In mid July 2008, Energy Metals Limited announced the results of a scoping study undertaken by Paladin on its behalf to aid in drill planning and to define a minimum economic size for the deposit. The results indicate that the project is viable, with potential annual production rates of approximately 1.5Mlb U3O8, over a 10 year period, from a number of open pits. An underground option also was assessed and has been reported by Energy Metals Limited, but this is unlikely to be a priority target in the near future.
The Australian Nuclear Science and Technology Organization (ANSTO) performed metallurgical test work for the Bigrlyi Project and produced uranium recoveries of 94-98% from acid leach, with reasonable acid consumption values. Coarse grinding studies have indicated the possibility of lowering the acid consumption without appreciably reducing uranium recoveries. Tests using a range of variables yielded extraction rates of 94-95% uranium and 45% vanadium over eight to 12 hours. Uranium recoveries from alkaline leach test work were 93%.
Following the updated resource estimate announced in May 2009 by Energy Metals, new mining studies indicated that additional open pit resources would be required to maintain the viability of the project at current uranium prices. Based on these assumptions a new budget was approved in July 2009 by the Joint Venture partners to concentrate on both resource extension drilling and a limited grade control study.
Energy Metals Ltd completed the 2009 resource drilling in December 2009. 67 RC holes for 8,118m and 9 diamond holes for 750m were completed.