THE DRILL SERGEANT: Vimy Resources (ASX: VMY) announced a Ore Reserve update for the company’s 100 per cent- owned Mulga Rock project in Western Australia.
Vimy Resources said the Ore Reserve update consists of 22.7 million tonnes at 845ppm uranium (U3O8) for a total metal content of 42.3 million pounds (19,185 tonnes) of U3O8.
This Ore Reserve is derived from Mineral Resources of 71.2 million tonnes at 570ppm for total contained metal content of 90.1 million pounds U3O8, which the company reported in July 2017.
Vimy Resources has received an independent review of the optimised pit designs for the Ambassador, Princess and Shogun deposits using parameters defined in the Ore Reserve update from November 2016, as well as updated mining and processing costs from Definitive Feasibility Study (DFS) work completed to-date.
The company expects the DFS will be completed and released to the market in the December quarter.
Vimy explained the optimised pit designs are based on the entire Mineral Resource, adding that the company 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 considerable proportion early in the mine plan.
The contained metal within the optimised pit designs for Princess, Ambassador and Shogun consist of 85 per cent Ore Reserves and more than 90 per cent Ore Reserves in the first ten years of production.
In addition to the Ore Reserves, there is 7.3 million pounds from 6.5 million tonnes 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.
“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,” Vimy Resources CEO Mike Young said in the company’s announcement to the Australian Securities Exchange.
“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.”