US Uranium Mining and Exploration

US Nuclear Fuel Cycle Appendix 1

(Updated June 2013)

Uranium mining in the USA today is undertaken by few companies on a relatively small scale. Uranium exploration is undertaken by many companies, often going over areas that were mined in the 1950s-80s.

Uranium production from one mill (White Mesa, Utah) and five in-situ leach (ISL) operations totalled 1,583 tU (1,866 t U3O8) in 2006, 1,748 tU (2,061 t U3O8) in 2007, and 1,503 tU (1,774 t U3O8) in 2008.¹ In 2008, Rosita became a sixth ISL production site before being shut down. In 2009, production was 1445 tU (1704 t U3O8) with only the White Mesa mill and three ISL operations (Crow Butte, Smith Ranch-Highland, Alta Mesa) producing at year end. In 2010 production was 1627 tU (1919 t U3O8) from four underground mines through the White Mesa mill and four ISL operations (Crow Butte, Smith Ranch-Highland, Alta Mesa, La Palangana).  In 2011 production was 1535 tU (1811 tU3O8) from five underground mines through the White Mesa mill and from five ISL operations (2010 four plus Willow Creek – Christiansen Ranch & Irigaray). In 2012 production increased to 1599 tU (1885 tU₃O₈) through White Mesa and five ISL operations.

Most US states are 'agreement states' vis a vis the Nuclear Regulatory Commission (NRC) and have authority to issue permits and regulate uranium mining and milling. NRC's role is then confined to oversight. NRC itself currently provides oversight of three ISL sites and one conventional uranium mill. In mid 2012 it was reviewing eight applications for new uranium processing sites, renewal of existing sites, or expansion of sites, and anticipated 16 more applications for uranium processing, including five conventional mills. Under a 2010 agreement NRC collaborates with the federal Bureau of Land Management on environmental assessment of mine proposals.

However, land access is partly controlled by the US government, and in 2011 the Interior Secretary issued an order banning hardrock uranium mining in about 4000 square km of land in Arizona for 20 years, which sterilized 145,000 tU of known resources according to the NEI and also much prospective ground. The industry contends that uranium exploration and mining here would not compromise the Grand Canyon watershed. The land is not within the Grand Canyon National Park or the buffer zone protecting the national park. The industry contends that that the land withdrawal is not justified by information in the Interior Department’s environmental assessment, and is an “arbitrary agency action” under the Administrative Procedure Act, and that it fails to comply with the National Environmental Policy Act by failing to take the “hard look” at the withdrawal’s consequences that the US Supreme Court required in a unanimous 1989 decision. In March 2013 a US District Court judge declined to overturn the mining ban.

Mining and exploration projects

Conventional (non-ISL) uranium mining is resuming in the USA after some years (though Cotter Corporation produced 38 tonnes U through its 400 t/day Cañon City mill, Colorado in 2005).

EFRC-Denison

In April 2012 Energy Fuels Resources Corporation (EFRC, a Colorado-based subsidiary of Energy Fuels Inc of Toronto) agreed to take over all Denison’s US assets and operations, including the White Mesa mill, in a C$106 million merger. This will diminish the priority of building the Pinon Ridge mill. In May 2013 Energy Fuels agreed to take over Strathmore Minerals in a C$29 million deal.

Denison Mines produced 165 tU in the first half of 2009 through its 2000 t/day White Mesa mill in southeastern Utah, from its own and purchased ore (the company is advertising its ore-buying program), as well as doing some toll milling. Production cost for this was $197 per kgU. The mill has a vanadium co-product recovery circuit. It is expected to produce about 425 tU in 2013, and twice that amount of vanadium.

EFRC/ Denison has several mines in the Uravan Mineral Belt on the Colorado Plateau (straddling the Utah-Colorado border) containing 2100 tU in placer deposits plus vanadium co-product (Uravan = uranium + vanadium). Its mines are mainly in the La Sal, Sunday and East Canyon/Rim zones, about 100 km northeast of its White Mesa mill. In 2007, Denison operated four of these mines: Topaz, West Sunday and Sunday/St. Jude in the Sunday group, and Pandora in the La Sal group. Most are mature operating mines with extensive underground workings, while the Topaz mine is relatively new. Two more of these mines reopened in 2008: Rim and Beaver (La Sal group), which required significant refurbishing to produce some 30 tU/y. There are no plans to bring the other mine there, Van 4, into production. Meanwhile EFRC had applied to reopen Whirlwind (including Packrat, Bonanza and La Sal) following Bureau of Land Management and state approval, but put it on standby in 2008. EFRC's nearby Energy Queen mine in Utah was refurbished for 2008 reopening, and is licensed.

In late 2011, the Pandora and Beaver Uravan mines were operating, while the Topaz, Rim, West Sunday and Sunday mines were closed pending market improvement. In October 2012 EFRC said it would place Beaver on standby from early 2013, pending uranium market improvement and would finish mining at Pandora by mid year due to depleted resources.

EFRC/ Denison's Henry Mountains deposits in Utah including Tony M, Southwest and Bullfrog have 4900 tU as indicated resources at over 0.2% and inferred resources of 3100 tU, both NI 43-101 compliant. All these are some 120 km west of the White Mesa mill. Denison began production from the Tony M mine in 2007, but late in 2008 put it on care and maintenance. The company was intending to spend $35 million on the adjacent new Bullfrog mine, but it was put on hold in 2008.

EFRC/ Denison’s Daneros deposit in southeastern Utah was was the main asset of White Canyon Uranium which Denison bought for $57 million in 2011. It has been mined since December 2009 and ore is trucked 100 km to Denison's White Mesa mill for treatment and recovery of U3O8 product. Ore produced during the development phase was sold to Denison, and from there a 3-year toll treatment agreement came into effect. JORC-compliant resource figures of 447 tU in 0.22%U ore were quoted in August 2010, and production is planned to be 227 tU/yr. In October 2012 EFRC said it would place Daneros on standby from early 2013, pending uranium market improvement.

Denison also has four old mines in the Arizona Strip of north central Arizona, along with some new deposits there, though all these are some 500 km south from White Mesa mill and some may be impacted by the Bureau of Land Management decision to stall developments near the Grand Canyon. The Arizona 1 underground mine resumed production in 2009, with ore processed at White Mesa. Denison has applied for licences for its nearby Pinenut and EZ mines, and also the Canyon mine, which was originally licensed in 1986, operated for a few years, and now seems likely to reopen in 2012 with ore trucked to the White Mesa mill. EFRC expected to bring Pinenut into production by mid 2013.

EFRC in March 2011 received a Colorado state licence to build the new 330 tU/yr Pinon Ridge mill for ore from these mines, plus possible toll treatment, but this was overturned on appeal in June 2012, pending a further public hearing. The state’s radioactive materials licence was reissued in April 2013. The company has been seeking $140 million finance for the mill, which will also produce 1700 t/yr of vanadium oxide.

EFRC's Sheep Mountain, Wyoming deposit has 11,700 tU indicated resource at 0.1%U, including 7100 probable reserves. In 2009, Titan Uranium Inc bought Uranium Ones's 50% interest in it, and it then transferred to EFRC in the 2012 merger with Titan. Underground development took place in the 1970s. Titan undertook a prefeasibility study on mining the Congo open pit and underground, with heap leaching recovery, to produce 580 tU/yr from 5500 tU probable reserves from 2014. EFRC has updated the preliminary feasibility study for the whole project, and proposes development in conjunction with Gas Hills, 60 km north. Strathmore has contiguous leases.

Strathmore

In May 2013 Energy Fuels agreed to take over Strathmore Minerals in a C$29 million deal. Korea Electric Power Co. (KEPCO) is the largest shareholder in both companies, with 9.1% and 11.7% respectively. It supports the takeover and will hold 9.6% of the expanded company.

Strathmore Minerals is working towards bringing its Gas Hills properties in Wyoming into production, and in March 2013 announced 2080 tU at 0.11%U  indicated resources and 2120 tU inferred resources (NI 43-101 compliant). Exploration and possible development is proceeding under a February 2012 agreement with KEPCO, which will contribute $32 million to the project from 2013, leading to an envisaged joint venture with Kepco holding 40%. Strathmore has been exploring the prospect of developing its Juniper Ridge property in conjunction with Gas Hills, or with EFRC’s Sheep Mountain (150 km north), or both.

In New Mexico, Strathmore submitted a mining permit application in October 2009 for Roca Honda (60% owned, with Sumitomo 40%) in the Grants mineral district which has measured & indicated resource of 6,470 tU at 0.34% U and 4580 tU inferred resources at 0.35% U. A mine permit decision is expected in 2013. Original plans assumed that a new mill would be built, but the takeover by EFRC means that its White Mesa mill about 180 km away in southeastern Utah is likely to be used.

The company also has other projects in the Grants mineral district, including: Marquez with 3500 tU as indicated resource, Dalton Pass with ISL potential and 1000 tU measured & indicated resource, and Nose Rock, deep in hard rock with 1160 tU measured & indicated resource. All the above are NI 43-101 compliant. Church Rock prospect with 4570 tU as measured & indicated resource, was listed with these but in June 2012 the company retracted the resource estimate, since it was based on a previous owner’s 1979 data.

Uranium One

Toronto-based Uranium One in 2007 bought US Energy's 1,000 t/day Shootaring Canyon mill in southeast Utah and associated properties in four contiguous states for $50 million plus royalties. US Energy had been planning to bring the mill back into production at a cost of $31 million. (Uranium One had also secured the right to buy Rio Tinto's 3,000 t/day Sweetwater uranium mill and associated uranium properties in south-central Wyoming for $110 million, but in January 2007 Rio Tinto cancelled the deal.) Uranium One is now wholly owned by Russia’s ARMZ.

In Wyoming, Uranium One USA has plans for production from its Willow Creek project in the Powder River Basin from 2011. It acquired 500 tU/yr capacity from Christensen Ranch ISL mine through the Irigaray central processing plant when it bought those assets for $35 million from Areva in mid-2009, and it plans to expand this plant to its licensed 960 tU/yr. (In 2007, it announced a toll milling arrangement with Cameco's Power Resources Inc for recovery of up to 540 tU per year at PRI's Smith Ranch-Highland mill, but that appears to be superseded.) Production from its three small mines (Moore Ranch, Peterson Ranch, Nine Mile) and from Christiansen Ranch itself will be from loaded resin trucked to Irigaray from satellite plants. 

The Nuclear Regulatory Commission issued a licence for Moore Ranch in October 2010, to start production in 2012. In December 2010, it then licensed the Irigaray mill to produce up to 960 tU/yr (it is operating at 500 tU/yr in 2011), and for Christiansen Ranch to restart operations (it had been shut down since 2000 and restarted in January 2011). Uranium One’s additional projects in the Powder River Basin, including Ludeman, Allemand-Ross and Barge, could also be developed as satellite operations with final processing through the Willow Creek central plant. Uranium One has some 4000 tU as measured resources (2235 t at Moore Ranch) and 23,000 tU as indicated resources in the state. It also had plans for production from Antelope and JAB in the Great Divide Basin, but these were deferred due to endangered species concerns.

In 2010, Uranium One sold a number of Utah and Colorado claims and two Utah leases, including the Sage mine, to Colorado Plateau Partners (CPP), a joint venture between Energy Fuels Inc of Toronto (see EFRC above) and Royal Resources Ltd of Australia.

Cameco

Cameco's US subsidiary Cameco Resources Inc operates the Smith Ranch-Highland mine in Wyoming's Powder River basin and the Crow Butte mine in Nebraska, both of them ISL operations, and producing nearly 1200 tonnes U between them in 2009 from total reserves of 12,000 tU (15,000 t U3O8). The company is aiming to increase production from these mines and adjacent properties including Reynolds Ranch to 1,770 tU/y by 2011. Smith Ranch-Highland produced 423 tU in 2012. North Butte is a satellite plant which started production in May 2103 and will ramp up to 270 tU/yr.

UEC

Uranium Energy Corporation (UEC) in October 2009 bought the small but recently-refurbished Hobson mill in southern Texas from Uranium One (it had been shut since 1991). UEC then made Hobson the basis and hub of its Texas uranium projects. Hobson had 385 t/yr capacity, but UEC says it is now 1150 tU/yr, in 2011-12 it processed 90 tU. It recovers uranium from loaded resin trucked there from the Palangana ISL mine, to which will be added loaded resin from satellite plants at Goliad, Nichols and Salvo. Production commenced at Palangana in November 2010 – the first US ISL operation to start in five years. By the end of 2011 UEC had obtained all the necessary permits to develop its Goliad ISL project, 64 km from the Hobson mill, for production from 2013. Goliad has 2,100 tU and Palangana 410 tU measured and indicated resources grading 0.114%U which are NI 43-101 compliant, at 140 m depth. Future ISL satellites are Salvo, with 1100 tU inferred resource grading 0.07%U, then Nichols with 500 tU inferred located close to Hobson mill, and possibly Burke Hollow (1100 tU inferred) and Channen. All four deposits other than Nichols and Palangana are 70-85 km from Hobson. UEC claims cash cost of $20 per pound over 2010-12 for its ISL production, excluding royalties.

UEC in 2007 bought the New River Uranium Project in Arizona with a historic resource estimate of 5000 tU in shallow low-grade ore. Its Workman Creek deposit there has 1200 tU inferred resource. For the flagship Anderson project 290 km away, and formerly mined in 1950s, it announced 6500 tU NI 43-101 indicated and 4600 tU inferred resources at 0.04% (May 2012), most accessible by open pit mining.

In January 2013 UEC reported a NI 43-101 inferred resource for its Slick Rock project in Colorado, of 1770 tU with 0.21% cut-off. Vanadium is also present.

In 2009, UEC formed a joint venture with Australia’s Uran Ltd to develop the Grants Ridge project in New Mexico, including nine historic mines which operated from 1970-80s, with average grade 0.15%U, to produce 175 tU in total. Uran can acquire a 65% interest by spending $1.5 million to 2014.

URI

Uranium Resources Inc (URI) commenced production from its Vasquez ISL mine in 2004 at about 50 tU/y and from Kingsville Dome in 2006, both in south Texas. Vasquez peaked in 2006 and is now depleted (30 tU in 2007, 9 tU in 2008). Rosita started production in 2008 with oxygen injection but was then closed as uneconomic after 3 tU was recovered.  Kingsville Dome produced 67 tU in 2008 and 19 tU in 2009. It was closed in June 2009 due to low uranium prices, and is being remediated along with Vasquez and Rosita.

URI in 2007 sought to buy Rio Algom Mining, with uranium properties and a licensed mill site at Ambrosia Lake in New Mexico, where it planned to construct a new mill to serve the Grants mineral belt. However, the deal was aborted in mid-2008. URI's future potential is in its Grants district properties in New Mexico which hold 39,000 tU, and from which it hopes to produce 2000-3000 tU/yr from ISL. 

URI subsidiary Hydro Resources Inc was licensed in 1994 to mine the Crownpoint and Church Rock ISL deposits in New Mexico, and after years of opposition the licence was validated by the Nuclear Regulatory Commission in 2006 and then reactivated in 2011. URI plans to produce 385 tU/yr from Church Rock from mid-2013, subject to further permitting. 

URI does not presently intend to revive its Texas operations.

Uranerz

Uranerz Energy received an NRC materials licence for its Nichols Ranch ISL operation in the Powder River Basin of Wyoming in July 2011, and its final state approval in October 2012. 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 tU/yr. Production is envisaged from 2013, and the initial plant capacity will be 300 tU/yr. The company has NI 43-101 compliant resources of 6060 tU at about 0.1% U in seven deposits, including measured & indicated resources of 1137 tU for Nichols Ranch itself, 860 tU for Hank, 1100 tU for West North-Butte and 1655 tU measured and indicated resources at about half the grades of these – 0.048% U – at Reno Creek, 30 km east of Nichols Ranch.

Ur-Energy

Ur-Energy Inc (URE/ URG) has total about 8500 tU as NI 43-101 indicated resources in Wyoming, and claims potential for double that. NRC has licensed ISL mining at its Lost Creek deposit in the Great Divide basin and construction of a 770 tU/yr mill is on schedule for production from mid 2013. The Bureau of Land Management has approved the project..  Lost Creek has 3200 tU measured and indicated resources at 0.05 %U and 1100 tU inferred. The company plans to produce 400 tU/yr from the Lost Creek wellfields and about the same from satellite operations. Early in 2012 Ur-Energy took over nearby leases from Uranium One, adding 1000 tU to its resource base in the Greater Lost Creek project. The site is close to Kennecott's Sweetwater mill. Bayswater Uranium is farming in to the company's Hauber prospect.

Peninsula

Australian-based Peninsula Energy reports JORC-compliant resources (January 2013) of 19,800 tU at 0.041%U for its Lance ISL project on the east side of Wyoming's Powder River Basin, including 4300 tU as measured and indicated resources, held by the company’s subsidiary Strata Energy Inc. It is planning to bring this into production at 580 tU/yr from three production units – Ross, Kendrick and Barber. These will feed into a central processing plant with an expandable capacity of up to 1154 tU per year (4 modules of 288 tU/yr), commencing mid 2014 from Ross. State permitting is well advanced, with a permit to mine issued in November 2012, and from the NRC the company has a draft source materials licence (SML), with draft environmental approval for both the plant and Ross wellfield in March 2013. It expects final approvals and SML from NRC for the Ross production unit by the end of 2013, with production early 2014. The Kendrick, Richards and Barber production units to the south of Ross will be brought on line with amendments to Ross licences. Vanadium may be a by-product – 2237 t V₂O₅ resources are identified for Ross and Kendrick.

Others, ISL

Mestena Uranium LLC is a private Texas company. Its Alta Mesa ISL plant in southern Texas is operational with about 385 tU/yr capacity.

Bayswater Uranium Corporation of Canada has received a pre-feasibility study on mining its newly-acquired Reno Creek and Southwest Reno Creek deposits in Wyoming. These have a NI 43-101 measured and indicated resource of 8440 tU @ 0.044% suitable for ISL, plus a small inferred resource. The project would have five wellfields and a central processing plant producing about 750 tU/yr. It is 30 km southeast of Christiansen Ranch and 50 km north of Cameco's Smith Ranch, and Bayswater plans to bring it into production about 2014.

In New Mexico, Uranium International Corp (UIC) has announced 1,180 tU measured and indicated resource at Dalton Pass, with ISL potential. It also announced a 1,160 tU measured and indicated resource at Nose Rock, deep in hard rock. Both are NI 43-101 compliant, in the Grants mineral belt and owned by Strathmore Minerals. UIC has the option of earning a 65% share of each.

Powertech Uranium Corp is proposing to develop two ISL mines: Centennial in northern Colorado, and Dewey-Burdock in South Dakota – in each case very close to the Wyoming border. Centennial has 4,430 tU in 0.08% ore and Dewey-Burdock 2570 tU indicated resources averaging 0.18%U and 1880 tU inferred resources averaging 0.13%, both NI 43-101 compliant. The company has applied to develop Dewey-Burdock, and an economic assessment early in 2012 suggested 3240 tU production over nine years, with $54 million capital investment. A draft licence was received in mid 2012 and a full operating licence is expected by mid 2013. Powertech also has 400 tU as indicated resources at its Aladdin project in Wyoming.

Others, hardrock

Cotter Corporation, a General Atomics subsidiary, is planning a $200 million rebuild of its Cañon City mill by 2014, when it expects to treat ore from the Mount Taylor mine in New Mexico. (Mount Taylor, which has been on standby since 1989, is owned by another General Atomics subsidiary, Rio Grande Resources Corporation.)

Black Range Minerals Ltd has acquired the 11,500 tU Hansen deposit grading 0.07%U in Colorado. The company already owns the adjacent Taylor Ranch deposit, about twice the size and grading 0.05%U. Hansen was licensed for mining in 1981, but stalled due to low uranium prices.

Neutron Energy Inc has taken full ownership of the Cebolleta Land Grant in New Mexico which has 8000 tU resources after mining took place 1975-81, producing 460 tU.

Yellowcake Mining Corp reports 5,000 tU reserves at its planned Beck mine in the Uravan area of Colorado and agreed in May 2008 to sell a 50% stake in it to Korea Electric Power Corp (KEPCO). However, in February 2009, KEPCO withdrew, leaving the project bereft of funds. The company had joint ventures with Strathmore Minerals for Juniper Ridge and a Gas Hills prospect in Wyoming, but these were terminated in 2008.  In 2010 Strathmore agreed to sell Juniper Ridge to Crosshair Energy, but this agreement terminated in 2012.

Bluerock Energy Corporation has shipped the first ore from development of the J-Bird mine in Colorado to Denison's White Mesa mill in Utah.

Laramide Resources is applying to reopen the La Sal II mine in Lisbon Valley, Utah, bought in 2010 from Homestake. It is about 100 km from Denison's White Mesa mill.

In Virginia, Virginia Uranium Inc, in association with Virginia Energy Resources Inc, are lobbying for permission to mine the Coles Hill uranium deposit in Pittsylvania county which has 3260 tU as measured resource and 42,800 tU as indicated resource at 0.05 %U (NI 43-101 compliant) . An associated conventional mill would be near Chatham. A detailed state review has reported on the project, and the Governor has been asked to develop regulations for uranium mining. Approval however remains uncertain.

US uranium mines and other production facilities

* Partially permitted and licensed

Uranium mining was a major activity in the late 1940s and into the 1950s, when the focus was on national security rather than environmental protection. There was little regulation or oversight of facilities, and tailings were put in impoundments without liners, giving rise to groundwater contamination.

There was a considerable legacy of pollution from abandoned uranium mines and treatment plants, most dating from the 1950s, and which was addressed in the 1980s. For instance, the Uravan mill site on the San Miguel River in Colorado was designated a Superfund site and was cleaned up between 1987 and 2007 at a cost of over $120 million. Historic mining and milling at Uravan included the production of radium, vanadium and uranium, leaving radioactive residues from the early 1900s through to the mid-1980s. From the time Uravan mill began operating in the 1920s until it was shut down, it processed over ten million tonnes of uranium-vanadium ore, giving rise to a similar amount of uncontained tailings, and 1,440 megalitres of liquid wastes were treated in the site rehabilitation program.

The Schwartzwalder mine west of Denver, Colorado, was once the largest underground uranium mine in USA. It has been polluting Ralston Creek feeding the city's water supply and is now subject to bacterial bioremediation by Cotter Corp.

Further Information

Related information pages

US Nuclear Fuel Cycle

References

1. U.S. Uranium Mine Production and Number of Mines and Sources, US Energy Information Administration, Domestic Uranium Production Report (21 May 2009) [Back]

General sources

US Energy Information Administration (www.eia.doe.gov)
Company reports