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Uranium Energy Expands Production with Wyoming Approval

AInvestFriday, Oct 18, 2024 5:35 pm ET
1min read
Uranium Energy Corp (UEC) has received a significant boost to its production capabilities with the approval from the Wyoming Department of Environmental Quality to increase the licensed production capacity at its Irigaray central processing plant. This expansion aligns with UEC's strategic hub-and-spoke production strategy in Wyoming's Powder River basin, further solidifying the company's position as a leading uranium producer in the United States.

The Irigaray plant, a key component of UEC's Wyoming operations, will now have the capacity to produce four million pounds of uranium octoxide (U3O8) annually. This increase in production capacity is supported by the Powder River basin's substantial estimated resources, totaling 62.33 million pounds of U3O8 in the measured and indicated category and 10.72 million pounds in the inferred category. These resources will support UEC's production expansion plans and future growth, enabling the company to meet the growing demand for uranium from big tech companies and the nuclear power industry.

The acquisition of Rio Tinto America's Wyoming assets will provide UEC with an industry-leading third production platform in the US, further maximizing the full potential of its Great Divide Basin projects. This acquisition includes the Sweetwater plant, with a licensed capacity of 4.1 million pounds a year of U3O8, along with a portfolio of uranium projects that will add 175 million pounds of historic resources to UEC's existing resource base. The Sweetwater plant will complement UEC's existing production platforms and resources, enhancing the company's ability to meet the increasing demand for uranium.

The recent S-K 1300 Technical Report Summary, filed on September 15, 2022, further strengthens UEC's overall resource base and production capabilities. The report disclosed a combined total of 66.198 million pounds of measured and indicated resources and 15.054 million pounds of inferred resources across UEC's Wyoming and South Texas assets. This significant resource base, coupled with the increased production capacity at the Irigaray plant and the acquisition of Rio Tinto America's Wyoming assets, positions UEC to become a leading uranium producer in the United States.

In conclusion, UEC's Wyoming expansion, supported by the Powder River basin's substantial resources and the acquisition of Rio Tinto America's Wyoming assets, is set to drive the company's growth and production capabilities. This strategic move aligns with the growing demand for uranium from big tech companies and the nuclear power industry, further cementing UEC's position as a key player in the global uranium market.
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