Uranerz energy corporation + powder river basin, WY

 

 

http://www.uranium.info/index.cfm?go=c.page&id=60

 

Uranerz Signs U Sales Contract with Exelon Uranerz Energy Corp. has signed a sales agreement to supply uranium for Exelon Generation’s US commercial reactor fleet. The agreement is a long-term contract with deliveries over a five-year period and defined pricing in each year. Uranerz “is continuing to actively pursue further uranium sales opportunities to develop a portfolio that reflects a balance between market-related and fixed-price contracts, thus providing appropriate exposure to market price fluctuations and pricing diversification,” a July 23 company statement said. Uranerz has filed federal and state mining applications to build and operate its Nichols Ranch in-situ recovery project in Wyoming’s Powder River Basin where a central processing facility is planned. A satellite facility is planned at the company’s Hank property. [top]

 

from uranerz website

 

 

http://www.uranerz.com/

Wyoming Properties 

Uranerz Energy has obtained sixteen (16) mineral leases comprising thirty-one (31) parcels of land from the state of Wyoming. These leases cover a surface area of approximately 5747 hectares (14,200 acres).Twelve (12) of these leases are located in the Powder River Basin and Nineteen (19) of these leases are located in the northern part of an area generally referred to as the Great Divide Basin (or Red Desert).Applications for additional state mineral leases will most likely be made as the company’s exploration and acquisition efforts continue. 

The company also currently owns 140 federal lode mining claims in Wyoming and claim staking activity is continuing at this time.A lode mining claim typically covers approximately 20 acres (8 hectares).The areas in Wyoming being claim staked may have drill indicated resources.An independent uranium geologist is in the process of evaluating the available data.Part of the company’s Wyoming geologic data base was acquired from a long time Wyoming uranium exploration geologist. 

The state mineral leases and federal mining claims that Uranerz has in Wyoming are all located in sandstone basins of Cretaceous or Tertiary age and thus have the potential for the economic in-situ leach solution mining of uranium. The Uranerz management team has extensive operational experience in this method of uranium mining. 

 

 

Wyoming State Map

Uranerz Energy Corporation controls approximately 122,500 acres in the Pumpkin Buttes Uranium Mining District of the central Powder River Basin of Wyoming, U.S.A., an area well-known for hosting uranium-mineralized roll fronts often amenable to ISR mining techniques.

Location of the Powder River Basin is shown on this Wyoming State Map.

 

Wyoming-State-revised-Oct-2008.jpg

 

 

 

 

 

 

 

property_ownership_revised_June_3_2009.jpg

 

 

 

 


IN SITU RECOVERY (ISR) MINING
(Uranerz Specialty)
* Nearly all uranium mining in the USA is by this method;
* Nearly all uranium mining in Central Asia is by this method;
* 29 % of all World uranium production is by this method.



Click to Enlarge

The In-Situ Recovery Mining Process
Uranerz plans to use the low cost mining process of in-situ recovery mining, a process that uses a ‘leaching’ solution to extract uranium from underground ore bodies. The ‘leaching’ agent, which contains an oxidant such as oxygen with sodium bicarbonate (commonly known as baking soda), is added to the native groundwater and injected through wells into the ore body in a confined aquifer to dissolve the uranium. This solution is then pumped via other wells to the surface for processing — resulting in a cost-efficient and environmentally friendly mining process.

In Situ Recovery (ISR) Mining 
Advantages
+ Low Capital Costs for Mine Development
+ Low Operating Costs
+ Environmentally Friendly
+ No Waste Rock, No Tailings Pond
+ Profitable on Lower Grade Uranium Deposits
+ Small Work Force (low labor costs)

 

 

 



Wyoming Powder River Basin Projects 

Uranerz has several 100%-owned projects in the Powder River Basin of Wyoming. The Powder River Basin of Wyoming has some of the highest grade uranium deposits in the State that are amenable to the cost-effective in-situ recovery mining methods. Commercial ISR mining in the Powder River Basin has been ongoing since 1987, with production coming from the Smith Ranch-Highland mines currently owned and operated by Cameco Resources Inc. (a wholly owned U.S. subsidiary of Cameco Corporation) and from AREVA NC’s Irigaray/Christensen Ranch ISR mine located in the Pumpkin Buttes uranium district (presently on stand-by, but re-start of operations has been announced).

The Company also has an undivided eighty-one percent (81%) interest in the NAMMCO properties, which cover approximately 82,141 acres (33,242 hectares) in the central Powder River Basin (collectively, the “Arkose Property”). In connection with this acquisition, the Company and United Nuclear, LLC, a limited liability company owned by the sellers of the NAMMCO properties, have formed and contributed their interests in the NAMMCO properties to the “Arkose Mining Venture”. United Nuclear will hold (and contribute to) a nineteen percent (19%) working interest in the Arkose Mining Venture. The Arkose Property is located in close proximity to the Company’s 100%-owned properties in the Powder River Basin, including adjacent Collins Draw and Doughstick and other nearby properties that have been the subject of the Company’s recent exploration and mine licensing efforts.

As manager/operator of the Arkose Mining Venture, the Company has developed an aggressive 2008 exploration drilling program to operate up to five drill rigs and two electric log probing units on the Arkose properties. It is anticipated that each drill rig could drill two 600-foot holes per day for a total of approximately 800,000 feet of total exploration drilling.

Permitting Activities

Uranerz has expertise in the in-situ recovery (ISR) mining methods, and, based on Uranerz management’s ISR mining experience in the Powder River Basin, the Company has begun commercial environmental permitting and mine development planning. The Company has submitted federal and state mining applications to build and operate the Nichols Ranch ISR Uranium Project, which, when licensed and constructed, is planned to consist of a central processing facility at the Nichols Ranch property and a satellite facility at the Hank property. The central processing facility at the Company’s Nichols Ranch ISR Uranium Project is being licensed for a capacity of 2 million pounds per year of uranium (as U3O8). It is planned that this facility will process uranium-bearing well field solutions from Nichols Ranch, as well as uranium-loaded resin transported from the Hank satellite facility, plus uranium-loaded resin from any additional satellite deposits that may be developed on the Company’s other Powder River Basin properties. This centralized design enhances the economics of the Company’s potential additional satellite projects by maximizing production capacity while minimizing further capital expenditures on processing facilities. Commencement of operations at the Nichols Ranch ISR Uranium Project is dependent on receipt of required regulatory approvals, but is currently projected for late 2010 or 2011.

Given the considerable experience of our management team with permitting ISR projects in Wyoming, we feel that the quality of the submitted applications will allow the state and federal regulatory bodies to conduct their reviews in an efficient and timely manner. To date, both the U.S. Nuclear Regulatory Commission (“NRC”) and the Wyoming Department of Environmental Quality (“WDEQ”) have deemed the Company’s applications to build and operate an ISR uranium mining facility acceptable to advance to the next stage of their formal review process. This marks a significant advancement of the Company’s application for a source material license (NRC) and State permit to mine (WDEQ), which has now progressed to the phase of undergoing a detailed technical and environmental review. We plan to continue our mine permitting activities and plan to select additional properties that will be the subject of future permit applications. Exploration drilling results from the drilling programs will be used to finalize the selection process. 

 

 

 

 

 

http://news.moneycentral.msn.com/ticker/article.aspx?Feed=MW&Date=20090709&ID=10132628&Symbol=URZ

Uranerz Announces Drilling Update on Powder River Basin Projects

July 9, 2009 4:58 PM ET

Uranerz Energy Corporation (“Uranerz” or the “Company”) (TSX: URZ)(NYSE Amex: URZ)(FRANKFURT: U9E) is pleased to announce the status of its 2009 drilling program on its projects in the Powder River Basin, Wyoming, U.S.A. Drilling began April 21, 2009 on the Arkose Mining Venture property (“Arkose”), a joint venture between the Company (81%) and United Nuclear, LLC (19%). Through July 3, 2009, a total of 199 uranium trend and delineation holes were drilled utilizing up to three drill rigs and two electric log probing units. Drilling on the Arkose property was conducted at South Doughstick, Cedar Canyon, and a new adjacent area, North Jane.

A total of 93 holes were drilled at the South Doughstick property and extended the known 100 Sand uranium-mineralized trend an additional 2,600 feet farther south in the middle of the property. Drilling also began one mile south of the primary South Doughstick trend on an extension where uranium mineralization has been found in the 100 Sand with 43 exploration holes drilled at this location. Preparation of a National Instrument 43-101 technical report on the South Doughstick property is in progress and is expected to be released in the near future.

At Cedar Canyon, 32 exploration holes were drilled but only minor mineralization was found. In an adjacent area between the Uranerz Doughstick property and Cedar Canyon, new uranium mineralization was found in the 100 Sand. This area of the Arkose property, termed the North Jane project, is an extension of the trend located at the Company’s 100%-owned Doughstick property. To date, 31 holes have been drilled at North Jane with good results. A separate National Instrument 43-101 technical report has been started for the Uranerz Doughstick property but will now wait for the North Jane drilling to be completed, as these two properties are adjacent and part of the same trend. The combined effort for drilling on the Arkose properties through July 3 represents approximately 126,117 feet of drilling with an average depth of 634 feet per hole.

In addition to the Arkose exploration program, 51 delineation holes were drilled on Uranerz 100%-owned Nichols Ranch and other near-by properties. The purpose of this drilling was primarily to prepare for the installation of baseline monitor wells for the planned Nichols Ranch ISR uranium mining facility Well Field Unit #1.

The objective of the 2009 Arkose drilling project is to find previously unknown or little known uranium mineralization trends and to delineate known trends, thus providing data for permitting and eventual production operations in favorably identified areas. During 2009, uranium mineralization found ranged from less than 0.01% eU3O8 to 0.51% eU3O8. A cut-off grade of 0.03% eU3O8 was established for Arkose projects. Approximately 45.2% of the 199 holes drilled to date in 2009 met or exceeded the minimum cut-off grade. Some of the delineation drilling was conducted in rows or fences of drill holes, with each end of the fence being drilled until barren sand was found. This drilling technique typically results in two or more barren holes per fence. A summary table of the most recent best hole results is provided below.

Summary of Best Hole Drilling Results from April 21 through July 3, 2009

---------------------------------------------------------------------------
                Thickness                   Grade-Thickness           Depth
                ---------            Grade  -------------------------------
Hole ID               (ft)           (%)(i)          (GT(ii))    (ft to top)
---------------------------------------------------------------------------
                   South Doughstick (Arkose 100 Sand(iii))
---------------------------------------------------------------------------
A36-29-161            7.0            0.297             2.08           527.5
---------------------------------------------------------------------------
A36-29-170            9.5            0.257             2.44           577.0
---------------------------------------------------------------------------
A36-29-187           13.0            0.136             1.77           551.0
---------------------------------------------------------------------------
A36-29-191            9.5            0.508             4.83           578.5
---------------------------------------------------------------------------
A36-29-205           10.5            0.113             1.19           555.0
---------------------------------------------------------------------------
A36-29-206           10.5            0.227             2.91           556.0
---------------------------------------------------------------------------
A36-29-216            9.0            0.161             1.45           610.5
---------------------------------------------------------------------------
A36-29-230           17.5            0.094             1.64           611.5
---------------------------------------------------------------------------
A36-29-232            6.5            0.213             1.38           542.0
---------------------------------------------------------------------------
                      North Jane (Arkose 100 Sand(iii))
---------------------------------------------------------------------------
A36-28-011           14.0            0.074             1.04           561.0
---------------------------------------------------------------------------
A36-28-014           13.0            0.096             1.25           550.5
---------------------------------------------------------------------------
A36-28-018           12.0            0.093             1.12           553.0
---------------------------------------------------------------------------
A36-28-020           14.0            0.173             2.42           568.5
---------------------------------------------------------------------------
              South Doughstick Extension (Arkose 100 Sand(iii))
---------------------------------------------------------------------------
A26-05-018           14.0            0.081             1.13           519.0
---------------------------------------------------------------------------

(i)   All drill holes are electric logged with a standard suite of logs
      including resistivity, self-potential, and natural gamma expressed as
      eU3O8. The gamma detection instruments are calibrated in the Casper,
      Wyoming, US Department of Energy test pits every 60 days.

(ii)  GT represents grade times thickness and is calculated by multiplying
      eU3O8 grade (in percent) by gamma anomaly thickness (in feet) as
      determined from downhole radiometric probing. For example, a drill
      hole that has 10 feet of 0.10% uranium mineralization has a GT of 1.0
      and would be considered a good hole by ISR mining standards.

(iii) The 100 Sand is part of a sequence of sands in the Wasatch Formation
      which range in ascending order by 10's from 70 to 140 (70, 80, 90,
      etc.). The 100 sand is equivalent to the A sand, which is the
      principle mineralized sand at the proposed Nichols Ranch ISL uranium
      facility. The 90 Sand is located 70 to 100 feet below the 100 sand.

“The drilling results Uranerz has achieved at the Arkose South Doughstick, North Jane, and South Doughstick Extension properties are highly encouraging. The full extent of the uranium resources on the South Doughstick project area was virtually unknown prior to the Uranerz drilling program last season. Considering that the proposed Nichols Ranch ISR uranium facility site is only 2 to 3 miles away, additional mineralization can only further enhance Uranerz’ position in this area of the Powder River Basin. Looking to the remainder of our summer drilling activities, after North Jane has been delineated, we plan to move to the Little Butte area where mineralization was found in 2008. Drilling at Little Butte will concentrate on the 90 Sand and a trend nose structure we believe is contained there,” said Kurtis Brown, the Company’s Vice President, Exploration.

Mr. Kurtis Brown is a “qualified person” as defined by Canadian National Instrument 43-101 and oversees the Company’s drill programs. He has reviewed the technical disclosure related to the Company’s drilling results that are provided in this news release.

About Uranerz

Uranerz Energy Corporation is a uranium exploration company focused on achieving commercial production. The Company has applied for permits to develop two of its properties in the Powder River Basin area of Wyoming into commercial in-situ recovery uranium mines. These permits will allow us to produce uranium yellowcake concentrate which can be sold directly to utilities for fuel used in nuclear electrical generating facilities.

Members of the Uranerz management team have specialized expertise in the in-situ recovery (“ISR”) uranium mining method, and the Company collectively owns or controls approximately 124,300 acres (50,296 hectares or 194 square miles) in the Pumpkin Buttes Uranium Mining District of the central Powder River Basin of Wyoming, U.S.A., an area well-known for hosting uranium-mineralized roll fronts often amenable to ISR mining techniques.

The mine plan for the Nichols Ranch ISR Uranium Project includes construction of a central processing facility at our Nichols Ranch property and a satellite ion exchange facility at our Hank property. The ultimate production level from these two properties is planned to be in the range of 600,000 to 800,000 pounds per year (as U3O8). The central processing facility is planned for a licensed capacity of 2 million pounds per year of uranium (as U3O8). It is intended that this facility will process uranium-bearing well-field solutions from Nichols Ranch, as well as uranium-loaded resin transported from the Hank satellite facility, plus uranium-loaded resin from any additional satellite deposits that may be developed on our other Powder River Basin properties. This centralized design enhances the economics of our potential additional satellite projects by maximizing production capacity while minimizing further capital expenditures on processing facilities. The project is progressing through detailed engineering and design. Commencement of operations at the Nichols Ranch ISR Uranium Project is dependent on receipt of required regulatory approvals.

Commercial ISR mining in the Powder River Basin has been ongoing since 1987, with production coming from the Smith Ranch-Highland mine currently owned and operated by Cameco Resources Inc. and from AREVA NC’s Irigaray-Christensen Ranch ISR mine located in the Pumpkin Buttes uranium mining district (presently on stand-by, but re-start of operations has been announced).

ISR mining comprised 28% of global uranium production in 2008 according to the World Nuclear Association. Wyoming ISR advantages include low capital costs, low operating costs, and low environmental impact. Wyoming is the largest uranium producer in the United States with a long ISR history and has the largest known uranium resource base in the U.S. Uranerz management has a record of licensing, constructing, and operating commercial ISR projects.

Further Information

For further information, please contact the Company’s Investor Relations department at 1-800-689-1659 or refer to the Company’s website at www.uranerz.com, review the Company’s filings with the Securities and Exchange Commission at www.sec.gov, or visit the Company’s profile on the SEDAR website at www.sedar.com.

This press release may contain or refer to “forward-looking information” and “forward-looking statements” within the meaning of applicable United States and Canadian securities laws, which may include, but is not limited to, statements with respect to resource estimates, permitting and development activities, projections, our planned exploration and drilling programs, the availability of future financing for exploration, projections as to the timing or likelihood of obtaining required regulatory approvals and other plans, projections, estimates and expectations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the SEC (available atwww.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. We do not undertake to update forward-looking statements to reflect later events or developments, except as required by law.

Contacts:
Uranerz Energy Corporation
Investor Relations
1-800-689-1659
www.uranerz.com
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