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When the price is right

Posted 27 May 2008 on the GOAT blog.
Copyright ©2008 by High Country News. Used by permission. All rights reserved.

Recently I received a forwarded email that originated from a woman who said she lives northwest of Cañon City, Colo., in the placid rural valley of Tallahassee Creek. And now she and her neighbors are alarmed by the prospect of uranium mining in the area. They wanted the media to know about this big surprise that was dropped on them.

My first thought was There was a big uranium mine proposed there once before. Then uranium prices dropped and the project was dropped. Now prices are up again. What did they think was going to happen? That the industry would just ignore a known deposit? How can this come as any kind of surprise?

My second thought was that I wasn't being fair. I don't know how long she had owned her rural property, but the previous uranium excitement was about 30 years ago, long enough to be pretty well forgotten. And it's expecting a lot for even a very well-informed citizen to keep track of uranium price trends, along with everything from local water conservancy districts to a presidential election this year.

In 1979 I was managing editor of the small daily newspaper in Salida, Colo, about 60 miles up the Arkansas River from Cañon City. President Jimmy Carter had declared the energy crisis the moral equivalent of war, and the surrounding hills were alive with uranium prospecting. We followed two projects quite closely.

One, on the west side of Marshall Pass about 30 miles from Salida, was the Pitch Project of Homestake Mining Co. It was in limited production. The other, about 35 air miles east of Salida along Tallahassee Creek in Frémont County, was the Hansen Project of Cyprus Mining Co.

Cyprus had big plans for Hansen, though I don't remember many specifics. The company stood ready to build roads, schools, whatever infrastructure was required for hundreds of mine workers in a rather unpopulated area in the middle of Colorado. Then came Three Mile Island.

Uranium demand hit the skids. Prices plummeted, and the project was abandoned.

Nowadays, uranium prices are high. That means production can be profitable in places where it wasn't before. Thus the renewed interest in mining the Hansen deposit, and doubtless many other old prospects.

If there's a moral to this story, it might go something like this:

Before you buy rural property, look through old newspapers. Ask local history buffs, especially those with an interest in mining. Keep an eye on mineral prices. You may not like what you learn, but at least you won't be surprised.


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