Macusani Yellowcake completes Azincourt resource integration, mulls rebranding

6th January 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Peru-focused uranium explorer Macusani Yellowcake has completed integrating the resource model data it had assimilated through its takeover of Azincourt Resources last year, lifting the compliant combined measured and indicated resources by 18.2-million pounds of uranium.

The Canadian explorer said on Tuesday that its total resource base increased to 49.7-million pounds of uranium in the measured and indicated categories, with 47.5-million pounds of uranium classified in the inferred category, up from the previous estimate of 30.1-million pounds.

Macusani reported that it had now integrated the geological drill-hole database and that work on a new integrated resource estimate had started. As soon as the new resource model had been completed, work would start to update the December 2013 preliminary economic assessment (PEA).

The updated resource estimate was expected in the first quarter and the updated PEA was expected early in the second quarter.

The company explained that it would prospect and assess numerous undrilled, near-surface mineralised occurrences on its extensive land package later this year.

Macusani would start a dialogue with the Peruvian mining and environmental authorities to determine the path to uranium project permitting and the necessary steps required.

The company noted that it was considering a rebranding exercise pending shareholder approval at its next annual general meeting, expected to be scheduled early in March.

"With the Azincourt database integration completed, we are now focused on updating the resource estimate and ultimately updating the PEA to highlight what we expect will be enhanced and more robust project economics.

“Macusani controls all uranium resources currently known on the Macusani Plateau, which now places us in a select peer group of projects worldwide with the lowest published preliminary economics for uranium developers with conventional/non-ISR projects. We are working hard to continue along the path to proving the viability of future uranium production from our Peru projects and to unlock the tremendous upside value in the new Macusani in tandem with the ongoing recovery of the uranium market." Macusani CEO Ted O'Connor said.

The company added that it was seeing positive signals in the global uranium market.

The uranium spot price had risen in 2014 from a low of $28/lb in May to a high of $44/lb in November and had backed off to about $35.50/lb on Tuesday, according to Ux Consulting Company figures.

The company expected approvals and support for Japanese reactor restarts and new reactor builds, primarily in Asia and the Middle East, to drive future demand higher. It believed that current prices could not support existing production, let alone the new production required to meet the expected increase in demand in the medium to long term.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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