Uranerz is a U.S. mining company focused on near-term commercial in-situ recovery ("ISR") uranium production, and is currently constructing its first ISR mine in Wyoming. ISR is a mining process that uses a "leaching solution" to extract uranium from sandstone uranium deposits; it is the generally accepted extraction technology used in the Powder River Basin area of Wyoming (ISR comprised 41% of world uranium production in 2010).
The Company controls a large strategic land position in the Pumpkin Buttes Uranium Mining District of the central Powder River Basin of Wyoming. Uranerz' management team has specialized expertise in the ISR uranium mining method, and a record of licensing, constructing, and operating ISR uranium projects. The Company has entered into long-term uranium sales contracts with Exelon and one other of the largest nuclear utilities in the country for a portion of its planned production.
In August 2011, Uranerz commenced construction of its first in-situ recovery ("ISR") uranium mine, called the Nichols Ranch ISR Uranium Project, in the Powder River Basin area of Wyoming, U.S.A. Construction is well underway and is currently on schedule. The Company's focus is on the construction of the processing plant, the office and laboratory, the maintenance facility, and the installation of monitor and production wells required for ISR uranium mining. Six drill rigs are engaged in production well installation.
The Company began installing production wells at its Nichols Ranch ISR Uranium Project in Production Area 1 on December 5, 2011, after completing the installation of monitor wells.
Uranerz Energy Corp. has made its first sale of uranium from the Nichols Ranch ISR uranium project located in the Powder River basin of Wyoming. The company has sold 75,000 pounds which is a portion of the deliveries Uranerz is expecting to make this year pursuant to long-term contracts it has with its nuclear utility customers.
"This has been a very exciting year thus far," stated Paul Goranson, Uranerz's president and chief operating officer. "Uranerz has completed construction and development of its Nichols Ranch production facility and initial well fields, started production of uranium, and has now made its first sale of product. We are very pleased to be an active participant in providing domestically produced uranium to U.S. nuclear utilities to fuel their electrical generating stations."
Uranerz has three long-term uranium sales agreements with two major U.S. nuclear utilities. The company is currently making deliveries to satisfy these contracts with shipments of uranium to the ConverDyn Metropolis works facility.