Which uranium development companies will be the first to commence operations?
By: James Finch | Posted: 08th March 2006
Three companies told StockInterview.com their initial ISL operation, or further development of their property, would commence in the Powder River Basin area: Strathmore Minerals (TSX: STM; Other OTC: STHJF), Energy Metals Corporation (TSX: EMC) and Uranerz Energy (OTC BB: URNZ). Kilgore Minerals (TSX: KAU) has staked claims in the Powder River Basin. However, Kilgore plans to first drill in Nevada, not Wyoming.
Below are extended snapshots for each of the three companies and what they revealed. Please realize that uranium companies continue to build their property package. A package of claims may include state trust land, federal land or private property, or a combination of two or all three types of properties. While company executives talked openly, to a greater or lesser degree, some of the information they provided may be intentionally incomplete for competitive reasons.
Strathmore Minerals
(TSX: STM; Other OTC: STHJF)
A combination of broad, proven geological expertise and a strong portfolio of properties, it was difficult to pin down Terrence Ozier, Senior Geologist (based at the Riverton, Wyoming field office of Strathmore Minerals), about the flagship property. It appears the first uranium development is likely to be in the Pine Tree-Reno Creek area. Composed of multiple ore bodies (as defined through historical drilling), the Pine Tree-Reno Creek project is located in Wyoming's Campbell County. The Reno Creek-Pine Hills properties are about 20 miles southeast of the formerly producing Christiansen Ranch and about 30 miles north of Cameco's Smith Ranch. The project is comprised of three potentially uranium producing areas located closely to one another.
"We have 19 sections of land in the Reno Creek-Pine Hills area – 460 federal lode mining claims, encompassing more than 12,000 acres," explained Terrence Ozier. "The area has been heavily drilled. There are tens of miles of roll fronts under the state lease lands and federal claims." During our telephone interview, Ozier remarked, "I am a tad surprised no one else moved as quickly as Strathmore Minerals to snap these up." Ozeier explained there were thousands of exploration drill holes in the 1970s by various exploration companies, including industry giant Kerr McGee, Pathfinder (once owned by General Electric), affiliates of the Tennessee Valley Authority (TVA), and Rocky Mountain Energy. Not exactly small companies, but ones who spent millions of dollars defining the ore bodies.
The two main ore bodies at Reno Creek are said to have an historic resource of about 5 million pounds with an average grade of 0.056 percent U3O8. The depth of the first zone is 230 to 250 feet; the second zone reaches down 318 to 360 feet. Due west and nearly adjacent to the Reno Creek property is the state lease Section 36, which the historic ore body is reportedly about 350 deep. The Tennessee Valley Authority (TVA) affiliates apparently drilled it sufficiently to define an ore body, which may hold 1.3 million pounds grading 0.05 percent. Nearby are the federal Pine Tree claims, where Pathfinder had drilled several hundred holes in the 1970's. According to the research files of Rocky Mountain Energy, there may be 3.4 million pounds with an average grade of 0.07 percent.
Ozier stressed why the Reno Creek area would be excellent for an ISL operation, "A satellite operation with tolling to the present facilities at either the Christiansen Ranch (Cogema) or the Highland-Smith Ranch (Cameco) or the company could make its own processing facility and eventually build satellite operations that feed it." Ozier added, "The Powder River Basin is active in methane exploration and production, and coal mining. This means excellent, nearby drilling and operational personnel and equipment."
Uranerz Energy Corp
(OTC BB: URNZ)
One of the biggest strengths a uranium development company can have is its lead geological expert. The more experience he has, the more favorably institutional investors will accept the project. Uranerz Energy Chief Executive Glen Catchpole has got the mandatory credentials. A licensed civil engineer, Catchpole was formerly the Uranium ISL Manager Wyoming's Department of Environmental Quality, having helped write some of the environmental regulations. He has overseen the operations of two large Canadian uranium mines, and was the Corporate Manager for one ISL uranium mine in the United States, Crow Butte (now owned by Cameco). In 1996, he was appointed General Manager and Managing Director of the Inkai mining project in Kazakhstan, spending six years taking the project through feasibility, government licensing, environmental permitting, design, construction and the first phase of start up operations (1996 – 2002).
Joining Catchpole you will find a number of ex-Uranerz geologists, who left after Cameco acquired the company. For example, Dr. Gerhard Kirchner was involved in the Key Lake uranium discovery, the engineering and development of the Midwest uranium deposit, Eagle Point's uranium deposit and the Crow Butte ISL uranium deposit. George Hartman was the General Manager for the Uranerz USA ISL projects, managing the Ruth, Crow Butte, and North Butte solution mining projects.
While extremely knowledgeable, Mr. Catchpole did not reveal the immediate plans of Uranerz Energy. StockInterview.com did discover that he met with Rick Chancellor, the administrator of the Land Quality Division of Wyoming's Department of Environmental Quality. It is unknown whether Uranerz has begun the permitting process on its Powder River Basin ISL-amenable properties. He told StockInterview.com, "We plan to develop an ISL operation in the Powder River Basin area." While he hinted at possible pounds and the annual production level, Catchpole would not further discuss where he planned to establish the initial ISL operation. Catchpole admitted, "We are still putting our package together." During Wyoming's frenzied uranium staking activity, Catchpole wisely would not want to divulge where his company plans to solution mine. As is the nature of the game, a competitor might interfere with his negotiations or stall his development plans. (This is oft-remarked by those interviewed.)
It has been publicly reported that Uranerz Energy has obtained sixteen mineral leases, comprising thirty-one parcels of Wyoming State trust lands – about 14,200 acres. According to the Uranerz website, all leases are located in sandstone basins of Cretaceous or Tertiary age. Twelve of those are reportedly in the Powder River Basin. On the company's website, the size of the Uranerz uranium holdings are described, "Based on historical exploration information, including rotary drill and gamma logging information, Uranerz believes that it now has total potential uranium resources in Wyoming of over 30 million pounds measured as U3O8." In January, a Uranerz Energy news release announced an additional acquisition: "Uranerz Energy Corp is pleased to announce that it has entered into an Option and Purchase Agreement with Excalibur Industries ("Excalibur") on six mineral properties located in the Powder River Basin of Northeast Wyoming. The six mineral properties are comprised of forty-four (44) unpatented lode mining claims containing significant drill-indicated uranium resources.
Each of the Powder River Basin projects has reported the presence of drill-indicated uranium. The Powder River Basin uranium resources occur in typical multiple stacked geochemical roll fronts at the interface of reduced and oxidized areas of the host sandstone units. Evidence of mineralization was originally determined from electric logs from wide spaced drilling and cross sections correlated by previous geologists. The uranium resources on the Company's Powder River Basin properties are believed to be beneath the water table and can be mined by the low cost in-situ leach mining method.
Energy Metals Corporation
(TSX: EMC)
The lead technical guru at Energy Metals Corporation is Dr. Dennis Stover, the president of Energy Metals U.S. Dr. Dennis E. Stover holds B.Sc., M.Sc., and Ph.D. degrees in Chemical Engineering from the University of Michigan. He has authored or co-authored 27 articles relating to uranium and holds a number of United States Patents concerning various aspects of solution mining and reservoir restoration. In various internet searches about solution mining, one often finds his name attached to a presentation, a diagram, or an illustration.
In 1989 Dr. Stover joined Rio Algom Mining Corp. as the Director of In Situ Leaching Technology. He prepared the feasibility study and the commercial AFE for the Smith Ranch ISL property in the Powder River Basin of Wyoming. He was responsible for the entire process flow sheet for the Smith Ranch uranium recovery facilities. Dr. Stover served as the Manager of Wyoming Operations from 1993 through 1997. His expertise is in the field is vast.
During a telephone interview with William Sheriff, Director of Corporate Development for Energy Metals and a successful geologist and prospector in his own right, he told StockInterview.com the flagship Wyoming properties would be the Moore Ranch, Peterson and Nine Mile Lake properties. Sheriff explained, "We hope to be in production within the next 36 to 48 months. Our five year goal is to produce five to seven million pounds annually through two to three central plants." He said that one is planned in Texas and the other one or two would be located in Wyoming.
The Moore Ranch has an historic resource of 5.2 million pounds of U3O8, as delineated by Conoco which drilled the property in the 1970's. The claims cover more than 1800 acres along Highway 387 in Campbell County 23 miles southwest of Wright, Wyoming. Sheriff believes the roll front uranium deposit, grading 0.07 percent, could be mined at a depth of between 200 and 600 feet.
To the south is the Peterson property with an average grade of 0.76 percent, but which hosts a smaller historic resource, 2.5 million pounds. This property, covering more than 3,000 acres, is approximately 12 miles south of the Smith-Highland Ranch in the southern Powder River Basin. It is comprised of Wyoming state leases, federal mining Claims, and leases on private-fee interests. Sheriff thinks the uranium deposits can be found at a depth of 200 to 300 feet.
Finally, for the initial operations, there is the Nine Mile Lake property, which may hold 9 million pounds, grading 0.55 percent, and with an average thickness of 25 feet. Sheriff said the uranium deposit may be found at between 100 and 400 feet deep. This property was drilled and developed by Rocky Mountain Energy, with more than 200 drill holes delineating the roll front uranium occurrences. Sheriff said the deposit extends over a strike length of more than 6,000 meters and may be up to 900 meters wide, at its widest point. It covers more than four square miles. Between November 1976 and November 1980 a test ISL plant operated on the property with mixed results. A total of four well field patterns underwent testing and development. Based on the results from the well field testing, plans were made to build and permit a commercial ISL plant before the uranium price began its twenty-year bear market.
All three of these uranium development companies seem to hold strong promise during the current uranium bull market. As long as the spot uranium price continues to rise or maintain its current level, it would not surprise StockInterview.com that all three could establish an ISL operation in Wyoming's Powder River Basin.
###
About the Author
Occupation: Writer
James Finch is a contributing editor for StockInterview.com and other publications. http://www.stockinterview.com
This article is free for republishing
Printed From: http://www.articlealley.com/article_34155_19.html
Back to the original article
Tags: company executives, pine tree