Vimy Resources upgrades Mulga Rock Resource

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THE DRILL SERGEANT: Vimy Resources (ASX: VMY) has released an upgrade to the Ambassador Resource Estimate for the company’s Mulga Rock project (MRP).

The estimate was completed inhouse and validated by the independent resource consultant, AMC Consultants and is based on an in-fill drill program completed earlier this year.

The Ambassador resource currently makes up more than half of the total uranium Mineral Resource for the MRP.

Vimy said the increase in the proportion of Indicated Mineral Resource in the resource base will underpin an Ore Reserve update that will support the Definitive Feasibility Study (DFS) currently in progress.

The key highlights of the upgrade include:

Greater than 80 per cent of Ambassador classified as Indicated:
Over 80 per cent of the metal in the Ambassador resource is now in the Indicated Mineral Resource category, totalling 19.8 million tonnes at 720ppm U3O8 for 31.5 million pounds U3O8;

Good continuity of Indicated status material:
Vimy consider this to be an important characteristic given continuous strip mining is being proposed at Mulga Rock;

Overall increase in the Resource:
The Mineral Resource Estimate is increased to 66.5 million tonnes at 520ppm U3O8 for a contained 76.2 million pounds U3O8; and

High conversion expected from Indicated Mineral Resources to Probable Ore Reserve.

“This resource update is a critical milestone for the DFS that is currently underway,” Vimy Resources managing director Mike Young said in the company’s announcement to the Australian Securities Exchange.

“The exploration team has completed all the drilling necessary to support the DFS.

“We will shortly be releasing the Mineral Resource updates with Shogun and Emperor where we are expecting increases in overall metal and resource classification.

“We are currently working on the Ore Reserve for Ambassador and expect this to increase markedly and this will underpin future project financing and offtake contract discussions.

“The DFS is progressing on-schedule and on-budget and the Project Team is doing a stellar job.

“We are on-track to be first uranium mine in Western Australia”

Website: www.vimyresources.com.au