Smith Ranch-Highland
We operate Smith Ranch and Highland as a combined operation. Each has its own processing facility, but the Smith Ranch central plant currently processes all the uranium and the Highland plant is currently idle. Together, they form the largest uranium production facility in the United States.
In 2013 we expect to start production from the North Butte satellite operation with final uranium processing also at the Smith Ranch-Highland processing facilities.
| Location | Wyoming, US |
| Ownership | 100% |
| End product | Uranium concentrates |
| ISO certification | ISO 14001 certified |
| Estimated reserves |
Smith Ranch-Highland: 6.3 million pounds (proven and probable), average grade U3O8: 0.09% North Butte-Brown Ranch: 3.3 million pounds (proven and probable), average grade U3O8: 0.08% |
| Estimated resources |
Smith Ranch-Highland: 23.0 million pounds (measured and indicated), average grade U3O8: 0.06% 6.6 million pounds (inferred), average grade U3O8: 0.05% North Butte-Brown Ranch: 12.3 million pounds (measured and indicated), average grade U3O8: 0.08% 0.8 million pounds (inferred), average grade U3O8: 0.06% |
| Mining methods | In situ recovery (ISR) |
| Licensed capacity |
Wellfields: 3 million pounds per year including North Butte Processing plants: 5 million pounds per year including Highland mill |
| Total production: 2002 to 2012 | 15.9 million pounds |
| 2012 production | 1.1 million pounds |
| 2013 forecast production | 1.8 million pounds |
| Estimated decommissioning cost | $182 million (US) (including North Butte satellite operation) |
2012 Update
Production
Production this year was slightly lower than our third quarter guidance and lower than 2011 production. The lengthened review process to obtain regulatory approvals for new mine units (wellfields) at Smith Ranch-Highland continued to impact production this year. One significant new mine unit was in full production by August, following the receipt of all necessary approvals. Approval for a portion of another important mine unit was received at the end of the year, enabling us to bring it into production in early 2013. We continue to seek regulatory approvals to proceed with the rest of our expansion plans.
We have made good progress on construction of the satellite plant and development of the first wellfield at North Butte in Wyoming in line with our growth plans.
Licensing
The regulators continue to review our licence renewal application. We are allowed to continue with all previously approved activities during the licence renewal process.
Planning For the Future
Production
In 2013, we expect to produce 1.9 million pounds, including 0.3 million pounds from our North Butte satellite operation.
We continue to seek regulatory approvals to proceed with expansions at our various satellite operations in Wyoming. The regulators are constrained by a shortage of resources as they try to work through a large volume of permit and licence amendment requests from resource companies. However, we are beginning to receive some approvals. We continue to communicate with them to ensure we understand and meet their information needs in a timely manner.
New mining areas
We will continue construction of the satellite plant and the first wellfields at North Butte. Once commissioned, we expect to produce approximately 300,000 pounds in 2013 and ramp up to a target annual production rate of more than 700,000 pounds per year by 2015.
Exploration
We are continuing our exploration activity with the objective of extending the mine life at Smith Ranch-Highland and satellite properties.
Managing Our Risks
The operating environment is becoming more complex as public interest and regulatory oversight increase. This may affect our plans to increase production. We also manage the risks listed here.