Agreement is a long term contract with deliveries over a five year period
– By Stephen Heiser –
Uranerz Energy Corporation has announced that it has entered into a uranium sales agreement with Exelon Generation Company, LLC, which operates one of the largest and most efficient commercial nuclear fleets in the world.
The agreement is a long term contract with deliveries over a five year period and defined pricing in each year.
Uranerz is continuing to actively pursue further uranium sales opportunities to develop a portfolio that reflects a balance between market related and fixed price contracts, thus providing appropriate exposure to market price fluctuations and pricing diversification.
Members of the Uranerz management team have specialized expertise in the in-situ recovery ("ISR") uranium mining method, and the Company collectively owns or controls (including through its interest in the Arkose Mining Venture) approximately 124,600 acres (50,425 hectares or 195 square miles) in the Pumpkin Buttes Uranium Mining District of the central Powder River Basin of Wyoming, U.S.A., an area well-known for hosting uranium-mineralized roll fronts often amenable to ISR mining techniques.
The Company has submitted federal and state mining applications to build and operate the Nichols Ranch ISR Uranium Project which, when licensed and constructed, is planned to consist of a central processing facility at the Nichols Ranch property and a satellite facility at the Hank property. Commercial ISR mining in the Powder River Basin has been ongoing since 1987, with production coming from the Smith Ranch-Highland mine currently owned and operated by Cameco Resources Inc. and from AREVA NC's Irigaray-Christensen Ranch ISR mine located in the Pumpkin Buttes uranium mining district (presently on stand-by, but re-start of operations has been announced). Commencement of operations at the Nichols Ranch ISR Uranium Project is dependent on receipt of required regulatory approvals.
ISR mining comprised 28% of global uranium production in 2008 according to the World Nuclear Association. Wyoming ISR advantages include low capital costs, low operating costs, and low environmental impact. Wyoming is the largest uranium producer in the United States with a long ISR history and has the largest known uranium resource base in the U.S. Uranerz management has a record of licensing commercial ISR projects.