The company is focused on developing the Mulga Rock uranium project in Western Australia.
Sufficient uranium to power up to 8 reactors
Vimy’s recent Definitive Feasibility Study (DFS) showed a strategic long-life uranium project which could provide sufficient uranium to power up to 8 reactors per year.
This is based on the estimated 3.5 million pounds per annum uranium production rate.
The project has a 15-year mine life producing 47.1 million pounds of uranium with a potential to expand based on the 90.1 million pound uranium resource base.
Vimy plans to use an open pit ‘strip mining’ method similar to that used in the minerals sands industry.
Uranium price is improving
The weak price of uranium has turned the corner and is slowly improving thanks to significant production cuts from existing producers.
Last month, Cameco suspended production at its McArthur River mine, the world’s largest producing uranium mine, for at least 10 months.
Japan also is restarting its reactors and continues to target nuclear energy as 20% of the nation’s total energy generation.
Next upward movement in price can be a catalyst
The key to the Mulga Rock Project’s development is securing $493 million in upfront capital.
The next upward movement in the uranium price is expected to provide a window for the project to be funded.
Vimy had a cash balance of $7.3 million at the end of December 2017.