PepinNini Minerals (ASX: PNN) has announced preliminary financial modeling of the Crocker Well Uranium Project indicates the project is not viable in the current market conditions.
The analysis, undertaken as part of a Bankable Feasibility Study for the development of a uranium mine, has determined the viability of the project is very sensitive with regard to the price of uranium and the American dollar exchange rate.
PepinNini Chairman and Managing Director Norman Kennedy said the joint venture alliance between Sinosteel Corporation and the company had decided to delay the finalisation of a BFS until there was a substantial sustained increase in the price of uranium and improvement in the American dollar.
"In the meantime the joint venture intends to continue investigating whether the delineation of potential additional resources located in the vicinity of Crocker Well will have an effect on the project viability," Mr Kennedy said.
"The joint venture also intends to commence investigating the potential for copper-gold, lead-zinc, iron ore, manganese, rare earths and other mineralisation located within the tenements held by the joint venture partners in the Curnamona Province of South Australia."