Shares in Perth, Australia-based Paladin Resources (PDN-T, PDN-A) jumped as much as 7% in unusually heavy morning trading in Toronto on Aug. 28, after the company said it had begun commissioning the plant at its Langer Heinrich uranium project in Namibia a month ahead of schedule.
With the crusher and associated conveyers commissioned, attention has turned to the staged commissioning of the scrubber and attrition, leach and counter-current decantation, and uranium precipitation and reagent areas.
The project was powered up earlier this month with completion of a high-voltage substation and transformers, and water is flowing via an 85-km pipeline from the coast.
Paladin says its contract miner has begun stripping soil from the pit and supplying feed for crusher commissioning. Some mine infrastructure has also been established.
The company also says that while ongoing optimization of the alkaline leach process has impacted on the construction schedule, it is not expected to delay plant commissioning or completion. The optimization program has resulted in several upgrades in the uranium precipitation and reagent areas.
Under the original schedule, engineering, procurement, construction and management contractors GRD Minproc would handover the project by the end of the year. The project remains within its US$92 million budget.
Langer Heinrich is expected to crank up early next year, ramping up to annualized throughput rate of 1.5 million tonnes to produce 1,180 tonnes of U3O8 per year by the third quarter. Production will slip to 401 tonnes per year during years 12-15,as the operation switches to processing lower-grade stockpiles.
Average life-of-mine operating costs are forecast at US$14.18 per lb. U3O8, based on uranium prices ranging from US$26 per lb. to US$35 per lb. over the 15-year lifespan. Payback is expected in 3.5 years.
At last count, measured and indicated resources stood at 32.2 million tonnes running 0.07% U3O8, for 22,200 contained tonnes. Another 40 million tonnes of inferred material runs 0.06%, for 23,800 contained tonnes. The estimates employ a cutoff grade of 0.025% U3O8.
Paladin already has an operational team in place, headed by former Cameco (CCO-T, CCJ-N) production chief Wyatt Buck. The mine’s first yellowcake shipment is slated for late in the first quarter of 2007.
Paladin’s shares 27 better at $4.20 in afternoon trading in Toronto on Aug. 28. The issue trades in a 52-week range of $1.51 to $4.55.
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