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Uranium One unveils mammoth resource Posted: Wed, 14 Jun 2006 [miningmx.com] -- sxr Uranium One (Uranium One) has unveiled a 300% increase in its South African uranium resources, a development that CEO Neal Froneman said established the firm as a major future uranium oxide producer. In terms of the company's revised mineral resource estimate, measured and indicated uranium resources at the Dominion mine, south of Johannesburg, have been estimated at 47.5 million pounds up from 16.1 million pounds in measured resources as per a company update in January. Including inferred resources, Dominion contains an estimated 246 million pounds in uranium. This compares to a historical estimate of about 300 million pounds in a non-compliant study commissioned by former property owner, AngloGold. "This is a very significant increase in our resource base and is the base on which the bankable feasibility study is being developed. This must rank as one of the world's largest unmined uranium resources," Froneman said. As a result, Uranium One is considering accelerating production from the $130m Dominion project which is scheduled to begin production (hot commission) in the first quarter of 2007. Currently, output is estimated at four million pounds in steady state, due to be reached in 2011, Froneman said. However, the company was considering adding an extra phase which would amount to a capacity increase. The Dominion prospect as an estimated 30 years of life. In the meantime, however, Uranium One was considering completing financing of the Dominion project. "We will complete the financing for Dominion and Honeymoon (Uranium One's Australian project) in about September 2006," said Froneman. It's thought the company requires at least $50m for these projects. Uranium One is also examining acquisitions in the US of near production assets, a strategy aimed at gaining access to early cash flow, Froneman said. The bankable feasibility study on which the Dominion mine was based would be released within weeks, Froneman said. The company has assumed a long-term uranium price of $45/lb and a rand-dollar exchange rate of 6.20. The spot price of uranium is currently at about $45/lb whereas the rand was trading at 6.80 to the dollar. The uranium market is thriving at the moment with prices ramping up from $12/lb several years ago largely on the back of increased uranium demand.Free news alerts: click here to subscribe
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