The planned mine at
The drilling focused on sections of the Detail 2 and Detail 7 areas of a previously untested palaeochannel extending west from the project’s Detail 1 orebody.
Revised measured and indicated resources now stand at 32.3 million tonnes grading 0.07% U3O8, for 20,200 contained tonnes. Another 40 million tonnes of inferred material runs 0.06% U3O8, for 23,800 contained tonnes. The estimates employ a cutoff grade of 0.025% U3O8.
The company says the new measured and indicated resources represent a 24% increase over the previous estimate, and a 52% increase in inferred resources when compared to the previous estimates made at a 0.03% cutoff.
At the old cutoff of 0.03%, revised measured and indicated resources total 26.8 million tonnes of 0.07% uranium oxide, or 18,650 contained tonnes, with inferred resources tipping the scales at 32.3 million tonnes running 0.07%, for 21,600 contained tonnes.
Paladin says it switched to a 0.025% cutoff to comply with the cutoff grade used for reporting proven and probable reserves.
Mineralization is associated with calcrete-cemented sediments in a large Tertiary paleo-drainage system. The principle uranium mineral is carnotite, a secondary oxidized uranium-vanadium mineral, which occurs as thin films lining cavities and fracture planes, and as grain coatings and disseminations in calcreted sediments. The deposit covers over 15 km of the paleo-drainage, with localized accumulations, or higher-grade pods. Mineralization is near surface, from 1 to 30 metres thick and covers the 50- to 1,100-metre width of the paleo-valley.
The company also says that resources may be further expanded as the Detail 3-6 areas remain open. Future drilling in these areas is planned. Additional drilling will also aim to convert a “considerable amount” of the inferred resources to measured and indicated.
Plans at the proposed open-pit mine call for annual production of around 1,180 tonnes of U3O8 during its first 11 years, slipping to 401 tonnes over a subsequent four years as lower-grade stockpiles are processed. First production is anticipated in the fall of 2006.
Average life-of-mine operating costs are projected at US$14.18 per lb. U3O8, and US$12.20 per lb. over the first six years, based on uranium prices ranging from US$26 per lb. to US$35 per lb. over the 15-year lifespan.
Paladin says those plans may change as it expects the new resource to significantly extend the mine life and boost production.
Langer Heinrich is situated located about 40 km south of
Financing for construction is in place after an oversubscribed placement worth A$77 million (US$58.1 million). The company also has a US$71-million project loan facility.
Shares in Paladin trade around $2.00, in a 52-week range of 86-$2.25.
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