarding potential plans by the country to reduce its reliance on nuclear energy. Under the new energy plan, France upheld its goal, introduced by previous French President Hollande, to reduce its reliance on nuclear energy to 50%, but extended the time frame for this change by a decade, from 2025 to 2035. This was seen as a considerable win for nuclear energy both in France, and globally. Closely following the news from France, was an announcement by the European Commission that it will adopt a long-term climate plan that calls for the European Union to become the first major 'climate neutral' economy by 2050. The plan focuses heavily on the energy sector, stating that renewables and nuclear power will be the backbone of a carbon-free European power system. As well, China continued building on its existing reactor portfolio by starting seven new reactors in fiscal 2019. Adding to this accomplishment, China became the first to commercially operate two new reactor designs – Westinghouse Electric Company's AP1000 and France's EPR. Completion of these new designs was a positive signal to the industry that the designs work and will aid deployment of these reactor designs in other jurisdictions.
Effective April 1, 2019, the Corporation entered into a new management services agreement with the Manager (the 'MSA'). The management fee structure in the 2019 MSA is unchanged from the 2016 MSA, with the Manager being entitled to the following: a) a base fee of $400,000 per annum, payable in equal quarterly installments; b) a variable fee equal to (i) 0.3% per annum of the Corporation's total assets in excess of $100,000,000 and up to and including $500,000,000, and (ii) 0.2% per annum of the Corporation's total assets in excess of $500,000,000; c) a fee, at the discretion of the Board, for on-going monitoring or work associated with a transaction or arrangement (other than a financing, or the acquisition of or sale of U3O8 or UF6); and d) a commission of 1.0% of the gross value of any purchases or sales of U3O8 or UF6, or gross interest fees payable to the Corporation in connection with any uranium loan arrangements.
The term of the 2019 MSA is for five years, ending on March 31, 2024. In addition, the 2019 MSA includes a termination provision whereby, subject to certain exceptions, if the 2019 MSA is terminated early by the Corporation, the Manager will receive a termination payment equal to the base and variable management fees that would otherwise be payable to the Manager (calculated based on the Corporation's current uranium holdings at the time of termination) for the lesser period of a) three years; or b) the remaining term of the 2019 MSA.
The remainder of the terms of the 2019 MSA are the same as the 2016 MSA.
Outstanding Share Data
At April 4, 2019, there were 138,060,713 common shares issued and outstanding. There are no stock options or other equity instruments issued and outstanding.
About Uranium Participation Corporation
Uranium Participation Corporation is a company that invests substantially all of its assets in uranium oxide in concentrates ("U3O8") and uranium hexafluoride ("UF6") (collectively "uranium"), with the primary investment objective of achieving appreciation in the value of its uranium holdings through increases in the uranium price. Additional information about Uranium Participation Corporation is available on SEDAR at www.sedar.com and on Uranium Participation Corporation's website at www.uraniumparticipation.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain information contained in this press release constitutes forward looking statements or forward looking information. These statements can be identified by the use of forward looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "plan", "should", "believe" or "continue" or the negative thereof or variations thereon or similar terminology. In particular, this press release contains forward-looking information pertaining to the value of the Corporation's investments and expectations regarding uranium spot prices and uranium market factors, including expectations regarding uranium production levels, reactor restarts, levels of uncommitted utility reactor requirements, anticipated market supply and demand, the development of new nuclear power projects, the potential impact of international trade actions, and other statements regarding the outlook for the uranium industry and market.
By their very nature, forward looking statements involve numerous factors, assumptions and estimates. A variety of factors, many of which are beyond the control of UPC, may cause actual results to differ materially from the expectations expressed in the forward looking statements. For a list of the principal risks of an investment in UPC, please refer to the "RISK FACTORS" section in the Corporation's MD&A dated April 4, 2019 available under UPC's profile at www.sedar.com. These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward looking statements. Although management reviews the reasonableness of its assumptions and estimates, unusual and unanticipated events may occur which render them inaccurate. Under such circumstances, future performance may differ materially from those expressed or implied by the forward looking statements. Except where required under applicable securities legislation, UPC does not undertake to update any forward looking information.
SOURCE Uranium Participation Corporation
View original content: newswire.ca
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|From: The Barracuda™||4/5/2019 2:49:37 PM|
|GXU is rising for no apparent reason than some big crypto twitter guys are promoting uranium as the next big thing and it seems GXU's name keeps coming up. I own a lot of GXU so am not complaining.|
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|From: LoneClone||4/12/2019 12:37:26 PM|
|Skyharbour/Azincourt/Clean Commodities VTEM Survey Completed and Adds to East Preston Prospectivity|
April 11, 2019 16:30 ET | Source: Skyharbour Resources Ltd
VANCOUVER, British Columbia, April 11, 2019 (GLOBE NEWSWIRE) -- Skyharbour Resources Ltd. (TSX-V: SYH) (OTCQB:SYHBF) (Frankfurt: SC1P) (the “Company”) is pleased to announce that its partner company Azincourt Energy Corp. (“Azincourt”) has preliminary results from the recent helicopter-borne Versatile Time-Domain Electromagnetic (VTEM™ Max) and Magnetic survey conducted over the southeastern portion of the East Preston Uranium Project, located in the western Athabasca Basin, Saskatchewan.
Preston Uranium Project Map:
The survey was conducted between January 23rd and February 6th, 2019, and completed survey coverage over the entire 25,000-ha project area. This survey consisted of 498 line-km with 300 m line spacing and 1,000 m tie-line spacing – identical parameters to the previous VTEM™ Max survey, and ties directly into the previous flight lines. Flight lines are oriented NW-SE, perpendicular to the NE-SW trending structural and conductor trends of the basement rocks at East Preston.
Geotech, the survey provider, is finalizing final reports, but has completed data processing and has provided a merged dataset covering the entire East Preston project by combining the newly acquired VTEM survey data with the original VTEM data coverage. In-depth interpretation is on-going by Bingham Geoscience, geophysical consultants to Azincourt. Results of the interpretation will be reported once received and reviewed.
The initial interpretation of this new survey data has added an additional 7.5 km to 10 km along two of the same prospective previously-known conductive trends. There are offset breaks in the conductor trends with multiple, discreet conductors interpreted.
East Preston VTEM Survey:
More in-depth interpretation is on-going and will be used to add to the East Preston target inventory for future exploration drill testing.
VTEM Survey Grid – Completed January 2019:
The survey consisted of 498 line-km with 300 m line spacing and 1,000 m tie-line spacing – identical parameters to the previous VTEM™ Max survey, and ties directly into the previous flight lines, oriented NW-SE, perpendicular to the NE-SW trending structural and conductor trends of the basement rocks at East Preston. 100% of the East Preston ground has now been subject to VTEM Max survey.
Geotech is currently completing data processing prior to passing to Azincourt consultants for in-depth interpretation. This new survey data will be used to add targets for future exploration drill testing and does not affect the current planned drill campaign.
East Preston Geophysical Work - Winter 2018:
Azincourt completed a winter geophysical exploration program in January-February 2018 that generated a significant amount of new drill targets within the previously untested corridors while refining additional targets near previous drilling along the Swoosh corridor.
The work included 51.5 km of grid preparation (line cutting/picketing), 46.1 km of horizontal loop electromagnetic (HLEM), and 40.6 km of ground gravity along the previously known airborne helicopter VTEM conductive trends.
Skyharbour and Clean Commodities entered into an Option Agreement (the “Agreement”) with Azincourt whereby Azincourt has an earn-in option to acquire a 70% working interest in a portion of the Preston Uranium Project known as the East Preston Property. Under the Agreement, Azincourt has issued common shares and will contribute cash and exploration expenditure consideration totaling up to CAD $3,500,000 in exchange for up to 70% of the applicable property area over three years. Of the $3,500,000 in project consideration, $1,000,000 will be in cash payments to Skyharbour and Clean Commodities, as well as $2,500,000 in exploration expenditures over the three-year period.
Skyharbour also announces that it has reached an agreement with Azincourt in which The Company has agreed to accept 2,000,000 common shares (the “Settlement Shares”) of Azincourt Shares in settlement of a portion of the second year cash payment owing to Skyharbour in connection with the acquisition of an interest in the East Preston Uranium Project. As partial consideration for this interest in the project, a payment of $150,000 is owing to Skyharbour. The Settlement Shares are being issued in settlement of $100,000 of the payment owing to Skyharbour and are being issued at a deemed price of $0.05 per share. The balance of $50,000 owing to Skyharbour will be paid in cash.
Completion of the issuance of the Settlement Shares remains subject to the approval of the TSX Venture Exchange. Following issuance, the Settlements Shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Richard Kusmirski, P.Geo., M.Sc., Skyharbour's Head Technical Advisor and a Qualified Person.
About Skyharbour Resources Ltd.:
Skyharbour holds an extensive portfolio of uranium and thorium exploration projects in Canada's Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals with five drill-ready projects. In July 2016, Skyharbour acquired an option from Denison Mines, a large strategic shareholder of the Company, to acquire 100% of the Moore Uranium Project which is located approx. 15 kilometres east of Denison's Wheeler River project and 39 kilometres south of Cameco's McArthur River uranium mine. Moore is an advanced stage uranium exploration property with high grade uranium mineralization at the Maverick Zone with drill results returning up to 6.0% U3O8 over 5.9 metres including 20.8% U3O8 over 1.5 metres at a vertical depth of 265 metres. Skyharbour has signed option agreements with Orano Canada Inc. and Azincourt Energy whereby Orano and Azincourt can earn in up to 70% of the Preston Project through a combined $9,800,000 in total exploration expenditures, as well as $1,700,000 in total cash payments and Azincourt shares. Preston is a large, geologically prospective property proximal to Fission Uranium's Triple R deposit as well as NexGen Energy's Arrow deposit. The Company also owns a 100% interest in the Falcon Point Uranium Project on the eastern perimeter of the Basin which contains a NI 43-101 inferred resource totaling 7.0 million pounds of U3O8 at 0.03% and 5.3 million pounds of ThO2 at 0.023%. The project also hosts a high-grade surface showing with up to 68% U3O8 in grab samples from a massive pitchblende vein, the source of which has yet to be discovered. The Company's 100% owned Mann Lake Uranium project on the east side of the Basin is strategically located adjacent to the Mann Lake Joint Venture operated by Cameco, where high-grade uranium mineralization was recently discovered. Skyharbour's goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions.
Skyharbour’s Uranium Project Map in the Athabasca Basin:
To find out more about Skyharbour Resources Ltd. (TSX-V: SYH) visit the Company’s website at www.skyharbourltd.com.
SKYHARBOUR RESOURCES LTD.
President and CEO
For further information contact myself or:
Corporate Development and Communications
Skyharbour Resources Ltd.
Toll Free: 800-567-8181
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.
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|To: LoneClone who wrote (18157)||4/12/2019 12:41:56 PM|
|Ur-Energy Provides 2019 Q1 Operational Results |
Ur-Energy Inc. Apr 11, 2019, 17:14 ET
LITTLETON, Colo., April 11, 2019 /CNW/ -- Ur-Energy Inc. (NYSE American:URG)(TSX: URE) (the "Company" or "Ur-Energy") is pleased to provide the following operational results for first quarter 2019.
|Lost Creek Operations |
| ||Units |
|2019 Q1 |
| ||2018 Q4 |
| || || || || |
|U3O8 Captured |
|('000 lbs) |
| ||48.4 |
|U3O8 Dried & Drummed |
|('000 lbs) |
| ||53.7 |
|U3O8 Sold (from produced lbs) |
|('000 lbs) |
| ||0 |
|U3O8 Sold (from purchased lbs) |
|('000 lbs) |
| ||0 |
| || || || || |
|Average Flow Rate |
| ||2,019 |
|U3O8 Head Grade |
| ||23 |
| || || || || || |
Lost Creek Uranium Production and Sales
For the quarter, 22,551 pounds of U3O8 were captured within the Lost Creek plant, and 21,015 pounds of U3O8 were packaged in drums at the Lost Creek processing plant. No shipments of product were made to the conversion facility during the quarter. At March 31, 2019, inventory at the conversion facility was approximately 375,803 pounds U3O8.
In Q1 2019, sales totaled $4.8 million from 97,500 pounds sold. Our price per pound sold averaged $49.35. Half of these pounds were from Lost Creek production, produced at a cost of approximately $37.74 per pound, and half were pounds purchased for delivery, with an average purchase price of $27.51 per pound. Gross profits from contractual sales were $1.6 million, which represents a gross profit margin of approximately 34%. On a cash basis (excluding non-cash costs and extraction taxes), gross profits from contractual sales generated $2.3 million in cash, which represents a cash-basis gross profit margin of approximately 48%.
Lost Creek Operations
Production rates at Lost Creek during the quarter were in line with guidance for the year despite more difficult than normal winter weather conditions in Wyoming. Heavy snows and high winds impeded routine flow and production maintenance and hindered normal production activities. Notwithstanding the weather and site conditions, our staff remained safe, with our continuing safety record at Lost Creek intact, which now stands at over 600 days without a lost-time accident.
Section 232 Trade Action
The Department of Commerce ("DOC") continues its investigation into the impact of uranium imports on national security, and is nearing the statutory deadline to submit its report to the White House. It is anticipated that DOC will submit its report to the President, containing the Secretary's findings and recommendations of a proposed remedy, if any, very shortly. Following receipt of the report, the President has up to 90 days to act on the Secretary's report.
Guidance for 2019
In calendar year 2019, we expect to produce between 75,000 and 100,000 pounds at Lost Creek and deliver a total of 500,000 pounds into our term contracts at an average price of approximately $49 per pound. We have purchase contracts in place for 500,000 pounds at an average cost of $26 per pound. In total, 451,250 pounds of purchased product and 48,750 pounds of produced product will be delivered into the term contracts. Gross profits are expected to be approximately $11.0 million, which represents a gross profit margin of approximately 45%. On a cash basis (excluding non-cash costs and extraction taxes), gross profits from contractual sales are expected to generate $11.7 million in cash, which represents a cash-basis gross profit margin of approximately 47%. As discussed above, 97,500 pounds, including the 48,750 pounds from production, were sold in Q1 2019. We do not anticipate selling any additional produced pounds in 2019. By quarter, our remaining 2019 contractual sales are as follows: 100,000 pounds in Q2; 122,500 pounds in Q3; and 180,000 pounds in Q4.
Should uranium pricing continue to improve, or following a successful outcome of the ongoing Section 232 uranium investigation, we stand ready to ramp up production to full capacity at Lost Creek and initiate development activities at Shirley Basin. We remain operationally ready to increase production through the further development of our fully-permitted mine unit two ("MU2") at Lost Creek. Lost Creek operations could increase production rates in as little as six months following a "go" decision simply by developing additional header houses within MU2. Development expenses during this time are estimated to be less than $14 million and are almost entirely related to MU2 drilling and header house construction costs. Lost Creek does not require any significant capital expenditures in order to increase production, but we will continue to optimize site operations through engineering design enhancements and modifications. The Lost Creek plant has been well maintained and is ready to receive additional flows for increased production when warranted.
We will provide further guidance in our Form 10-Q, which is currently anticipated to be filed on Friday, May 3, 2019, and throughout the year as matters progress.
Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. We have produced, packaged and shipped approximately 2.5 million pounds from Lost Creek since the commencement of operations. Applications are under review by various agencies to incorporate our LC East project area into the Lost Creek permits, and to construct and operate at our Shirley Basin Project. Ur-Energy is engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development and operation of uranium mineral properties in the United States. Shares of Ur-Energy trade on NYSE American under the symbol "URG" and on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is in Littleton, Colorado; its registered office is in Ottawa, Ontario. Ur-Energy's website is www.ur-energy.com.
FOR FURTHER INFORMATION, PLEASE CONTACT
Jeffrey Klenda, Chair and CEO
Cautionary Note Regarding Forward-Looking Information
This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., continuing results of Lost Creek operations and the timing and ability to ramp up operations; timing and outcome for resolution of the Section 232 trade action or other changes to the uranium market; timing and outcome for all permitting and licensure of the Shirley Basin project and for the subsequent buildout of the project; projected sales and costs of sales; and whether adjustments of production rates at Lost Creek will be necessary or appropriate during 2019) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, fluctuations in commodity prices; capital and other costs varying significantly from estimates; failure to establish estimated resources and reserves; the grade and recovery of uranium which is mined varying from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; inflation; delays in development and other factors described in the public filings made by the Company at www.sedar.com and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.
SOURCE Ur-Energy Inc.
Related Links ur-energy.com
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