It will likely be this winter that Strateco Resources (RSC-T) will find out whether the Canadian Nuclear Safety Commission will allow it to proceed with underground development for a feasibility study on its Matoush uranium project in Quebec’s Otish Mountains.
After spending $4.5 million on research over span of 29 months, Strateco has now submitted the environmental impact study and all technical documentation needed to apply for a licence to start underground exploration for its Matoush feasibility study.
The study found that the risk for the local ecosystem and human health were low, stating: “It appears that radiological and non-radiological contaminants of potential concern will not pose adverse effects on selected valued components of the ecosystem and on human health. Natural concentrations of certain elements in water, soil and sediments already exceed existing criteria.”
The environmental impact study, which began in May 2007, was submitted on Nov. 6 but it will be Nov. 16 before the study can be viewed on the website of the Canadian Environmental Assessment Agency.
All the technical information for the licence application can be viewed at the CNSC offices in Ottawa and Saskatoon.
According to regulation, Strateco must present the Matoush project and the conclusions of the environmental impact study at a public hearing in both Chibougamau and Mistassini, the two closest communities, in 45 days. Because of Christmas and New Years, this will be postponed until January. Residents will then have 30 days to comment on the study. The federal review committee will give its decision within two days.
Strateco first began the licence application process with the CNSC in November 2008, receiving comments and guidelines by March 2009. The company has spent $5.1 million on studies and engineering for this licence. The CNSC will advise Strateco of its timetable for decision making in the coming weeks. Its decision takes into account the environmental impact study as well.
The underground program, which the company aims to begin next summer, will include the excavation an access ramp to the 300-metre level as well as the excavation of drifts for definition drilling. This work will help with the assessment of the quantity and processing of mien water, ventilation, mining methods and stockpiling.
Strateco acquired the project in 2006 and has since drilled off an indicated resource of 436,000 tonnes grading 0.78% U3O8 containing 7.46 lbs. U3O8 and inferred resources of 1.16 million tonnes grading 0.5% U3O8 for 12.78 million lbs. A cutoff grade of 0.1% U3O8 was used.
The company continues to drill and hopes to complete 120,000 metres worth of drilling over the next two years to increase the resource.
Strateco shares were up nearly 5% by mid-day today, or 4¢, to 89¢ apiece on a trading volume of 260,000 shares.
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