Bayswater plans to bring Reno Creek into production within five years subject to positive feasibility results. In the first year following closing of the transaction, the Company plans to restart and complete all of the required environmental baseline studies and by the end of the second year, to submit its applications to regulators for permits and licenses. The Project should advance to the feasibility stage during 2013-2014 with construction to follow and production to commence by early 2015 at the latest.
In addition, TREC has completed three studies, ranging from Preliminary Assessment, Pre-Feasibility to Feasibility, since 2008 for uranium ISR projects in Wyoming. This experience provides TREC with excellent and current knowledge of equipment, material and construction costs applicable to ISR mine development and operation in Wyoming. TREC has also provided environmental permitting support and planning services for ISR projects in Wyoming, and has conducted a wide variety of environmental and engineering services associated with uranium mine and mill reclamation projects in the Western United States and in Canada.
The Project comprises NI 43-101 compliant resources of 10.96 million pounds of U3O8 at an average grade of 0.066% U3O8 measured and indicated and 4.73 million pounds of U3O8 at an average grade of 0.063% U3O8 inferred based on two separate reports on the Reno Creek and Southwest Reno Creek Uranium Properties dated January 30, 2009 by Charles D. Snow, P.G. In addition, Reno Creek contains approximately 8.41 million pounds of U3O8 in historical resources grading approximately 0.083% U3O8 as separately documented in reports by Pathfinder Resources Ltd. and Rocky Mountain Energy (this historical resource estimate is not compliant with NI 43-101 and should not be relied upon). The Project also has excellent potential to significantly increase resources through low-risk exploration.
The Reno Creek Project is in the permitting/pre-feasibility stage, with portions of the environmental baseline, hydrologic testing, and mine and process engineering completed. In addition, Reno Creek has a UIC permit (deep well injection permit for fluid waste disposal) which is in the renewal process.
