On April 14^th, 2008, Strateco announced that it had received permission to begin the process of obtaining the authorizations required to proceed with an underground uranium exploration program planned for 2010.

As part of a scoping study, work will essentially consist of site preparation, excavation of an access ramp to the -300 metre level and the excavation of exploration drifts for definition drilling. Excavation will take place in waste rock and ore. The ore extracted, which will represent approximately 750 tonnes, will remain underground. The underground exploration work will also allow assessment of the quantity and processing of mine water, ventilation, mining methods and ore stockpiling.

Strateco will become the first Quebec Company to advance a uranium exploration project to the underground exploration stage and the first so-called junior company to do so in the present uranium cycle, or in nearly 25 years. Currently, the Canadian companies qualified are Cameco, Areva and Denison Mines.

On July 15^th, 2008, Strateco has presented for guideline a Preliminary Project Description to the Nuclear Cycle and Facilities Regulation, the Canadian Environment Assessment Agency (CEAA) and to the ministère du Développement durable, de l’Environnement et des Parcs du Québec (MDDEP).

The Preliminary Project Description for the underground exploration program included: Project components, Metallurgy and mine water, Health and Safety program and 15 different appendices on environmental assessment study, water treatment plant, metallurgical test works, project schedule, etc.

On November 4^th, 2008, Strateco filed the Licence Application for underground exploration program at the Matoush Uranium Property to the CNSC. Click here to access the document.

2009

In the first 2009 quarter, an important step was made toward obtaining the licence and various permits. Comments were received from the Canadian Nuclear Safety Commission (CNSC) on February 16^th, 2009, in relation to the licence application for the underground exploration work. The Company also received the COMEV’s directive on March 19^th, 2009, for the environmental impact study.

Throughout the second quarter, the Company received a number of provincial permits for the Matoush project, including the land use lease for the camp and the petroleum equipment operating permit (renewal) in April, and in June, the exemption of the landing strip from the impact study and the environmental and social impact review.

In the third quarter, the Company received some of the permits required for the Matoush project development, such as the land usage rights for the landing strip and related access road, as well as the access roads to some of the borrow pits. Timber cutting rights were also granted.

The last quarter of 2009 was very busy due to two major applications. The environmental impact study was completed and sent to the regulatory authorities in October 2009, and the application for a licence for underground exploration work was filed with the CNSC on November 6. The latter application contains a dozen programs and a significant number of sub-programs, all related to occupational health and safety and the environment.

The Company also filed an updated preliminary rehabilitation plan as requested by the Ministère des Ressources naturelles et de la Faune (“MRNF”).

The Company filed two exemption requests in November with the MDDEP, one for the use of the winter road to the Matoush camp, and the other for the exploitation of a sand pit smaller than 3 hectares (ha).

The Company filed a request for an authorization to mine without a lease for eight borrow pits smaller than 3 ha on the property. The material is required to pursue surface exploration work, repair the site access and build the landing strip.

Moreover, a request for an authorization certificate to mine six borrow pits larger than 3 ha was filed with the regional MDDEP office in Rouyn-Noranda. This material is required for future underground exploration work.

Finally, numerous translation contracts were granted in the last quarter of 2009 to comply with Quebec government requirements.

2010

In February 2010, the Company filed the French version of the environmental impact study for the Matoush uranium project underground exploration program with the MDDEP (provincial) and the CEAA (federal).

In January 2010, the CNSC issued an initial set of questions and comments on the application filed on November 6, 2009 for a licence to begin excavating the exploration ramp. Various consultants were assigned to prepare a prompt response to the questions.

For the four-season road, the Company sent a letter to deputy ministers of the MDDEP and the MRNF to inform them of certain changes made following a meeting with representatives of the Quebec transport ministry (“QTM”) and various other participants. In fact, the Company decided to withdraw its authorization request for the construction of a four-season road along the winter road route within the park (km 0 to km 73.5). It was agreed that within the future national park, the MTQ’s route would follow the route of the old winter road. However, the Company maintained its request for a certificate of authorization for the construction of the four-season road on the section of road lying between km 73.5 and 130, which is outside the park.

In May 2010, the Company presented the conclusions of its environmental impact study at the public information sessions held in Mistissini and Chibougamau. Strateco is currently responding at the questions asked by the Provincial Review Panel (COMEX) and the Federal Review Panel-South (COFEX-S) in order to precise various items of its environmental impact study. The public hearings regarding the underground exploration program should take place around September 2010. Strateco is now hopeful to obtain the licence by the fall of 2010.