Billions needed to develop Marenica

PERTH – A scoping study into ASX-listed Marenica Energy’s uranium project in Namibia has found that it could deliver up to 3,5 million pounds of uranium a year, at an operating cost of US$38 per pound.

The study focused on a heap-leach operation, which Marenica said would cost US$260 million, about N$1,8 billion, to build.
It found that the project could produce a total of 45 million pounds of uranium over a life-of-mine of 13-years, based on the existing defined indicated and inferred mineral resource.
‘The study shows that the Marenica projects stands to become one of the more significant uranium producers in the world,’ Chief Executive Officer John Young said yesterday.
‘This mine is expected to support an operation with a greater production profile than was originally believed possible in an agitated leach circuit.
We believe the option presented in this study represents an achievable, realistic view, given the size and the resource at Marenica.’
Using a long-term uranium price of US$65 per pound, the scoping study has indicated that the Marenica project could produce a positive net present value and internal rate of return, and pay back the initial project capital within five years.
Young said the company further believed that infill drilling would expand the resource base to further boost the project’s economics.
Once sufficient indicated resources have been delineated, a definitive feasibility study would be undertaken. The preliminary work on the environmental and social-impact statement would also start in November.
Young said that management believed that construction and commissioning of the heap-leach plant could take place in 2013 and 2014 respectively.
– miningweekly.com

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