Up-and-coming uranium producer Uranium One (UUU-T, SXRZF-O) has struck a 5-year toll-milling agreement with Cameco’s (CCO-T, CCJ-N) American subsidiary Power Resources to process uranium-bearing, ion-exchange resins from Uranium One’s in situ recovery (ISR) projects in Wyoming’s Powder River and Great Divide basins.
The agreement starts either in 2010, or the month in which an aggregate of at least 250,000 lbs. of dried uranium concentrate has been produced from Uranium One resins, whichever comes first.
Uranium One will transport resins from its uranium mining operations to Cameco’s Smith Ranch-Highland uranium facilities, or an agreed-upon alternate facility in Wyoming or Nebraska, for processing and production of up to 1.4 million lbs. per year of dried uranium concentrates. Cameco can accept either cash or uranium as payment.
Uranium One expects its first production to come from its Moore Ranch project, about 80 km north of the Smith Ranch-Highland complex, with additional production expected to be sourced from the Allemand-Ross, Barge and Ludeman projects, which are also nearby.
Moore Ranch hosts a National Instrument 43-101-compliant measured resource base of 2.95 million short tons grading 0.1% containing 5.8 million lbs. U3O8.
Uranium One is aiming to sell its first uranium from its Wyoming projects by 2010.
This output, combined with expected production from Uranium One’s Hobson ISR facility in Texas, should make the company one of the largest uranium producers in the United States.
The company also has uranium mines or advanced projects in Kazakhstan, South Africa and Australia, and is involved in exploration plays in the United States, Saskatchewan’s Athabasca basin, South Africa, Australia and the Kyrgyz Republic.
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