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Vimy Resources makes breakthrough at Mulga Rock Uranium

Last updated: 14:00 16 Mar 2015 AEDT, First published: 13:00 16 Mar 2015 AEDT

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Vimy Resources' (ASX:VMY) work at its Mulga Rock Uranium Project located 240 kilometres from Kalgoorlie has seen a breakthrough that could see major flow-on cost savings on capital expenditure and operating costs.

This is timely as a Scoping Study level assessment of the economics of the uranium project is underway, which is located in the Great Victoria Desert of Western Australia.

Vimy has an aspirational target to produce 1,300 tonnes per annum of uranium oxide for up to twelve years from a potential development of Mulga.

The metallurgical test work results identified that up to 65% of the ore host rock at Mulga is silica-rich sand not lignite-hosted uranium deposit as previously thought in the past.

Importantly, the silicate sands can be removed by simple beneficiation before the ore concentrate is introduced to the processing plant.

By removing the silica sand, the mass of ore expected to be processed through the plant can be reduced by up to 65% of the Run of Mine (ROM) ore. 

This is where the significant flow-on cost savings on capital expenditure and operating costs would be seen.

Other work at Mulga at present includes a Resource update using the recently announced drill assay results from Ambassador West, part of Mulga Rock East.

A total of 32 drill holes out of 181 returned intercepts above 1,000 ppm (0.10%) U3O8, with the highest recorded from hole NND5781, with an intercept of 2.5m at 6,774 ppm (0.68%) U3O8 from 38.5 metres.

Mining studies are also ongoing to assess optimal overburden removal techniques.

 

 

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