IR response to BNN rumors...
...thank you for your e-mail and questions. First of all, let me say that we have not projected increased costs. In fact, we've been targeting $25/lb as an approximated cost all along and the recent preliminary assessment report states costs at around $23/lb at an $80 selling price.
Second, I'm not sure where they're getting that we "won't ramp up as quickly" -- all I can say is that we are right on schedule with production. We have projected (& publicly stated) that we are looking to start production at Lost Creek late in 2009. We have forecasted around 100,000 to 200,000 lbs before ramping up to full production in 2010 to 1 million pounds.
Our processing plant facility's capacity will be 2 million pounds. This means the opportunity to take on other projects of our own as well as other projects from other companies. We've described the processing facility as a two-phase process (no secret to anyone and is the same for anyone building a full processing facility). The first phase is the licensing and build-out of the processing facility which is happening in tandem with the licensing of our Lost Creek mine. The second phase involves the drying and packaging facility. The second phase requires a whole separate licensing and permitting process and can not occur until the first phase is completed. However, rather than our waiting until the completion of the 2nd phase, we plan to still go into production because we do have the capability of getting to the yellowcake slurry stage and hauling it to a nearby full facility to have it dried and packed. This does not delay our production. This does not delay our contracts. This enables us to be into production right away and companies are already seeking contracts with Ur-Energy. We will probably be looking at starting the contract negotiation process about 6 months out from production.
I have forwarded your e-mail to our executive management for further comment and direction in dealing with what appears to be misleading information. Should you have any further questions or concerns, feel free to contact me anytime. I appreciate the opportunity to answer your questions and concerns and hopefully I have cleared the air for you. These things happen sometimes, unbeknownst to us, so we appreciate those that follow URE and advising us on such reporting as you provided today. We just had such a nice interview with BNN air not long ago -- so this really comes out of left field.
Again, please contact me anytime should you have questions or concerns. Your being a shareholder is very much appreciated.
Best regards,
Dani Wright
Manager, Investor/Public Relations
Ur-Energy Inc. - Your Uranium Powerhouse