The Conversation (0)
Oct. 12, 2010 01:36PM PST
Last week the Nuclear Regulatory Commission issued an operating license for Uranium One’s Moore Ranch uranium mine. It is the first new uranium mine license issued in the USA since 1998. The Moore Ranch facility covers some 2873 hectares in the Powder River Basin region of northern Wyoming.
Last week Bloomberg News reported that a survey conducted by the Wyoming Survey & Analysis Center at the University of Wyoming found state residents put job creation and tax revenue above environmental and health concerns when it comes to mineral extraction in general. This was reflected by a strong majority of Wyoming residents to support uranium mining, and support for the most common method of extracting uranium employing in-situ recovery (ISR) methods.
When asked to rate various considerations in energy development in the state, 80 percent of the respondents rated job creation and 70 percent rated tax revenue as very important. Forty-nine percent rated environmental impacts as very important, and 65.6 percent rated health impacts as very important. Only 37 percent considered greenhouse gases as a very important consideration.
Wyoming is the nation’s leading uranium producer with just one operating mine and resources estimated to total 167,000 tonnes in the entire state. Cameco Corp.’s (TSX:CCO) Smith Ranch-Highland mine in Converse County is the largest U.S. uranium production facility in the state. With proven and probable reserves totaling 5.9 million pounds of uranium, reported production last year was 1.8 million pounds. Cameco reports that the current operation employs approximately 110 people. Thirteen other mines in the state are in various stages of permitting, licensing or restarting.
Significant Developments
Last week the Nuclear Regulatory Commission (NRC) issued an operating license for Uranium One’s (TSX:UUU) Moore Ranch uranium mine. It is the first new uranium mine license issued in the USA since 1998. The Moore Ranch facility covers some 2873 hectares in the Powder River Basin region of northern Wyoming. Uranium One said that it expects the project to become a satellite ISR operation, with loaded resins to be transported to its fully permitted Willow Creek plant for further processing. Production of uranium bearing resins from Moore Ranch is expected to begin in 2012, serving as an additional source of feed to the Willow Creek central plant.
Originally, Uranium One submitted its application for a license for the Moore Ranch operation in October 2002. On June 4, 2009 the NRC issued a generic environmental impact statement (EIS) on ISR mining in the western USA. This will dramatically streamline the process, although it will not eliminate the requirement for a supplementary EIS for each new mine. The NRC expects 17 applications for ISR facilities in the next couple of years, with each taking two years to process, including public participation.
Investment Ranking
Wyoming scores high in several areas measured by the Fraser Institute, according to its annual report. 63 percent of industry respondents said Wyoming’s taxation is not a deterrent to mining investment, and 13 percent said it actually attracts investment. Wyoming also scored well in terms of environmental regulations with 71 percent of respondents saying that the environmental regime here either attracts investment or is not a deterrent. The Fraser Institute also listed Wyoming second in the U.S. in labor market performance from 2005 to 2009, closely trailing Alaska. “Wyoming had low average unemployment rates, low durations of unemployment, and high worker productivity,” the Fraser Institute stated in a press release earlier last month.
Additional Investment Considerations
Uranerz (TSX:URZ) is in the process of permitting its Nichols Ranch ISL operation in the Powder River Basin of Wyoming. This will have a number of satellite operations, starting with Hank, with loaded resin being trucked to Nichols Ranch, which is being licensed for 770 tonnes of uranium per year forecasted to start in 2011. The company’s Wyoming properties include a total of 29,251 acres with resources of 4,150 tonnes spanning five deposits, including indicated resources of 1,137 tonnes for Nichols Ranch itself, 1050 tonnes for Jane Dough and 256 tonnes for the Rolling Pin deposit.
Spot Price Climbing
With nine transactions reported this week the spot uranium market was extremely active. Stronger buying interest escalated prices early in the week, with transactions concluded through mid-week closing at prices slightly above the current spot price reported by TradeTech. As the week came to a close, prices slightly adjusted to the downside, with the spot price settling at $48.00 per pound of uranium.
With help from Assistant editor Vivien Diniz
Featured Energy Investing Stocks
Investor Insight
Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
