Name and Location
Mulga Rock uranium project (MRUP), Australia.

Client
Vimy Resources.

Project Description
A scoping study completed on Mulga Rock supports Vimy’s view that the MRUP is one of the best undeveloped uranium projects in Australia. The results confirm the potential for the MRUP to be a low-cost uranium producerC with a 16-year mine life and an estimated total production of 47-million pounds of uranium (U₃O₈).

Mulga Rock has a total resource estimate of 59.7-million tonnes at 550 parts per million of U₃O₈ for a contained 72.7-million pounds of U₃O8.

The project comprises the Mulga Rock East (MRE) and Mulga Rock West (MRW) mining centres, which are about 20 km apart. MRE contains more than 65% of the total recoverable uranium, which is of a higher grade than MRW’s. Mining will begin at MRE, which will include the processing plant.

The scoping study envisions a large-scale openpit. As a result of the large lateral extent and horizontal geometry, Vimy is proposing to use conventional truck-and-shovel and highly mechanised ‘strip‘  mining techniques similar to those used in coal and mineral sands mining.

The process plant will use low-cost acid leaching and resin-in-pulp methods.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of A$764-million, with an internal rate of return of 39% and a 2.6-year payback.

Value
The estimated capital cost to build the processing plant and infrastructure at the MRUP is A$332-million, including a contingency of A$41-million.

In Year 7 of operations, an additional A$15-million in capital investment will be required to establish a third mining field to expand the proposed beneficiation plant, which will process additional ore feed as the uranium ore grade decreases from Year 8 onwards.

Duration
Not stated.

Latest Developments
The prefeasibility study is expected to be completed in August 2015.

An investment decision to develop the MRUP is expected in the second half 2016.

Key Contracts and Suppliers
(Amec Foster Wheeler (scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Vimy Resources, tel +61 8 9389 2700 or email info@vimyresources.com.au.
Amec Foster Wheeler group corporate affairs director Julian Walker, tel +44 20 7429 7500 or email julian.walker@amecfw.com.