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Wyoming Powder River Basin Projects
Uranerz has several 100%-owned projects in the Powder River Basin of Wyoming. The Powder River Basin of Wyoming has some of the highest grade uranium deposits in the State that are amenable to the cost-effective in-situ recovery mining methods. Commercial ISR mining in the Powder River Basin has been ongoing since 1987, with production coming from the Smith Ranch-Highland mines currently owned and operated by Cameco Resources Inc. (a wholly owned U.S. subsidiary of Cameco Corporation) and from AREVA NC's Irigaray/Christensen Ranch ISR mine located in the Pumpkin Buttes uranium district (presently on stand-by, but re-start of operations has been announced).
The Company also has an undivided eighty-one percent (81%) interest in the NAMMCO properties, which cover approximately 88,288 acres (35,500 hectares) in the central Powder River Basin (collectively, the "Arkose Property"). In connection with this acquisition, the Company and United Nuclear, LLC, a limited liability company owned by the sellers of the NAMMCO properties, have formed and contributed their interests in the NAMMCO properties to the "Arkose Mining Venture". United Nuclear will hold (and contribute to) a nineteen percent (19%) working interest in the Arkose Mining Venture. The Arkose Property is located in close proximity to the Company's 100%-owned properties in the Powder River Basin, including adjacent Collins Draw and Doughstick and other nearby properties that have been the subject of the Company's recent exploration and mine licensing efforts.
As manager/operator of the Arkose Mining Venture, the Company has conducted aggressive exploration drilling programs to operate up to five drill rigs and two electric log probing units on the Arkose properties.
Permitting Activities
Uranerz has expertise in the in-situ recovery (ISR) mining methods, and, based on Uranerz management's ISR mining experience in the Powder River Basin, the Company has begun commercial environmental permitting and mine development planning. The Company has submitted federal and state mining applications to build and operate the Nichols Ranch ISR Uranium Project, which, when licensed and constructed, is planned to consist of a central processing facility at the Nichols Ranch property and a satellite facility at the Hank property. The central processing facility at the Company's Nichols Ranch ISR Uranium Project is being licensed for a capacity of 2 million pounds per year of uranium (as U3O8). It is planned that this facility will process uranium-bearing well field solutions from Nichols Ranch, as well as uranium-loaded resin transported from the Hank satellite facility, plus uranium-loaded resin from any additional satellite deposits that may be developed on the Company's other Powder River Basin properties. This centralized design enhances the economics of the Company's potential additional satellite projects by maximizing production capacity while minimizing further capital expenditures on processing facilities. Commencement of operations at the Nichols Ranch ISR Uranium Project is dependent on receipt of required regulatory approvals, but is currently projected for late 2010 or 2011.
Given the considerable experience of our management team with permitting ISR projects in Wyoming, we feel that the quality of the submitted applications will allow the state and federal regulatory bodies to conduct their reviews in an efficient and timely manner. To date, both the U.S. Nuclear Regulatory Commission ("NRC") and the Wyoming Department of Environmental Quality ("WDEQ") have deemed the Company's applications to build and operate an ISR uranium mining facility acceptable to advance to the next stage of their formal review process. This marks a significant advancement of the Company's application for a source material license (NRC) and State permit to mine (WDEQ), which has now progressed to the phase of undergoing a detailed technical and environmental review. We plan to continue our mine permitting activities and plan to select additional properties that will be the subject of future permit applications. Exploration drilling results from the drilling programs will be used to finalize the selection process.
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