Canada's Mega Uranium says it is on schedule to bring the Lake Maitland uranium joint venture online in 2011 as it upgrades the project's resource.
The company announced today it had increased the contained uranium in the project and upgraded the confidence level of the resource from inferred to indicated.
Using a cut off grade of 200 parts per million uranium oxide, the resource at Lake Maitland is 19.9 million pounds uranium oxide in the indicated category and a 17 per cent increase of the inferred resource to 1.6mlbs uranium oxide.
"The increase and upgrade at Lake Maitland confirm the quality of the resource and enhance the project economics," Mega chief executive Sheldon Inwentash said.
"With the support of our Japanes partners JAURD and ITOCHU, Mega is well on schedule to meet our target of bringing Lake Maitland into production in late 2011.
The resource upgrade follows an extensive exploration program.
In June last year, Japan Australia Uranium Resources Development Company (JAURD) and ITOCHU Corporation acquired a 35 per cent interest in Lake Maitland after paying $US49 million.