Colorado radiation control regulators are reviewing the stakeholder comments and will likely make a determination in a few weeks. The possible decisions include: no SML (source material license), SML, uranium processing SML, uranium milling SML, or rulemaking for a new regulatory category.
Here are a few excerpts from WUC's second amended Form 10 filed with the USSEC on July 21:
"The timing for commencement of uranium production is uncertain and is dependent upon a sustained increase in the market price of uranium and the
approval of and/or license permitting the use of ablation technology in mining. As such we would require uranium pricing of more than $45 per pound.
We have been in consultation with the Colorado Department of Public Health and Environment (“CDPHE”) to determine if a license is needed.
Furthermore, we would need to build a full-scale ablation machine in connection with our startup. To begin mining, we would expect to incur startup
costs totaling approximately $2,000,000, consisting of equipment upgrades of $650,000, overhead costs of $720,000, permits of $100,000, mine
preparation of $100,000, employee hiring of $200,000, contract miner equipment of $100,000, drill program of $100,000, and miscellaneous of $30,000.
In approximately early September 2016 we will know whether a permit will be needed. If no permit is required and the price of uranium is $45 per pound,
production may begin as early as the first half of 2017.
Western Uranium Corporation believes that its mineral resources have a reasonable prospect for economic extraction, either with the utilization of
ablation mining technology 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 extent to which ablation mining technology will be utilized. The Company will not know whether it will be able
to utilize the ablation mining technology until the CDPHE regulatory authorities decide whether a source material license or other license is required. It is
possible that the CDPHE will decide no license is required. Accordingly, the Company has not yet been able to determine the cut-off grades and pricing
under an economic assessment." (Pg 5)
"However, we may not be able to realize the anticipated benefits of the ablation process due to uncertainties associated with that process. When working
with AMT there is an uncertain regulatory framework, which may cause delays in our start up, and/or increase our costs. There is undetermined mill
efficiency of the post Ablation ore, which may adversely impact our expected profitability. Use of Ablation mining technology represents an additional
processing step at the mine, requiring additional equipment, support, material handling and a potential increase in water usage requirements." (Pg 8)
"During July 2015, Western Uranium Corporation submitted an application to the CDPHE - Hazardous Materials and Waste Management Division,
Radiation Management for a license to operate the Ablation Mining Technology and the Company is currently awaiting the decision as to the type of
license, if any, which may be required. The information submitted by Western is currently being reviewed and the CDPHE is currently collecting public
comments until July 22, 2016. Within 60 days after that date, the CDPHE is required to make a ruling on the application. Upon receiving the
determination from the CDPHE, Western will determine its next steps in seeking full permitting for operation. Additional permitting requirements include
a technical amendment to the existing mine plans for the Sunday Mine Complex and the related Bureau of Land Management Plan of Operations and
Environmental Assessment. Additional requirements for the system to operate at a mine site include connecting a water source and a power source." (Pg 41)
BLR Price at posting:
0.2¢ Sentiment: None Disclosure: Not Held
