Name of the Project
Langer Heinrich uranium restart project.

Location
Namib Desert, in Namibia.

Project Owner/s
Langer Heinrich Mauritius Holdings is the holding company of Langer Heinrich Uranium, which holds 100% of the Langer Heinrich tenements.

Paladin Energy owns 75% of Langer Heinrich Mauritius Holdings, with 25% owned by CNNC Overseas Uranium Holdings.

Project Description
The project has total proven and probable reserves of 85.9-million tonnes grading 455 parts per million (ppm) of uranium for 86.5-million pounds of uranium.

The project has a declared maiden vanadium mineral resource of 122.1-million tonnes grading 145 ppm vanadium pentoxide for 38.8-million pounds of vanadium pentoxide.

Langer Heinrich was placed on care and maintenance in August 2018, owing to the sustained uranium price.

Subsequently, Paladin completed a concept study in February 2019, which identified multiple options to reduce operating costs, improve process plant performance and potentially recover a saleable vanadium product. A two-stream prefeasibility study (PFS1 and PFS2) started in March 2019 to improve the details of the restart plan and pursue further improvement options to clearly present a compelling investment case.

PFS1 focused on confirming effective care and maintenance plans, practices and costs while developing a more detailed plan to execute a rapid restart at Langer Heinrich in an improved uranium market.

Upon restart, Langer Heinrich will have a production capacity of about 5.9-million pounds a year from Year 2 to 8, processing high- and medium-grade ores. This will be followed by a stockpile phase from Year 9 to 17 for the production of 3.5-million pounds a year of uranium.

During the ramp-up phase (Year 1), 3.3-million pounds of uranium is expected to be produced.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Estimated capital expenditure of $81-million has been confirmed for the restart of the project. A further $30-million would be required to take production to 6.5-million pounds a year of uranium.

Planned Start/End Date
Not stated.

Latest Developments
Paladin Energy is awaiting a spot price of $50/lb or more for uranium before restarting its Langer Heinrich uranium operations.

Speaking on the sidelines of the Diggers & Dealers conference on August 4, Paladin CEO Ian Purdy noted that the current spot market price was not sufficient to tempt the company into restarting production.

Purdy said that while an increase in the spot price could not be timed, there were indications that a market shift was imminent, as major producers were cutting back on production and global stockpiles were dwindling.

“You can’t outrun the math. There is a 20-million- to 40-million-pound deficit right now, and no one can tell you how that will be filled if there are no stockpiles,” he added.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Paladin Energy, tel +61 8 9381 4366 or email paladin@paladinenergy.com.au.