As per ASX announcement on 10th December, Vimy Resources Ltd (ASX:VMY) has successfully completed the Scoping Study for its 75% owned Angularli Uranium Deposit, at the Alligator River Project. The study conducted by Wood Plc provides an estimate of -20-40% capital and operating cost levels for plant processing and infrastructure as well as TME Consultants providing estimates for mine design.
The nuclear science organization ANSTO undertook the metallurgical testing and stated two feasible flowsheet options - solvent extraction and direct precipitation. Both the flowsheets have similar front ends and back ends with the only difference being the uranium recovery routes. It also confirmed the converter specifications being met by the yellowcake product.
The Scoping Study takes a parallel approach to the one adopted during successful stint of Nabarlek uranium mine during 1980-88 period. Owing to its very high grade, the Nabarlek orebody was completely mined out in one dry season using open pit mining with the ore stockpiled on the surface and processed over an eight-year period. At Angularli, it is proposed that underground mining would be undertaken over approximately 36 months after a preproduction mine development period of approximately 12 months. The remaining open stopes would then be used for tailings paste backfill.
Vimy managing director and CEO Mike Young said: “The high quality Angularli deposit provides immense opportunity to develop a Tier One asset. Given the prospectivity of the Angularli deposit and recent encouraging drilling results at the nearby Such Wow prospect, I’m confident the Angularli area will grow to become a significant part of our project portfolio. “Notwithstanding that the resource is still at the inferred status, the scoping study itself has been completed with high standards and the board agrees that the results merit further work.”
Vimy Resources is a uranium exploration and development company. Its flagship project is the Mulga Rock Project in the Great Victoria Desert of Western Australia. It also possesses 75% ownership stakes in Alligator River uranium district, located in the Northern Territory along with 25% joint venture with Rio Tinto Exploration Pty Limited.
At Angularli, it is proposed that underground mining would be undertaken over approximately 36 months after a preproduction mine development period of approximately 12 months. The remaining open stopes would then be used for tailings paste backfill. The surface stockpile of mined material would be processed over a similar period to Nabarlek.
The scrip price has been on a major downtrend this year, falling from $0.160 to currently around $0.051 (as on December 10, 2018), representing a plunge of 67%.
However, it is worth keeping an eye on Vimy’s stock representing great upside and growth potential, attributable to Mulga project enjoying status of Australia’s largest undeveloped uranium resources and world class largest granted uranium exploration package in the Alligator River uranium district.
The resource development company aims at exploring large uranium deposits identical to those found in the high-quality Athabasca Basin in Canada.