Name of the Project
Langer Heinrich uranium restart project.

Location
Namib Desert, in Namibia.

Project Owner/s
Langer Heinrich Mauritius Holdings is the holding company of Langer Heinrich Uranium, which holds 100% of the Langer Heinrich tenements.

Paladin Energy owns 75% of Langer Heinrich Mauritius Holdings, with 25% owned by CNNC Overseas Uranium Holdings.

Project Description
The project has total proven and probable reserves of 85.9-million tonnes grading 455 parts per million (ppm) of uranium for 86.5-million pounds of uranium.

The project has a declared maiden vanadium mineral resource of 122.1-million tonnes grading 145 ppm vanadium pentoxide for 38.8-million pounds of vanadium pentoxide.

Langer Heinrich was placed on care and maintenance in August 2018, owing to the sustained uranium price.

Subsequently, Paladin completed a concept study in February 2019, which identified multiple options to reduce operating costs, improve process plant performance and potentially recover a saleable vanadium product. A two-stream prefeasibility study (PFS1 and PFS2) started in March 2019 to improve the details of the restart plan and pursue further improvement options to clearly present a compelling investment case.

PFS1 focused on confirming effective care and maintenance plans, practices and costs while developing a more detailed plan to execute a rapid restart at Langer Heinrich in an improved uranium market.

Upon restart, Langer Heinrich will have a production capacity of about 5.9-million pounds a year for seven years processing high- and medium-grade ores for about eight years. This will be followed by a production capacity of 3.5-million pounds a year while processing low-grade ores from Year 9 to Year 12.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Estimated capital expenditure of $81-million has been confirmed for the restart of the project. A further $30-million would be required to take production to 6.5-million pounds a year of uranium.

Planned Start/End Date
The project has the potential to be production-ready in mid-2021.

Latest Developments
Paladin Energy has announced that capital expenditure (capex) at its Langer Heinrich mine, in Namibia, is expected to reach $9.5-million in 2021.

The planned capex for the 2021 financial year was down by 44% on the funds spent in the 2020 financial year, as Paladin progressed to bring the operation back into production.

Paladin recently released a restart plan for the Langer Heinrich project, which found that the project could be brought on line at a capital cost of $81-million.

The restart plan confirmed a 17-year mine life, with peak production expected at 5.9-million pounds of uranium dioxide a year, from the seventh year of operation. Over the entire mine life, Langer Heinrich could produce up to 88.5-million pounds of uranium dioxide.

The company on Tuesday said that it was engaging with potential customers with an ultimate view to securing uranium term-price contracts with sufficient term and value to underpin the restart of the Langer Heinrich mine

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Paladin Energy, tel +61 8 9381 4366 or email paladin@paladinenergy.com.au.