American Uranium eyes another Wyoming mine

American Uranium(AUUM-O) and Strathmore Minerals (STM-V, STHJF-O) are looking to set up the third in a string of in-situ-leach (ISL) mines in northeastern Wyoming with their joint-venture Reno Creek project.

On April 3, the companies announced they were applying to the U. S. Nuclear Regulatory Commission (NRC) for a licence for a mine and processing plant.

The Reno Creek deposit is in Wyoming’s historic Pumpkin Buttes uranium district of the Powder River basin, and sits between Areva’s (ARVCF-O) Christensen Ranch and Cameco’s (CCO-T, CCJ-N) Smith Ranch — both of which are ISL facilities.

The two companies have also begun preliminary work to prepare for the project’s environmental assessment with initial drilling, coring and baseline groundwater characterization programs planned for the summer and fall. The work will take roughly a year, meaning that by fall 2009, the joint venture could be ready to submit for federal and state mining licences.

The Pinetree-Reno Creek property covers 41,000 sq. km and American Uranium must spend US$12.375 million to earn an initial 22.5% in the project and US$33 million over six years to earn a 60% interest.

In January of this year, when American Uranium announced an updated resource estimate for the property, chief executive Bob Rich said the company was surprised to find the actual Reno Creek resource was double its previous estimate at 10.8 million lbs. U3O8.

American had previously reported a historical resource of 4 million lbs. U3O8.

Back in 1999, the property was held by International Uranium, with a reported resource of 3.8 million lbs. U3O8.

This year’s National Instrument 43-101-compliant measured and indicated mineral resource came in at 5.7 million tonnes with an average grade of 0.065% for 7.4 million lbs. U3O8, and an inferred resource of 2.6 million tonnes grading 0.065% for 3.4 million lbs. U3O8.

At presstime, American Uranium shares were trading at 35, within a 52-week range of US25-$1.75.

Strathmore shares were trading for $1.41 at presstime, in a 52-week window of $1.33-5.50.