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Equinox considers dedicated uranium plant for Zambian copper project
By: Creamer Media Reporter
Published: 7 Sep 07 - 12:48
A separate uranium processing plant is being considered by ASX-listed Equinox Minerals to maximise the by-product potential of its $760-million Lumwana copper project, in Zambia, which is due to come on stream mid-2008.
Addressing the second day of the 2007 Paydirt Africa DownUnder conference, in Perth, Equinox CEO Craig Williams said that the current market conditions for the commodity warranted the company’s re-evaluation of Lumwana’s uranium potential.
“An updated full bankable feasibility study (BFS) on Lumwana’s uranium prospects is due for completion by first quarter calendar 2008. The BFS outcome will decide the way we take forward the uranium aspect of this project, but the likelihood is, that we will build a uranium processing plant as a separate module to the copper plant,” Williams said.
“That could probably be commissioned a year and a half after the copper plant comes on stream in mid-2008, and could potentially produce 1,5-million pounds a year of uranium oxide. The uranium mineralisation occurs as two high-grade uranium zones within the copper mine’s openpit so our current attitude is to selectively mine and stockpile these discrete orebodies,” he explained.
“We continue to infill drill the zones to better define them and we know from pilot plant trials we can produce yellowcake from Lumwana’s uranium - so it is all doable.”
Williams said that while the uranium spot price had eased, the BFS was based around the economics of $11 a pound for uranium oxide, compared, despite the recent price dip, to the current price range of nearer $100 a pound.
Lumwana’s uranium resources are estimated at 21,8-million pounds of uranium oxide with metallurgical tests suggesting a 97% recovery rate.
Williams emphasised that while uranium looked exciting, copper still represented the core of the project.
“When Lumwana’s maiden copper output comes on stream next year, the mine will produce 370-million pounds of copper annually, or about 170 000 t/y of the metal, making it Africa’s largest copper mine at that time,” he said.
Lumwana’s projected mine life is 37 years.