Key highlights:
- Ore Reserves now at 42.3Mlbs U3O8 from 22.7Mt at 845ppm U3O8
- Maiden Proved Ore Reserve of 12.3Mlbs from 5.3Mt at 1,055ppm U3O8
- Ore Reserve metal increases 36% from last update in November 2016
- Vimy expects material improvements in project economics
Vimy Resources Limited (ASX:VMY) (Vimy) is pleased to announce a major
Ore Reserve update comprising 22.7Mt at 845ppm U3O8 for a total metal content
of 42.3Mlb (19,185t) of U3O8 at its 100% owned Mulga Rock Project.
This Ore Reserve is derived from Mineral Resources of 71.2Mt at 570ppm for total
contained metal content of 90.1Mlbs U3O8, as reported to the ASX on 12 July 2017.
Mining Plus Pty. Ltd. (Mining Plus) provided an independent review of the optimised
pit designs for Ambassador, Princess and Shogun using parameters defined in the
Ore Reserve update (ASX announcement 16 November 2016) as well as updated
mining and processing costs from Definitive Feasibility Study (DFS) work completed
to-date. The DFS will be completed and released to the market in the December
quarter.
The optimised pit designs are based on the entire Mineral Resource. Vimy is satisfied
that the proportion of Inferred Mineral Resource is not the determining factor in project
viability, and the Inferred Mineral Resource does not feature as a significant
proportion early in the mine plan.
The contained metal within the optimised pit designs for Princess, Ambassador and
Shogun consist of 85% Ore Reserves and more than 90% Ore Reserves in the first
ten years of production. In addition to the Ore Reserves, there is 7.3Mlbs from 6.5Mt
at 505ppm U3O8 of inferred resource inside the optimised pit designs. The Emperor pit
forms part of the ongoing DFS, but does not contain any Ore Reserves as it currently
comprises only Inferred Resources.
Vimy’s CEO, Mike Young, commented: “This Ore Reserve update demonstrates
the Mulga Rock Project is one of the best near-term, long-life global uranium projects
in the world today. It is a great tribute to our Team at Vimy that we keep delivering
on our promises; these ore reserves, including three years of Proved reserves provide
sufficient surety to fund the project.
“I have always said, Vimy is a compelling investment case in any uranium market,
and therefore provides maximum leverage to the uranium price.
“The ‘go line’ is well and truly in sight”.