Name of the Project
Mulga Rock uranium project.
Location
In the Shire of Menzies, in Western Australia.
Project Owner/s
Vimy Resources.
Project Description
An updated definitive feasibility study (DFS) has reinforced the global importance of the Mulga Rock project, which is the biggest advanced uranium project in Australia.
The mineral resources and reserves estimate, mine plan and schedule, technical design and metallurgical flowsheet are unchanged from the 2018 DFS.
The project has an expected mine life of 15 years, with yearly production estimated at 3.4-million pounds of uranium and life-of-mine production estimated at 47.1-million pounds of uranium.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project’s pretax net present value has increased from A$530-million, at an 8% discount rate in the 2018 DFS, to A$605-million in the updated DFS. The internal rate of return has increased from 25.3% in the 2018 DFS to 31.1% in the updated DFS. Payback from the start of production has decreased from 3.1 years in the 2018 DFS to 2.4 years in the updated DFS.
Capital Expenditure
Total capital expenditure has decreased from A$493-million in the 2018 DFS to an estimated A$393-million in the updated DFS.
Planned Start/End Date
Production is expected to start in the third quarter of 2023.
Latest Developments
The Western Australian government has approved the Mulga Rock mining proposal and associated mine closure plan, clearing the way for Vimy Resources to implement an early works programme.
Vimy’s earthworks contractor will mobilise personnel and equity to the site immediately. The programme includes an intensive eight-to-ten-week schedule.
The approval also enables Vimy to further derisk the project by achieving ‘substantial commencement’ and continue on the path towards first production by 2025 interim CEO Steven Michael has said.
Mulga Rock’s project management plan was recently approved, but still requires the Western Australian Department of Water and Environmental Regulation’s ‘work approval’ under the Environmental Protection Act.
Key Contracts, Suppliers and Consultants
GR Engineering Services (updated DFS), including Piacentini & Son (earthmoving); and Thinking Human Resources and OfficeSolutions IT (information technology and communications).
Contact Details for Project Information
Vimy Resources, tel +61 8 9389 2700 or email info@vimyresources.com.au.