A Canadian company says it will begin prospecting for uranium after receiving state approval for a project in Weld County.

Powertech Uranium Corp. said Tuesday that the Colorado Department of Natural Resources approved its plan to drill test holes and wells on the land. The company plans to drill 23 monitoring and aquifer test wells. The test wells, along with 26 existing monitoring wells, will collect data on groundwater to prepare permits for in-situ uranium recovery.

The company, based in Vancouver, British Columbia, has proposed a $20 million uranium mine near the farming and ranching community of Nunn north of Denver.

Company officials believe the mine could produce as much as 8 million pounds of uranium for use in nuclear power plants. Area residents are concerned about environmental damage and potential health issues.

Powertech has yet to receive approval from a slew of federal, state and local agencies. Once the permits are in place, work is expected to begin in 2009.