ME571/GEO589—Special topics
Exploration, mining and
environmental geochemistry of
uranium deposits
Virginia T. McLemore
Spring 2016
Introduction
Office: Bureau 268, 575-8355521
Cell: 575-517-0525
e-mail: ginger@nmbg.nmt.edu
Outline
•
•
•
•
Safety
Class rules
Goals
Class
requirements
• Other
background info
•
•
•
•
•
•
Definitions
What is uranium
Mine life cycle
Legacy issues
Radiation safety
Economics
Safety
• Start each class with a safety moment
– Each student will be responsible for the day’s
safety moment
• Note where the restrooms are, emergency
exits
• Call 911 in case of an emergency
Safety—cont
• Always make sure that you have full
instructions for the job to be done.
– Always know your objectives before starting
your job.
– Make sure you have read the SOPs relating
to your job ahead of time.
• WHAT ARE SOPs?
– Make sure that you have copies of the SOPs
with you.
Safety—cont
• Have the right tools to do the job.
– Make sure you have read the SOPs ahead of
time.
– Make sure that you have a list of tools.
– Check to see that you have brought each of
the tools from your list.
– Avoid deviations from SOPs, unless they have
been approved.
– Deviations from SOPs (such as using different
tools) must be specified and others should be
aware of the change. Write deviations down.
Safety—cont
• Keep your mind on the job you are
doing.
– By staying focused you are less likely to make
a mistake (limit use of cell phones).
– By keeping focused, you will be more aware
of what is going on around you.
– For your general safety, always make sure
that you are not working in a roadway.
Safety
• Future classes each of you will lead a
safety moment
• I would rather not assign it
• Someone send me slides, I can add to my
lectures or it can be verbal or you can do
your slides separately
Class rules
Class rules
• Can’t make a class, e-mail me ASAP
• If you don’t understand me—ask (I don’t
hear well)
• No cell phones, except for emergencies
• Ask questions, participate in the class
• Eating and drinking is permitted
• Everyone will be assigned to do a safety
moment
– Safety has become very important in industry
– Written or oral
– MSHA web site http://www.msha.gov/
Goals in this class
Goals in this class
• Importance, geology, mining, processing,
environmental issues of uranium
• What is involved from exploration thru
production thru marketing thru reclamation—
mines have a life cycle (beginning and end)
– Reports, field notes, presentations
– Where to look for information
– Research needed
• Sustainable development
– We can mine within public concerns
– Social license to operate
Goals in this class
•
•
•
•
•
Improve writing and presentation skills
What to get out of conferences
How to do field reports
Basics needed for working in industry
Working individually vs. with a team
Class Requirements
Class Requirements
• Class participation (20%)
– Safety moment
– Readings
– Reports on conferences (SME, NMGS)
– Questions
– Others
•
•
•
•
Student project (20%)
Field trip reports (20%)—teams
Mid term exam (20%)
Final exam (20%)
Grades
•
•
•
•
•
Midterm
Final (comprehensive)
Student project
Class Participation
Field trips
20%
20%
20%
20%
20%
Class
• The class will meet one day per week for
90-180 minutes
• Remaining time spent on field trips or in
occasional extra discussion sessions
(SME meetings, other presentations)
• May require extra time for the project
presentations
Class Details
• Exams: Midterm and Final—both are take
home exams that will emphasize short
answer and essay questions.
• Term project—you are required to do a
term/research project that will involve some
original work, oral presentation to class and
written report to me. Class will be asked to
evaluate the oral presentation.
• Team work and group projects/reports are
encouraged, but midterm and final will be on
your own.
Field trips
• There will be 2 or more field trips and a trip
report on each trip will be required. I prefer
you work as a team.
– April 9, Sat after NMGS Spring meeting
(Socorro area)
– One other weekend in April
– On your own to Grants mining museum
• A potential field trip after the semester,
week of May 23, to travel to Wy and look
at active in situ operations
Spring breaks?
• March 14 spring break—no class
• When is UNM and HU spring break?
• Week of Feb 22 SME—no class (take
home mid term)
Term Project
• Team work is encouraged
• Written report and oral presentation
– Lesson plan, poster, and web site on importance of
uranium
– Mineral resource potential of uranium in a geographic
area
– Flow/life cycle of uranium in our society
– Related to your thesis work
– Sampling and analytical procedures for uranium
– Grade/tonnage evaluations of uranium deposits
– What is the NPEA process?
Lectures found on my web site
http://geoinfo.nmt.edu/staff/mclemo
re/home.html
Textbooks
• Papers as assigned
• Burns, P.C. and Sigmon, G.E., 2013, Uranium—cradle to
grave: Mineralogical Society of Canada, Short Course
Series, v. 43, 437 p.
• International Atomic Energy Agency (IAEA), 2009, World
distribution of uranium deposits with uranium deposit
classification: IAEA Report IAEA-TECDOC-1629, 126 p.,
<http://wwwpub.iaea.org/MTCD/publications/PDF/TE_1629_web.pdf
>
• International Atomic Energy Agency, 2000, Methods of
Exploitation of Different Types of Uranium Deposits:
IAEA, VIENNA, IAEA-TECDOC-1174, 84 p., http://wwwpub.iaea.org/MTCD/Publications/PDF/te_1174_prn.pdf
Sources of data
• Internet
• http://minerals.usgs.gov/minerals/pubs/co
mmodity/myb/
• http://www.minerals.com/
• Societies (SME, others)
• IAEA https://www.iaea.org/
• USGS http://www.usgs.gov/
• Libraries, file data in state and company
files (i.e. not electronic)
Wikipedia
• Use sparingly
• Some of the information on Wikipedia is
incorrect
• Some of your best data and sources of
information are in the library or NMBGMR
files and not in electronic form
• Be aware of using copyrighted material—
get permission
QUESTIONS?
DEFINITIONS
What is a mineral?
What is a mineral?
Naturally occurring
Inorganic
Solid
Homogeneous
Crystalline material
With a unique chemical element or
compound with a set chemical formula
Usually obtained from the ground
A mineral or a crystal is composed of a structural unit
that is repeated in three dimensions. This is the basic
structural unit of a crystal of sodium chloride, the
mineral halite.
However in industry,
minerals refer to any rock,
mineral, or other naturally
occurring material of
economic value, including
metals, industrial minerals,
energy minerals,
gemstones, and aggregates
Minerals
• Metals
• Energy minerals (U, coal, oil, gas,
geothermal)
• Industrial minerals
– Construction materials
• Gems
What are industrial minerals?
• Any rock, mineral, or other
naturally occurring material of
economic value, excluding
metals, energy minerals, and
gemstones
• One of the nonmetallics
• Includes aggregates
Why are minerals so important?
Why are minerals so important?
Your world is made of them!
The average American uses about two
million pounds of uranium, coal,
metals, industrial minerals, over the
period of a lifetime.
Building blocks of our way of life
http://www.mii.org/pdfs/miibaby.pdf
http://www.mii.org/pdfs/2011PerCapita.pdf
U.S. flow of raw materials by weight 1900-2014. The use of raw
materials in the U.S. increased dramatically during the last 100
years (modified from Wagner, 2002).
This change in life style results
in new products, which depends
upon more and new minerals,
especially energy minerals!
These minerals will be mined
from traditional and new types
of deposits and are a global
market.
The trend in the past has been
increasing mineral production to
meet increasing population.
Therefore, uranium, a relatively
new commodity will likely follow
the same pattern in the future.
The main challenge is provide
society with its needs, protect
future resources, limit
alteration of the landscape,
and affect local communities
as little as possible (i.e.
sustainable development).
More Definitions
A mineral occurrence is
any locality where a useful
mineral or material is found.
A mineral prospect is any
occurrence that has been
developed by underground
or by above ground
techniques, or by
subsurface drilling to
determine the extent of
mineralization.
The terms mineral
occurrence and mineral
prospect do not have any
resource or economic
implications.
A mineral deposit is any
occurrence of a valuable
commodity or mineral that is
of sufficient size and grade
(concentration) that has
potential for economic
development under past,
present, or future favorable
conditions.
An ore deposit is a well-defined
mineral deposit that has been tested
and found to be of sufficient size, grade,
and accessibility to be extracted (i.e.
mined) and processed at a profit at a
specific time. Thus, the size and grade
of an ore deposit changes as the
economic conditions change. Ore
refers to industrial minerals and
uranium as well as metals.
Mineral Deposits versus Ore Bodies
mineral deposit
=
ore body
ore body
=
reserves
mineral deposit
=
± reserves
+ unmineable
+ uneconomic
+ mined
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=26&ved=0CGAQFjAFOBQ&url=http%3A%2F%2Fwww.estauk.net%2Findex_htm_files%2FMineralDeposits1Introduction_ian_kenyon.ppt&ei=W7TcUMGdHtGNrQHb54DQCw&usg=AFQjCNFe9wj9b44mEcqDyT57C13zjvBwQ&sig2=BzFdcc8OnllFX75PdKDYCw&bvm=bv.1355534169,d.aWM
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=26&ved=0CGAQFjAFOBQ&url=http%3A%2F%2Fwww.estauk.net%2Findex_htm_files%2FMineralDeposits1Introduction_ian_kenyon.ppt&ei=W7TcUMGdHtGNrQHb54DQCw&usg=AFQjCNFe9wj9b44mEcqDyT57C13zjvBwQ&sig2=BzFdcc8OnllFX75PdKDYCw&bvm=bv.1355534169,d.aWM
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=26&ved=0CGAQFjAFOBQ&url=http%3A%2F%2Fwww.estauk.net%2Findex_htm_files%2FMineralDeposits1Introduction_ian_kenyon.ppt&ei=W7TcUMGdHtGNrQHb54DQCw&usg=AFQjCNFe9wj9b44mEcqDyT57C13zjvBwQ&sig2=BzFdcc8OnllFX75PdKDYCw&bvm=bv.1355534169,d.aWM
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=26&ved=0CGAQFjAFOBQ&url=http%3A%2F%2Fwww.estauk.net%2Findex_htm_files%2FMineralDeposits1Introduction_ian_kenyon.ppt&ei=W7TcUMGdHtGNrQHb54DQCw&usg=AFQjCNFe9wj9b44mEcqDyT57C13zjvBwQ&sig2=BzFdcc8OnllFX75PdKDYCw&bvm=bv.1355534169,d.aWM
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=26&ved=0CGAQFjAFOBQ&url=http%3A%2F%2Fwww.estauk.net%2Findex_htm_files%2FMineralDeposits1Introduction_ian_kenyon.ppt&ei=W7TcUMGdHtGNrQHb54DQCw&usg=AFQjCNFe9wj9b44mEcqDyT57C13zjvBwQ&sig2=BzFdcc8OnllFX75PdKDYCw&bvm=bv.1355534169,d.aWM
Classification Of
Mineral Resources On
U.S. Federal Land
Locatable Minerals are whatever is
recognized as a valuable mineral by
standard authorities, whether metallic or
other substance, when found on public
land open to mineral entry in quality and
quantity sufficient to render a claim
valuable on account of the mineral
content, under the United States Mining
Law of 1872. Specifically excluded from
location are the leasable minerals,
common varieties, and salable
minerals.
Locatable minerals include gold,
silver, copper, uranium, and
many others
Leasable Minerals The passage of
the Mineral Leasing Act of 1920, as
amended from time to time, places
the following minerals under the
leasing law: oil, gas, coal, oil shale,
sodium, potassium, phosphate,
native asphalt, solid or semisolid
bitumen, bituminous rock, oilimpregnated rock or sand, and sulfur
in Louisiana and New Mexico.
Salable Minerals The
Materials Act of 1947, as
amended, removes petrified
wood, common varieties of
sand, stone, gravel, pumice,
pumicite, cinders, and some
clay from location and leasing.
These materials may be
acquired by purchase only.
Other terms
Canadian Instrument 43-101
• Set of rules and guidelines for reporting information
relating to a mineral property in order to present
these results to the Candian stock exchange
– created after the Bre-X scandal to protect investors from
unsubstantiated mineral project disclosures
– gold reserves at (Bre-X's) Busang were alleged to be 200
million ounces (6,200 t), or up to 8% of the entire world's
gold reserves FRAUD
• Similar to JORC (joint ore reserves committee code,
Australia)
• South African Code for the Reporting of Mineral
Resources and Mineral Reserves (SAMREC)
Other terms
• Adjacent property
– Company has no interest
– Boundary close to project
– Geologic characteristics similar to project
• Advanced property
– Mineral reserves
– Minerals resources with a PEA or feasibilty
study
• Early stage exploration property
Qualified person (43-101)
• engineer/geoscientist with a university
degree, or equivalent accreditation, in an area
of geoscience, or engineering, relating to
mineral exploration or mining
• has at least five years of experience
• has experience relevant to the subject matter
of the mineral project and the technical report
• is in good standing with a professional
association
What is uranium?
Conversions


An ore grade of 1% U3O8 is equivalent
to 0.848% U
1 million lbs U3O8 are equivalent to 385
metric tonnes of U
Uranium






Hard, dense, metallic silver-gray,
naturally occurring element
Atomic number 92
Atomic weight 238.02891
Ductile, malleable, poor conductor
of electricity
Discovered in 1789 by Martin
Klaproth in Germany
Named after the planet Uranus
Uranium—the highest
atomic weight of the
naturally occurring
elements.
 Approximately 70% more
dense than lead and is
weakly radioactive.
 Uraninite, chief ore of
uranium and radium, is a
highly radioactive
mineral.
 Helium was first
discovered on the earth
in samples of uraninite.
Radium and helium are
found in uraninite
because they are the
principle products of
uranium's decay process.

Radioactive isotopes


Like other elements, uranium
occurs in isotopes (16) differ from
each other in the number of
particles (neutrons) in the nucleus.
Natural uranium as found in the
Earth's crust is a mixture largely of
two isotopes
• U-235 (0.7%)
• U-238 (most abundant, 99.3%)
Uses


Nuclear power plants to generate
electricity
Other applications
• Nuclear weapons
• X-ray targets for production of highenergy X-rays
• Photographic toner
• Analytical chemistry applications
• Yellow glass ware and ceramics
(historical use)
Uses for depleted uranium




Yacht keels
Counterweights
Armor piercing ammunition
Radiation shielding (1.7 denser
than Pb)
Most uranium today is used for
nuclear power generation
Major energy sources and percent
share of total U.S. electricity generation
in 2014
•
•
•
•
•
Coal = 39%
Natural gas = 27%
Nuclear = 19%
Hydropower = 6%
Other renewables = 7%
– Biomass = 1.7%
– Geothermal = 0.4%
– Solar = 0.4%
– Wind = 4.4%
• Petroleum = 1%
• Other gases < 1%
http://www.eia.gov/tools/faqs/faq.cfm?id=427&t=3
NUCLEAR POWER PLANTS
http://www.insc.anl.gov/pwrmaps/map/world_map.php
Why is uranium important for
providing electricity?
Mine Life Cycle
Stages of Mining
• Exploration (discovery, pre-mining, undisturbed)
– Mineral resource potential
– Prefeasibility/Feasibility study
• Mine development (inc. continued exploration)
• Operations (extraction/production/expansion)
– Processing/beneficiation/milling/smelting/refining
– Mine expansion/standby
• Marketing
• Closure/postclosure/post-mining use
– Long-term monitoring
The Mine Life Cycle
1A
4A
Suspension
Termination
Temporary
Closure
(often repeated)
1
2
Exploration
1-10 years
3
Detailed Site
Investigation,
Design and
Estimating for
Closure
4
6
5
Operation
Final Closure and
Decommissioning
Construction
2 - 100 years
Progressive
Rehabilitation
1-5 years
Typically 1 - 3 years
2A
Suspension
Termination
Key
Mine Life Cycle 1960's
Mine Life Cycle 1970s +
Mine Life Cycle 2000
Source: John Gadsby, Vancouver BC, 2002
Post Closure
In Perpetuity
EXPLORATION
Exploration
• identification of areas with potential for
discovery of an economic mineral deposit
• geology governs the quest
• surveys
• sampling
• geophysics
• drilling
• pits
• shafts, adits
• base-line/pre-existing conditions
Generation of new project
ideas/targets
•
•
•
•
•
Corporate objectives
Previous experience or knowledge
Old mining districts
Recent information
Literature, including unpublished reports,
theses, news releases
• New developments by other companies
Land Access
• Is the area open to mineral exploration
• Who owns the land
– federal government
– state government
– private
– Indian
– other
• Transportation
SAMPLING AND ANALYSES
• How are you going to sample?
• What are the end-use specifications?
• What processing must occur?
PREFEASIBILITY STUDY OR
PRELIMINARY FEASIBILITY
STUDY (PEA)
•
•
•
•
Preliminary feasibility study
7.5 months to complete
Due diligence work
Is it worth it to continue
FEASIBILITY STUDY
FEASIBILITY STUDY
• Intermediate feasibility study 2-3 yrs to
complete
• final feasibility study 2-3 yrs to compete
• Is this property economic?
• What are the reserves?
• Can we mine this property?
• Can we market this product?
• What are the environmental
consequences?
• What is the land status?
New technologies are being
developed that will increase the
chance of finding a new deposit,
save money, disturb less land,
and minimize affects on local
communities and cultures.
Geologic methods
• Robust thermodynamic and kinetic geochemical
data and models
• New ore deposit models, especially for deposits
with minimal impact on the environment
• More sophisticated 3-dimensional geological
and ore reserve models
• Better geohydrologic models relating to mineral
deposits, including industrial minerals deposits
• Geologic maps of mineralized areas
• Databases of mineral deposits and mineralized
areas
Geochemical and geophysical
methods
• Hand-held and down-hole analytical instruments
• Improved cross-bore hole correlation methods
and characterization
• Better understanding of element mobility in soils
and water
• Drones (unmanned aircraft) for airborne
geophysical methods
• Low-cost, seismic methods
• Better interpretation of remote sensing and
hyperspectral data (Livo and Knepper, 2004)
• More sophisticated 3-dimensional geochemical,
hydrological, and geophysical models
UNMANNED AIRBORNE
MAGNETICS
(MagSurvey Ltd.,
http://www.magsurvey.co.uk/)
Drilling technologies
• Application of existing petroleum and
geothermal techniques to mineral
exploration
• Improvements in drilling methods
Required geologic data
• size, shape, and variability of the ore
deposit
• location information
• lithology
• mineralogy--abundance and
morphology
• alteration
• structural
• rock competency data
Report on reserves
• Data Density Integration of Geological
Information
• Listing/Recording of Data Set
• Data Analysis
• Sample Support
• Economic Parameters
• Mineral resource Model
• Interpolation Method
• Mineral Resource Validation
• Qualified person
• Geologist/engineer not involved with the
company
Evaluation of potential
orebody
• Ore grade: lots of different units, cut-off
grade, homogeneity
• By-products: commonly critical to
success; Au, Ag, W
• Commodity prices: forcasting the future
• Mineralogical form: native vs sulfide vs
oxide vs silicate
Evaluation of potential
orebody
• Grain size and shape: McArthur River
200 Mt, 10% Zn, 4% Pb, 0.2% Cu,
45ppm Ag
• Undesirable substances: As, Sb; calcite
in acid leachable U ores
• Size and shape of deposits:
underground vs open pit
• Ore character: hard vs soft (blasting,
wall support) cost and safety
Evaluation of potential
orebody
• Cost of capital
• Location: infrastructure and
transportation
• Environmental considerations: VERY
IMPORTANT
• Taxation: involved subject:
depreciation,
• Political factors: nationalization,
foreign exchange
MINE DEVELOPMENT
Mine plan or engineering
design
SME Mine
Engineering
Handbook
MINE DEVELOPMENT
•
•
•
•
•
•
Operations/construction
lower costs
site development
construction
establish infrastructure
develop the mine
– surface (open pit, strip mining)
– underground (room and pillar, shrinkage
stope)
– solution/leaching
PROCESSING/BENEFICIATION/
MILLING
OPERATIONS
Processing/beneficiation/milling
– Extraction/mining
– crushing (primary, secondary)
– grinding
– concentration (gravity separation,
flotation, leaching, SX-EW)
– smelting
– refining
– optimizes the consumption of energy
– new technologies
CBMM’s plant for FeNb crushing and
packaging (June 1999) is fully automated.
Manual handling was eliminated and
replaced by a robot.
http://www.us.cbmm.com.br/english/sources/mine/operat/f_operat.htm
MARKETING
MARKETING
• Transportation
• Customer specifications
• Clean, recyclable and easily
transportable
• Changing markets
– low cost products
– have high levels of performance
– minimal environmental impacts
CLOSURE/POST-MINING
USE
CLOSURE/POST-MINING USE
• Reclamation
• Sustaining post-mining use
• Close-out plans
Responsibilities of the
geologist
• Exploration—discovery
• Feasibility study--ore body evaluation,
reserves
• Mine development--mine design and
planning
• Extraction/production--grade control
• Processing/beneficiation/milling
• Marketing--develop a market
• Closure/post-mining use--environmental
geology
Discovery to Development

Typical Timeline
• >10 years

Recent Real Life Examples
• Langer Heinrich, Namibia (Paladin
Resources)


Discovery – 1973
Production – 2007
• Cigar Lake, Canada (Cameco)


Discovery – 1981
Production – 2008?
Uranium Exploration/Mining
Company Risks
• Political
– Permitting
– NGOs
– Nationalization
• Technical
– Infrastructure
– Project Viability
– Equipment
– Labor
• Economic
– Uranium Price
– Financing
Global Challenges
Country
Production
(U3O8)
lbs
(MM)
Status
%
Canada
26
25%
Indigenous landowner issues. Uranium
mining banned in Nova Scotia.
Australia
20
19%
Indigenous landowner issues. Uranium
mining banned in QLD & WA.
Kazakhstan
14
13%
Heavy state intervention in the industry.
Niger
9
9%
Rebel activity. Increase in Govt ownership.
Russia
8
8%
Threat of nationalization.
Namibia
8
8%
No new exploration licences. Infrastructure
challenges.
Uzbekistan
6
6%
Heavy state intervention in the industry.
USA
4
8%
Environmental groups. Indigenous
landowner issues.
Production Source: WNA.
Other
8
8%
Total
103
How does uranium exploration and
mining differ from other
commodities?
Legacy Issues
Legacy Issues
Life Cycle Stage
Example Legacy Issue
Relative
Cost
Negative
Perception
Exploration
Abandoned mines
Low
Moderate
Mining, milling
Tailings cleanup,
groundwater, etc.
Moderate to
High
Moderate to
High
Conversion, Enrichment,
Fuel Production
Manufacturing plants,
enrichment facilities, waste
High
Moderate to
High
Nuclear Power Plant
Three Mile Island,
Chernobyl, Closure of others
High
High
Waste Storage, Interim and
Final
Multiple locations, Utah
interim storage site, Yucca
Mountain
High
High
Weapons
Manufacturing plants,
Nevada Test Site, Japan
WWII, terrorism
High
High
3 Mile Island Facts (1979)
• No one died
• All litigation claims for physical harm were
denied in court
• One reactor shut down
• 7 nuclear reactors in 4 locations in eastern
Pennsylvania
• Pennsylvania 36% of its energy comes
from nuclear power—2nd behind Illinois
Chernobyl Facts (1986)
• 100 people died
• 50 tons of radioactive dust and debris scattered
around the nearby Ukrainian countryside
• 18 mile circle designated Chernobyl Exclusion
Zone
• Pockets within this zone are at normal radiation
levels
• At first cows were unable to produce offspring,
but now are able to—no mutilated cows
Fukushima Daiichi, Japan
(2011)
• tsunami occurred 50 minutes after the
initial earthquake
• damage caused by the tsunami produced
equipment failures
• a loss-of-coolant accident followed with
three nuclear meltdowns (severe nuclear
reactor accident that results in core
damage from overheating) and releases of
radioactive materials beginning on 12
March 12, 2011
Fukushima Daiichi, Japan—2
• no fatalities linked to short term
overexposure to radiation
• 18,500 people died due to the earthquake
and tsunami
• 1,000 are estimated to have died due to
workers' exposure and the evacuation of
residents near the power plant
• 100,000 people were evacuated from their
homes
•
•
http://fukushimaupdate.com/
http://www.world-nuclear.org/info/Safety-and-Security/Safety-of-Plants/Fukushima-Accident/
http://www.world-nuclear.org/info/Safety-and-Security/Safety-of-Plants/Fukushima-Accident/
There are risks in everything we
do, but the perceptions can and
do out weigh the actual risk.
Public perceptions are
important!
RADATION SAFETY
Radon Problem





1 Working Level (WL) = 100 pCi/L radon in
air
1 Working Level Month (WLM) = working 1
month at 1 WL.
Current MSHA exposure limit = 0.3 WL or 4
WLM per year.
EPA’s household exposure limit = 0.02 WL
1987 NIOSH proposed standard = 1 WLM
per year.
Radon Problem

If the International Commission on Radiation
Protection standards were adopted by the
US, it is estimated that 50% of coal and
m/nm mines could be out of compliance.

How do we measure and control radon in
anticipation of lower standards in the future?

Radon levels vary upon where in the mine
you are working.
Current International Standards
Agency
Exposure
Quantity
Measurement
Units
NIOSH Recommended
Exposure Limits
1
WLM* / year
(2040 hours/year)
OSHA Permissible
Exposure Limits
4
WLM / year
(2040 hours/year)
EPA Recommended Public
Limit
4
WLM / year
(2040 hours/year)
IAEA & ICRP
Recommended
Occupational Dose Limits
4
WLM / year
(2040 hours/year)
*WLM = Working
Level Months
Working level (WL) is any combination of short-lived radon daughters in 1 liter of air that will
result in the ultimate emission of 1.3x105 MeV of potential alpha particle energy.
Working level month (WLM) means an exposure to 1 working level for 170 hours (2,000
working hours per year/12 months per year=approximately 170 hours per month).
Gather the historic data on uranium miners’
health Identify health and safety concerns
relevant to uranium mining employees.
Penetration Abilities of Different
Types of Radiation
Alpha Particles
Stopped by a sheet of paper
but a hazard in the lungs
Radiation
Source
Beta Particles
Stopped by a layer of clothing
or less than an inch of a substance
(e.g. plastic)
Gamma Rays
Stopped by inches to feet of concrete
or less than an inch of lead
Neutrons
Stopped by a few feet of concrete
Identify, evaluate and develop personal and
area radon progeny monitoring
instrumentation
Radiation exposure is a function
of exposure amount and time of
exposure.
Present and future
economics
Spot Uranium Price 1988-2015
http://www.uxc.com/review/UxCPriceChart.aspx?chart=spot-u3o8-full
The Volatility
of the Uranium Market
• Complex
• Uranium Markets: Three Phases of
Volatility
1. Government/Military Driven
2. Supply/Demand Imbalance (Artificial
Demand)
3. Disruption Driven
Three Uranium Price Booms
Eastern Production
Constant $ Price
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0
3
2
$140
$130
$120
$110
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$0
US$/lb U3O8 .
Million pounds U3O8
Western Production
Requirements
1
© UxC
47 50 53 56 59 62 65 68 71 74 77 80 83 86 89 92 95 98 01 04 07 10 13 16 19
Nicolas Carter, Vice President, December 6, 2007, The Ux Consulting Company, LLC
The uranium spot price went
from $10/lb U3O8 in 2004 to a
peak of $135/lb in the spring of
2007 and then collapsed to
$28/lb in 2014. The price now is
about $35/lb.
Example of supply disruption—
Price Behavior Before and After the
Second Cigar Lake Flood
US$/lb U3O8
$140
© UxC
2nd Ranger Cyclone
Announcements
$130
$120
$110
$100
$90
$80
nd
Cigar Lake 2 Flood
Announcement
$70
$60
$50
$40
$30
$20
$10
2004
2005
2006
2007
2008
Other factors
• Sulfuric acid shortage in Kazakhstan will lead to
production cutbacks in 2008 and 2009
• Rabbit Lake mining halted ~2007 due to water inflow
• New projects experience ramp-up problems or
regulatory delays
• BHP Billiton expansion of Olympic Dam ????
• Political situation in Niger not positive for existing
and new producers
• Labor costs and other factor input costs, such as
drilling costs, are rising with growth in other
commodities
• Can China and India keep their rate of expansion?
NOTE THE UNITS—SOME ARE IN TONS AND SOME IN POUNDS
http://www.world-nuclear.org/info/Nuclear-Fuel-Cycle/Mining-of-Uranium/World-Uranium-MiningProduction/
NOTE THE UNITS—SOME ARE IN TONS AND SOME IN POUNDS
http://www.eia.gov/uranium/production/quarterly/pdf/qupd_fig1.pdf
Uranium Production in New Mexico
20000000
$450,000,000
18000000
$400,000,000
16000000
14000000
12000000
$250,000,000
10000000
$200,000,000
8000000
$150,000,000
6000000
$100,000,000
4000000
$50,000,000
2000000
$0
Years
2002
2000
1998
1996
1994
1992
1990
1988*
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
1966
1964
1962
1960
1958
1956
1954
1952
1950
0
1948
Pounds
$300,000,000
Value in dollars
$350,000,000
YEAR
Pounds
Value
http://www.goldgeologist.co
m/update/mm95.pdf
http://www.goldgeologist.co
m/update/mm95.pdf
http://www.goldgeologist.co
m/update/mm95.pdf
Uranium production by mining
methods
http://www.goldgeologist.com/update/mm95.pdf
http://www.world-nuclear.org/info/Nuclear-Fuel-Cycle/Mining-of-Uranium/UraniumMining-Overview/
Capital Markets Support – A
Necessary Requirement
Ideal
Discovery
Pathway
Ideal Capital Markets
Pathway
Timeline Expenditure
(Years) (US$MM)
From
To
Ground
Acquisition &
Exploration
Private Company Financing
1
$1
$2
Exploration
Initial Public Offering
2
$5
$10
Discovery &
Equity Financing
Resource Drilling
2
$10
$30
Pre-Feasibility
Study
1
$10
$60
Feasibility Study, Debt/Equity Financing
Permitting &
Project Financing
2
$60
$1,100
Construction
2
Total
10
$86
$1,202
Equity Financing
Access to Capital – Key Factors

Capital is most accessible in a stable
and/or rising price environment.
Price
Economic
Merit
Technical Merit
Ownership Security
Uranium Mining Allowed
Social Licence
http://www.oecdnea.org/ndd/pubs/2014/720
9-uranium-2014.pdf
Summary
• Three years after the Fukushima incident in 2014,
world uranium production still increased another
11%.
• 66 reactors under construction in the world, 158
planned=demand for more uranium
• In-situ leaching and recovery increased by more
than 250% in just 10 years.
– The ongoing worldwide construction of nuclear power
plants.
– Wild and unpredictable swings in the spot price.
– Financing difficulties for large capital expenditure
underground projects.
– The phenomenal increase in low-cost ISR production
from Kazakhstan, which uses sulfuric acid.
Assignment
• International Atomic Energy Agency
(IAEA), 2009, World distribution of
uranium deposits with uranium deposit
classification: IAEA Report IAEATECDOC-1629, 126 p., <http://wwwpub.iaea.org/MTCD/publications/PDF/TE_
1629_web.pdf>
• http://www.goldgeologist.com/update/mm9
5.pdf