StockInterview: Why does it take so long to bring a uranium mine into production?

Glenn Catchpole: Wyoming has an excellent environmental regulatory process in place that was put there in 1973. It’s fairly clear cut and an applicant knows what has to be done but there are timelines just built into that process that are difficult to short circuit or to expedite. It takes at least a year’s worth of baseline data on some of your studies that you have to do so there’s no way to get around that and you have to have at least a year’s worth of data in that application. It takes you about that long to get all the information gathered up and properly prepared and drawings made and data analyzed to get that application ready for submittal.. Then, the regulatory agencies have certain timelines they must fulfill statutorily in reviewing that application so that process can take a year to two years or even longer in Wyoming to get through it - you are talking as much as three years before you actually have those licenses and permits. Then, in the case of an in situ recovery mine, it’s a year, maybe a year and a half to construct the facilities to the point where you can start up the first well field and be producing uranium.

StockInterview: How much production do you believe you’ll have by 2010 and how many years do you believe Uranerz Energy will be producing in Wyoming?

Glenn Catchpole: Our goal is to be in production in the year 2010. That assumes that the licensing process, the time it takes to get our permits will go reasonably smoothly and there won’t be any glitches or issues that come up which would substantially extend that time necessary to get the permit. Realistically, our production in 2010 will probably be rather small. By 2012, we should be at full capacity under the current planning of 750,000 pounds per year of U308. The hydrological environment is favorable and the grade of the ore and the thickness of the ore is such that it can support a profitable mining operation.

StockInterview: What are your biggest worries in bringing your first uranium project into production?

Glenn Catchpole: Our foremost and biggest worry is that the licensing process goes smoothly. It’s been a while since a brand new project has gone through the licensing process in Wyoming for uranium and, for that matter, on the federal level with the Nuclear Regulatory Commission. So, we are on a little bit of uncharted water here as to exactly what the timeframes will be or what the real issues turn out to be as we go down this road. Other issues that might crop up are the availability of an experienced workforce and of drilling equipment to drill the wells that we are going to need for a commercial in situ recovery mine.

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James Finch and Julie Ickes conducted the audio interview, which can be heard at http://www.stockinterview.com/News/05042007/Uranerz-Catchpole.html

James Finch contributes to StockInterview.com and other publications. His focus on the uranium mining and nuclear fuel sector resulted in the widely popular “Investing in the Great Uranium Bull Market,” which is now available on http://www.stockinterview.com.