Mega, Navigator in infrastructure talks

Canada's Mega Uranium and Perth-based Navigator Resources have started talks over the possible sharing of infrastructure for their uranium and gold operations, respectively, in the Goldfields region.

Both parties have entered into a non-binding memorandum of understanding for sharing facilities at Navigator's Bronzewing gold operation, which includes an airstrip, power station, water supply infrastructure and a 280-person accommodation village.

Navigator recently bought Bronzewing from the receivers of collapsed View Resources.

Mega was recently granted a mining lease for its Lake Maitland uranium project, which adjoins the Bronzewing operation.

"Mega and Navigator have agreed to co-operatively investigate opportunities for reducing capital and operating costs through the sharing of existing and planned infrastructure and services," Mega said in a statement.

"Significant opportunities may exist to use existing infrastructure, upgrade and develop other required facilities and reduce both capital and operating costs.

"Substantial benefits are also possible through reducing duplication of facilities, introducing economies of scale and the reduction of the overall foot-print of the projects."

Mega aims to start production at the uranium project, in joint venture with two Japanese companies, in 2012.