1 Sept (NucNet): Canada-based mining company SXR Uranium One is to invest almost 36 million US dollars (USD) (28 million euros) in the development of the Honeymoon in-situ leach (ISL) uranium project in South Australia.
The company said its board had given its approval this week following a detailed review of a feasibility study that estimates mineral resources at the site of 1.2 million tonnes of ore, or 2,900 tonnes of U3O8.
SXR, which intends to fund the project with a mix of finance from debt and internal sources, said the feasibility study had confirmed that the Honeymoon ISL project is both technically viable and financially robust.
The study examined the development of a commercial uranium ISL project with an annual production capacity of 400 tonnes of U3O8 and a total project life of between six and seven years.
Capital costs for the project are estimated to be USD 35.9 million, with an additional USD 5.6 million allocated for working capital-related costs. SXR said it hopes to commission the mine, Australia’s fourth, in 2008.
SXR also owns the Dominion uranium project in South Africa and said it is pursuing growth opportunities in the US.
>>Related reports in the NucNet database (available to subscribers)
Australia Opposition Leader Calls For End To Party’s ‘No New Mines’ Policy (World Nuclear Review No. 30, 28 July 2006)
Australia ‘Could Lose Billions’ Without Nuclear Fuel Industry (News No. 185, 31 August 2006)
