Uranium Energy (UEC) (NYSEAMERICAN:UEC) announced the restart of uranium production at its Christensen Ranch in-situ recovery (ISR) operations in Wyoming, US, on Tuesday (August 13).
Production began on August 6 at Mine Unit 10, a previously operated unit. According to the company, uranium concentrations are meeting initial expectations and are expected to increase in the weeks ahead.
The first shipment of yellowcake from the site is anticipated later this year, and is set to coincide with the company’s second fiscal quarter, which will wrap up on January 31, 2025.
"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, adding that the workforce now stands at 40 employees, with 20 more to come.
She also said 55 wellfield patterns to extend Mine Unit 10 have been drilled, cased and completed; they will start production next year, and additional production growth is being planned at Mine Unit 11.
The uranium recovered will be processed at the Irigaray central processing plant, which is about 15 miles from Christensen Ranch and has a licensed capacity of 2.5 million pounds of U3O8 annually.
An amendment to Irigaray's license is under regulatory review, and would increase its capacity to 4 million pounds a year.
Speaking to the Investing News Network in March, Scott Melbye, executive vice president at UEC, said that the Burke Hollow ISR project in Texas will be UEC's next asset to come online after Christensen Ranch.
The company’s production restart comes at a time when global demand for uranium is expected to rise, driven by growth in nuclear power and the strategic importance of stable uranium supply.
After trading above US$100 per pound level early this year, uranium prices have fallen back in a consolidation period, slumping to US$81 in August — the lowest point seen in nine months.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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