sxr Uranium One (SXR-T) took a significant step towards commercial production at its Dominion Reefs uranium mine in South Africa, and was duly rewarded by the market.
On May 18 the company announced that it had produced ammonium diuranate (ADU) a slurry containing uranium which is one step from being the saleable product.
The news had the Toronto-based company up over 5% or 80 to $16.20 on 4.6 million shares traded.
Uranium One is working towards full commissioning of its solvent extraction circuit after already processing underground ore through its atmospheric leach circuit.
The ADU must go through a process known as calcining to make it into marketable yellowcake.
That will be done at its partner, Nufcor‘s, facilities within two months it will take Uranium One that long to build up enough ADU.
The company also gave insight into its drive to maximize recoveries at Dominion.
It says it is getting higher recoveries by using a pressure leach circuit that utilizes the first autoclave at a throughput of up to 100,000 tonnes per month.
A second autoclave is scheduled to come on line in August and will allow high recoveries to continue while the throughput is doubled to 200,000 tonnes per month.
The Dominion Mill processes ore from three decline shafts, supplemented by material from its tailings.
In phase 1 of its production, Dominion is slated to ramp-up to 3.8 million lbs U3O8 per year by 2011.
Probable reserves at the site stand at of 18.5 million tonnes grading 0.77 kg U3O8 per tonne for 31.3 million lbs. of U3O8 .
Average cash operating costs over the life of Phase I of are projected at US$14.50 per lb. U3O8 net of gold by-product credits
It will cost Uranium One US$152 million to get into full production.
Dominion is the companys second production stream — its Akdala mine in Kazakhstan is already in production. It holds a 70% stake in Akdala.
Uranium One is also developing the South Inkai and Kharasan Uranium Projects in Kazakhstan and the Honeymoon Uranium project in South Australia.
It recently acquired the Shootaring Canyon Mill in the western United States and is exploring in the Athabasca Basin and the Kyrgyz Republic.
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