Vimy Resources Runs Eye Over Mulga Rock Base Metals

THE DRILL SERGEANT: Vimy Resources (ASX: VMY) highlighted the ability of the company’s Mulga Rock uranium project in Western Australia to produce by-product credits.

Vimy Resources completed the Mulga Rock Definitive Feasibility Study in 2018, which it followed up with a DFS Refresh in 2020 that confirmed the project as a simple, low-cost uranium mining process, positioning Vimy as Australia’s largest, near-term uranium producer.

The 2018 DFS investigated a stand-alone base metals plant, designed to recover copper, zinc, nickel and cobalt as mixed sulphide by-products from the tailings of the uranium plant

The company has watched on as growing demand for clean energy solutions has seen a rise in base metal prices, prompting Vimy to review the viability of the base metals plant looked at by the DFS.

Initial indications suggest materially improved economics during the first eight years of production when the base-metal bearing deposit, Ambassador, is being mined.

“De-carbonisation of the global economy is seeing a significant step change in the long-term demand, pricing and security of supply for battery metals,” Vimy Resources managing director and CEO Mike Young said in the company’s ASX announcement.

“As a result, it is clear that the base metals circuit has gone from marginal to potentially improving the already strong uranium economics of the Mulga Rock Project.

“Mulga Rock is a world-class uranium project, but one that is likely to be enhanced by base metal by-product credits.

“This very positive outcome creates more options for funding the project.”