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Jul 21 - US$47.25 Uranium Spot Price* TradeTech


http://www.miningweekly.co.za/min/news/thisweek/?show=89794

Namibian uranium mine to begin production in August
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Langer Heinrich Uranium mine (LHU) is to start production in August and intends to reach the design production capacity of 1 180 t of U308 by the middle of 2007.

LHU GM Wyatt Buck says that the mine, which is situated 85 km east of Swakopmund, will start production in August, while commissioning of the plant will start on September 22, this year.

LHU is a wholly-owned subsidiary of Paladin Resources. The uranium deposit consists of carnotite in calcreted tertiary alluvial sediments filling an east-west channel that drains metamorphic and granitic rocks of the Proterozoic Damara Orogenic Belt.

The mineralisation outcrops in several places in its eastern part, but deepens downchannel to the west.

“The design capacity of the pro-cess plant is 1 180 t of U308 a year and production out of the pit will be somewhat higher to ensure stockpile availability.

“We have not yet initiated mining but, as we will require ore for the process plant commissioning after September 22, the actual mine production will start in August,” Buck says.

The project is estimated to cost $92-million with sustainable capital requirements to carry on through the life of the mine, Buck adds.

The life-of-mine is estimated at 17 to 20 years and Buck says the estimates are based on current knowledge of the orebody.

“Exploration drilling is continu- ing, as a high percentage of the property still requires definition drilling,” he says.

LHU resumed exploration dril-ling on its mining lease in July and Buck says there is a significant area on the lease which has not been drilled.

“LHU is optimistic that the mining reserves will increase with this drilling,” Buck says.

“Langer Heinrich intends to reach the design capacity of 1 180 t of U308 by mid-2007, which will certainly have a positive impact on Namibian production.” The first product shipment is expected in February 2007.

Buck says that the total project is now 78,9% complete, while overall site construction is 52,5% complete.

He adds that the project remains on time and within budget. LHU currently employs 587 people directly.

Another uranium mine, Rossing Uranium, recently announced that it plans to increase production of uranium oxide to more than 4 000 t this year from the 3 711 t produced in 2005.

Namibia, which accounts for about 7,55% of the world’s primary production of uranium oxide, is the Southern African region’s largest producer of uranium. The government of Namibia last year issued an invitation to foreign investors to invest in the country’s uranium-mining industry.