Vimy Reports Prefeasibility Study Results for Mulga Rock Uranium Project

Vimy Resources (ASX:VMY) reported that the prefeasibility study for the Mulga Rock uranium project revealed an estimated total production of 50.4 million pounds of U3O8 over a 17-year life of mine.
As quoted in the market news:

The PFS includes an economic evaluation and supports Vimy’s view that the MRP is one of the best undeveloped uranium projects in Australia with a significant annual production and mine life. Key highlights from the Study include:
MRP is an attractive deposit with long mine life and long term source of uranium

• MRP is the third largest undeveloped uranium deposit in Australia
• Total resource estimate of 65.6Mt at 520ppm U3O8 for a contained 75.0Mlbs U3O8
• Life of Mine (LoM) of 17 years with an estimated total production of 50.4Mlbs U3O8
• 77% of the uranium mining inventory for first 5 years is from Indicated Resources

Low cash cost, robust financials

• C1 operating cost for LoM of US$31/lb U3O8 including by-product credits
• Robust pre-tax NPV10 of A$431M, 25% IRR and a 3.9 year payback at US$65/lb U3O8
• Breakeven price of US$50/lb U3O8 (capital payback @ 10% discount rate)

Low risk and low cost mining process

• Simple open-pit mining operation up to a maximum depth of 74 metres
• Process plant to use low-cost acid leaching and resin-in-pulp
• Environmental approvals and permitting are well advanced
• Additional opportunities have been identified to further reduce operating and capital costs, which will be incorporated into the DFS currently underway

Mike Young, managing director of Vimy, commented:

The team has once again delivered a great result for Vimy. Mulga Rock is a robust and large uranium deposit with simple geology, mining and metallurgy. We are well positioned to ride the wave of demand for uranium as the world turns towards cleaner energy sources. We are proud that Mulga Rock will deliver enough uranium fuel to offset the equivalent of 50 Mt of CO2 emissions per year or 9% of Australia’s total CO2 emissions. We are truly Mining a Cleaner Tomorrow.

Click here to read the full Vimy Resources (ASX:VMY) press release.