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SUBJECT: Equinox Plans Uranium Mine in Zambia Posted By: sinyama
Post Time: 9/7/2007 01:09
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Equinox plans uranium plant at Lumwana project
7-September-07 by Edited announcement
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West Perth-based mineral explorer Equinox Minerals Ltd is considering building a uranium plant separate to its planned copper plant at its $922 million Lumwana project, to maximise the by-product potential of the site.

The full text of an announcement made on behalf of Equinox is pasted below

A separate uranium processing plant is being considered by ASX-listed Equinox Minerals Limited to maximise the by-product potential of its massive US$760 million Lumwana copper project due to come on stream in Zambia mid next year.

Addressing the second day in Perth of the 2007 Paydirt Africa DownUnder Conference, Equinox's Chief Executive Officer, Mr Craig Williams, said today that the current market conditions for the commodity warranted the Company's re-evaluation of Lumwana's uranium potential.

"An updated full bankable feasibility study (BFS) on Lumwana's uranium prospects is due for completion by first quarter calendar 2008," Mr Williams said.

"The BFS outcome will decide the way we take forward the uranium aspect of this project, but the likelihood is, that we will build a uranium processing plant as a separate module to the copper plant.

"That could probably be commissioned a year and a half after the copper plant comes on stream in mid 2008 - and could potentially produce 1.5 million pounds per year of uranium oxide.

"The uranium mineralisation occurs as two high grade uranium zones within the copper mine's open-pit so our current attitude is to selectively mine and stockpile these discrete ore bodies," he said.

"We continue to infill drill the zones to better define them and we know from pilot plant trials we can produce yellowcake from Lumwana's uranium - so it is all doable."

Mr Williams said that while the uranium spot price had eased, the BFS was based around the economics of US$11 a pound uranium oxide, compared, despite the recent price dip, to the current price range of nearer US$100.

Lumwana's uranium resources are estimated at 21.8 million pounds of uranium oxide with metallurgical tests suggesting a 97% recovery rate.

Mr Williams emphasised that while the uranium looks exciting, copper represents the core of this massive project.

"When Lumwana's maiden copper output comes on stream next year, the mine will produce 370 million pounds of copper annually, or about 170,000 tonnes of the metal per year, making it Africa's largest copper mine at that time," he said.

Lumwana has a current projected mine life of 37 years, "so Equinox is building this one for the long term".

The mine's entry into global copper ranks will position Equinox as the 17th largest copper producer in the world and Australia's fourth largest, making Equinox, Mr Williams said, a significant player in the copper market.