Vimy Resources Updates Mulga Rock Mineral Resource

THE DRILL SERGEANT: Vimy Resources (ASX: VMY) announced a Mineral Resource update on the Ambassador deposit at the company’s Mulga Rock project (MRP) in Western Australia.

Vimy Resources explained the update relates to the Ambassador East deposit where drilling was completed in 2016, and is part of a larger resource update of the entire Mulga Rock Project which is due for release in June 2016.

Highlights from the Mineral Resource Estimation (MRE) update are:

A maiden Measured Mineral Resource for the MRP of 12.4 million pounds uranium, including a high-grade, Measured Resource at greater than 0.11 per cent uranium (1,100ppm);

A 14 per cent increase in contained metal at Ambassador East (from 12.4 to 14.1 million pounds uranium);

Further resource work underway indicates a 20 to 25 per cent uplift in metal in the entire Ambassador Resource; and

Drilling results that include intersections of: 7.5 metres at 2,598ppm uranium and 4.5m at 2,792ppm uranium.

Two open pits were excavated as part of an ongoing Definitive Feasibility Study (DFS) on the Ambassador deposit, from which 75 dry tonnes of ore was excavated.

A subsequent assessment of the material from the test pits confirmed the contained U3O8 in the excavated material was 53 per cent higher than expected from the resource model. 

This provided Vimy with the impetus to conduct further ‘Optimisation Drilling’, in 2016, the results from which have been included in the recent update.

The 2016 drilling program was carried out over part of the Ambassador East deposit which falls inside the current pit designs.

Key intersections include:

NNA7060 (AC)
5m at 2,090ppm uranium from 38.5m;

NNA7092 (AC)
4.5m at 2,792ppm uranium from 39.5m;

NND7108 (DD)
2.3m at 3,008ppm uranium from 44.9m;

NND7304 (DD)
4.9m at 2,417ppm uranium from 44.9m;

NNA7146 (AC)
7.5m at 2,598ppm uranium from 43.5m; and

NND7041 (DD)
2.3m at 4,059ppm uranium from 34.5m.

Vimy said Ambassador East will provide ROM Feed for the first years of production, noting a 92 per cent conversion from Indicated to Measured Status. 

“This resource upgrade is very positive for us, but more importantly, the lessons we’ve learned and applied to our models will result in very improved economics in the DFS,” Vimy Resources managing director Mike Young said in the company’s announcement to the Australian Securities Exchange.

“Instead of talking about forward demand for uranium, we’ll be able to compete in today’s market.

“In a nutshell, these results have changed our paradigm from a wannabe to a gonna-be.”