Extract's uranium project to cost $842m

A preliminary study has confirmed Extract Resources' Rossing South project would be one of the world's largest uranium mines with an estimated capital cost of $US704 million ($A842 million).

The initial capital and operating cost estimates report found the Namibian project can support a viable open pit mining operation with an annual throughput rate of 15 million tonnes.

Up to 14.8 million pounds of uranium oxide would be produced each year and operating costs have been pegged at $US23.60 a pound of uranium oxide or $US351 million ($A420 million) a year.

The spot price of uranium oxide is currently at $US47 a pound, according to Ux Consulting Company.

"The preliminary cost estimates report indicates a conventional open pit mining operation with an agitated tank leach process plant is expected to support a profitable and sustainable mining operation for +20 years," outgoing Extract managing director Peter McIntyre said.

"This report represents our base case study and we are continuing with our metallurgical testwork and engineering optimisation that will consider other options including a heap-leaching component."