The Australia-based Angularli uranium deposit is owned 75 percent by Vimy Resources and 25 percent by a Rio Tinto subsidiary.
Vimy Resources (ASX:VMY) has completed a scoping study for the Angularli uranium deposit, located at the Alligator River project in Australia’s Northern Territory.
Angularli is part of the King River-Wellington Range tenement group, which is managed by a joint venture between Vimy (75 percent) and Rio Tinto’s (ASX:RIO,LSE:RIO,NYSE:RIO) Rio Tinto Exploration (25 percent).
The scoping study for Vimy was based around Angularli’s inferred mineral resource estimate, which sits at 0.91 million tonnes at 1.3 percent U3O8 for 26 million pounds.
While certain aspects of the study such as capital and operating cost estimates could not be published due to the resource being entirely in the inferred category, Vimy Managing Director and CEO Mike Young reacted positively to the results.
“The high-grade nature of the Angularli deposit provides us with the opportunity to develop a tier one asset, with the potential to be profitable in any uranium market,” he said in a statement. “Notwithstanding that the resource is still at the inferred status, the scoping study itself has been completed to a very high standard and the board agrees that the results of the study merit further work.”
According to the study, metallurgical testwork completed by the Australian Nuclear Science and Technology Organization shows that two flowsheet options are technically viable. Additionally, yellowcake product generated from the aforementioned testwork meets converter specifications.
The two flowsheet options both contain front ends with crushing, milling, acid leach and counter-current decantation circuits. The first flowsheet would use conventional solvent extraction to recover uranium from the leach solution, followed by precipitating uranium as uranyl peroxide.
Meanwhile, the second flowsheet would directly precipitate uranium from the leach solution after iron and other impurities are removed.
Going forward, the company intends to begin ore-sorting trials to weigh the possibility of increasing the head grade to the processing plant and reduce the mine cut-off grade. Further resource drilling will also take place to improve Angularli’s mineral resource.
Vimy’s share price closed Monday (December 10) at AU$0.051.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.