Langer Heinrich is a surficial, calcrete type uranium deposit containing a Mineral Resource of 77,980t U3O8 at a grade of 0.54% U3O8 (250ppm U3O8 cut-off grade) in seven mineralised zones designated Detail 1 to 7, within the 15km length of a contiguous paleodrainage system. The deposit is located in the Namib Desert, 80km from the major seaport of Walvis Bay.
The Mineral Resource is detailed below at a cut-off grade of 250ppm U3O8.
Mineral Resource Estimate (depleted for mining at end of June 2012) for Details 1 to 7:-
| 250ppm Cut-off |
Mt |
Grade
% U3O8 |
t U3O8 |
Mlb U3O8 |
| Measured Resources |
29.5 |
0.054 |
15,893 |
35.04 |
| Indicated Resources |
72.8 |
0.055 |
40,320 |
88.90 |
| Measured & Indicated |
102.3 |
0.055 |
56,213 |
123.93 |
| Stockpiles |
25.1 |
0.043 |
10,842 |
23.90 |
| Inferred Resources |
18.5 |
0.06 |
10,926 |
24.1 |
(Figures may not add due to rounding and are quoted inclusive of any Ore Reserves, and have been depleted for mining to the end of June 2012)
Ore Reserves
Economic analysis on this resource has indicated a break-even cut-off grade of 250ppm.
Ore Reserve Estimate (250ppm U3O8 Cut-off)
| 250ppm Cut-off |
Mt |
Grade
% U3O8 |
t U3O8 |
Mlb U3O8 |
| Proved Ore Reserve |
24.2 |
0.054 |
13,135 |
29.0 |
| Probable Ore Reserve |
62.1 |
0.057 |
35,207 |
77.6 |
| Stockpiles |
25.1 |
0.043 |
10,842 |
23.9 |
| Total Ore Reserve |
111.3 |
0.053 |
59,184 |
130.5 |
(Ore Reserve has been depleted for mining to the end of June 2012)
The Ore Reserve base is unchanged from that reported previously and has only been depleted for mining to 30 June 2012. The underlying Mineral Resource estimate is based on Multi Indicator Kriging and incorporates a specific adjustment based on parameters derived from mining activities. As a result, additional dilution and mining recovery are not included in the Ore Reserve estimation.
The cost, processing, mining and pricing parameters used in the 2010 Ore Reserve estimation are essentially unchanged and, as such, their inclusion can reasonably be justified. The revenue rate used in the Ore Reserve estimate was US$60/lb and is still regarded as appropriate when compared to the current blend of UxC spot price and existing term contracts.
These reserves form the basis of the life of mine planning for the project. The updated mine model defines a project life of in excess of 20 years based on a processing throughput of 3.45Mt/pa.
Exploration
Exploration (EPL3500)
Exploration Licence (EPL) 3500 abuts the Langer Heinrich Mining Lease to the west and includes the alluvial covered western extension of the mineralised Langer Heinrich palaeochannel.
Following on from previous drilling, areas close to the mining lease which remained open were the subject of a drilling programme completed in August 2011. This data will be incorporated into a review of the Mineral Resource model expected to be completed late in the second half of 2012. At this stage, only limited additional drilling is expected to be carried out on the western portion of the
exploration lease.