The LC South project is adjacent to the the Lost Creek Permit area and the site of some of the exploration targets identified by Ur-Energy during 2009. The project comprises 217 federal mining claims, or nearly 11,000 acres (approximately 4,450 hectares).
In August 2009, the company said that in-house evaluations had identified multiple exploration targets demonstrating the potential to contain an additional 24 to 28 million pounds U3O8 (not NI 43-101 compliant) within properties controlled by the company, which include a portion of the current Lost Creek Permit area and adjacent lands covered by the LC North and LC South projects.
The potential quantity identified earlier and now remain conceptual in nature, as there has been insufficient exploration to define a mineral resource as to all of the potential identified. The newly identified fronts occur within the same stratigraphic horizons that are mineralized within the area of the Lost Creek deposit.
Estimation of the potential of the new roll fronts is based on the observed similarity of alteration characteristics, grade and thickness of mineralization to that currently under development at Lost Creek, the company said.
While it is estimated that as many as 2,000 to 3,000 drill holes will be required over the course of several years to fully evaluate the various new exploration targets in LC South as well as LC North and areas within the Lost Creek Permit area, the company has commenced its work on this first drill program.
In addition, the company will commission an independent NI 43-101 study to further evaluate selected portions of the roll fronts and exploration targets previously identified with the objective to report on inferred resources within the LC South Project area. It is expected that the NI 43-101 report may be completed in second quarter 2010.
