On
Field tests in
Beyond improving the economics of injection well installation, our new installation technique is anticipated to result in numerous environmental benefits, including: Reduction of heavy vehicle traffic since drill rig time on injection wells is reduced from approximately 3.5 to 0.5 days per well as demonstrated during initial field tests; Up to 85% fewer air emissions during installation of injection wells; Less noise due to shortened drill rig and water truck time; A further reduction in already low well failure rates due to fewer points of potential failure, because the casing material is 'tougher' in many respects than conventional PVC well casing, and the completion method requires less exposure to the drill string and bit compared to conventional methods; and Initial Mechanical Integrity Tests ('MITs') can be performed during installation without the need to re-enter the well.
Next Steps
Several additional steps will be taken by the Company prior to implementing our new technology on a commercial scale. First, to finalize permitting, we will submit a report to LQD detailing the results of initial testing. Because LQD Staff previously reviewed the engineering and witnessed the installation of wells utilizing the technology, we expect final approval will be efficiently processed.
Phase 2 field testing will focus on well development methods with the goal of maintaining flow rates consistent with conventional methods and verifying required rig time as utilized in Phase 1 installations. We will continue testing all aspects of the new technology, including well integrity and flow rates, by installing and operating several of the new injection wells in an operational setting. If the wells perform as expected, the technology will be implemented across Company operations.
Given the potential significant cost savings presented by our technology, we will initiate a hydrologic modeling exercise to determine what well pattern geometry and spacing is most cost effective. We believe the five-spot well pattern geometry currently used throughout the industry may be improved by utilizing our new technology in a seven-spot geometry as illustrated below. This seven-spot geometry is expected to increase the sweep efficiency, improve the percentage of uranium recovered, and shorten the time required for mining and groundwater restoration. The modeling exercise will balance the well geometry and spacing against economics to determine the most cost-effective way to utilize the new technology.
Future Application and Value to
The new well installation technology is expected to be applicable across the in-situ recovery industry including in recovery of copper, lithium, soda ash, potash and other soluble minerals. The technology can also be applied in the groundwater restoration industry when treated water is re-injected into the host aquifer. The technology may also provide cost benefits when micro-purging of groundwater monitor wells is desirable. The Company plans to monetize the patented technology by licensing it to these and potentially other industries.
While Phase 1 results have been favorable, additional testing, as described above, is required before determining if the technology will be proven commercially viable. By its very nature, research and development is challenging and outcomes are difficult to predict. We will provide an update after the planned additional injection wells are placed in operation, which is the ultimate test.
About
Contact:
Chairman
CEO & President
T: 866-981-4588, ext. 303
E: John.Cash@Ur-Energy.com
Cautionary Note Regarding Forward-Looking Information
This release may contain 'forward-looking statements' within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., whether and on what timing all necessary additional permitting will be received from LQD; whether the new well installation methods and materials will be successfully proven out in Phase 2 testing and in future operational tests including the cost savings and environmental benefits which may be achieved; whether changes to the traditional five-spot geometry of recovery patterns will be successful and what new geometric recovery and restoration sweeps will be utilized; whether the new technology will be applicable to and adopted by other industries and what value that may bring to the Company; and the viability and timing of other research and development efforts of the Company) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as 'plans,' 'expects,' 'does not expect,' 'is expected,' 'is likely,' 'estimates,' 'intends,' 'anticipates,' 'does not anticipate,' or 'believes,' or variations of the foregoing, or statements that certain actions, events or results 'may,' 'could,' 'might' or 'will be taken,' 'occur,' 'be achieved' or 'have the potential to.' All statements, other than statements of historical fact, are considered forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, capital and other costs varying significantly from estimates; failure to establish estimated resources and reserves; the grade and recovery of ore which is mined varying from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; inflation; changes in exchange rates; fluctuations in commodity prices; delays in development and other factors described in the public filings made by the Company at www.sedar.com and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and
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