The Nuclear Regulatory Commission has accepted a revised application for a uranium recovery license from a firm that hopes to mine uranium northwest of Edgemont.

Powertech USA, a subsidiary of Powertech Uranium Corp. of Canada, plans to inject chemically treated water into holes to dissolve uranium, then pump out the solution and collect the uranium for processing. The method is called in situ mining.

The NRC in June sent back Powertech's application for a Source Material License, saying the company must provide more information.

Powertech then withdrew the 8,700-page application it had submitted earlier this year.

The application, which covers more than 600 technical areas, was revised and resubmitted to provide more detailed information as requested by NRC, according to Mark Hollenbeck, project manager for Powertech.

"We've studied everything from 800 feet below the surface to 800 feet above the surface," Hollenbeck said Wednesday. "We believe the additional information strengthened our application and will benefit the project in the long term by further confirming the safety aspects of the Dewey-Burdock."

The NRC recently accepted the new application, meaning it will go forward with a detailed technical and environmental review, according to a news release from Powertech.

Hollenbeck said Wednesday that the review could take up to 18 months.

The NRC Source Material License is one of four major permits and licenses Powertech will need before it can begin construction.

Powertech also is re-doing an application for an underground injection control permit from the South Dakota Department of Environment and Natural Resources. DENR in August told Powertech it needed to provide more information.

As soon as the firm finishes answering DENR's first round of questions, it will apply for a large-scale mining permit, Hollenbeck said.

The company has finished drilling more than 100 exploration holes at a 10,580-acre site in the Dewey-Burdock area, which lies 13 miles northwest of Edgemont and spans parts of Custer and Fall River counties.

The operating mine area likely will cover under 200 acres, Hollenbeck said.

The company has also drilled approximately 30 monitoring wells and will drill two more of those at DENR's request, Hollenbeck said.

Powertech hopes to begin mining uranium by 2011 if it receives all its necessary permits and licenses. Hollenbeck said the project will create more than 80 jobs.

Contact Steve Miller at 394-8415 or steve.miller@rapidcityjournal.com