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Vimy Resources Ltd.
Summary
| Project: | Mulga Rock | |
|---|---|---|
| Deposit: | Mulga Rock | |
| Location: | Australia | |
| Commodities: | Uranium | |
| Date: | 1/30/2018 | |
| Report Code: | JORC | |
| Report Type: | Feasibility Study | |
| Project Stage: | Pursuing Resource Increase/Upgrade | |
| Report details: | 30-1-2018: Vimy Resources Ltd. announces a Feasibility Study report for its Mulga Rock deposit at the Mulga Rock project. Feasibility Study results incl. pre-tax NPV (8%) Au$530M, IRR 25%, 15yr LOM. Vimy Resources Limited (ASX:VMY) is pleased to advise th | |
| Resources: | (Reserve, P+P): 22.7Mt @ 845ppm U3O8 for 42.3Mlbs U3O8 contained at project | |
| CP/QP: | [Overall Report]: Not stated (Not stated) | |
| ABSTRACT: | Vimy Resources Limited (ASX:VMY) is pleased to advise that the Definitive Feasibility Study (DFS) on its Mulga Rock Project (MRP) in Western Australia has confirmed the Project’s robust financials and simple, low cost mining process. The key physical and financial metrics for the MRP are summarised in Table 1. The DFS reinforces the status of the MRP as Australia’s largest and most advanced uranium project based on a low risk, open pit mining operation that will underpin production of 3.5Mlbs U3O8 per annum for 15 years. The results confirm the Project’s competitive cash operating costs, which for the initial five years of operations – the all-important pay-back period – are estimated at US$25.11/lb U3O8. Over LOM the cash operating costs are forecast to be US$27.95/lb with a pre-tax NPV8 at a robust A$530 million, generating free cash flow of A$134 million per annum (EBITDA) after royalties. These metrics assume a uranium contract price of $60/lb U3O8 at the time of first production which is targeted for 2021. The positive results, which significantly improve upon the Mulga Rock Pre-Feasibility Study (PFS) released in November 2015, along with increasingly favourable market conditions, lay the foundation for Vimy to become Australia’s next supplier of uranium oxide and operator of Western Australia’s first uranium mine. “The DFS is the result of two years of incredibly diligent work by the Vimy team and demonstrates the robustness of the Mulga Rock Project and its potential to become a strategically important supplier of uranium for nuclear power stations all over the world,” said Vimy Chief Executive Officer Mike Young. “The report’s release comes at a pivotal time for Vimy as we accelerate negotiations with future offtake partners and aim to secure project finance ahead of a final investment decision in the second half of 2018. | |
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