Western Uranium & Vanadium Corp. (CSE:WUC) (OTCQX:WSTRF) (“Western” or ”Company”) is providing the following Company updates:
Sunday Mine Operations
Ore production during mine development has resulted in ore stockpiled in the mine with a uranium and vanadium value, after processing, of over six million dollars ($6,000,000).
At the end of March, the mining contractor engaged by Western decided to retire from contract mining operations. As a result of this decision, Western will take over the mining operations and has acquired a full complement of mining equipment. The equipment is being prepared for operations and upgrades to mine ventilation, support buildings and infrastructure are underway. Further mine development and ore production is expected to resume in early summer after upgrades are completed. Western’s mining team will be expanded to facilitate mine development and full ore production.
Physical Uranium Inventory / Uranium Concentrates Supply Contract
The Company will deliver 125,000 lbs of uranium concentrate from its physical uranium inventory to cover the 2022 delivery under its supply contract. The delivery will be made this week and generate sales proceeds of over seven million dollars ($7,000,000).
Oil and Gas Royalty Update
Western through its wholly-owned subsidiary, Black Range Minerals, received the first royalty payment for oil and gas production in January. The ~$207,600 cumulative payment was for production and sales since August from the 8 wells developed on a Weld County Colorado pooled unit. Subsequently, February (~$45,800) and March (~$44,600) royalty payments were received. Ongoing monthly royalty payments, similar to these amounts, are anticipated. These wells continue to rank among the top Colorado producing wells. Due to the success of the first 8 wells, the operator has decided to develop a second set of 8 wells within Western’s royalty area during 2022.
Market Update
The global nuclear and uranium mining industries continue to benefit from the convergence of multiple trends and increased public, political and government support. However, the key catalyst has quickly become the Russian invasion of Ukraine and the related economic sanctions. Western’s underlying resources are in uranium, vanadium, and oil and gas, and prices in each commodity have risen as a result of this conflict. Notably, Russia and the former Soviet Union Republics have cultivated strong market positions across these commodities. With respect to the uranium market, the national security risks to the United States have been identified and reported under both the Section 232 Investigation and subsequently by the Nuclear Fuel Working Group. The term “energy security” has taken on increased urgency, as dependencies have infiltrated many free-market economies. As geopolitical risks are addressed and security of supply is prioritized over lower cost imports, Western remains well positioned to deliver uranium and vanadium as needed by the market.
About Western Uranium & Vanadium Corp.
Western Uranium & Vanadium Corp. is a Colorado-based uranium and vanadium conventional mining company focused on low cost near-term production of uranium and vanadium in the western United States, and development and application of kinetic separation.
www.ferroalloynet.com
