PIERRE - Despite opposition from Native Americans and environmental groups, a state board on Wednesday granted Powertech Uranium Corp. a permit to drill more test holes in the southwestern South Dakota area where it wants to mine for uranium.

Powertech already has a state permit for 155 exploratory holes near Edgemont, but it plans to drill 30 additional holes about 600 feet deep in an attempt to find areas that have no uranium. Those uranium-free areas could become sites for the company's processing plant and other buildings that would be needed if a mine is eventually started.

"This time I have to find areas where there's no ore so we can set the plant there," said Frank Lichnovsky, Powertech's chief geologist.

The company has already drilled more than half the 155 holes granted under an earlier permit, and it intends to file an application for a large-scale mining permit by the end of the year.

Powertech project manager Mark Hollenbeck said the company hopes to start actual mining in 2011 if it can get all the required federal and state permits in the next two years.

Powertech (USA) Inc., a subsidiary of Powertech Uranium Corp., plans to inject chemically treated water into holes to dissolve the uranium, then pump out the solution and collect the uranium for processing. Opponents argue the process could damage the environment, contaminate water and threaten the health of area residents, but the company says the process is safe.

Wednesday's hearing involved only the company's request for a permit to drill 30 more holes in an effort to find sites for a processing plant and other surface operations.

Opponents presented no evidence or witnesses, but some read statements arguing that the project and extra test holes would spread radioactive material in water sources, damage archaeological sites, harm wildlife and do other environmental damage.

Wanbli Okizizah of Pine Ridge said the permit for extra test holes would violate the U.S. Constitution, U.S. treaties with the Lakota, and other legal requirements. Granting the permit amounted to "a gross violation, clear and present danger, and an outright attack, an act of war" on Indian people, he said.

"We will defend and protect our human rights, our God-given rights, divine national sovereignty and our traditional homelands, waters and air rights and all other resources by any means necessary," Okizizah said.

The Board of Minerals and Environment voted unanimously to grant Powertech the permit for extra holes after board members said the firm has met all the requirements set by state laws and regulations.

Charmaine White Face, representing Defenders of the Black Hills, said opponents may go to court to challenge the board's action.

Roberta Fivecoate, who led the department's review of the permit, said requirements included in the permit should protect wells, agricultural land, wildlife or archaeological sites.

Michael Fosha, assistant state archaeologist, said steps also are being taken to protect archaeological sites in the exploration area.

Powertech officials said after a test hole is completed, it is filled in before the drilling rig moves to another location. Bentonite, a kind of clay, is used to plug most holes, but cement is used as a plug if water flows out of a hole, they said.

In one part of the exploration area, drilling will be banned from February through August to avoid disrupting an eagle nest and a hawk nest.

Powertech must post a $78,600 surety to ensure the holes can be plugged and the ground restored to its original condition in the drilling area.