Name of the Project
Salamanca uranium project.

Location
Spain.

Client
Berkeley Energia.

Project Description
Salamanca has an overall mineral resource estimate of 89.3-million pounds of uranium (U₃O₈). The project is based solely on measured and indicated resources totalling 59.8-million pounds.

An independent study has confirmed the project as one of the world’s lowest-cost producers capable of generating strong after-tax cash flow through the current low point in the uranium price cycle.

The study is based on extracting 61.3-million tonnes of ore at an average grade of 408 parts per million (ppm) U₃O₈ to produce 48.6-million pounds of U₃O₈.

The study envisages an initial mine life of 14 years, producing on average 3.5-million pounds of uranium a year. After an initial ramp-up, production will average 4.4-million pounds a year over ten years of steady-state operation.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $531.9-million and an internal rate of return of 60%.

Value
The project will require upfront capital of $95.7-million.

Duration
First production is expected in 2018.

Latest Developments
Development work began in August.

Work is currently under way to build a 5.2 km road deviation and a raw water dam, and to develop pedestrian foot paths, secure cattle paths and install a WiFi network for local villagers.

A contract for rerouting a main powerline has been awarded to Iberdrola.

Construction will begin in early 2017, after completion of the road access development, which is expected to take about three months.

In late September, Berkeley announced the appointment of MDM Engineering, part of the Amec Foster Wheeler Group, to carry out the Salamanca mine’s front-end engineering and design (FEED) – the execution phase of the project during which the overall engineering and process design are translated into equipment procurement packages and awards to specialist subcontractors.

Key Contracts and Suppliers
Iberdrola (rerouting of main powerline) and MDM Engineering (FEED).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Berkeley Energia, tel +44 207 478 3900 or fax +44 207 434 4450.