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