Extract Resources (EXT-T, EXT-A) expects that it would cost US$704 million to build a 15-million-tonne-per-year sulphuric acid leach processing plant and open-pit mining operation at its Rossing South uranium deposit in Namibia.
Extract says the plant would produce 14.8 million lbs. U3O8 per year with operating costs at US$23.60 per lb. The company released the preliminary cost estimates in early August. Extract is in the midst of completing a feasibility study for its Husab uranium project, which includes the Rossing South and Ida Dome deposits.
Extract says the numbers in the preliminary estimates, which were completed to establish the general economic viability of the project, represent the base-case study.
The cost estimates look at building an open-pit operation with an agitated leach-tank process plant that the company expects will support a profitable operation for 20 years.
Extract is still doing metallurgical testing and engineering optimization that will include other options, such as a heap-leach component.
Rossing South includes two mineralized zones, with combined resources (including indicated and inferred) totalling 267 million lbs. U3O8.
Zone 1 hosts an indicated resource of 21 million tonnes grading 527 parts per million (ppm) U3O8 for 24 million lbs. U3O8 and inferred resources of 126 million tonnes grading 436 ppm U3O8 for 121 million lbs. U3O8.
Zone 2 has inferred resources of 102 million tonnes grading 543 ppm U3O8 for 122 million lbs. U3O8.
Both zones are open along strike and at depth and the company believes that further exploration work will boost resources.
The project is 5 km south of Rio Tinto’s (RTP-N, RIO-L) 69%-owned Rossing uranium mine, which has been in operation for nearly three decades and produces 7% of the world’s uranium oxide supply.
Be the first to comment on "Extract Estimates Costs For Rossing South"