PERTH (miningweekly.com) – A scoping study into the Blackbush deposit at the Samphire uranium project, in South Australia, has confirmed that the project could produce one-million pounds a year of uranium oxide (U3O8) over a mine life of eight years.
ASX-listed Alligator Energy on Tuesday reported that initial capital expenditure had been forecast at A$129.3-million, with cash operating costs estimated at A$25.59/lb U3O8 and all-in sustaining costs at A$43.19/lb U3O8, including transport, shipping royalties and sustaining capital.
At a realised sales price of $65/lb U3O8, the project will have a post-tax net present value of A$152-million and an internal rate of return of 29%, with a pay-back period of three-and-a-half years from the start of production.
“The capital costs to establish an initial project are quite low, even with significant contingency and inflation assumptions, as the location adjacent to the City of Whyalla offers distinct advantages, a locally based workforce, very experienced mining services and business support, and a lower cost of key infrastructure,” said Alligator CEO Greg Hall.
“Alligator recognises this would be the first uranium project in this region, and there will be many questions and much interest from our stakeholders. We will continue to engage and work with stakeholders and ensure even at this early stage that the benefits such a project can bring are being realised. South Australia is an experienced and globally recognised uranium mining jurisdiction and Alligator is pleased to be working in this supportive framework.”
A pilot field recovery trial is targeted for later this year to assist in further de-risking the technical aspects of the project, and Alligator will also continue with drilling work targeting further resource extensions.