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ALBUQUERQUE, Oct. 27 (UPI) -- Texas-based mining company Uranium Resources Inc. announced the state government in New Mexico approved a renewal for uranium mining for nuclear fuel.
Uranium Resources said the New Mexico Mining and Minerals Division approved a request to renew its permit to develop its Section 13 exploration project in McKinley County.
The permit allows the company to drill as many as 10 holes to examine the feasibility of in-situ mining of uranium.
The company notes the only commercial use for uranium is for fuel in nuclear power plants. Nuclear power accounts for as much as 16 percent of the world's electricity with trends suggesting that could increase to 18 percent in the next two decades.
Section 13 is located in northwest New Mexico. The company said the property in the Ambrosia Lake formation holds an estimated 2.4 million pounds of uranium mineralized material.
"This permit renewal is important in that it will allow us to determine the suitability of whether a portion of our Ambrosia Lake reserves are amenable to in-situ mining methods," said company President and Chief Executive Don Ewigleben.
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