TORONTO (miningweekly.com) – TSX-listed Khan Resources has completed a definitive feasibility study for its Dornod uranium project in Mongolia, which indicated the asset could produce an average of 3-million pounds of uranium a year, as a cost of $23,22/lb.
The mine is expected to cost about $333-million to build and could be completed within 36 months from the start of detailed engineering work, Khan said.
The study assumes a long-term uranium price of $65/lb, and a throughput rate of 3 500 t/d over a 15-year mine life.
The definitive feasibility study was completed by Aker Metals and resource consultants Scott Wilson Roscoe Postle Associates.
The next step will be to conclude an investment agreement with the Mongolian government.
The study was based on the NI 43-101 compliant indicated mineral resource of 25,3-million tons at an average grade of 0,116% uranium oxide for 64,3 million pounds of uranium oxide and an inferred mineral resource of 2,2 million tons at an average grade of 0,050% uranium oxide, for 2,4 million pounds.
The number 2 and 7 openpit deposits contain 10-million tons in reserves, at an average grade of 0,133%, for 52,9-million pounds of uranium oxide, out of the 64,3-million pounds of indicated resources.
Khan owns an overall interest of 69% of the uranium contained in the two deposits.
Shares in the Toronto-based company gained 12,9% on Wednesday morning, to C$0,35 apiece by 10:53 in Toronto.