Name and Location
Ranger 3 Deeps exploration decline project, Northern Territory, Australia.

Client
Energy Resources Australia (ERA).

Project Description
In 2009, ERA announced the discovery of a significant uranium oxide (U₃O₈) orebody in an area known as Ranger 3 Deeps, located east of and adjacent to the current Ranger 3 operating pit.

The ERA board has since approved the construction of an exploration decline to conduct close-spaced underground exploration drilling and explore areas contiguous to the Ranger 3 Deeps resource.

The proposed action is to mine and process the uranium-bearing ore from the Ranger 3 Deeps mineral resource, which is currently estimated to contain 34 000 t of U₃O₈.

Mining will be conducted through a series of stopes accessed by a decline, allowing the transportation of material to the surface in trucks. The decline, constructed as part of the Ranger 3 Deeps exploration decline project, will also serve as the primary access to the underground mine and is located adjacent to Pit 3.

The fixed ventilation system constructed for the exploration decline project will also be used for the proposed action and will be expanded to include additional ventilation shafts.

A paste fill plant, about 100 m³/h in capacity, will be constructed within the footprint of the existing operational area for backfilling the mined-out stopes.

The main mine operations will be more than 300 m below the surface. Mineralised material will be transported to the surface and processed at the existing processing plant. Owing to the selective nature of the proposed underground mining method, only a relatively small quantity of waste rock – about 500 000 t – will be generated, compared with more than 80-million tons of waste from the mined-out Pit 3.

A brine concentrator will also be installed as part of a significant investment in process water management and treatment at Ranger 3 Deeps. The brine concentrator uses thermal energy to evaporate water, which is then condensed and discharged as clean distilled water.

Value
ERA has reported that it will raise about A$500-million to fund the construction of its Ranger 3 Deeps exploration decline and further the studies in the Ranger 3 Deeps mine.

The proceeds will be used to fund the construction of the A$220-million brine concentrator and other management initiatives, which will cost A$52-million.

The funds will also go towards the construction of the Ranger 3 Deeps exploration decline and associated exploration drilling, at a cost of A$120-million, with a further A$57-million being set aside for the completion of a prefeasibility study (PFS) on the development of the Ranger 3 Deeps mine.

A further A$40-million has been earmarked for an expanded exploration programme, targeting highly prospective areas on the Ranger project area between 2012 and 2014.

Duration
A decision on the viability of the Ranger 3 Deeps development is expected by late 2014.

Latest Developments
ERA has formally started the statutory approval process for the proposed Ranger 3 Deeps underground mine.

The company has lodged a referral with the Commonwealth Department of Sustainability, Environment, Water, Population and Communities, under the Environment Protection and Biodiversity Conservation Act 1999.

ERA has also lodged a separate notice of intent with the Northern Territory Environment Protection Authority under the Environmental Assessment Act.

ERA is investing $120-million in the construction of an exploration decline to further define the Ranger 3 Deeps resource. Construction of the exploration decline began in May 2012, with closed spaced exploration drilling expected to start in the second quarter of 2013.

The company has allocated an additional $57-million for a PFS on the potential development of an underground mine. The prefeasibility study, the construction of the Ranger 3 Deeps exploration decline and the closed spaced exploration drillingwill proceed parallel to the statutory approval process for the proposed underground mine.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
ERA, tel +61 8 8924 3500, fax +61 8 8924 3555 or email info@era.riotinto.com.