Perth, Australia —
Arafura’s managing director, Alistair Stephens, told delegates at the recent Australian Uranium Conference in Fremantle, Australia, that its Nolans Bore project north of Alice Springs has rare earths and uranium in a phosphate host and, despite the Territory’s sparseness, is ideally located to make use of existing infrastructure. The site is located within 5 km of a gas line, only 15 km from a major highway and within 60 km of a major railway.
Total indicated-inferred resources stand at 5.8 million tonnes grading 3.9% rare earths with the major recoverable elements being cerium (48.3% of content), lanthanum (21.1%) and neodymium (20.4%). Within the same tonnages the uranium grade was 0.031% U3O8 for 1,800 contained tonnes of yellowcake.
This, Stephens said, makes Nolans Bore a major rare earths deposit — with a significant amount of uranium icing on the cake.
Because uranium is a byproduct, Stephens predicted the project would be less politically sensitive than if it were the main offering. Studies conducted so far have shown the deposit, which begins at surface, offers positive economics. Based on a mining rate of 500,000 tonnes per year, the strip ratio of an open-pit operation would be 0.5:1, with no waste in the first three years; a feasibility study is slated for completion next year.
From metallurgical testing to date, recovery for both rare earths and uranium should reach about 80%.
Capital costs have been pegged at A$100 million (US$74 million) and operating costs at about half that amount over a mine life of at least 20 years. At an annual production rate of 15,000 tonnes of rare earths and 150 tonnes U3O8, project payback is estimated at five years. Annual revenue is expected to be about A$55 million (US$40.7 million).
Stephens told the conference that mineralization at Nolans Bore is open along strike in all zones and, in the southern sector, the discovery of a new surface showing demonstrates that there’s scope to extend the target by more than 1 km.
Arafura has a package of properties in the Territory as well as another high-priority target, Lagoon Creek, which contains known uranium-gold mineralization at shallow depths (grading between 0.07-2.4% U3O8 and about 6.7 grams gold per tonne). Lagoon Creek abuts the Queensland border with the large Westmoreland uranium deposit on the other side and in the same rock suite.
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The joint-venture partners undertook an airborne survey recently to identify new drill targets. A 2,000-metre drilling program is scheduled to be completed by mid-2006.
— The author is a freelance writer based in Perth, Australia.
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