Rio gives nod to Smith Ranch mine

Stronger demand and better prices for uranium have prompted the U.S. subsidiary of Rio Algom (TSE) to proceed with development of its Smith Ranch uranium project in Wyoming’s Powder River basin.

The project, which contains an estimated 60 million lb. of uranium resources, will be mined using in situ leach technology. The process uses injection and extraction wells to link the surface processing facilities to the uranium-bearing ore zone at depth.

The ore exists 700 ft. below surface between two layers of shale. A solution containing water, carbon dioxide and oxygen will be pumped through injection wells to the ore zone where the uranium will be dissolved. The uranium-bearing solution will then be pumped back to surface using the extraction wells, leaving the underground rock formations intact. The uranium will be removed from the solution at the processing facility, and the mining solution will be recycled.

In addition to being less expensive than other techniques, in situ leaching leaves no tailings behind.

Rio’s American subsidiary, Rio Algom Mining Corp. (RAMC), reports that construction of the well fields, ion exchange facilities and central processing plant will begin this May. Production is expected to begin in the third quarter of 1997 and should reach a rate of 2 million lb. U3O8 per year in 1998.

The project is expected to cost US$43 million to develop, and Rio’s subsidiary has signed medium-term matched sales contracts with two U.S. utilities totalling about one-quarter of Smith Ranch’s annual production. Additional contracts are being sought for the remaining production. If the demand and price for uranium continue to increase, RAMC could expand the capacity of the operation.