Name of the Project
Salamanca uranium project.

Location
Spain.

Client
Berkeley Energia.

Project Description
Salamanca has an overall mineral resource estimate of 89.3-million pounds of uranium (U₃O₈). The project is based solely on measured and indicated resources totalling 59.8-million pounds.

An independent study has confirmed the project as one of the world’s lowest-cost producers capable of generating strong after-tax cash flow through the current low point in the uranium price cycle.

The study is based on extracting 61.3-million tonnes of ore at an average grade of 408 parts per million (ppm) U₃O₈ to produce 48.6-million pounds of U₃O₈.

The study envisages an initial mine life of 14 years, producing on average 3.5-million pounds of uranium a year. After initial ramp-up, production will average 4.4-million pounds a year over ten years of steady-state operation.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $531.9-million and an internal rate of return of 60%.

Value
The project will require upfront capital of $95.7-million.

Duration
First production is expected in 2018.

Latest Developments
Berkeley has said that construction at its Salamanca uranium mine will start early this year, following the order of the first major items for the crushing circuit.

Proceeds raised from a recent $30-million equity raise have been used to order primary and secondary crushers from the Sandvik Group.

The final cost of the equipment ordered was more than 20% below estimates from the definitive feasibility study, the company has stated

Berkeley MD Paul Atherley has noted that the order has brought the start of construction of the processing plant forward by several months.

Key Contracts and Suppliers
Iberdrola (rerouting of main powerline) and MDM Engineering (FEED).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Berkeley Energia, tel +44 207 478 3900 or fax +44 207 434 4450.