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Location
The Dewey Burdock Project covers 18,304 acres in South Dakota on the southwest flank of the Black Hills uplift. It's part of the northern extension of the Edgemont uranium district discovered in the 1950's. Resources An updated (March 2010) form 43-101 technical report authored by Jerry D. Bush, has identified 6,684,285 pounds of Indicated Resources and 4,525,500 pounds of Inferred Resources contained in 2,820,998 tons averaging 0.198% U3O8, using a 0.50 GT cut-off. Uranium resources are contained in two deposits located at depths ranging between 400 and 800 feet below surface. Bench leach tests of cores show 99% recovery (with mild acid). Preliminary Economic Assessment Completed A Preliminary Economic Assessment ("PEA") was completed at Dewey Burdock by SRK Consulting in 2010 (see July 8, 2010 News Release). The PEA stated: "The Dewey-Burdock Project is an advanced-stage uranium exploration project located in South Dakota, controlled 100% by Powertech Uranium Corp. (Powertech). Powertech conducted confirmatory drilling to verify the results of extensive historic drilling, established current Indicated and Inferred classified resources, and conducted hydrogeologic tests to evaluate the project as an in situ leach and recovery (ISR) mining and uranium production operation. Powertech, with the assistance of Lyntek, conceptually designed well fields and a uranium recovery processing facility, and developed cost estimates for a proposed ISR operation that would be similar to existing uranium ISR operations currently in production nearby in Nebraska and Wyoming." In the PEA, base case economic analysis results indicated a pre-tax net-present value of US$55.4 million at an 8% discount rate, with an internal rate of return of 27%, based on a uranium price of US$65 per pound. Payback will be in the first quarter of production, Year 4. No provision for salvage value was assumed in the analysis. The PEA identified a mine life of nine years at a conservative estimate of 75% recovery, producing more than 8,400,000 pounds of U3O8. The cash operating cost was estimated at US$34.90 per pound of U3O8 and Phase 1 capital costs were estimated at US$65 million. Dewey Burdock is a new ISR uranium district and has all the earmarks of becoming a new large production center around which many other uranium deposits will be developed. What's Next Powertech is currently focused on obtaining final permits and licensing for the Dewey Burdock Project. The company expects its final permits will be obtained by the end of the 1st quarter 2013, with mine construction expected to begin later in 2013. The NRC is expected to provide a draft supplemental Environmental Impact Statement ("EIS") for the Dewey-Burdock Project in the 3rd quarter of 2012. At this point, the NRC will respond to any comments it may receive from other federal government agencies and the public, and then provide a final supplemental EIS, which is expected in the 1st quarter of 2013. The license from the NRC, and all ancillary permits, are expected to follow thereafter. History Uranium was found in the Edgemont district in 1952. Early discoveries were at surface. Later drilling revealed deeper uranium deposits. In the mid 1970's, Tennessee Valley Authority (TVA) bought a major interest in the area and made Dewey Burdock their main exploration target. Silver King Mines (SKM) was hired as operator by TVA and explored the property until mid 1980's. It was then dropped due to low uranium prices. Energy Fuels Nuclear (EFN) acquired the project in 1994 but relinquished it due to low uranium prices. Almost 4,000 exploration holes have been drilled on the property to depths of 500-800 feet. Powertech acquired the property in 2005. Regional Geology The Dewey Burdock deposit occurs in the Fall River and Lakota Formations of lower Cretaceous age. The Fall River and Lakota formations consist of permeable sandstones deposited in a major sand channel system. The sandstones are a major groundwater aquifer. The uranium occurs in the sandstones as classic roll front deposits. These deposits are amenable to ISR mining methods. Photo Gallery | | |||
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