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PERTH (miningweekly.com) – A scoping study into ASX-listed Vimy Resources’ Mulga Rock uranium project, in Western Australia, has estimated that the project could provide some 47-million pounds of uranium oxide (U3O8) over a mine life of 16 years.
The scoping study estimated that the Mugla Rock project would generate average yearly earnings before interest, taxes, depreciation and amortisation of A$161-million, at a uranium price of $75/lb U3O8, and would have a pretax net present value of A$764-million and an internal rate of return of 39%.
“Mulga Rocks stands apart from many of the potential uranium projects in Australia in that it is financially viable at current long-term uranium contract prices. This scoping study verifies this and reaffirms our aggressive schedule to develop the project,” said Vimy MD Mike Young.
“This is another step in the Vimy story, in which we have continued to define our course of action, then delivered on those results.”
The Mulga Rock project was expected to require some A$332-million in funding for process plant and infrastructure costs, as well as a further A$46-million for mine pre-strip costs.
In year seven of operations, an additional A$15-million capital investment would be required to instal a third mining field unit to expand the proposed beneficiation plant, which would process additional ore feed as the uranium ore grade decreased from year eight onwards.
Mining will be conducted from a large-scale openpit mine, with C1 cash costs over the life of the mine estimated at $29/lb U3O8.
Young noted that an investment decision to develop Mulga Rocks was expected by the second half of 2016.
A prefeasibility study on the project was expected by August this year.