uranium aimr (geoscience/federal government) repor

Some very good comparisons can be made from this tabled Uranium report, and key AGS indicators and info are mentioned in this top brass report prepared by Geoscience Australia for the feds. Is a current new release, but bear in mind info mentioned only up to about/around mid-way through 2005 judging by some of the initial AGS results info, but you'll all get the idea.
Very helpful for people/posters to have a far greater understanding of Uranium, and also gives an insight into who the serious and most likely Uranium Explorers/Miners will be down the track.
As follows:

australias identified
mineral resources

URANIUM AIMR REPORT 2005 EDUCATIONAL | GENERAL | INDUSTRY

Uranium
Resources
Accessible EDR
JORC Reserves
World Ranking
Exploration
Production
Exports
Industry Developments
Uranium


Uranium has two major peaceful uses: as the fuel in nuclear power reactors to generate electricity; and in the manufacture of radioisotopes for medical applications. Approximately 16% of the world’s electricity is currently generated by the use of uranium in nuclear reactors. Some 439 nuclear power reactors are operating in 31 countries; a further 69 new reactors are under construction or planned for completion within the next ten years. Much of this growth will occur in China, India, Japan and South Korea. A total of 16 countries generate more than 25% of their total electricity requirements from nuclear reactors. Australia has no significant national demand for uranium and all mine production is exported under nuclear safeguards agreements with importing countries.

Resources


Geoscience Australia prepares estimates of Australia’s uranium resources within categories defined by the OECD Nuclear Energy Agency (OECD/NEA) and the International Atomic Energy Agency (IAEA). The estimates in each category are for resources of recoverable uranium after losses due to mining and milling have been deducted. In Table 1, these estimates are reported under the corresponding resource categories of the national classification scheme. The resource categories of both schemes are correlated in Table 3.

National Schemes NEA/IAEA Scheme Tonnes U recoverable
Economic Demonstrated Resources Reasonably Assured Resources (RAR) recoverable at less than US$40/ kg U 701 000
Paramarginal Demonstrated Resources RAR recoverable at less than US$40-80/ kg U 13 000
Submarginal Demonstrated Resources RAR recoverable at less than US$80-130/ kg U 33 000
Economic Inferred Resources Inferred Resources (IR) recoverable at less than US$40/ kg U 343 000
Subeconomic Inferred Resources IR recoverable at US$40-130/ kg U 53 000


Table 3. Correlation of resource classification schemes for uranium.

Australia's EDR were estimated to be 701 000 t U, an increase of 26 000 t U compared to the previous year, resulting from increases in reserves and resources at Olympic Dam. These increases at Olympic Dam were due to combined effects of: i) on-going underground development drilling, and ii) reserve/resource estimates at December 2004, the company using a higher long-term price of $30/lb U3O8 compared with $23.33/lb for the previous year.

Australia had an additional 343 000 t U in Inferred Resources recoverable at costs of
Almost all of Australia’s EDR are within the following six deposits:
Olympic Dam (SA), which is the world’s largest uranium deposit,
Ranger, Jabiluka, Koongarra in the Alligator Rivers region (NT),
Kintyre and Yeelirrie (WA).
Olympic Dam is the world’s largest deposit of low cost uranium. Based on ore reserves and mineral resources reported by WMC Resources as at December 2004, Geoscience Australia estimates that the deposit contains 499 400 t U in RAR recoverable at
Accessible EDR


Just over 10% of uranium EDR is inaccessible for mining. Western Australian Government policies prohibit uranium mining for nuclear purposes from any mining leases granted after June 2002, hence uranium deposits in that State are classified as inaccessible resources. Inaccessible resources also include those deposits in the Alligator Rivers region, where mining leases are too small to accommodate the proposed mine and treatment plant facilities, including water retention ponds. These lease areas cannot be increased in size as they are surrounded by the Kakadu National Park.

JORC Reserves


EDR is the sum of JORC Code reserve categories plus those resources in measured and indicated categories, which Geoscience Australia considers will be economic over the long term. In 2004, JORC of 447 000 t U accounted for just over 70% of AEDR.

World Ranking


Australia has the world’s largest resources of uranium in RAR recoverable at


Exploration


Expenditure on uranium exploration in Australia declined over two decades leading up to 2003. From early 2003, market prices for uranium have increased with spot market prices more than doubling from US$10/lb U3O8 (early 2003) to US$26.25/lb U3O8 in May 2005. This has seen a resurgence of exploration activity marked by a number of new uranium-focussed junior exploration companies listing on the Australian Stock Exchange. Uranium exploration expenditure in Australia increased to $13.96 million in 2004, more than double that for the previous year ($6.38 million). Currently there are over 20 companies exploring for uranium compared with five actively exploring in 2003.

In 2004, all uranium exploration was in the Northern Territory and South Australia with the main areas and deposit types targeted being:
Arnhem Land (NT) - exploration forunconformity-related deposits in Palaeoproterozoic metasediments below a thick cover of Kombolgie Sandstone.
Frome Embayment (SA) – exploration for sandstone uranium deposits.
Gawler Craton/Stuart Shelf region (SA) – exploration for hematite breccia complex deposits.

WMC Resources continued a major exploration drilling program at Olympic Dam where significant additional resources were identified in the south-eastern portion of the deposit. Total resources as at December 2004 were almost 30% higher than in December 2003.

Heathgate Resources announced the discovery of a new zone of uranium mineralisation approximately 3 km south of the Beverley deposit. Referred to as the Deep South zone, it was found using a range of geophysical surveys followed up by an extensive drilling program comprising more than 120 holes. The company also reported other discoveries in and around the Beverley mine.

Alliance Resources/Quasar Resources reported that drilling at the Beverley 4 Mile prospect
(10 km northwest of the Beverley mine) along the western margins of the Frome Embayment intersected uranium mineralisation. Hole AK009 intersected 1.5m at 0.26% eU3O8 from 146m depth. Mineralisation is within carbonaceous sands thought to be Late Jurassic in age and equivalent to the Algebuckina Sandstone. If this interpretation is correct, it represents the first known discovery of significant uranium mineralisation within Mesozoic sediments in South Australia. It also highlights the potential for further discoveries in these sediments, which underlie extensive regions of the Frome Embayment.

Southern Cross Resources continued exploration drilling to test Tertiary palaeochannel sands in the southern portion of the Frome Embayment (SA). In 2004, the company discovered a new zone of low-medium grade uranium mineralisation in an area of the Yarramba palaeochannel, approximately 1.5 km north-west of the Honeymoon deposit. The zone (identified as the Brooks Dam prospect) has been tested by drilling over 1 km along the palaeochannel. Grades and thicknesses of mineralised intersections were measured using a down-hole Prompt Fission Neutron probe. This gives more reliable uranium grades than the gamma-ray probes normally used for measuring grades of mineralised intersections in this type of sandstone-hosted uranium deposit.

Southern Cross also completed airborne electromagnetic survey and ground gravity surveys over the Billeroo region and defined the extent of the Billeroo palaeochannel. A program of 117 holes was completed to evaluate the resources at the Goulds Dam prospect (75 km NW of Honeymoon), which is within the palaeochannel. Updated resource estimates are expected in 2005.

Minotaur Resources continued exploration drilling at the Prominent Hill Cu-Au-U deposit, approximately 150 km northwest of Olympic Dam. The geological setting and style of mineralisation are broadly similar to the Olympic Dam deposit, however, the average uranium grades of drill intersections at Prominent Hill are 100 ppm U, much lower than for Olympic Dam, which averages 400–500 ppm U.



Production


Australia’s uranium production for 2004 came from its three mines: Ranger open cut (5 138 t U3O8), Olympic Dam underground (4370 t U3O8) and Beverley in situ leach (1084 t U3O8), a record level of total production – 10,592 t U3O8 (8982 t U), 19% higher than for 2003. Australia, with approximately 22% of world uranium production in 2004, is the world’s second largest producer after Canada (29%). While there are a number of undeveloped deposits in Western Australia, Northern Territory, South Australia and Queensland, only the Northern Territory and South Australia permit uranium mining.



Exports


Exports in 2004 reached a record 9 648 t U3O8 (8182 t U) valued at A$411 million. Exports of Australian uranium are controlled by Australian Government bilateral safeguards agreements, which are designed to ensure that Australia’s uranium is used only for electricity generation and is not diverted to any military purposes. Importing countries must be signatories to the International Atomic Energy Agency’s safeguards arrangements and have entered into an agreement with the Australian Government to adhere to safeguard obligations for exporting uranium. In addition, the Government recently announced the requirement for countries purchasing Australian uranium to have ratified the Additional Protocol under the Nuclear Non-Proliferation Treaty. This is to strengthen current safeguards arrangements covering exports of uranium.

Australian mining companies supply uranium under long-term contracts to electricity utilities in United States, Japan, European Union (United Kingdom, France, Germany, Spain, Sweden, Belgium, Finland), South Korea and Canada.



Industry Developments


Uranium market developments: Resurgence in spot market prices for uranium continued in 2004. This stemmed from reductions in secondary supplies of uranium available to world markets together with draw-down of stockpiles. Since 1990, world uranium requirements for electricity generation have exceeded mine production, and in recent years mine production accounted for less than 60% of world requirements. The balance has been met from secondary sources including: stockpiles of natural and low-enriched uranium held by electricity utilities and conversion plants; and down-blending of highly enriched uranium (HEU) from ex-military stockpiles in both the Russian Federation and the USA. Over the last few years, the Russian Federation has retained this material to meet the growing demand for uranium for increasing domestic electricity generation. This has decreased the availability of secondary supplies to world markets

Ranger: Operated by Energy Resources of Australia Ltd (ERA), the mine achieved record production for 2004. Mining of the No. 3 Orebody is expected to continue until at least 2008, after which the pit will be used for the storage of tailings. Production from stockpiled ore will continue until 2012. Metallurgical test work was undertaken to investigate the feasibility of processing lateritic ore, which has been stockpiled from earlier mining operations.

Olympic Dam: Production at Olympic Dam for 2004 was 38% higher than for the previous year. Reconstruction of both the copper and uranium solvent extraction plants (destroyed by a fire in late 2001) was completed and the new uranium solvent extraction plant operated at planned production rates during the year.

WMC Resources has been investigating the feasibility of a major expansion of operations, which would increase annual production to 500 000 t copper, 15 000 t U3O8 and 500 000 ounces gold. The study includes:
A major drilling program (90 drill holes) to better define the resources in the southern part of the deposit;
Assessing alternative mining, treatment and recovery methods for the southern part of the deposit;
Identifying and evaluating water and energy supply options; and
Logistics planning that may include linking Olympic Dam to the national rail network.
Evaluation of mining methods and scale of operations was finalised in March 2005. Open cut mining is the preferred method, where it is proposed to mine 35 Mt/year from the open pit and 5 Mt/year from the existing underground operations. During the period, WMC Resources was the target of takeover bids, firstly by Xstrata and then by BHP Billiton. BHP Billiton, with a bid of $9.2 billion (US$6.9 billion), secured control in June 2005 and will continue evaluation of the major expansion at Olympic Dam.

Beverley: In 2004, the Beverley mine produced 920 t U, making it the world’s largest single in situ leach uranium mine. Mining progressed from the North orebody to the much larger Central orebody. Installation of the main trunk lines connecting the plant to the Central orebody was completed.

Honeymoon: Southern Cross Resources commissioned an engineering study to determine the cost of a plant at Honeymoon with production capacity of 400 t U3O8/year. Based on results, a decision was made to keep the project on hold. A program of drilling was completed to better define the resources at Honeymoon and East Kalkaroo deposits.

Jabiluka: In February 2005, the Mirarr Gundjeihmi Aboriginal people, ERA Ltd and the Northern Land Council signed an agreement for the long-term management of the Jabiluka lease. The agreement obliges ERA Ltd (and its successors) to secure Mirrar consent prior to any future mining development of uranium deposits at Jabiluka. The project site remains on long-term environmental care. The traditional Aboriginal land-owners have refused to grant approval for development of the Jabiluka mine. ERA Ltd has announced that there will be no further development at Jabiluka without the formal support of Aboriginal people, and subject to feasibility studies and market conditions.

Western Australia: In March 2004, the Western Australian Government and WMC Resources reached agreement to terminate the Uranium (Yeelirrie) Agreement Act 1978. The Act was legislated in 1978 to facilitate the possible construction of a uranium and vanadium treatment plant at Yeelirrie. The Western Australian Government has prohibited the mining of uranium for nuclear purposes from any mining lease granted after June 2002.


LEFT: Drums of Beverley's uranium oxide concentrates being loaded into shipping containers ready for export (Heathgate Resources Pty Ltd).

RIGHT: Wellfield at Beverley in situ leach uranium mine, South Australia (Heathgate Resources Pty Ltd).


Beverley's uranium extraction plant and main trunklines (pipelines), which carry solutions from the wellfield to the plant (Heathgate Resources Pty Ltd).

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