JOHANNESBURG (miningweekly.com) – The Four Mile uranium project in South Australia has been delayed to April, gold and uranium explorer Alliance Resources reported on Monday.
The setback came as Alliance Resources’ joint-venture partner, Quasar Resources, placed project development activities on hold, as a mining lease had not been granted.
The offer of a mining lease by the Department of Primary Industries and Resources of South Australia was pending registration of a native title mining agreement, which covered the Four Mile uranium mine.
Production at Four Mile was initially anticipated to start in early 2010, at a projected rated of 2,6-million pounds of uranium oxide (U3O8), increasing to three-million pounds of U3O8 a year, within three months.
The combined mineral resource inventory for Four Mile east and west deposits is 61-million pounds of U3O8, at an average grade of 0,35%, with a further increase in the resource inventory anticipated in the fourth quarter of this year.
The mine would cost an estimated A$90-million to develop, and was likely to be among the top ten uranium producing mines in the world.
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