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South African uranium company plans Australian mine
The South African uranium company Uranium One, is set to go ahead with a second uranium mine, the $35,9million Honeymoon Project in south Australia.
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Anticipated demand for uranium to meet global energy needs has pushed up the price of uranium quite strongly in the past few years, which in turn has encouraged a number of new
ventures.
Uranium One plans to start producing its first uranium from its Dominion mine near Klerksdorp in the first quarter of next year. Its 75% held subsidiary, Aflease Gold, recently gave the go-ahead for the construction of a new gold mine at Modder East, situated near Springs on the East Rand. |
A feasibility study on Honeymoon showed an indicated mineral resource of 2900 metric tons of uranium which could be mined at an average cost of $14.13 per pound. The weekly spot price of uranium is currently $48 per pound, and the payback period would be 2,9 years after construction begins.
The mine would be financed through debt and internal resources, Uranium One said. Uranium One CEO, Neal Froneman, said that the mine, which was expected to be commissioned in 2008, would be Australia's fourth uranium mine. Discussions were already taking place with potential suppliers for long-lead items and infrastructure development. Apart from these two projects, sxr Uranium One is also engaged in uranium exploration in the Athabasca Basin in Saskatchewan, in a joint venture with Pitchstone
Exploration.
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