Vimy Resources Limited (ASX:VMY) has achieved “excellent results” in its updated Definitive Feasibility Study (DFS) on its Mulga Rock Project in Western Australia.
CEO, Mike Young, says the DFS refresh demonstrates that the uranium project will generate even stronger financial returns than previously forecast.
The DFS Refresh reinforces the global importance of the Mulga Rock Project, which is the largest advanced uranium project in Australia; a first-world jurisdiction with low sovereign risk,” Mr Young said.
“With a completed DFS and State and Federal Government approvals, it is leader of the pack in terms of the next wave of world-wide uranium projects. “The Refresh has been transformational for the Project and moves it into the middle of the uranium producer AISC cost curve and on par with the higher cost Kazakh operations and well ahead of most other uranium juniors.
“As we move into the coming contracting cycle, the utilities will look very favourably on our location in Australia, our multi-mine pipeline, and our long, sustainable mine life at Mulga Rock.”
DFS Highlights
The Mulga Rock Project is the largest advanced uranium project in Australia, with an Ore Reserve of 42.3Mlb U3O8(22.7Mt at 845 ppm U3O8). The Ore Reserve is a subset of the Mineral Resource which comprises 90.1 Mlbs U3O8(71.2Mt at 570 ppm U3O8at a cut-off of 150 ppm).
The Project is 100% owned and operated by Vimy and lies in the Shire of Menzies, approximately 290km by road east-northeast of the regional mining city of Kalgoorlie-Boulder.
In January 2018, Vimy released the 2018 DFS which presented a 3.5Mlbs U3O8per annum, 15 year uranium project with sound economics and low technical risk.
In 2019, the Company commissioned an external review of the 2018 DFS which found that the studies pertaining to the mining strategy, schedule, and mineralogical flowsheet were all carried out to a very high standard and no changes to any of these activities were recommended. The review also endorsed the significant pilot studies which included the excavation of two test pits which demonstrated the free-dig nature and low cost of overburden removal, and a scaled metallurgical pilot plant and ore variability testwork which confirmed, and de-risked the flow sheet.
This review identified areas where meaningful capital and operating cost savings could be made, particularly with workforce numbers (and ancillary infrastructure) and the owner-operate versus contract mining model.
As no material changes have been made to mining and metallurgical processes, material movements, and annual uranium output, this announcement only presents the financial outcomes of the study.