The Rosita Project is home to a processing facility, which was under went significant expansion in 2008 but the facility with its new dryer and other key components did not restart. The plant has a similar design to the Kingsville Dome facility, and has an annual production capacity of 800,000 pounds of uranium per year.
The Company is planning to relocate key high-value pieces of equipment from the Rosita facility for use at the Temrezli Project in Central Turkey.
60 miles west-northwest of the city of Corpus Christi, in north-central Duval County, Texas
URI expects to relocate several key components of the Rosita processing facility to the Temrezli ISR Project in Turkey as part of plan to reduce the overall capital expenditures to develop Temrezli. The Rosita Project has reserves that are on standby for a potential restart of uranium production with final processing into yellowcake at the Kingsville Dome processing facility. Any restart of production will be based upon a sustained recovery in uranium prices.
The Company's property holdings for the main part of the Rosita Project consist of mineral leases from private land owners on about 3,377 gross and net acres. At the associated Cadena property, south of the main Rosita property, the Company controls additional mineral leases from private land owners for about 1,795 gross acres and 1,479 net acres of mineral rights. Annual holding costs for these properties range from $10 to $30 per acre. Additionally, the leases make provisions for the payment of sliding scale royalties, based on a percentage of uranium sales, ranging from 6.25% up to 18.25% (when uranium prices reach $80.00 per pound) for production derived from the leased lands.
Initial production at Rosita commenced in 1990, and production continued until July 1999. During the period of operation, the Company produced 2.6 million pounds of uranium from the project. Production was suspended in 1999, due to unfavorable market conditions. The project operated briefly in 2008, producing 10,200 pounds of uranium.
Uranium mineralization at the Rosita property occurs as roll-fronts, which is the typical style of uranium mineralization in the region, and is hosted in the Goliad Formation at depths of 125 to 350 feet below the surface.
Environmental and Permitting Status
Uranium Resources holds four authorized production areas at the Rosita Project licensed by the Texas Commission on Environmental Quality (TCEQ). In addition, the Company also holds a radioactive materials license and an underground injection control permit for the project from the TCEQ. Under the terms of existing permits and authorizations, production could resume in authorized areas. New areas of uranium mineralization, which may be proposed for production in the future, would require additional production area authorizations from TCEQ.
The Company commenced reclamation of the surface and restoration of groundwater in two of the previously mined areas at Rosita's Production Areas 1 and 2. The plugging and abandoning phase of restoration is ongoing in Production Areas 1 and 2.