URI currently controls three production properties and an exploration property in the state of Texas. These properties are owned by the Company’s wholly owned subsidiary, URI, Inc. They include the Kingsville Dome, Rosita and Vasquez production properties and the Los Finados/Tecolote exploration property.
Uranium Resources began operations in 1977 in the Texas Gulf Coast uranium region, which is rich in uranium ore. The Company has successfully completed several projects in the region and has produced over eight million pounds of uranium to date.
The Company developed and produced over 560,000 pounds U3O8 from the Longoria and Benavides projects in the early 1980s. These properties were fully restored between 1986 and 1991. From 1988 through 1999, we produced approximately 6.1 million pounds U3O8 from two South Texas projects: 3.5 million pounds from the Kingsville Dome project and 2.6 million pounds U3O8 from the Rosita project. In 1999, we shut down production at both projects due to depressed uranium prices. We had no revenue from uranium sales between 2000 and the fourth quarter of 2004, and therefore had to rely on equity infusions to fund operations and maintain our critical employees and assets.
After uranium prices rose significantly in 2004, we placed our South Texas Vasquez property into production during the fourth quarter of that year. In April 2006, Kingsville Dome returned to production followed by a startup of Rosita in June 2008. From 2004 to the end of 2009, these three projects produced a total of 1.4 million pounds of U3O8.
The Vasquez project was completed in 2008 and is now in restoration. Rosita production was shut-in in October 2008 due to depressed pricing and technical challenges in the first new well field that made uranium recovery uneconomical. The decline in uranium prices throughout 2008 also led to a decision in October 2008 to defer new well field development at Rosita and Kingsville Dome. Production continued in two existing well fields at Kingsville Dome and was completed in July 2009. The Company has not had any operating projects in Texas since that time, and is currently evaluating the factors for resuming production.
Key operational elements of URI's plan for its Texas properties include:
- Positioning the Company to return to sustainable production in Texas.
- Continuing to maintain restoration activities in South Texas in accordance with the Company’s existing agreements and regulatory requirements.
|South Texas In-Place Reserves|
Proven Uranium Reserves
|South Texas Total||409,000||0.08%||664,000|
|Rosita (Well field 8)||133,000||0.08%||224,000||ISR|