StockInterview: What will happen with ISR operations in the U.S. with the rise of conventional mining?

David Miller: By 2020 I can see eight ISR’s in Wyoming, two in New Mexico and maybe four in Texas. Total production from conventional and ISR could be over 20 million and maybe as much as 30 million pounds per year. The split will be about 60 percent for conventional mining and 40 percent for ISR.

StockInterview: Why do you see Wyoming leading the country and annually producing more than 10 million pounds before 2020?

David Miller: The largest conventional mill is presently in Wyoming. Two operating ISR plants and three additionally permitted operations could start in the near future. A number of companies have already announced their permitting plans. The regulatory and political climate in Wyoming is more comfortable with uranium mining because of the fifty-plus years of continuous uranium production. Uranium mining is recognized in Wyoming as clean and safe. It is also appreciated for the jobs the industry creates and the taxes the uranium production spins off.

StockInterview: Speaking of taxes and jobs, how will this projected increase in uranium production impact Wyoming?

David Miller: Producing 10 million pounds per year would yield close to $25 million in severance and ad valorem taxes. There may be an additional few million in royalty payments on state lands. This additional stream of tax income would be enough to educate nearly 3,000 children per year in Wyoming. For every one million pounds of uranium oxide produced at least 200 direct jobs would be created. If uranium production increases by 10 million pounds per year, I would expect more than 2,000 direct new jobs created. These are mining jobs, which are at the top of the pay scale and with full benefits. Each direct job will spin off a number of support jobs – suppliers, contractors, builders, merchants, educators and the like. About seven jobs are indirectly created for every new mining job. That would have a strong impact in many areas of Wyoming, and especially in New Mexico, where uranium mining should also significantly grow.

StockInterview: But, New Mexico is presently producing zero uranium. Why do you envision this state surpassing Texas and Nebraska in uranium production by 2020?

David Miller: New Mexico has a great uranium history. New Mexico uranium deposits have some of the highest grades in the country. You find elephants in elephant country, and New Mexico has elephant uranium deposits. You do not produce 350 million pounds historically by having poor uranium deposits. The political climate in Grants, New Mexico is also one of the most encouraging environments for uranium mining in the United States.

StockInterview: Of course there are likely to be some disappointments along this production timetable.

David Miller: There will be many disappointments with many of the new companies and deposits they try to mine. There will be permitting delays. Those companies which say they will be in production in two years may be disappointed. ISR is not an easy way to mine. It takes some very skilled people to do it properly. I know of no consulting group in which you can go hire out this expertise. There may be less than twenty people in the U.S. who are capable of running ISR operations at an optimum level. Those companies which have those experts will have fewer disappointments than those who don’t. Many geologic environments which have been promoted as having potential ISR operations may show difficult characteristics, disappointing the owners and shareholders. There will be some winners, but there could probably be more losers in this game.

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