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Relating to the pre-operational surveillance plan for the control of the underground water and to the pre-operational surveillance plan for radiological and environmental affections the company has received several favorable assessments from various regulatory bodies including two from the Nuclear Safety Council. Berkley Energia is awaiting the recommendation report from the Nuclear Safety Council to the relevant Minister.
Due to a few outstanding items the company has been informed that the local municipality remains unable to grant the Express Resolution on the award of the Urbanism Licence and these outstanding items have been previously disclosed and are being addressed by the company.Â
The company's priority remains a commitment to the environment, and the Salamanca mine is being developed with the highest international standards. After a consultation process with the agency, the company has been re-awarded both certificates in environmental excellence and sustainable mining.
Ending the year at US$28.50 per pound, up 4% since 30 September 2018, the uranium price further strengthens during the quarter. However, the fundamentals for uranium remain very strong. Regarding nuclear capacity, China is expected to double by 2020 and then double again by 2035. Fifty-eight reactors are currently under construction globally, in total, which is a 25 year high in nuclear growth.
As high priced 2005-2007 contracts run off, US utilities urgently need to start buying. Following the disruption to the nuclear industry in Japan from Fukushima, Japanese utilities come back online at the same time as EU utilities also need to recontract.
It is estimated that around 25% of global production was cut in 2018; meanwhile, supply cuts continue. Under contract for the first six years, the company has 2.75 million pounds of U3O8 (Uranium), with a further 1.25 million pounds of optional volume, at an average price above US$42. The company has granted the Oman sovereign wealth fund the right to match any future long-term offtake transactions and will continue to build its offtake book progressively.
Over 3,600 soil samples during the last two years have been collected along the area covered by the Salamanca mine. Including uranium, Ionic Leach technology was used for the analysis that provides data for 60 different elements. Not only was uranium considered when the data was interpreted but the most common associations of elements corresponding to the paragenesis of deposits of other elements with economic interest have also been considered.
In addition to the uranium, the result of the study of all these associations has given significant anomalies for other elements such as cobalt, tin, gold, lithium and rare earth. The company has applied for twelve new investigation permits given this fact for all the other elements covering more than 350km.
Berkley Energia Limited (ASX:BKY) traded down by -8.333% which is at $0.385 as at January 23, 2019. The stock has witnessed a plunge of -54.10% in the past year but has gone up by 200% in the last month.
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