Vimy Resources Limited is pleased to announce completion of the Mulga Rock Project (MRP) Pre-feasibility Study (PFS), undertaken by Amec Foster Wheeler Australia Pty Ltd (Amec Foster Wheeler) and AMC Consultants (AMC).
The PFS includes an economic evaluation and supports Vimy’s view that the MRP is one of the best undeveloped uranium projects in Australia with a significant annual production and mine life. Key highlights from the Study include:
MRP is an attractive deposit with long mine life and long term source of uranium:
ï‚· MRP is the third largest undeveloped uranium deposit in Australia
ï‚· Total resource estimate of 65.6 Mt at 520 ppm U3O8 for a contained 75.0 Mlbs U3O8
ï‚· Life of Mine (LoM) of 17 years with an estimated total production of 50.4 Mlbs U3O8
ï‚· 77% of the uranium mining inventory for first 5 years is from Indicated Resources
Low cash cost, robust financials:
ï‚· C1 operating cost for LoM of US$31/lb U3O8 including by-product credits
ï‚· Robust pre-tax NPV10 of A$431M, 25% IRR and a 3.9 year payback at US$65/lb U3O8
ï‚· Breakeven price of US$50/lb U3O8 (capital payback @ 10% discount rate)
Low risk and low cost mining process:
ï‚· Simple open-pit mining operation up to a maximum depth of 74 metres
ï‚· Process plant to use low-cost acid leaching and resin-in-pulp
ï‚· Environmental approvals and permitting are well advanced
ï‚· Additional opportunities have been identified to further reduce operating and capital costs, which will be incorporated into the DFS currently underway
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