PERTH (miningweekly.com) – The Western Australian Department of Mines, Industry Regulation and Safety (DMIRS) has approved ASX-listed Vimy Resources' project management plan for its Mulga Rock uranium project.
The DMIRS approval is one of three state government approvals required for the project.
“The grant of the first of the three secondary approvals is a significant milestone along the path to developing the Mulga Rock project. Vimy has, and will continue to work cooperatively with the various government departments to obtain the remaining approvals,” said MD and CEO Mike Young.
“Diversification and security of supply are front of mind for nuclear utilities as global uranium production shrinks from the middle of this decade. Combined with renewed activity in the term uranium market, this approval augurs well for a project final investment decision in the year ahead.”
The DMIRS approval allows for the start of mining operations at the Mulga Rock project, subject to the granting of other necessary approvals.
In parallel with the ongoing mobilisation of field crew to support site works at Mulga Rock, Vimy has now lodged a notification of the appointment of a Registered Manager with DMIRS to supervise those activities.
The Mulga Rocks project is expected to require a capital investment of $255-million, to support a production rate of 3.4-million pounds a year, with a mine life of 15 years. The project is estimated to have a net present value of $393-million and an internal rate of return of 31%.