Interesting. Wonder what effect this will have on MEY? Given the...

Interesting. Wonder what effect this will have on MEY? Given the following recently placed on their website MEY'S outlook certainly looks okay at present assuming the estimates are correct.

Based on this resource figure, the company commissioned SRK Consulting to undertake a comprehensive
Scoping Study on its Marenica Project. The results of the study were released in late 2010, showing that a
US$260 million heap leach operation could deliver 3.5 million pounds of uranium annually at a highly
competitive operating cost of US$38 a pound. The Scoping Study found the Marenica Project could
produce a total of 45 million pounds of uranium over a 13‐year life based on the existing defined Indicated
and Inferred Mineral Resource.

By Servaas van den Bosch

WINDHOEK (Reuters) - French energy group Areva is looking for a partner to start mining at its Namibian uranium project, a senior official said on Thursday.

Areva said in February that production at the Trekkopje mine would start in the last quarter of 2013, roughly a year behind schedule, and will produce 3,000 tonnes of yellow cake per annum through heap-leaching.

Enrico Barbaglia, vice president of Areva South Africa, said on Thursday there would be no further delays, despite doubts about nuclear safety and demand for uranium following the crisis in Japan.

"Areva often works with partners, We would rather favour a partner coming in on the project," Barbaglia told Reuters on the sidelines of a mining conference in Windhoek.

Because of the deposit's low grades Trekkopje is thought to be only viable at a long-term price of $70-80 per pound. Spot uranium on Thursday stood at $57.75 per pound.

But Barbaglia dismissed speculation Areva was looking to sell the mine or delay construction till prices pick up.

"The Trekkopje mine is under pressure for price, but you will be hard-pressed to find any project today where the dynamics are different," he said.

Barbaglia said Trekkopje will be the lowest grade uranium mine ever taken into production.



"Today's price is certainly not a stopper to the project and we expect a natural escalation over the years till we reach production. Of course, if the price goes the other way, we have to review the project," he said.

Barbaglia said the desalination plant it built at the coast was functioning well and the company is hoping to sell its excess capacity to utility Namwater.

He said Trekkopje will not be affected by a recent government decision to oblige future mining operations to enter into a joint venture with state-owned mining company Epangelo.

"This doesn't affect us. We are talking with Epangelo, but that is to identify interesting areas for new exploration activities. These talks need to regain focus," he said.

He did not want to elaborate on a minerals windfall tax announced by the mining minister this week.

"Namibia is a good environment to do business. We understand government has certain requirements. It could include a look at overall taxation. We will wait for clarification," he said.