Uranium Resources puts production on hold

Uranium Resources does not expect to return to production in Texas in 2011 given current uranium pricing, unfavourable sales contracts and less than lucrative resources that are available.

Uranium Resources made the statement in its 2011 first quarter update on Thursday.

Instead the company is focused on reclamation activities in Texas since its two remaining operating wellfields were fully depleted in June 2009.

The company says it has approximately 664,000 identified pounds of in-place mineralized uranium material that could be produced over a two to three year period.

The company's cash position at March 31, 2011 was $11.1 million compared with $15.4 million at the end of 2010. The company says that the decrease from 2010 year-end reflects ongoing reclamation activities in Texas, and non-core payments, mainly a payment of $1.375 million to settle a lawsuit regarding a lease agreement in Texas. The company also had to fund financial surety obligations.

In the first quarter of 2010 the company had two successful common stock offerings that raised $19.4 million in 2010.

Uranium Resources, Inc. explores for, develops and mines uranium using in-situ recovery (ISR) methods in Texas.

Michael McCrae wrote this story. You can contact him at [email protected] or on twitter at @michaelmccrae.