Ann: Independent License To Utilise Ablation Worldwide, page-27

Mine to Mill :

1. 90% reduction in transport costs
2. May mean an on-site mill is not required at many currently ‘stranded’ deposits – further streamlining the mine permitting process and reducing capital costs

At the Mill:

1. 90% less material to process, hence:
2. Smaller tanks and equipment for comparable output, hence lower capital requirements
3. No grinding, hence lower power consumption
4. Lower materials handling costs
5. 90% less reagents required
6. Shorter processing times anticipated, hence notional mill output capacity increased
7. Higher grade input, hence notional mill output capacity increased, therefore lower unit operating costs
8. 90% less tailings to dispose, hence lower capital and reclamation expenses Overall
9. Economically recoverable resources are increased, as lower cut-off grades can be applied


During the first half of 2012 independent engineers TREC Inc. completed a scoping study into the development of just the Hansen Deposit. This study indicated that robust economics are anticipated, with the key outcomes of the study being:

1. Conceptual production rate of 2Mlbs U3O8 per annum
2. Capital costs 3. Initial mine life of 7-8 years (to be followed by development of other deposits within the Project)
4. Operating costs estimated to be ~US$30/lb U3O8
5. Recovery of ~95% U3O8 in ~10% of mined material when utilising Ablation
6. Offsite milling is anticipated – reducing capital costs and streamlining mine permitting