The Dewey Burdock Project covers 17,800 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.
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).
Revised Preliminary Economic Assessment Completed
A revised Preliminary Economic Assessment (PEA) was completed for Dewey-Burdock in April 2012. The PEA was prepared in accordance with National Instrument 43-101 by SRK Consulting (U.S.), Inc. ("SRK") and Lyntek Incorporated ("Lyntek"). SRK and Lyntek are based in Lakewood, Colorado and are well known as providers of a full range engineering and construction services for the global uranium sector.
The purpose of the revised PEA was to provide an updated analysis of the economic viability of the Dewey-Burdock Project based on significant development work performed by the Company's engineers and consultants over the past two years. Most significantly, the Company's team and consultants have modified the mine planning sequence for the project and redesigned the well fields based on further detailed hydrologic studies. The Company has also obtained revised and much more favourable property tax incentives from the applicable tax authorities. As a result this development work, the project demonstrates significantly more favorable economics. This data was used by SRK and Lyntek as the basis of the revised PEA.
The following table identifies the updated economic parameters as reported in the revised PEA and compares these parameters to the results of the original PEA filed in July 2010:
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.
Powertech is currently focused on obtaining final permits and licensing for the Dewey Burdock Project. The Nuclear Regulatory Commission ("NRC") has recently released planned dates for completion of studies for the licensing permits. The following table summarizes the best estimates as sent by the NRC staff on April 1, 2012 to the NRC Atomic Safety and Licensing Board:
- Draft License to Powertech in June 2012
- Safety Evaluation Report in August 2012
- Draft Supplemental Environmental Impact Statement ("SEIS") in August 2012
- Final SEIS and License January 2013 - May 2013
The other agencies that have oversight of the Dewey-Burdock Project are the U.S. Environmental Protection Agency ("EPA") for the Company's Class III and Class V injection well permits, and the South Dakota Department of Environment and Natural Resources ("DENR") which grants water rights, mining, and other permits. All of these permits are in the advanced stage and based upon discussions with these agencies, Powertech expects that these permits will be forthcoming within the same timeframe as estimated by the NRC for the final NRC License.
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.
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.
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