Vimy Resources updates Mulga Rock Ore Reserve
THE DRILL SERGEANT: Vimy Resources (ASX: VMY) released an updated Probable Ore Reserve for the company’s 100 per cent-owned Mulga Rock project in Western Australia.
The updated Probable Ore Reserve for Mulga Rock comprises 18.7 million tonnes at 755ppm uranium for a total metal content of 31.2 million pounds (14,150t) of uranium.
Vimy Resources explained the Ore Reserve is derived from Mineral Resources of 67.8 million tonnes at 510ppm for total contained metal content of 76.8 million pounds uranium, which the company reported to the ASX earlier this month.
SRK Consulting (SRK) generated pit designs for Ambassador, Princess and Shogun using parameters defined in the Maiden Ore Reserve and updated mining costs and geotechnical parameters from DFS work completed to-date.
The pit designs contain 87 per cent of Probable Ore Reserves within the first 10 years of the mine life.
Probable Ore Reserves now underpin nine years of production based on the pit designs.
Vimy Resources explained the pit designs are based on all Mineral Resources and so contain a proportion of Inferred Mineral Resources.
The company went on to say there is a lower level of geological confidence associated with Inferred Mineral Resources adding there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources, or that production derived from Inferred Mineral Resources will be met.
Vimy emphasised, however, the Inferred Resource does not have a material effect on the viability of the project and does not contribute significantly to the early mine schedule.
“The Probable Ore Reserve Update for Mulga Rock will now form the foundation of the DFS mine schedule and mining engineering studies,” Vimy Resources CEO Mike Young said in the company’s announcement to the Australian Securities Exchange.
“It is a major milestone, one of many to come as we head toward completing the Definitive Feasibility Study.
“It also provides for a significant minelife allowing Vimy to continue discussions for product offtake and project financing.”
Email: info@vimyresources.com.au
Website: www.vimyresources.com.au