From page 4 of the annual report: Company management believes...

From page 4 of the annual report:

Company management believes the key production determinant will be the application of Ablation. In December 2016, the issuance of a decision letter by the Colorado CDPHE enabled the use of Ablation at the Sunday Mine Complex in the state of Colorado under milling license regulations which also recognized the appropriateness of exemptions to certain milling regulatory requirements. The Company’s attorneys are not fully in agreement with aspects of the decision letter, thus the Company expects to pursue additional regulatory clarifications which would make the application of Ablation potentially more economically advantageous for the Company. While resource prices are below target levels, the Company is focusing on improving the regulatory regime which governs the application of Ablation with the goal of minimizing future production costs.

Western Uranium Corporation believes that its mineral resources have a reasonable prospect for economic extraction, either with the utilization of Ablation or without it.  However, the Company has not yet been able to perform a Preliminary Economic Assessment (“PEA”).  The inputs to the PEA are dependent on the Ablation implementation approach.  Under the CDPHE’s current determination, Ablation can be utilized under a milling license, but the regulatory clarifications and a potential exemption create uncertainty.  Accordingly, the Company has not pursued an economic assessment.

The Company has planned for three potential scenarios for the utilization of its Ablation technology: (a) utilization of Ablation at a mill site; (b) utilization of Ablation above ground at the mine site; and (c) utilization of Ablation underground in the mine.

https://www.sec.gov/Archives/edgar/data/1621906/000121390017003160/f10k2016_westernuranium.htm

Apparently Mr. Glasier is rethinking whether ablation will be used at the Sunday Mine Complex.   It appears the CDPHE's determination that a milling license is required has thrown a spanner in WUC's plans.  Mr. Glasier is considering adding ablation processing equipment to the proposed Pinon Ridge Mill, which has yet to break ground.  Under this scenario, any cost savings from transporting ablated concentrate from the Sunday Mine Complex would be lost.  Alternatively,  WUC is likely discussing "regulatory clarifications and a potential exemption" with CDPHE, although WUC has not disclosed whether such discussions have occurred.  Since this uncertainty is preventing the preparation of a PEA, any potential cost savings attributable to ablation are speculative at this point.