Processing is achieved though the use of methane gas, providing a simple way to produce oxygen by handling only gases and water, with minimal separation technique necessary. Reducing the metallic oxides in the regolith produces CO and H2 at temperatures >1000oC. Passing the CO and H2 through a methanation reactor produces CH4 and H2O. The methane is recycled back to the first step while water is further electrolyzed to produce H2 and O2. Methane produced could also be used as rocket fuel propellant for a return trip. The nearly closed loop system is described below. An initial source of methane is required to initiate the process