Resource upgrades prompt revised Mulga Rock study
26 February 2024
Deep Yellow Ltd is to revise its definitive feasibility study for the Mulga Rock project in Western Australia after a 26% increase in uranium resources and a "substantial uplift" in critical mineral value at Mulga Rock East. The company is planning production in 2028.
The Mulga Rock project in Western Australia (Image: Deep Yellow)The updated mineral resource estimates for the Ambassador and Princess deposits mean the total contained uranium in Mulga Rock East now stands at 71.2 million pounds U3O8 (27,387 tU), up from 56.7 million pounds, at a cut-off grade of 100 ppm, the company announced today. 86% of the Mulga Rock East uranium resource is now in the Measured and Indicated classification. Total U3O8-only mineral resources for the project, which comprises Mulga Rock East and Mulga Rock West deposits, are 104.8 million pounds U3O8 (measured, indicated and inferred).
The inventory of so-called critical minerals (copper, nickel, cobalt, zinc and rare earth oxides) has also increased by 200% to 400% (for base metals) compared with the previously reported inventory, the company said.
Deep Yellow Managing Director and CEO John Borshoff said the results to date confirm expectations for the project. "When we acquired Mulga Rock through the Vimy Resources merger in August 2022 we identified significant opportunity to uplift the value of the project by considering extracting the critical minerals (Cu, Ni, Co, Zn, Nd, Tb, Dy, Pr) in addition to the uranium associated with the Ambassador and Princess deposits," he said.
"The results to date confirm our positive expectation for this exciting project with results illustrating the potential value uplift that could be captured by the integrated development approach. The updated MRE has delivered an impressive 26% increase in the uranium resource and more than doubled the critical minerals’ inventory. This fully justifies proceeding with the DFS revision, which will kick off in Q2 2024, to determine the overall viability of the polymetallic resource that has been delineated with uranium still remaining the key value driver of the Project," he added.
Mulga Rock is 290km by road east-northeast of Kalgoorlie in the Great Victoria Desert of Western Australia. A definitive feasibility study (DFS) prepared by then-owner Vimy Resources in 2018 - which was refreshed by Vimy in 2020 - showed a strategic long-life uranium project with a contemplated production rate of 3.5 million pounds per year. Existing environmental approvals allow for the recovery of critical minerals. The Government of Western Australia's December 2016 approval of the project stipulated that Vimy must begin substantial commencement within five years, a condition which the company met when work on the excavation of a ramp at the Ambassador North pit began in 2021.
The revised DFS will use the updated mineral resource estimate and previously announced metallurgical testwork on the recovery of critical minerals. It will integrate re-scheduling of the mining, using a less selective approach, and "potentially capturing much greater value presented by the coincident uranium and critical minerals of the Mulga Rock East deposits while operating within the permitting footprint," the company said.
Borshoff reiterated that the company intends to make a final investment decision for its Tumas project in Namibia in the third quarter of this year, with assets planned for production by 2026 at Tumas and 2028 at Mulga Rock.
Researched and written by World Nuclear News
Staff Writer | February 26, 2024 |
Image from Energy Fuels.
Energy Fuels (NYSE: UUUU; TSX: EFR) is gearing up two more mines in Colorado and Wyoming for expected production within one year.
If market conditions remain robust, the Whirlwind and Nichols Ranch mines could potentially elevate Energy Fuels’ uranium production to a run-rate of over two million pounds of U3O8 per year as early as 2025, the company said.
In response to the current strength in uranium prices, Energy Fuels plans to conduct exploration drilling on its Nichols Ranch area properties and underground delineation drilling at its Pinyon Plain mine in Arizona.
The company intends to advance permitting on its large-scale Roca Honda, Sheep Mountain and Bullfrog uranium properties for additional uranium production in the future.
The spot price of U3O8 reached a high of $102.00/lb. this month, with the long-term price of U3O8 at $72.00/lb., according to data from TradeTech.
“We hold a bullish long-term view of uranium prices, and we are investing to boost production,” Energy Fuels CEO Mark Chalmers said in a release.
In 2023, the company sold 560,000 lb. of uranium for about $60/lb., yielding total gross profits of $17.96 million and a 54% gross margin.
“As long as market prices remain strong, we will continue to selectively capitalize on spot market sales opportunities as we ramp up our production in 2024 and beyond, all with limited capital,” Chalmers said. “We have become one of the few profitable non-state-owned uranium mining companies globally.”
Shares of Energy Fuels rose 4.4% by 12:00 p.m. EDT. The company has a market capitalization of approximately $1 billion.
Sweden moves to lift uranium mining ban
26 February 2024
Sweden's Climate and Environment Minister Romina Pourmokhtari has announced the launch of an investigation to abolish the country's ban on uranium mining. The move was welcomed by Australia-based Aura Energy, which hopes to extract uranium as a by-product from its 100%-owned Häggån polymetallic project in Sweden.
(Image: Pixabay)On 16 May 2018, the Swedish parliament passed an amendment to the Environmental Code banning uranium exploration and mining in the country. As from 1 August that year, no permits for uranium exploration or mining have been issued for any such applications submitted from that date.
There is currently no uranium mining in Sweden, which has six nuclear power reactors providing about one-third of its electricity. Sweden imports most of its nuclear fuel, including all enrichment services.
The investigation - to be carried out by the Ministry of Climate and Enterprise - will determine what rule changes are needed to enable and clarify the conditions for uranium extraction. In addition, it will analyse whether the requirement for the government's admissibility review should be limited to cover uranium mining only when it is a nuclear activity.
The ministry said the purpose of the investigation is "to remove a ban that is not needed". "Extraction of uranium must be handled in the same way as extraction of other metals, where the environmental assessment determines the conditions under which it can be permitted," it noted. "Uranium often occurs together with other metals and today must be sorted out and handled as waste."
"If the European Union is to become the first climate-neutral continent, access to sustainable metals and minerals must be ensured," Pourmokhtari said. "We need to use the uranium we have, instead of sorting it out and considering it as waste, as is the case now - due to the current ban on mining uranium."
The Ministry of Climate and Enterprise noted that more than one-quarter of Europe's known resources of uranium are found in Sweden's bedrock. "Today, it is not possible to grant either an exploration permit, a processing concession or an environmental permit regarding uranium. Uranium mining must in future be tested according to relevant environmental legislation, which means that the current ban on uranium mining must be removed."
The result of the investigation must be reported by 15 May at the latest, at which point the government can choose to proceed with a legislative proposal to parliament to lift the ban on uranium mining.
In November last year, Sweden's parliament approved a bill that cleared the way for new nuclear power in the country by removing the current limit on the number of nuclear reactors in operation, as well as allowing reactors to be built on new sites. The amendment entered into force on 1 January.
Sweden currently uses 2.4 million pounds U3O8 annually in its three nuclear power plants and has committed to building two additional nuclear reactors by 2035.
Aura welcomes investigation
In 2019, Aura Energy lodged a claim against the Swedish government for compensation for the financial loss resulting from the ban on uranium exploration and mining, introduced the previous year. The company had planned to extract uranium as a by-product from its 100%-owned Häggån polymetallic project in Sweden.
Häggån, previously known as Storsjon, is located in the municipality of Berg in the county of Jämtland and forms part of a large uranium field in central Sweden. Figures released in mid-2012 estimated resources of 800 million pounds U3O8 (307,718 tU) at Häggån, making the Swedish project the second largest undeveloped uranium resource in the world, Aura says. The uranium occurs with molybdenum, vanadium and zinc in black shales, and Aura has reported yields of up to 85% uranium from bioheap leaching tests.
In February 2013, Aura announced it had accepted Areva Mines as strategic partner in the project and had entered a binding cooperation agreement, but Areva later pulled out of this.
Welcoming the prospect of the uranium mining ban now being lifted, Aura said Häggån has the potential to supply a significant portion of Sweden's nuclear fuel requirements.
"This announcement is a logical step by the Swedish government towards allowing the extraction of uranium domestically to secure its own and others' needs," said Aura Energy CEO Andrew Grove. "It is the start of a process which I hope will result in new legislation that not only makes it legally possible to mine uranium, but also provides a predictable permit process for uranium extraction alongside the mining of other metals.
"The Swedish government's stated aim aligns well with the ability to mine domestic uranium, reducing foreign dependency and strengthening domestic and European energy supply," he added. "It is of course essential that uranium is mined in a way that does not threaten the local environment or water supply, and I am certain that we will be able to demonstrate that within the framework of the Swedish permit process."
The company intends to file for processing concession for Häggån K1 during 2024 with the Swedish Mining Inspectorate. A Swedish processing concession (exploitation permit) is valid for 25 years.
Researched and written by World Nuclear News
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