| "Staking activity is up significantly,"
| |
| | that result in royalty returns." And it
|
| said Lynne Boomgaarden, Wyoming's
| |
| | appears her wish may soon be granted.
|
| Director for the Office of State Lands
| |
| | Uranium ISL's May First Start in
|
| and Investments, referring to the number
| |
| | Wyoming's Powder River Basin
|
| of claims filed for uranium development
| |
| | Of the six companies we interviewed, five
|
| in her state. "We have really seen a
| |
| | expressed their initial ISL operation
|
| significant increase since about June
| |
| | would be established in Wyoming's Powder
|
| 2004. We took one lease application to
| |
| | River Basin. The most prolific coal- and
|
| the board in April 2004. In June 2004, we
| |
| | uranium-producing areas in the United
|
| had 30 or so applications. That's when we
| |
| | States, the tri-state Powder River Basin
|
| really saw the increase." In June 2004,
| |
| | lies between Wyoming's Laramie Mountains,
|
| David Miller of Strathmore Minerals (TSX:
| |
| | the Big Horn Mountains of Montana and
|
| STM; Other OTC: STHJF) quickly filed 10
| |
| | Wyoming, and the Black Hills of South
|
| minerals claims for uranium. On his
| |
| | Dakota. According to the U.S. Geological
|
| heels, William Sheriff began filing
| |
| | Survey published in 2002, the Powder
|
| claims as well. Since then, pages and
| |
| | River Basin was estimated to have a mean
|
| pages of claims covering tens of
| |
| | of 16.5 trillion cubic feet of
|
| thousands of acreage have been filed by
| |
| | undiscovered natural gas, 1.5 billion
|
| Miller, Sheriff, their associates and
| |
| | barrels of undiscovered oil and 86.5
|
| their respective companies.
| |
| | million barrels of undiscovered natural
|
| Subsequently, others jumped into the rush
| |
| | gas liquids. It has been geologically
|
| for Wyoming's state uranium claims. From
| |
| | prolific for uranium because the host
|
| Crook, Campbell and Converse counties to
| |
| | formation is the Eocene age Wasatch
|
| Carbon, Sweetwater and Fremont, most of
| |
| | Formation, which occurs under the entire
|
| the available state trust lands, where
| |
| | area.
|
| uranium rollfront deposits had been
| |
| | At the southern part of the Power River
|
| previously identified by drilling during
| |
| | Basin, Cameco's (NYSE: CCJ) wholly owned
|
| the previous two uranium booms, were
| |
| | subsidiary, Power Resources, has been
|
| snapped up. From Wyoming's Powder River
| |
| | steadily producing uranium oxide (U3O8)
|
| Basin, where most of America's uranium
| |
| | at their Smith-Highland Ranch. In 2005,
|
| and coal is produced, to the Great Divide
| |
| | Cameco reported production of 1.3 million
|
| Basin, which has seen uranium mining, any
| |
| | pounds. The property has published proven
|
| serious players, who wanted to quickly
| |
| | and probable reserves of 16.1 million
|
| establish an in situ leach (ISL) mining
| |
| | pounds of U3O8. (In Part Five of the
|
| operation in Wyoming, marked their
| |
| | Wyoming Series, will discuss the tour of
|
| territory.
| |
| | the ISL operation at Smith Ranch and
|
| "Most of the activity we've seen in
| |
| | feature an interview with Pat Drummond,
|
| leasing has been speculative activity,"
| |
| | superintendent of the mining operation.
|
| explained Boomgaarden. "We don't have new
| |
| | During our interview, Mr. Drummond
|
| mines and new operations right now." As
| |
| | announced the expansion of uranium
|
| noted in Part 2 of this series,
| |
| | production on the PRI properties and the
|
| permitting a property to put into place
| |
| | additional hiring of personnel.) Capacity
|
| an ISL uranium operation may take two or
| |
| | could run up to 2 million pounds annually
|
| more years. She added, "When I first came
| |
| | at each of their two processing
|
| here in the spring of 2003, there was
| |
| | facilities.
|
| nothing." A few changes have taken place,
| |
| | Three of the six uranium development
|
| which Boomgaarden and many others have
| |
| | companies we interviewed also stated they
|
| noticed. Through the first half of 2003,
| |
| | intended to fast-track their ISL
|
| spot uranium prices stagnated around the
| |
| | operation by creating a "satellite
|
| $11/pound level. On March 3rd, spot
| |
| | facility." Such a facility would
|
| uranium traded at $39.25/pound, according
| |
| | eliminate the need for a Nuclear
|
| to TradeTech LLC, which keeps track of
| |
| | Regulatory Commission (NRC) license. The
|
| weekly and monthly spot uranium sales.
| |
| | uranium development company plans to
|
| Holding costs on Wyoming's state trust
| |
| | "attach" its mining operation to an
|
| lands are affordable to speculators, when
| |
| | established producer. Under such a
|
| the underlying commodity in question has
| |
| | circumstance, the company would solution
|
| had a 500 percent increase in the past 62
| |
| | mine (also known as in situ leach mining)
|
| months. Applicants file a lease
| |
| | uranium on its property. The uranium
|
| application and pay an annual lease fee
| |
| | would then be shipped to an established
|
| of $1/acre for each of the first five
| |
| | producer for processing. Because the spot
|
| years of the lease. The application is
| |
| | uranium price is rising, and may hold
|
| presented to the Wyoming Board of Land
| |
| | around these levels (or soar higher), a
|
| Commissioners, which meets every other
| |
| | profit-sharing arrangement negotiated by
|
| month. "Our royalty revenues from uranium
| |
| | the newly producing uranium company and
|
| have been pretty flat," said Boomgaarden.
| |
| | the more established company would
|
| "We can only hope as fiduciaries that we
| |
| | probably make sense.
|
| will enjoy operations on these leases
| |
| |
|
