PERTH (miningweekly.com) – ASX-listed Alliance Resources has failed to impede joint venture (JV) partner Quasar Resources from passing the 2015 programme and budget for the Four Mile uranium project, in South Australia.
A majority vote at the end of last week passed the 2015 programme and budget, entailing the production of 2.64-million pounds of uranium concentrates and a cash expenditure of $107.75-million, of which Alliance was expected to contribute $26.93-million.
Cash operating costs for the year have been estimated at $31.83/lb of uranium concentrate, while development costs have been estimated at $8.99/lb.
Alliance has expressed its concern over Quasar’s intent to stockpile the Four Mile uranium production from both the 2014 and 2015 work programmes, thereby generating no revenue during 2015.
The Four Mile project was officially opened in June, after commissioning started in March, and the project was forecast to have produced about 1.39-million pounds of uranium concentrate by the end of November.
Alliance was currently looking for a buyer for its 25% stake in the Four Mile project, with the company saying it preferred to focus its efforts on company-operated sites, including ventures in Chile, rather than at Four Mile, which did not meet the criteria of being a company-operated site.
Alliance has been embroiled in a number of legal battles with its development partner Quasar Resources, including an application to the Supreme Court of South Australia to joint venture management meetings, to enter into native title agreements, the registration of the native title agreements, as well as access to the books, records and agreements pertaining to the JV.
In 2010, Alliance also filed a court case against Quasar, claiming “misleading and deceptive conduct” on behalf of Quasar and seeking restitution for the 75% interest in the exploration licence for the Four Mile project.