Mining uranium exploration press releases for useful stuff
(An occasional column on money and mining news items)
The rise of nuclear energy, a second act if ever there was one, has given the price of uranium a shot in the arm. In western states in the U.S. interest in uranium mining is growing and with it comes another growth industry - the production of press releases about the uranium mining industry. In an effort to separate the really interesting from the merely informational, I'm posting my running notes on uranium mining in western states.
The choices of the subjects are a combination of what I find in the press release pile and what looks interesting to me and for readers. I'm focusing mostly on western states that are "west" of the 100th meridian, but this isn't hard and fast. The states of interest are WY, CO, UT, TX, NM, AZ, & NV. For this reason I call this series the "western lands uranium gopher." These are news notes and the content is not to be considered investment advice.
Powertech gains $8.9 million investment for U.S. mines
Canada’s Powertech is the focus of a $8.9 million investment by Belgium’s Synatom securing the rights to purchase uranium once Powertech’s U.S. properties go into production. Powertech is developing ISR mining operations in Colorado and South Dakota. The company also has prospecting work underway at two locations in Wyoming and at Ambrosia Lake in New Mexico. The investment boosts Synatom’s share of the company from 10% to 34%.
The investment comes following a winter of controversy in Colorado where the legislature passed and the governor signed into law new regulatory requirements for ISR mines. The Powertech Centennial mine near Nunn, Colo., was the impetus for a strong anti-mining backlash from the “green” city of Ft. Collins even though the property is 20 miles to the northeast in neighboring Weld County. Two Democratic legislators from that city spearheaded the successful legislative campaign. South Dakota is just starting to review its ISR mining regulations and the political atmosphere there is considered to be neutral.
Clearly, both Powertech and Synatom feel they can live with the new mining requirements in Colorado. Powertech said it would use the investment as working capital. Synatom, a subsidiary of Electrabel, provides fuel for Belgium’s seven nuclear power plants which generate more than half of the nation’s electricity. Synatom CEO Robert Leclere said in a statement the investment is “consistent with Synatom’s strategy to focus on development of promising near-term production projects.”
Powertech’s stock price on the Toronto exchange remained essentially unchanged, following the announcement on June 5, at $1.40 a share within a 52-week range of $0.83-$3.05.
Geovic announces Colorado ISR mine lease
Geovic Mining announced it has paid $2.8 million for 15-year mineral rights on 16,000 acres in northeastern Colorado making it the second company to pursue ISR mining in that area. Powertech, a Canadian firm, earlier this year began work on developing an ISR mine near Nunn, Colo, which stirred up a hornets' nest of opposition. The political outcome was that the Colorado General Assembly passing two bills designed to strengthen state oversight of mining, with House Bill 1161 aimed at uranium mining in particular.
John Sherborne, CEO of Geovic, which is based in Grand Junction, Colo, told the Greeley Tribune he was surprised by the reaction of people in the area to the intentions by Powertech, noting that in-situ mining, according to the U.S. Bureau of Mines, has major advantages compared to conventional uranium mining in the areas of health, safety and the environment.
Geovic, originally organized in 1984 as Resource Equity Ltd. in Alberta, Canada, is focused on cobalt, nickel and manganese mining in Cameroon, Africa, but also is acquiring rights to mine uranium in Weld County and Goshen County, Wyo.
Uranium Energy receives Texas permit for Goliad ISR mine
Uranium Energy Corp reports that the Texas Commission on Environmental Quality (TCEQ) has issued a draft mine permit for the company's Goliad ISR Uranium Project in South Texas. The issuance of the draft mine permit follows a nine-month technical review of the mine permit application by the TCEQ.
Commenting on the new permit, Harry Anthony, COO, stated, "We are very pleased with the rapid progress we are making with the Goliad project. Receiving the Draft Mine Permit for Goliad after a nine-month period of review validates the detailed technical understanding that company staff are developing about the project area."
Notice of the draft permit will be published in project-area newspapers for public comment for 30 days. TCEQ will prepare a response to comments, and the draft permit will be placed on the Commissioners' agenda for completion. Uranium Energy Corp is on schedule to file the remaining applications this summer for starting ISR production at the Goliad Project.
The permitting of uranium mining in Texas is administrated at the state level. The U.S. Nuclear Regulatory Commission (NRC) has delegated its authority to the state regulatory agencies, and companies deal directly with the state agencies in Texas rather than the NRC.
Wave Uranium acquires second Utah lease
Wave Uranium (WAVU) announced the acquisition of a 5,414 acre mineral lease in Emery County, Utah. This area is adjacent to 1,327 WAVU mining claims on Federal lands and 1,042 acres of State Trust Lands previously leased by the company. The area that the company is venturing into is located in the San Rafael Desert area of eastern Emery County, Utah.
Historic mines and prospects in the canyon of the Green River and its tributaries indicate widespread uranium enrichment in the area. Total historic production from the lower Chinle in southeastern Utah has been more than 100,000,000 pounds U3O8.
URI seeks license for New Mexico exploration
Uranium Resources, Inc. announced that it has submitted applications to several regulatory agencies in the State of New Mexico for a permit to conduct exploratory drilling in the Ambrosia Lake area. The applications are for ten uranium exploratory holes on land west of San Mateo. It is expected that the permits will be received in the fall of this year. URI will retrieve ore samples to evaluate the properties of the ore and determine if the uranium can be extracted by ISR methods.
Richard Van Horn, URI COO said, “"We are working several tactics to get to production. This area in the Ambrosia Lake district may be amenable to in-situ recovery mining (ISR).”
He added that if the exploratory drilling proves successful, the resource URI has identified could support an ISR operation of up to 500,000 pounds per year for a period of two to three years. At $70/lb the value of the resource over three years of production would be $105 million. The firm expects to have reportable results of our drilling by the end of this year after the permit has been issued.
Monster Uranium to acquire Oregon site
Monster Uranium Corp. has entered into a letter of intent with Uranium One Inc., formerly Energy metals, to acquire a 100-per-cent interest in the Aurora property located in southern Oregon. The Aurora Property reportedly consists of unpatented lode claims on 450 acres located in Malheur County, Oregon, 12 miles northwest of McDermitt, Nev.
The purchase price for the property will be $5 million in cash and 2 million shares common stock. The last recorded trade of the company's stock was on May 12 for $0.38 within a 52-week range of $0.35-$0.58. At this price the 2 million shares of stock would be worth $760,000. The company paid a cash deposit in the amount of $1 million on signing.
According to a report filed with the SEC in 2005 by Energy Metals, Placer Amex conducted an extensive exploration and evaluation program at the Aurora property from 1977-1980 investigating the uranium mineralization with the goal of putting the project into production.
Placer and the previous owner, Locke Jacobs, completed at least 562 rotary and diamond core drillholes and 530 are included in the resource calculation. Placer completed a pre-feasibility study defining a resource of 16.8 million tons of ore with an average grade of 0.048% equivalent U3O8, but due to falling uranium prices, dropped interest in the project. No work to generate production has taken place at the property since 1980 according to Energy Minerals’ SEC report.
Bluerock announces drilling results at Sunbeam uranium mine
Bluerock Resources Ltd. announced results from the Phase I exploration and delineation drilling program at the Sunbeam Uranium Mine, Uravan Mineral Belt, Colorado.
The drilling program at the Sunbeam Uranium Mine defined a previously unknown mineralized zone within an "historic drillout" proximal to the Sunbeam Uranium Mine, with grades of up to 2.38% U3O8 over 1.5 feet (0.46 metres).
Michael Collins, CEO of Bluerorck, said, "The success of the Sunbeam Uranium Mine Phase 1 drill program further demonstrates the potential for near term uranium production."
The Sunbeam Uranium Mine is one of four uranium properties that the company envisions supporting the ore purchase and toll milling agreement with Denison Mines' White Mesa Uranium Mill. Ore continues to be stockpiled at the J-Bird Mine, underground development work has started at the Cone Mountain Uranium Bulk Sampling Project, and exploration drilling is expected to restart shortly at the fully permitted Tramp Uranium Mine.
Fremont County delays vote on Black Range uranium mine
After eight hours of conflicting public testimony on May 26, the Fremont County, Colo., commissioners knew only one thing. They were too exhausted to cast votes on a request by Australia-based Black Range Minerals. The firm wants to drill 800 holes over 8,169 acres in central Colorado near Canon City. The Tallhassee Creek area was drilled extensively in the early 1980s. Black Range refers to the project as the Taylor Ranch site which it owns 100%.
The site has caused conflict between the expansion of residential subdivisions and the historic uranium district. Homeowners on large lots of three-to-five acres testified that the proposed drilling will threaten their water supplies, property values, and rural lifestyle. Ranch owners on whose property the drilling and eventual mining would take place complained that their chance to make money from the mineral rights for the mine would be taken away without compensation. A vote is expected in mid-June on the conditional use permit.
The Taylor Ranch Uranium Project is located in close proximity to the Hansen uranium deposit in the Tallahassee Creek District of Colorado. The Hansen deposit was discovered in 1977. It reportedly contains 30 million pounds of U3O8 at a grade of approximately 0.08% U3O8. Permits were acquired by the prior owners for the site in 1980, but no production took place due to the collapse of uranium prices.
Black Range said that its plans for the site include underground mining for the first three-to-five years of operation with extraction of 300,000-500,000 tonnes of ore per year with ore grades of 0.12 -0.15% U3O8. Initial production would be of 1.0-1.25 million pounds of U3O8. At a price of $70/lb the value of this production would be $70-88 million. So far Black Range has reportedly spent more than $1 million on the project.
Update - Black Range Minerals received a conditional permit on June 11 for exploratory drilling as it searches for uranium near Canon City.
Fremont County commissioners voted 3-0 to approve the conditional permit for the company to drill 800 exploration holes on a portion of 8,169 acres in the Tallahassee Creek area.
Commissioners said the company would have to comply with a long list of conditions that are in the works to mitigate effects on residents. Commissioners were expected to vote on final conditions July 8. The Australian company would need additional approvals to begin mining.
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