| "The key to Grants, New Mexico is a | | | | which Strathmore controls from its purchase of |
| state-of-the-art mill," said Laramide's Marc | | | | the Kerr-McGee properties from Rio Algom |
| Henderson. All of the politicians agreed. "It will be a | | | | (bought by BHP Billiton) in 2004, was one of the |
| real boon to New Mexico," said New Mexico | | | | next mines designed to feel the 6,000 ton/day |
| legislator John A. Heaton. "Mining is one of our | | | | Ambrosia Lake Mill. |
| basic industries in New Mexico." And after the | | | | What impact would a uranium mill have on Grants, |
| product is mined, it must be milled. | | | | New Mexico? We asked Miller to speculate upon |
| In an email message, Strathmore Mineral's David | | | | the impact, as he is also a third-term legislator |
| Miller told us, "We have now completed | | | | from Wyoming. He told us, "A new mine and mill |
| independent scoping studies for the Roca Honda | | | | complex of the size Strathmore would need to |
| Project." A registered professional engineer | | | | consider would be employ a minimum of 200 |
| completed an independent evaluation on the mill's | | | | people, and could be double or higher. The quality |
| capital and operating costs. While the name of the | | | | of the jobs would be similar to other mining jobs: |
| engineer was not disclosed, Miller said, "This | | | | top pay, top benefits and top health care." By |
| gentleman has 40-plus years of experience and | | | | contrast, In Situ Recovery (ISR) would be less |
| has designed many mills in the U.S. and the world." | | | | labor intensive. Each ISR facility would employ 50 |
| Miller told us, "Mill operating costs for various-sized | | | | to 100 people. |
| mills range from the low $20/ton of feed to the | | | | With the proposed uranium enrichment facility |
| high $200/ton of feed. The Roca Honda ore runs | | | | scheduled for groundbreaking in August, with New |
| from five to six pounds per ton. Per ton-to-pound | | | | Mexico legislators eager to add a nuclear power |
| milling cost is at $30/ton operating cost (20 | | | | plant to the state's nuclear energy renaissance, |
| percent higher than the lower number in the | | | | and with a possible uranium mill being discussed, |
| evaluation) with a grade of five pounds per ton." | | | | how long before uranium mining resumes in this |
| Miller described the mill's capital cost at around | | | | state? It may be sooner than you think. It a |
| $100 million, plus/minus $20 million, depending upon | | | | not-yet published interview with Jon Indall, |
| the size of the mill to be built. Miller also said, | | | | Executive Director of the Uranium Producers of |
| "Environmental aspects of such a mill were also | | | | America, he told us, "I wouldn't be surprised if the |
| reviewed by consulting specialists, and they | | | | domestic uranium industry were producing up to |
| concluded that it will be possible to permit a mine | | | | 20 million pounds annually." He forecast it might |
| and mill in New Mexico." He explained that no mine | | | | happen within five years, perhaps sooner. A good |
| design work has yet been done. Operating mine | | | | deal of this uranium production may come from |
| costs would be similar to similarly sized metals | | | | this state. New Mexico's nuclear renaissance is |
| mines. "They could vary from a low of $30/ton | | | | clearly within reach. |
| of ore to a high of $80/ton of ore." Miller | | | | COPYRIGHT © 2007 by StockInterview, Inc. |
| emphasized that milling costs could be as low as | | | | ALL RIGHTS RESERVED. |
| $6/pound of U3O8. The Roca Honda project, | | | | |