31/08/1999 - 22:00

Acclaim joins Africa trek

31/08/1999 - 22:00


Save articles for future reference.

Acclaim Uranium NL has joined its peers with a trek into Africa and scored something of a coup for a small Perth-based explorer.

Acclaim joins Africa trek
Acclaim Uranium NL has joined its peers with a trek into Africa and scored something of a coup for a small Perth-based explorer.

About two years ago the gold junior emerged as a new uranium play after picking up a portfolio of 14 potential uranium projects in Western Australia.

The company then discovered its greatest potential for developing a uranium mine was in the Khomas High-lands of Namibia. This came with the purchase in December last year of the Langer Heinrich uranium project from Glencor Limited and minority shareholders for $800,000.

The deposit is 100 per cent held by Acclaim through its Namibian subsidiary, Langer Heinrich Uranium (Pty) Ltd, which in turn is owned by the Luxembourg company, Lahndrik (SA).

In 1980 Glencor estimated an in situ bore-hole indicated ore reserve of 55.06 million tonnes of uranium-enriched material with an average grade of 0.40 kilograms per tonne uranium.

The deposit is located 100 kilometres east of Swakopmund and only 45km from the Rossing uranium mine, which produces all the current output from Namibia, rated the fourth largest producer of uranium in the world.

Acclaim chairman Bill Hassell expects the capital cost of the project will be between $45-$80 million.

He said the high-grade ore will drive the project economics in the early years, allowing rapid payback of project finance and ability to sign up long-term take-off contracts at optimal prices.

A scoping study undertaken on the project by Kaiser Engineers (Pty) Limited, of Perth, has indicated a process cost of US$4.63/pound.

Studies have also indicated the feasibility of an open pit operation, with straight forward mining and limited low density blasting at a mining cost of US$1.30/tonne of ore.

Mr Hassell said market analysis has indicated a demand for uranium and a price ranging from $16-$18/lb.

Metallurgical testwork is currently underway at Mintek Laboratories, in Johannesburg, South Africa.

Mr Hassell said the project has a ten year life and a financial analysis uses a fixed revenue of US$14/lb for the life of the project.

The company has commenced pre-feasibility at an estimated cost of $500,000, which should be completed in October. This will be followed by a full bankable feasibility study at an estimated cost of $4.3 million, which should be completed by October 2000.

Construction of the project is expected to commence in November next year with production to follow in March 2002.


Subscription Options