American uranium company Ur-Energy has secured approval from the Bureau of Land Management (BLM) to begin construction and production operations at its Lost Creek uranium in-situ recovery (ISR) project in Wyoming.
The consent is the last in a series of approvals required to begin work on the site.
Construction is expected to start this month and Ur-Energy is set to invest between $30m and $40m in the project over the next six to nine months.
First production from Lost Creek is forecast for early summer of 2013. The project is currently expected to produce more than 7 million pounds of uranium yellowcake (U308) at a designed rate of one million pounds per year.
Ur-Energy board chairman Jeff Klenda said that the company plans to construct the facility and develop the mine unit immediately.
"Lost Creek is our company's premier project. The next several months will be a very exciting period for Ur-Energy as we grow from a company conducting exploration and development activities to emerge as a viable Wyoming-based uranium production company.
"I anticipate the Lost Creek mine becoming an important contributor to South-Central Wyoming's economic development and employment opportunities for many years to come," said Klenda.
Ur-Energy president and CEO Wayne Heili further added, "The comprehensive nature of the regulatory review process has included multiple opportunities for public input."
Image: Lost Creek is expected to produce more than 7 million pounds of uranium yellowcake per year. Photo: USGS.