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NewsBot Date: November 10, 2006 06:36:00 AM
URRE News Uranium Resources, Inc. Announces Feasibility Study of New Mexico Assets
LEWISVILLE, Texas--(BUSINESS WIRE)--Uranium Resources, Inc. (OTCBB: URRE) (“URI”)
announced today that it has launched an internal evaluation to determine
the feasibility of developing a conventional mining and milling complex
based on several of the Company's New Mexico properties that are less
amenable to in-situ recovery mining methods.
From 1948 through 2001, nearly 350 million pounds of uranium were
produced by conventional mining and milling methods in New Mexico.
During the peak years from 1959 through 1981, conventional production
ranged from 9 to 19 million pounds of uranium per year, averaging nearly
13 million pounds per year.
As for the future, the Energy Information Administration (EIA) stated in
a June 2004 report that as of December 31, 2003, uranium reserves in New
Mexico were estimated to be 341 million pounds U3O8
assuming forward costs of up to $50 per pound of U3O8.
Given historic production rates and EIA's estimate of available uranium
resources, URI believes a single conventional mill in New Mexico could
produce between 5 to 10 million pounds of uranium per year, which
includes production from Company-owned properties.
URI owns 183,000 acres of mineral holdings in New Mexico which includes
mine sites at Crownpoint, Nose Rock, and Roca Honda. These mine sites
were designed by previous owners to produce nearly 4 million pounds of
uranium per year. All three projects were deferred in the early 1980s
after uranium prices fell from $43 per pound of U3O8
to below $10 per pound by the end of that decade. On these sites are six
completed mine shafts that are estimated to have a replacement cost of
$25 to $50 million. With these shafts already in place, URI believes the
cost of development should be lower. In addition, once all required
permits are received, production on the sites with mine shafts already
in place should begin considerably sooner than on comparable undeveloped
sites.
The feasibility study will include the following:
The reopening and inspection of two 3,300 foot shafts at Nose Rock
that were developed by a division of Phillips Petroleum in the late
1970s. This project was designed to produce approximately 2.5 million
pounds of uranium per year, but was shutdown in 1981 before mining
began.
The reopening and inspection of three shafts at Crown Point that were
developed by a division of Westinghouse Electric Corporation to
produce an estimated 1.2 million pounds of uranium per year.
Production from this project was deferred in 1981 before mining began.
The reopening and inspection of the Kerr-McGee shaft on Roca Honda.
A thorough evaluation of the Company’s
extensive data base that includes over 16,000 logs, feasibility
studies, mine development plans, and ore reserve analyses that were
prepared during the 1970s and ‘80s by
Homestake Mining, Mobil Oil, Phillips Petroleum, United Nuclear, and
Westinghouse Electric Corporation. This evaluation will focus on the
Company’s 43,000 acres located in the
prolific Ambrosia Lake District where there exists the greatest
potential to discover new uranium resources.
A through examination of the Company’s
mineral holdings to determine which properties are more amenable to
conventional development as opposed to in-situ recovery mining methods.
An analysis to determine the feasibility of building a conventional
mill to process company mined ore, as well as the potential for toll
milling.
This internal evaluation will be managed by Richard A. Van Horn, Senior
Vice President – Operations. Mr. Van Horn has
extensive experience in the conventional mining and milling of uranium
on the Colorado Plateau with Union Carbide, including the management of
the White Mesa Mill operating in Blanding, Utah.
ABOUT URANIUM RESOURCES, INC.
Since it’s incorporation in 1977, URI has
produced over 7 million pounds of uranium by in-situ recovery (ISR)
methods in the state of Texas where the Company currently has three ISR
mining projects. URI is also conducting a feasibility study on the
Churchrock ISR project in New Mexico where the Company has a Nuclear
Regulatory Commission license. URI’s strategy
is to fully exploit its resource base in Texas and New Mexico to take
advantage of the strong global market for uranium.
Safe Harbor Statement
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks, uncertainties and
assumptions and are identified by words such as “expects,”“estimates,”“projects,”“anticipates,”“believes,”“could,” and other
similar words. All statements addressing operating performance, events,
or developments that the Company expects or anticipates will occur in
the future, including but not limited to statements relating to the
Company’s reserves and mineralized uranium
materials, timing of receipt of mining permits, production capacity of
mining operations planned for properties in South Texas and New Mexico,
planned dates for commencement of production at such properties,
revenue, cash generation and profits are forward-looking statements.
Because they are forward-looking, they should be evaluated in light of
important risk factors and uncertainties. These risk factors and
uncertainties include, but are not limited to, the spot price of
uranium, weather conditions, operating conditions at the Company’s
mining projects, government regulation of the mining industry and the
nuclear power industry, the world-wide supply and demand of uranium,
availability of capital, timely receipt of mining and other permits from
regulatory agents and other factors which are more fully described in
the Company’s documents filed with the
Securities and Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should any of the Company’s
underlying assumptions prove incorrect, actual results may vary
materially from those currently anticipated. In addition, undue reliance
should not be placed on the Company’s
forward-looking statements. Except as required by law, the Company
disclaims any obligation to update or publicly announce any revisions to
any of the forward-looking statements contained in this press release.
