The North Butte solution mining site location within the Powder River Basin. The ore body is a typical Powder River Basin roll front deposit. In the North Butte area the oxidation front extends from the northeast to the southwest. The sand members also have several vertically superimposed individual roll fronts. Due to the occasional vertical contact between the mineralized sand members there are often several smaller fronts, which overlay each other.

In the North Butte ore deposit the uranium mineralization is present as amorphous uranium oxide, or sooty pitchblende with some subordinate carnotite. The host sandstones are composed of quartz, feldspars, and rock fragments with locally occurring carbon fragments. Grain size ranges from very fine-grained sand to small granules. The sandstone is weakly to moderately cemented and friable. Occasional occurrences of pyrite and calcite as cementing materials can be observed. The uranium is deposited upon individual detrital sand grains or upon and within authigenic clays in the interstices. The interstitial clays present are primarily montmorillonite with lesser amounts of kaolinite. Hematite, along with minor limonite, are common oxidation products of pyrite within the host rock. Accessory biotite and muscovite are also present.

The North Butte solution mining site is situated in the Eocene Wasatch Formation off the southeast flank of North Pumpkin Butte in Campbell County. The mineralized sand members are in the lower part of the formation, at an approximate average depth of 500 feet to 650 feet. The host sands are primarily arkosic in composition, very friable, and contain substantial organic debris and carbonaceous stringers. There are periodic small, localized, sandy shale intervals within the sand, but the main body of the sand is relatively free of interstitial shale, although the sands thicken and thin to the point of removal in some areas.

In situ recovery (ISR) involves the use of a leaching solution, called a lixiviant, to extract the uranium from the geologic formation in which it occurs, without physically removing the ore-bearing strata. For uranium ISR, the lixiviant typically consists of native groundwater to which an oxidant (typically oxygen or hydrogen peroxide) and a complexing agent (typically sodium bicarbonate and/or carbon dioxide) have been added. ISR is accomplished by injecting the lixiviant through injection wells and circulating it through the ore-bearing strata, where the uranium is mobilized and placed into solution with the lixiviant. The resultant uranium-bearing solution is extracted from the ground via adjacent production wells. The uranium laden groundwater is then routed via underground pipelines to a surface ion exchange (IX) facility.

The most significant aspects of lixiviant compatibility are clay mineralogy and chemical compatibility. The clay mineralogy at Smith Ranch is predominantly kaolinite. This clay mineral is compatible with an ISR operation in that it will not swell and by so doing damage formation permeability, nor is it aggressive in cation exchange processes, which could adversely alter the water chemistry. Chemical compatibility of the formation mineralogy with the ISR process is important. Elevated calcium, sodium and sulfate concentrations, which often occur during ISR can result in the precipitation of calcite or gypsum in the ore sand and reduced formation permeability. Operating experience has shown that the lixiviant in use at Smith Ranch is chemically compatible with the major constituents that could cause formation damage or loss of formation permeability. The amenability of the North Butte orebody to ISR is assured by the similarity of this ore deposit to those located in the surrounding area.

Cameco operates Smith Ranch and Highland as a combined operation. Each has its own processing facility, but the Smith Ranch central plant currently processes all the uranium, including uranium from satellite facilities. The Highland plant is currently idle.

The uranium-bearing solution pumped from a mine unit is piped to the Central Process Plant (CPP) or satellites for extraction of the uranium by use of down flow ion exchange (IX) columns to remove the uranium. As the solution passes through the resin in the IX column, the uranium is preferentially removed from the solution by attachment to the resin.

Once the resin in a column is sufficiently loaded with uranium, the vessel is isolated from the normal process flow and the resin is removed from the column for elution. In the elution process, the resin is contacted with a strong sodium chloride solution, which displaces the uranium and regenerates the resin in a process very similar to regenerating a conventiona ........