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
€82.3-million.

Duration
First production is expected in 2018.

Latest Developments
The primary crusher has been delivered to site.

The crusher is a major piece of processing equipment for the operation and its arrival marks a significant milestone for the company as it has progressed from the development phase to the construction phase. The construction and commissioning phases are expected to be completed during the second half of 2018.

The 400 t/h crusher has been manufactured by Sandvik Group, in Finland.

Key Contracts and Suppliers
Iberdrola (rerouting of main power line) and Amec Foster Wheeler Group (FEED) and Sandvik Group (primary crusher).

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.