Name and Location
Salamanca uranium project, Spain.

Client
Berkeley Resources.

Project Description
A prefeasibility study (PFS) on the Salamanca project has confirmed the potential of the Salamanca project to support a significant scale, long-life, low-cost uranium operation.

The PFS is based on openpit mining, heap leaching using on/off leach pads, a centralised process plant at Retortillo and a remote ion-exchange operation at Alameda, with loaded resin trucked to the centralised plant for final extraction and purification.

Using only the current mineral resource estimates for Retortillo and Alameda, which total 34.5-million pounds of uranium oxide (U₃O₈), as a base case scenario, the project can support an average production of 3.3 million-pounds a year of U₃O₈ during the seven years of steady state operation and 2.7-million pounds of U₃O₈ over a minimum 11-year mine life.

There is strong potential to increase the production profile and/or mine life through the exploitation of additional resources held by Berkeley totalling 27.1-million pounds of U₃O₈, and through ongoing exploration work.

Value
The initial capital cost of the project is estimated at $95.1-million, including all mine, processing, infrastructure and indirect costs required to develop and start production at Retortillo.

A further $74.4-million, incurred in the second year of production, is required to develop Alameda and achieve steady state operation.

The project’s capital cost reflects the excellent existing infrastructure, the use of heap leaching as the preferred processing route and the favoured mining contractor scenario (no mining fleet capital expenditure).

Duration
Not stated.

Latest Developments
Berkeley plans to advance Salamanca through the definitive feasibility study (DFS) phase.

A technical review of all aspects of the PFS and the opportunities identified to further enhance the project economics through capital and operating cost reductions will be undertaken by the company before awarding the DFS. Key workstreams identified as part of the technical review will then be incorporated into the final scope of the DFS, which is expected to be awarded by the end of 2013 and completed by the end of 2014.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Berkeley Resources, tel +61 8 9322 6322, fax +61 8 9322 6558 or email info@berkeleyresources.com.au.