Name of the Project
Mulga Rock uranium project.

Location
The project is located 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
Vimy Resources is reviewing the base metal potential at the Mulga Rock uranium project.

Growing demand for clean energy solutions has resulted in a significant increase in base metal prices, prompting the company to review the viability of the base metals plant MD and CEO Mike Young has said.

“Decarbonisation of the global economy is seeing a significant step change in the long-term demand, pricing and security of the supply for battery metals. As a result, it is clear that the base metals circuit has gone from marginal to potentially improving the already strong uranium economics of the Mulga Rock project,” he has added.

Initial indications suggest that the project economics could be materially improved in the first eight years of production when the base metal-bearing Ambassador deposit is being mined.

The deposit is estimated to host about 34.1-million tonnes of base metal resource, grading 280 parts per million (ppm) copper, 960 ppm zinc, 480 ppm nickel and 240 ppm cobalt.

Vimy is expected to derive a life-of-mine base metals by-product credit of between $4/lb and $4.5/lb of uranium oxide produced at current and forecast base metal prices.

The company has said that it will further investigate the potential upside associated with a base metal plant at Mulga Rock by updating the base metal resource estimate, reviewing the metallurgical flowsheet and integrating the likely metallurgical recoveries and reagent consumptions for the base metal plant on the project’s net present value.

Further investigations will include updating capital and operating cost estimates, and the economic model for the project to incorporate the base metals plant as well as the potential financing options for the whole project, including the incorporated base metal endowment.

Key Contracts, Suppliers and Consultants
GR Engineering Services (updated DFS), including Piacentini & Son (earthmoving), 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.