Vimy Resources has announced definitive feasibility study (DFS) results from the Mulga Rock project in WA, confirming an estimated capital cost of $493 million and an overall net value of $530 million.
These figures cement the project’s potential as Australia’s largest uranium project, with an operating cost of $US25.11/pound (lb), which translates to roughly $68.26/kg, for the first five years, and $US27.95/lb ($75.96/kg) for the overall mine life, generating $134 million a year minus royalties.
“The DFS is the result of two years of incredibly diligent work by the Vimy team and demonstrates the robustness of the Mulga Rock project and its potential to become a strategically important supplier of uranium for nuclear power stations all over the world,” Vimy chief executive officer Mike Young said.
“The report’s release comes at a pivotal time for Vimy as we accelerate negotiations with future offtake partners and aim to secure project finance ahead of a final investment decision in the second half of 2018.”
The project is expected to be the first uranium mine in Western Australia. While Australia is the third-largest exporter of uranium, the use of nuclear power has been banned in the country since 1998.