1 | P a g eSilex Systems Limited | ABN 69 003 372 067LHSTC, New Illawarra Road, Lucas Heights NSW 2234Telephone: +61 2 9704 8888 | Facsimile: +61 2 9704 8851 | Website: www.silex.com.auContinued acceleration of GLE’s CommercialisationProgram for the SILEX Technology through CY202419 February 2024• GLE joint venture owners Silex (51%) and Cameco (49%) have approved GLE’soperating plan and budget for CY2024 that enables the continuation ofaccelerated activities in the commercialisation program for the SILEX uraniumenrichment technology• The CY2024 plan and budget involves an approximate doubling of GLE’s projectexpenditures compared to CY2023 (to up to US$54.5 million), and in addition toacceleration of the technology demonstration project, will allow GLE to progressother key commercialisation activities, including Paducah, KY site acquisitionactivities, NRC commercial plant licensing activities, and completion andcommissioning of the new GLE corporate and manufacturing facility inWilmington, NC• The CY2024 plan and budget, including accelerated demonstration of the SILEXtechnology at GLE’s Test Loop pilot facility in Wilmington, preserves the optionof commencing commercial operations at the planned Paducah LaserEnrichment Facility (PLEF) as early as 2028• Continued acceleration of GLE’s commercialisation program beyond CY2024remains conditional on the availability of industry and government support,geopolitical and market factors, and a feasibility assessment for the PLEFSilex Systems Limited (Silex) (ASX: SLX; OTCQX: SILXY) is pleased to advise that GLE’sCY2024 plan and budget has been approved by the GLE joint venture Governing Board whichwill enable continued acceleration of the commercialisation program for the SILEX uraniumenrichment technology. With GLE’s and Silex’s combined efforts in CY2023 and CY2024 tobring forward activities and expenditures, GLE anticipates completing the technologydemonstration project during CY2024, which will include the completion of an independentassessment of the TRL-6 1 pilot demonstration and submission of a report to Silex andCameco.1 Technology Readiness Level 6 (TRL-6) as defined by DOE Technology Readiness Assessment Guide (G 413.3-4A)2 | P a g eMichael Goldsworthy, Silex’s CEO/Managing Director said:“In view of climate change and geopolitical issues, market pressure for new Westernenrichment capacity continues to intensify, including proposed legislation to ban the import ofRussian uranium products into the United States and a voluntary industry shift away fromRussian-sourced nuclear fuel. Given the potential for supply disruptions in the global nuclearfuel market, Silex and Cameco have agreed to a CY2024 plan and budget for GLE, whichassuming successful completion of the pilot demonstration project and other activities,preserves the option of commencing commercial operations at the planned PLEF multi-purpose production plant as early as 2028, subject to the availability of industry andgovernment support, as well as geopolitical, market and other factors.”“Specifically, GLE’s CY2024 plan and budget supports the completion of the technologydemonstration project, continued pursuit of government and industry support and fundingopportunities, site acquisition activities related to the planned PLEF, preparation of the PLEFNRC license application, completion and commissioning of GLE’s new facility in Wilmington,NC, and activities to support manufacturing readiness and supply chain development. Theseactivities provide the potential for GLE to deploy the SILEX uranium enrichment technology ina timely manner to help address the forecast supply gap in nuclear fuel markets in the comingyears,” he added.The Triple Opportunity for GLE and the PLEF multi-purpose production plant:The Triple Opportunity includes the following three PLEF commercialisation options at a multi-purpose production plant, which are not necessarily sequential by nature. The order of priorityfor deployment will depend on government and industry support and market factors:1) PLEF UF6 Production: Production of natural grade UF6 (with U-235 assay of 0.7%)via processing of depleted tails (U-235 assays of 0.25% to 0.5%) with the SILEXtechnology (the original PLEF Project) which would come in the form of alreadyconverted uranium, thereby potentially helping to alleviate UF6 conversion supplypressure;2) PLEF LEU Production: Production of low enriched uranium (LEU) (U-235 assays upto 5%) and LEU+ (assays from 5% to 10%) from natural UF6 with separate SILEXenrichment capacity – to supply enriched uranium fuel for existing reactors;3) PLEF HALEU Production: Production of high assay LEU (HALEU) (U-235 assaysup to ~20%) via enrichment with SILEX technology to supply fuel for next generationadvanced SMRs.The PLEF opportunities are underpinned by the landmark 2016 agreement between GLE andthe US Department of Energy (DOE) which provides the feedstock for the production ofequivalent natural grade uranium in the form of UF6 over three decades, with the output soldinto the global uranium market at an expected production rate equivalent to a uranium mineproducing an annual output of up to 5 million pounds of U3O8, which would rank in the top tenof today’s uranium mines by production volume.3 | P a g ePreliminary analysis by Silex of the PLEF UF6 Production Project indicates it could rank equalto a ‘Tier 1’ uranium project based on current estimates of the long-life and low cost ofproduction.Subject to the successful completion of the pilot demonstration project, industry andgovernment support, a feasibility assessment for the PLEF and market factors, the SILEXtechnology could enable GLE to become a major contributor to nuclear fuel production for theworld’s current and future nuclear reactor fleets.Authorised for release by the Silex Board of Directors.Further information on the Company’s activities can be found on the Silex website:www.silex.com.au or by contacting:Michael Goldsworthy Julie RussellCEO/Managing Director CFO/Company SecretaryT +61 2 9704 8888 T +61 2 9704 8888E [email protected] E investor.re
SLX Price at posting:
$4.78 Sentiment: Buy Disclosure: Held
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