By: Peter Zihlmann
Your independent SWISS asset manager
Two plants on standby licensed to produce 3 million
pounds of uranium
· Over 206,600 acres of uranium mineral holdings in New Mexico
· NRC licensed to produce up to 3 million pounds of uranium per year
· An additional 664,000 pounds of in-place reserves in Texas ready to produce
US Projects Asset Location
URI currently controls three production properties and an exploration property in the state of Texas. These properties are owned by the Company’s wholly owned subsidiary, URI, Inc. They include the Kingsville Dome, Rosita and Vasquez production properties and the Los Finados/Tecolote exploration property.
Uranium Resources began operations in 1977 in the Texas Gulf Coast uranium region, which is rich in uranium ore. The Company has successfully completed several projects in the region and has produced over eight million pounds of uranium to date.
The Company developed and produced over 560,000 pounds U3O8 from the Longoria and Benavides projects in the early 1980s. These properties were fully restored between 1986 and 1991. From 1988 through 1999, the company produced approximately 6.1 million pounds U3O8 from two South Texas projects: 3.5 million pounds from the Kingsville Dome project and 2.6 million pounds U3O8 from the Rosita project.
In 1999, the company shut down production at both projects due to depressed uranium prices. The company had no revenue from uranium sales between 2000 and the fourth quarter of 2004, and therefore had to rely on equity infusions to fund operations and maintain our critical employees and assets.
After uranium prices rose significantly in 2004, the company placed the South Texas Vasquez property into production during the fourth quarter of that year. In April 2006, Kingsville Dome returned to production followed by a startup of Rosita in June 2008. From 2004 to the end of 2009, these three projects produced a total of 1.4 million pounds of U3O8.
The Vasquez project was completed in 2008 and is now in restoration. Rosita production was shut-in in October 2008 due to depressed pricing and technical challenges in the first new well field that made uranium recovery uneconomical. The decline in uranium prices throughout 2008 also led to a decision in October 2008 to defer new well field development at Rosita and Kingsville Dome. Production continued in two existing well fields at Kingsville Dome and was completed in July 2009. The Company has not had any operating projects in Texas since that time, and is currently evaluating the factors for resuming production.
Key operational elements of URI's plan for its Texas properties include:
New Mexico Properties
Uranium Resources holds a significant range of properties throughout the extent of the Grants mineral belt of west-central New Mexico. Included within the property portfolio are fee lands that the company own and some which are leased from third parties, patented and unpatented claims that the company own as well as lease, one State of New Mexico mineral lease, and some surface leases.
Collectively, this property position represents one of the largest mineral rights holdings in the Grants mineral belt. These properties include Churchrock/Mancos, Crownpoint, Nose Rock, Roca Honda, West Largo/Ambrosia Lake, Cebolleta (Cibola Project) and Juan Tafoya (Cibola Project).
The Grants mineral belt is an approximately 100-mile-long northwesterly trending belt of sandstone-hosted uranium deposits that historically have been the largest producer of uranium in the United States. During the period between the early 1950’s and the mid-1980’s, more than 80 underground and-open pit projects were developed and operated. At various times during the productive life of the belt as many as six uranium processing mills were built and operated by The Anaconda Company, Homestake Mining Company, Kerr-McGee, Phillips Petroleum, and United Nuclear. Historically, the Grants mineral belt was the largest source of uranium in the United States.
URI holds a NRC source materials license to build and operate an ISR uranium processing facility on company-owned property in McKinley County, New Mexico. The license allows for the ISR process at the Churchrock and Crownpoint projects that together hold nearly 12.6 million tons of in-place mineralized uranium material. The license allows for the production of up to 1 million pounds per year from Churchrock Section 8 until a successful demonstration of restoration is made; after which the quantity of production can be increased and exploration on other properties covered by the license can begin. Total production under the license is limited to 3 million pounds U3O8 per year.
Since 2007, the company has scanned approximately 18,800 drill logs in order to secure the data and the company plans to continue these efforts as well as begin to digitize this data to allow for analysis of drill hole information using modern resource modeling techniques. These logs total nearly 23 million feet of hole drilled in the 1970s and 1980s with an estimated drilling and logging replacement cost of $700 million.
URI plans to utilize its historic exploration database to assess the projects that comprise its New Mexico resource base to determine the most economic and efficient method for each project and prioritize the future development of these assets as well as continue to advance uranium asset consolidation activities. The Company will continue to advance its discussions with entities that would benefit from the production of the uranium and continue outreach and communication efforts with the local communities, federal, State and local governments and the Navajo Nation to address legacy issues while continuing education efforts on the safety of today’s uranium recovery practices with the objective of bridging the gap that currently exists between uranium development entities and others with stakeholder interests in the State.
Wyoming; Copper Mountain
The company holds approximately 9,313 net acres of mineral rights, through claims, fee leases, and mineral leases granted by the State of Wyoming, in the Copper Mountain area of central Wyoming.
Included in this package of properties are six ‘‘Uranium and Associated Minerals’’ leases granted by the State of Wyoming covering 2,200 acres, 17 fee (deeded) mineral leases covering an area of 644 net acres, and 366 unpatented lode claims covering an area of approximately 6,468 acres.
An east-west paved highway (US 20-26) between Riverton and Casper is located 14 miles south of the project area, and a north-south paved highway (US 20), between the towns of Shoshoni and Thermopolis is located 11 miles west.
Recent News: Uranium Resources Strengthens Balance Sheet and Reports Full Year 2013 Results and Milestones
Over the course of 2013 and through the first quarter of 2014, Uranium Resources, Inc. strengthened its balance sheet and recapitalized the Company. URRE is now positioned for a restart of production in South Texas upon sustained improvement in the uranium market.
Commenting on the Company's progress, President and Chief Executive Officer Christopher Jones said, "2013 was a year of restructuring. The URRE team made significant strides in the past year to improve our financial, operational and general administrative position. We are now ready for a decision to restart production in South Texas when we see a stronger uranium market. We reduced the cash burn rate and strengthened the balance sheet for our Company to be funded well into 2015. I commend our operations team for achieving an excellent safety record of three years without a recordable incident and for completing the pond restoration project at Kingsville Dome."
Looking ahead, Mr. Jones continued, "2014 is the year of optimizing the technical and operational components of our projects. In that regard, we are on track to complete three Technical Reports, all in New Mexico and compliant under Canada National Instrument 43-101, for the Cebolleta and Roca Honda projects by mid-2014 and for the Churchrock project by the end of 2014. These Technical Reports are being prepared jointly by our staff and independent Qualified Persons."
WHY NUCLEAR ENERGY?
The investment Policy of the Timeless Uranium Fund
The Fund Company will attempt to achieve maintenance of value and capital growth through the adoption of the following investment policy:
Furthermore, if circumstances and market conditions so dictate, the Fund reserves the right to hold up to 50% of its assets in cash, provided, however, that no more than 10% of the assets of the Fund shall be kept on deposit with any one body. This limit may be increased to 30% in respect of money deposited with a credit institution licensed in Malta or in any other EEA State, or with any other credit institution which has been approved by the MFSA.
The Fund shall not invest more than 10% of its assets in securities which are not traded in or dealt on a market which:
The Fund shall not invest more than 10% of its assets in securities issued by the same body.
The Fund shall not hold more than 10% of any class of security issued by any single issuer.
The Fund may, subject to approval from the MFSA, invest up to 100% of its assets in securities issued or guaranteed by any State, its constituent States, its local authorities, or public international bodies of which one or more States are members.
The Timeless Uranium Fund’s Prespectus can be requested at email@example.com.
NEW URANIUM MINE SUPPLY IS NEEDED … … BUT WHERE WILL IT COME FROM?
New Uranium Projects … Deferred Due to Low Prices:
· Russia | Stopping new uranium development, Honeymoon, Willow Creek, Mkuju River, Priargunsky, Khiada, Elkon
· Kazakhstan | Halting future uranium development
· Areva | Delays at Imouraren; Cominak & Somair (Niger) halted
· Cameco | Kintyre; Delayed start-up of Cigar Lake
· BHP Billiton | Olympic Dam deferred
· Rio Tinto | Ranger & Rossing shut down indefinitely
· Paladin | Langer Heinrich expansion deferred
· Uranium Energy Corp. | Palangana deferred
· HEU Agreement Has Expired | Major source of secondary supply
· Japan | 14 reactors have applied for a restart
· Worldwide | 71 new nuclear reactors now under construction
· Africa | Terrorist activity affecting major uranium production centers
The Timeless Funds (The Timeless Precious Metal Fund, The Sierra Madre Gold & Silver Venture Capital Fund, The Timeless Uranium Fund, The Timeless US Growth Fund (waiting for imminent approval)) are managed by
Timeless Asset Management Ltd, Malta (www.timeless-funds.com)
Investment Advisor is P. ZIHLMANN INVESTMENT · MANAGEMENT AG
phone: +41 44 268 51 10, mobile +41 79 379 51 57
To receive Recommendations free of charge every now and then, register at firstname.lastname@example.org
Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company’s share price.
Disclaimer: The author’s objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information, nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.
-- Posted Wednesday, April 2 2014 | Digg This Article |
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