TIDMBKY
RNS Number : 4533E
Berkeley Energy Limited
04 November 2015
AIM RELEASE | 4 November 2015 | AIM: BKY
Zona 7 transforms Salamanca project economics
Inclusion of the high grade Zona 7 deposit into an updated
Pre-Feasibility Study has transformed the economics of the
Salamanca project.
The project now has a Net Present Value of US$871.3 million
(GBP580.9 million) with an internal rate of return of 93% based on
a discount rate of 8% and a long term uranium price of US$65 per
pound.
This valuation represents around GBP3.22 per share on an
undiluted and unfinanced basis compared with the current share
price of around GBP0.22 per share.
Managing Director Paul Atherley commented:
"These outstanding results very much support the Board's
decision to rapidly push ahead with the development of the
project.
With the major approvals in place and discussions with potential
financiers underway we are expecting to commence site works in
mid-2016."
As previously reported, Zona 7 is a shallow, high grade deposit
with impressive metallurgical characteristics located within ten
kilometres of the proposed processing plant.
Its inclusion in the updated Study has increased the mine life
from eleven to eighteen years and reduced the operating costs from
US$24.60 to US$15.60 per pound of uranium produced during steady
state operations making it one of the lowest cost producers in the
world once developed.
In addition to the reduction in operating cost, the capital cost
to initial production has reduced from US$95.1 million to US$81.4
million due to the lower cost of developing the Zona 7 deposit and
the benefits of currency depreciation.
Paul Atherley commented further:
"We believe that the potential exists for further discoveries of
Zona 7 style deposits and are finalising an exploration programme
to commence in the New Year which will follow up a number of near
surface, high grade drill intersections, located within ten
kilometres of the plant that have not yet been fully
evaluated."
For further information contact:
Paul Atherley Hugo Schumann John Prior / Paul Gillam
Managing Director Corporate Manager Numis Securities
+44 207 478 3900 +44 207 478 3900 Nomad & Broker
+44 207 260 1000
info@berkeleyenergy.com
Table 1 - Summary of Key Study Outputs
Pre-Feasibility Study Results (to
a maximum accuracy variation +/-
20%)
------------------------------------------------
Net Present Value (Post-tax US$871.3m
@8%)
------------------------------------ ----------
Internal Rate of Return (Post-tax) 93.3%
------------------------------------ ----------
Mine Life 18 years
------------------------------------ ----------
Start of Construction 2016
------------------------------------ ----------
First Production 2017
------------------------------------ ----------
Annual Saleable Production 4.3 Mlb
(steady state operation) of U(3)
O(8)
------------------------------------ ----------
Annual Saleable Production 3.0 Mlb
(life of mine) of U(3)
O(8)
------------------------------------ ----------
C1 Cash Cost (steady state US$15.6
operation) /lb
------------------------------------ ----------
C1 Cash Cost (life of mine) US$17.5
/lb
------------------------------------ ----------
C2 Cash Cost (steady state US$18.0
operation) /lb
------------------------------------ ----------
C2 Cash Cost (life of mine) US$19.8
/lb
------------------------------------ ----------
Capital to first Production US$81.4m
------------------------------------ ----------
Stripping Ratio - Life of
Mine (ore:waste) 1:1.8
------------------------------------ ----------
Peak Annual EBITDA US$261.8m
------------------------------------ ----------
Introduction
This Pre-Feasibility Study (Study) has been managed internally
utilizing inputs from a number of independent contractors.
Table 2 - Study Contractors
Consultant Activity
-------------------- ----------------------------------------
SENET Retortillo & Alameda:
* Study Management
* Process Plant
* Infrastructure
* Capital and Operating Costs
-------------------- ----------------------------------------
SRK Retortillo & Alameda Mine
Design and Scheduling
-------------------- ----------------------------------------
Golder Associates Mining Waste Characterisation
-------------------- ----------------------------------------
Mintek Metallurgical Testwork
-------------------- ----------------------------------------
ANSTO Metallurgical Testwork
-------------------- ----------------------------------------
Randolph Metallurgical Testwork
Scheffel Design and Metallurgy
-------------------- ----------------------------------------
Knight Piésold Heap Design
-------------------- ----------------------------------------
Jenike & Retortillo and Alameda:
Johanson Ripios Material Flow Characterisation
-------------------- ----------------------------------------
FRASA/INGEMISA Hydrogeology
-------------------- ----------------------------------------
URS Retortillo & Alameda:
* Environmental Management,
* Radiological Protection
* Permitting
-------------------- ----------------------------------------
Iberdrola Retortillo & Alameda Radiological
Protection
-------------------- ----------------------------------------
Duro Felguera Retortillo & Alameda In-country
Project Cost Estimation
-------------------- ----------------------------------------
March JLT Insurance Cost Estimation
-------------------- ----------------------------------------
OHL Zona 7 Design of facilities
and CAPEX estimation
-------------------- ----------------------------------------
The Study incorporates the Zona 7 deposit into the previous
Pre-Feasibility Study which was reported on 26 September 2013.
The Study considers the integrated development of the
Retortillo, Zona 7 and Alameda deposits and is based on extracting
69.6 million tonnes of ore at an average grade of 396 ppm U(3) O(8)
to produce 51.6 million pounds of U(3) O(8) .
The Study reports on an initial mine schedule of 17.5 years
producing on average 3 million pounds of uranium per year.
After an initial ramp up, production averages 4.3 million pounds
per year during steady state operations.
Mineral Resource
The latest Mineral Resource Estimate (MRE) for the Salamanca
project is 89.5 million pounds of U(3) O(8) (refer to announcement
7 October 2015).
The Study was based solely on the Measured and Indicated MREs
for the Retortillo, Zona 7 and Alameda deposits.
The Study did not incorporate any Inferred Mineral Resources
from Retortillo, Zona 7 and Alameda (totaling 4.8 million pounds of
U(3) O(8) ) nor any Inferred Mineral Resources from the other
satellite deposits contained within the overall MRE for the project
(totaling 23.6 million pounds of U(3) O(8) )
Table 3 - Mineral Resource Estimates for Retortillo, Zona 7 and
Alameda reported at a cut-off grade of 200 ppm U(3) O(8)
October 2015
------------ ----------- --------------------------
Deposit Resource Tonnes U(3) U(3)
O(8) O(8)
Name Category (Mt) (ppm) (Mlbs)
------------ ----------- ------- ------- --------
Retortillo Measured 4.8 412 4.4
Indicated 11.7 349 9.0
Inferred 0.2 373 0.1
------------------------ ------- ------- --------
Total 16.6 367 13.5
------------------------ ------- ------- --------
Zona 7 Indicated 17.1 735 27.8
Inferred 4.9 333 3.6
------------------------ ------- ------- --------
Total 22.1 645 31.4
------------------------ ------- ------- --------
Alameda Indicated 20.0 455 20.1
Inferred 0.7 657 1.0
------------------------ ------- ------- --------
Total 20.7 462 21.1
------------------------ ------- ------- --------
Total Measured 4.8 412 4.4
============
Indicated 48.8 528 56.8
Inferred 5.8 374 4.8
------------------------ ------- ------- --------
Total (*) 59.4 503 66.0
======================== ======= ======= ========
(*)All figures are rounded to reflect appropriate levels of
confidence. Apparent differences occur due to rounding
Mining
Conventional open pit and transfer mining methods will be used
for the mining of the three deposits.
(MORE TO FOLLOW) Dow Jones Newswires
November 04, 2015 02:00 ET (07:00 GMT)
Inputs for the Whittle optimisation included: overall pit wall
slope angles of 35-45 degrees for Retortillo, 45 degrees for Zona
7, and 30-55 degrees for Alameda; 85% metallurgical recovery for
Retortillo, Zona 7 and Alameda; US$65 per pound U(3) O(8) and a
discount rate of 8%.
The economic cut-off grade used to determine the mineable ore
within the optimum pit shell to be delivered to run of mine pad and
subsequently processed was developed using the Whittle optimisation
method, resulting in economic cut-off grades of 105 ppm U(3) O(8)
for Retortillo, 102 ppm U(3) O(8) for Zona 7 and 91 ppm U(3) O(8)
for Alameda.
Practical pit designs, waste dump designs and life of mine
mining schedules were completed to determine the optimal long term
mine plan.
The mining schedule covers 17.5 years with initial mining at
Retortillo, being replaced by Zona 7 in year 2 and Alameda coming
into production in year 3 with Retortillo resuming operation in
year 9, once the high grade ore from Zona 7 is mined out.
During the last year and a half the low grade ore from Zona 7 is
processed.
An average of 5.2 million tonnes per annum of combined ore
production is scheduled during steady state operation (years
2-11).
The average strip ratio over the life of mine is 1:1.84 ore to
waste (Retortillo 1:2.7; Zona 7 1:0.98 and Alameda 1:1.8).
Mining operations will be carried out by a contractor with
operations based on the use of hydraulic excavators and a fleet of
haul trucks engaged in conventional open pit mining techniques.
Drill and blast will be employed mining bench heights of six
metres in each of the three deposits.
The mining method will be 'transfer mining' which allows the
open pits to be continuously backfilled whilst minimising waste
dump volumes and waste rehandling.
The method facilitates continuous rehabilitation to minimize any
potential environmental impact.
Metallurgical Testwork
Metallurgical results were determined from test work carried out
on five tonnes of representative ore sample from the Alameda
deposit, 6.5 tonnes from the Retortillo deposit, and 370 kilograms
from the Zona 7 deposit.
From previous experience on this ore type from other deposits
nearby, and with the continuity of the Zona 7 deposit reported from
the infill drilling program that recently upgraded the resource to
the Indicated category, there is a reasonably high level of
confidence in the batch tests results obtained for Zona 7 deposit
ore.
A further program on a bulk sample and a commercial height test
will be undertaken as part of the Definitive Feasibility Study.
Process Route
The process flowsheet comprises crushing, screening,
agglomeration, stacking and heap leaching using on-off leach pads,
followed by uranium recovery and purification by solvent
extraction.
The concentrated uranium solution from the solvent extraction
plant is treated to precipitate the uranium in the form of Ammonium
Diuranate (ADU) using anhydrous ammonia. The ADU is then calcined
to produce U(3) O(8) (yellow cake).
At Zona 7, only a primary crusher will be required, and crushed
ore will be conveyed ten kilometres to the process plant located at
Retortillo where the ore will be incorporated into the flowsheet
via the secondary crusher.
The Alameda heap leach pregnant liquor solution will be loaded
onto resin via an ion exchange adsorption column and the loaded
resin transported approximately 50 kilometres by road to the
Retortillo plant for final extraction and purification.
Testwork indicates high recoveries and excellent leach kinetics
achieved at relatively coarse crush sizes of 40 mm for the
Retortillo and 12 mm for Alameda and Zona 7 ore types, resulting in
lower capital and operating costs.
A recovery rate of 85% has been adopted as the process design
criteria for the three deposits.
An important environmental benefit is the backfilling of spent
ore from the on-off heap leach pads ('ripios') into the mined pits,
thus removing the requirement for a tailings storage facility.
Crushed ore will be agglomerated with raffinate and sulphuric
acid, conveyed overland and stacked on the heap leach pad with
radial stackers.
The heap leach comprises an on-off pad subdivided into cells to
define areas for stacking, leaching, rinsing/draining and
reclaiming.
The agglomerated material is stacked in six metre lifts and
irrigated with a dilute sulphuric acid solution. The Study uses a
commercial leach cycle of 140 days.
At Retortillo the total heap capacity is 3.3 million tonnes and
will be used to leach the ore from the Retortillo and Zona 7
deposits. The Alameda heap leach pad has a total capacity of 5
million tonnes.
The ripios will be backfilled into lined areas (clay layer and
HDPE liner) within the mined pits on a continuous basis.
Acid consumption for the heap leach is estimated at 18 kg/tonne
of ore for the Retortillo and Alameda ores, whereas for the Zona 7
ore is only 12 kg/tonne.
The solvent extraction plant will produce a raffinate of < 5
mg/l U(3) O(8) . The facility will treat the pregnant liquor from
the heap at Retortillo, combined with the eluate from the resins
coming from Alameda. Regenerated resin will be returned to Alameda
for re-use.
The concentrated uranium solution from the solvent extraction
plant is treated with anhydrous ammonia, raising the pH to around 7
to precipitate the uranium as ADU.
The ADU slurry is dewatered with centrifuges and calcined at a
temperature of 730 degrees to produce U(3) O(8) which is drummed as
yellow cake and prepared for shipping.
Analysis of the yellow cake produced from the Retortillo ore
(and analysis of the pregnant liquors from the Zona 7 and Alameda
deposits) indicate that there are no impurities at levels that
could adversely impact the sale of the product.
Infrastructure
The project is favourably located with respect to existing
infrastructure.
The Retortillo, Zona 7 and Alameda deposits are readily
accessible from the existing public road network, with only a 4.1
kilometre road deviation required at Retortillo and the upgrade
(widening and tarring) of 6.4 kilometres of an existing road
necessary at Alameda and 1.3 kilometre at Zona 7.
The power requirements for the project are low at an estimated
3.7 megawatts ('MW') of consumed power at Retortillo, 2.1 MW at
Zona 7, and 3.2 MW at Alameda.
Power will be supplied from the nearby National Distribution
Grid at a cost of US$0.10 per kilowatt hour. The connection will
require construction of a 13 kilometre 45 kV powerline to the
Alameda deposit site.
Water will be available from adjacent water courses and on-site
sources such as pit dewatering bore holes and collection systems
designed to capture rain and surface run-off water during the wet
season.
The water balance at all sites changes from being negative
during the initial years of production to positive for the
remainder of the mine schedule when discharge will be required to
accommodate all water sources.
Contact water (process and mine water requiring pre-discharge
treatment) will be neutralised in water treatment plants located at
Retortillo, Zona 7 and Alameda prior to any required discharge.
The capital and operating cost of on-site accommodation
facilities will not be required due to the proximity of the city of
Salamanca - 70 kilometres from Retortillo - and local towns and
villages.
An on-site sulphuric acid plant is also not required as
sulphuric acid is readily available from two regional sources at a
cost of EUR100 per tonne delivered to site.
Capital Costs
The initial capital cost of all infrastructure and indirect
costs required to develop and commence production at Retortillo is
estimated at US$81.4 million.
The capital cost for the mine, processing facilities and
associated infrastructure for Zona 7 is US$53.9 million. This cost,
which will be incurred in the first year of production, includes
all infrastructure and indirect costs required.
The capital cost for the mine, processing facilities and
associated infrastructure for Alameda is estimated at US$65.0
million and will be incurred in year 2.
The indirect costs include the first fill of reagents, spares,
Engineering, Procurement and Construction Management (EPCM) costs,
Preliminary and General (P&G) costs and a 15% contingency for
the proposed facilities.
Working capital, amounting to US$21 million, is required to
support eight months of operation after start-up at Retortillo and
has been included in the year 1 operating cost estimate.
The engineering studies supporting the capital cost estimates
for the project allow for a level of accuracy of nominally +/-
20%.
A summary of major capital costs is shown in Tables 4 to 6
below:
Table 4 - Retortillo Up-Front CAPEX
Description Cost (US$ million)
------------------------------ -------------------
Mining (pre-strip) 7.6
------------------------------ -------------------
Processing 36.4
------------------------------ -------------------
Plant Related Infrastructure 7.1
------------------------------ -------------------
Waste Dumps, Water
Management, etc. 5.9
------------------------------ -------------------
Other Capex 6.4
------------------------------ -------------------
G&A 1.9
------------------------------ -------------------
Indirect Costs 16.3
------------------------------ -------------------
TOTAL 81.4
------------------------------ -------------------
Apparent differences in totals occur due to rounding
(MORE TO FOLLOW) Dow Jones Newswires
November 04, 2015 02:00 ET (07:00 GMT)
Table 5 - Zona 7 Up-Front CAPEX
Description Cost (US$ million)
------------------------------- -------------------
Mining (pre-strip) 3.8
------------------------------- -------------------
Processing 26.0
------------------------------- -------------------
Plant Related Infrastructure 4.5
------------------------------- -------------------
Waste Dumps,Water Management,
etc. 4.2
------------------------------- -------------------
Other Capex 2.7
------------------------------- -------------------
G&A 0.2
------------------------------- -------------------
Indirect Costs 12.4
------------------------------- -------------------
TOTAL 53.9
------------------------------- -------------------
Apparent differences in totals occur due to rounding
Table 6 - Alameda Up-Front CAPEX
Description Cost (US$ million)
------------------------------ -------------------
Mining (pre-strip) 4.4
------------------------------ -------------------
Processing 27.7
------------------------------ -------------------
Plant Related Infrastructure 6.0
------------------------------ -------------------
Waste Dumps, Water
Management, etc. 7.5
------------------------------ -------------------
Other Capex 5.3
------------------------------ -------------------
G&A 0.2
------------------------------ -------------------
Indirect Costs 14.0
------------------------------ -------------------
TOTAL 65.0
------------------------------ -------------------
Apparent differences in totals occur due to rounding
An additional US$5.1 million is required in year 2, and US$2.1
million in year 3 at Zona 7 for temporary dumps and reclaiming
systems.
At Retortillo, an additional US$16.2 million of capital is
required to develop a second major pit in year 14.
Operating Costs
The average steady state operating cost has been estimated at
US$15.60 per pound of U(3) O(8) produced.
The average operating cost for the life of mine is US$17.51 per
pound of U(3) O(8) produced.
The operating costs (C1 cash costs) are defined as the direct
operating costs including contract mining, processing, ripios
backfill, water treatment and G&A.
Table 7 - Summary of Life of Mine Operating Costs (nominally +/-
20% accuracy)
Description Cost (US$/lb U(3)
O(8) )
-------------------------- -----------------------------
Zona Retortillo Alameda
7
-------------------------- ------ ----------- --------
Mining 4.95 12.72 8.40
Processing (including
ripios backfill) 6.04 11.10 9.02
G&A 0.98 1.93 1.84
-------------------------- ------ ----------- --------
Subtotal by Area 11.97 25.75 19.26
========================== ====== =========== ========
Total Average Operating
Costs 17.51
========================== =============================
In addition to the C1 cash operating costs are marketing and
transport costs, estimated at 1.5% of the gross value of the final
product (US$0.97 per pound U(3) O(8) produced), and royalties which
average US$1.32 per pound U(3) O(8) produced over the life of
mine.
The royalties are defined as a percentage of the net value of
the product (gross value less commercialisation) and include the
State Reserves Royalty (2.5%, applied only to production at
Alameda), Municipality Royalty (0.2%, applied to all project
revenues) and an Anglo Pacific Royalty (1.0%, applied to all
project revenues).
Environmental, Waste Management and Rehabilitation
The Environmental Licence for Retortillo was granted by the
Regional Government of Castilla and León in 2013 and required the
completion of environmental and social baseline studies culminating
in the submission of the ESIA, together with the Exploitation Plan
and the Reclamation and Closure Plan for Retortillo.
The ESIA and associated documentation were subjected to
extensive review by all relevant authorities and key stakeholders,
including a 30 day Public Information Period prior to the grant of
the Environmental Licence.
The Environmental Licence covers all mining and processing
activities, including treatment of loaded resin transported to
Retortillo from other deposits.
Waste has been characterised and classified into four types.
Inert waste will be managed using standard industry procedures,
placing the material on permanent waste dumps or backfilling the
material directly into mined areas within the pits. The other three
waste types require waste management strategies that include waste
being placed on temporary pads and subsequently backfilled into the
mined pit, both with required isolation systems (clay layer and
HDPE liner).
The costs associated with the continuous rehabilitation programs
and closure programs include the pit preparation for backfilling,
rehandling of temporary dumps for backfill and the rehabilitation
of the surface. Costs associated to the preparation of the pits for
backfilling are incurred from year 2 of operations and amount to
US$6.8 million for Retortillo, US$11.0 million for Zona 7 and
US$10.1 million for Alameda.
The cost associated to rehandling at the end of the mine life is
US$22.7 million for Retortillo, US$11.6 million for Zona 7 and
US$25.9 million for Alameda.
The rehabilitation and closure accounts for US$24.6 million at
Retortillo, US$19.5 million at Zona 7 and US$29.3 million at
Alameda.
Pit preparation for backfilling and reclamation systems have
been treated as capital costs while reclamation and backfilling
have been treated as operating costs.
Community and Employment
Management has worked closely with all stakeholders, including
local communities and relevant government authorities, in all
aspects of work conducted on the project to date.
As part of these efforts, the Company has signed co-operation
agreements with the three municipalities proximal to Retortillo and
Zona 7.
These agreements are an important step in the final permitting
phase to production.
As part of the agreements, assuming strict compliance with law,
the municipalities have undertaken to actively and promptly
contribute the required administrative procedures to achieve the
necessary authorisations.
The Company in turn has committed to contribute to the economic
and social development of the municipalities.
Similar agreements are being negotiated with the relevant
municipalities proximal to Alameda.
The workforces required for the construction and operational
phases of the project will be sourced from the local communities
whenever possible in combination with a small number of highly
skilled professionals who will be recruited from elsewhere in Spain
or abroad.
The Company has commenced skills training programs for local
employees who have been drawn from the local region which has a
history of over thirty years of uranium mining operations.
The Company currently estimates that an ongoing workforce of
approximately 450-500 direct employees (including mining and other
permanent contractors) will be required during steady state
operations.
The University of Salamanca has estimated a multiplier effect
whereby 5.2 indirect jobs will be created for every direct job,
making the project a significant contributor to job creation in an
area suffering badly from the effects of rural desertification.
Permitting
A Ministerial Order was signed and gazetted by the Secretary of
State for Energy granting Berkeley's subsidiary, Berkeley Minera
España the Initial Authorization for the treatment plant at
Retortillo as a radioactive facility.
The Company has now received all the European Union, National,
Regional and Provincial level approvals required for the initial
infrastructure development of the Salamanca project at Retortillo,
where production is scheduled to commence.
With the Mining Licence and Environmental Licence already
obtained, the final approvals comprise the locally issued Urbanism
Licence and the Construction Authorisation by the Ministry of
Industry, Energy and Tourism.
The final stages of the local approvals are well advanced and
expected to be finalised well ahead of the targeted commencement of
site works in mid-2016.
Exploration Upside
The current MRE and Study represent a solid base case for
Berkeley as it moves towards its objective of becoming a uranium
producer in the near term. The Study did not incorporate any
Inferred Mineral Resources currently contained within the overall
MRE for the project (which comprise an additional 28.4 million
pounds U(3) O(8) ). The Company believes substantial potential
exists to both upgrade and increase the resource base and,
therefore, extend the mine life at Salamanca.
Exploration drilling will commence during early 2016 to test a
number of drill targets located within ten kilometres of the
approved processing facility and where historical drilling has
intersected high grades of uranium without being fully
advanced.
Net Present Value & Internal Rate of Return
The (ungeared) Net Present Value after tax is US$871 million at
an 8% discount rate (real), and the (ungeared) IRR is 93%. The
project is expected to exhibit levels of profitability that would
contribute value to Berkeley shareholders.
(MORE TO FOLLOW) Dow Jones Newswires
November 04, 2015 02:00 ET (07:00 GMT)
Table 8 - Project Net Present Value
Discount Rate
(Real) 8% 10%
--------------- --------------- ---------------
NPV US$871 million US$763 million
--------------- --------------- ---------------
Sensitivity Analysis
A uranium price of US$65 per pound was used for the Study and
represents a consensus view of market analysts' long-term price to
incentivise new uranium production.
The Company expects to enter into long-term uranium concentrate
sale and purchase agreements with major power utilities on terms
and conditions that reflect uranium industry norms.
Assuming the current long-term contracted uranium price of
approximately US$44 per pound (source: Raymond James) is used for
the Study, the (ungeared) Net Present Value after tax is US$420.5
million at an 8% discount rate (real), and the (ungeared) IRR is
57%. This demonstrates the excellent and robust economics of the
project.
Sensitivity of the (ungeared) NPV results to changes in the key
drivers of the DCF model are presented in the table below:
Table 9 - Project NPV Sensitivity Analysis
NPV at 8% discount rate (US$
million)
------------ -------------------------------------
Base
-10% -5% Case +5% +10%
------------ ------ ----- ------- ----- ------
Production 733 802 871 940 1,009
------------ ------ ----- ------- ----- ------
U(3) O(8)
Benchmark
Price 754 813 871 930 988
------------ ------ ----- ------- ----- ------
Operating
Costs 907 889 871 854 836
------------ ------ ----- ------- ----- ------
Capital
Costs 881 876 871 866 861
------------ ------ ----- ------- ----- ------
Next Steps Definitive Feasibility Study ('DFS')
Prior to the award of the DFS a technical review of all aspects
of the Study has commenced which will identify the opportunities to
enhance the project economics through optimisation and capital and
operating cost reductions.
The award of the DFS is anticipated in November 2015 and the DFS
is expected to be completed in May 2016.
Following the Board's decision to push ahead with the overall
development of the project and the recent positive announcements on
approvals, drill results, metallurgical test work and the Study,
the company has received a number of approaches from potential
financiers which are now being advanced.
Material Assumptions
The Study, Production Target, MRE and forecast financial
information derived from the Study, Production Target and MRE
contained in this announcement, are based on the material
assumptions summarised below.
The Mineral Resources underpinning the production target have
been prepared by a Competent Person. The Study and production
target are based solely on the Measured and Indicated Mineral
Resources for the Zona 7, Retortillo and Alameda deposits. The
Study and production target do not incorporate any Inferred Mineral
Resources.
Table 10 - Material Assumptions
Table of Material Assumptions Underpinning
the Study
-------------------------------------------------------
Maximum Accuracy variation +/- 20%
----------------------------- ------------------------
Mine Life 18 years
----------------------------- ------------------------
Mining Method Open pit and
transfer mining
----------------------------- ------------------------
Strip Ratio (life
of mine average) 1:1.84
----------------------------- ------------------------
Mining Cut-off Grades 105 ppm U(3)
O(8) for Retortillo,
102 ppm U(3)
O(8) for Zona
7 and 91 ppm
U(3) O(8) for
Alameda
----------------------------- ------------------------
Overall Pit Wall Slope 35-45 degrees
Angles for Retortillo,
45 degrees for
Zona 7, and
30-55 degrees
for Alameda
----------------------------- ------------------------
Processing Method Heap leaching
using on-off
leach pads,
followed by
uranium recovery
and purification
by solvent extraction,
ammonium diuranate
precipitation
and calcination
----------------------------- ------------------------
Annual Ore Processing 5.2 Mtpa
Rate (steady state)
----------------------------- ------------------------
Annual U(3) O(8) Production 4.3 Mlbs
(steady state)
----------------------------- ------------------------
Metallurgical Recovery 85%
----------------------------- ------------------------
Acid Consumption 18 kg/t for
Retortillo &
Alameda, and
12 kg/t for
Zona 7
----------------------------- ------------------------
Mining Costs US$12.72/lb
for Retortillo,
US$4.95/lb for
Zona 7, US$8.40/lb
for Alameda
----------------------------- ------------------------
Processing Costs US$11.10/lb
for Retortillo,
US$6.04/lb for
Zona 7, US$9.02/lb
for Alameda
----------------------------- ------------------------
G&A Costs US$1.93/lb for
Retortillo,
US$0.98/lb for
Zona 7, US$1.84/lb
for Alameda
----------------------------- ------------------------
Initial Capital Costs US$81.4 million
(Retortillo)
----------------------------- ------------------------
Initial Capital Costs US$53.9 million
(Zona 7)
----------------------------- ------------------------
Initial Capital Costs US$65.0 million
(Almeda)
----------------------------- ------------------------
Commercialisation
Costs 1.5%
----------------------------- ------------------------
State Reserves Royalty
- ENUSA (Alameda) 2.5%
----------------------------- ------------------------
Municipality Royalty 0.2%
----------------------------- ------------------------
Anglo Pacific Royalty 1.0%
----------------------------- ------------------------
Corporate Tax Rate 25.0%
----------------------------- ------------------------
Exchange Rate USD
/ EUR 1.11
----------------------------- ------------------------
Exchange Rate GBP
/ EUR 0.74
----------------------------- ------------------------
Uranium Sales Price US$65/lb
----------------------------- ------------------------
Discount Rate 8%
----------------------------- ------------------------
Mtpa = Million tonnes per annum
Mlbs = Million pounds of U(3) O(8)
Competent Persons Statement
The information in this report that relates to the Mineral
Resources for Zona 7 and Retortillo is extracted from the reports
entitled 'Increase in Zona 7 grade' dated 7 October 2015 and 'March
2015 Quarterly Report' dated 29 April 2015 which are available to
view on Berkeley's website at www.berkeleyenergy.com. The
information in the original ASX announcements is based on
information compiled by Malcolm Titley, a Competent Person who is a
Member of The Australasian Institute of Mining and Metallurgy. Mr
Titley is employed by Maja Mining Limited, an independent
consulting company. Mr Titley has sufficient experience which is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. The Company confirms that it is not
aware of any new information or data that materially affects the
information included in the original market announcements and, in
the case of estimates of Mineral Resources that all material
assumptions and technical parameters underpinning the estimates in
the relevant market announcement continue to apply and have not
materially changed. The Company confirms that the form and context
in which the Competent Person's findings are presented have not
been materially modified from the original market announcement.
(MORE TO FOLLOW) Dow Jones Newswires
November 04, 2015 02:00 ET (07:00 GMT)
Berkeley Energia (LSE:BKY)
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Berkeley Energia (LSE:BKY)
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부터 7월(7) 2023 으로 7월(7) 2024
