TORONTO (miningweekly.com) – The US District Court for the District of Arizona has denied a challenge by nongovernment organisations and a Native American tribe with regard to TSX- and NYSE MKT-listed Energy Fuels’ ability to operate its Canyon uranium mine.

The court's decision on Wednesday confirmed the company's right to continue with mine development and uranium production at the Canyon mine, as stipulated in the company’s rights and regulatory approvals.

In his order, Judge David Campbell granted summary judgment in favour of the US Forest Service (USFS) and Energy Fuels, and ordered the plaintiffs' action terminated. The court rejected all the plaintiffs' claims, including claims alleging noncompliance with certain environmental and cultural procedural laws.

The court also found that the USFS had properly consulted with the Native American tribe when the company decided to resume active mining operations. The plaintiffs asserted no substantiated environmental, health or safety issues.

"The Canyon mine has been heavily studied and the technical and geologic characteristics of the project are well understood. Energy Fuels is absolutely committed to operating the Canyon mine in a responsible manner and we are proud to do our part in providing clean energy to the world, as the uranium we produce will reduce air pollution and help address climate change,” Energy Fuels president and CEO Stephen Antony said.

The district court's decision was subject to an appeal.

The Canyon mine was a permitted high-grade uranium deposit located in northern Arizona. Energy Fuels had recently announced that it was preparing to resume development at this project and was currently moving forward with surface development, which included a headframe, evaporation pond, hoist, environmental controls and an office/maintenance facility, which was already in place.

To complete the mine, the company expected to sink a further 365 m of shaft, install a ventilation shaft and complete underground development.

The partially developed Canyon mine is located in northern Arizona, about 10 km south-east of Tusayan. The mine site for this high-grade breccia-pipe deposit has 8 ha of total surface disturbance and is situated on land managed by the USFS.

The mine was first approved by the forest service and partially developed in the late 1980s.

The deposit comprised about 1.63-million pounds of uranium oxide (U₃O₈), contained in 82 800 t of inferred resource at an average grade of 0.98% U₃O₈.

Energy Fuels started refurbishment of the surface facilities and shaft-sinking activities in 2013. In late 2013, the company placed the asset’s development on standby owing to soft market conditions.