Copy
Definitive Feasibility Study confirms the Salamanca project will be one of the world’s lowest cost uranium producers

A Definitive Feasibility Study has confirmed that the Salamanca project will be one of the world’s lowest cost producers capable of generating strong after tax cash flow, even during the current low point in the uranium price cycle.

The study has reported that over an initial ten-year period the project is capable of producing an average of 4.4 million pounds of uranium per year at a cash cost of US$13.30 per pound and at a total cost of US$15.06 per pound. 

Managing Director Paul Atherley commented: “The Salamanca project is capable of generating strong, sustainable cash flow though the low point in the uranium price cycle. We have commenced initial infrastructure works and are aiming to establish Salamanca as one of the world’s top ten producers, reliably supplying long term customers from the heart of the European Union.”

An extensive exploration programme aimed at making new discoveries and converting some Inferred resources into the mine schedule, is now underway. The programme is looking to extend the Zona 7 deposit at depth and to the south, as well as test new targets to north. Initial results are expected to be reported shortly.

The project is located in an area that benefits greatly from the extensive EU funded infrastructure in the region, which has helped keep initial capital costs down at US$95.7 million, which is low by international standards for a project of this size.

The Company believes that although uranium prices will remain soft in the near term, from 2018, when Salamanca is scheduled to come on line, the market will be dominated by US utilities looking to re-contract. These utilities, who have all shown strong interest in the project, will be also competing with Chinese new reactor demand which will lead to higher prices. 

All approvals are in place for initial infrastructure development. Work has commenced on the realignment of a road and upgrading an existing power line ahead of the main construction. 

To read the full announcement please click here
 

Email: info@berkeleyenergia.com 
Web: www.berkeleyenergia.com
 
unsubscribe from this list    update subscription preferences