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- Vimy Resources (VMY) is reassessing the possibility of an ancillary base metals circuit at its Mulga Rock Uranium Project
- Mulga is Australia’s largest advanced uranium project and is located in the Great Victoria Desert in WA
- In the preliminary feasibility study, the company assessed the economics of a base metal plant to recover by-products from the tailing of the uranium plant
- Low prevailing prices for those commodities led the subsequent definitive feasibility study to focus primarily on a stand-alone uranium project
- However, with several economies transitioning towards renewable energy, demand for battery materials has risen and pushed prices higher
- Vimy is aiming to complete the assessment on the potential upside of including a base metal plant at the project within the first half of 2021
- Shares closed 1.14 per cent lower at 8.7 cents
Vimy Resources (VMY) is reassessing the possibility of an ancillary base metals circuit at its Mulga Rock Uranium Project in the WA’s Great Victoria Desert.
Mulga is Australia’s largest advanced uranium project, according to the company, and the Ambassador and Princess deposits contain copper, zinc, nickel and cobalt within the uranium orebody.
In the 2015 preliminary feasibility study, the company assessed the economics of a base metal plant to recover by-products from the tailing of the uranium plant.
Low prevailing prices for those commodities led the definitive Feasibility Study in 2018 and the refresh in 2020 to focus primarily on a stand-alone uranium project.
However, as many economies transition towards a greater reliance on renewable energy, demand for battery materials has increased.
In 2015, copper fetched around US$5100 per tonne according to the London Metals Exchange, compared to around US$6600 (approximately A$8652) per tonne in 2021 based on the BMO Capital Markets Street Consensus long-term prices.
On the same measures, zinc is fetching US$600 (roughly A$786) more per tonne, nickel is worth US$6000 (around A$7865) more and the price of cobalt has risen by US$16,000 (about A$20975) per tonne.
“De-carbonisation of the global economy is seeing a significant step-change in the long-term demand, pricing and security of supply for battery metals,” said Vimy Managing Director and CEO Mike Young.
“As a result, it is clear that the base metals circuit has gone from marginal to potentially improving the already strong uranium economics of the Mulga Rock project.”
“Mulga Rock is a world-class uranium project, but one that is likely to be enhanced by base metal by-product credits. This very positive outcome creates more options for funding the project,” he added.
Vimy’s initial estimate is that over the life of mine, base metal by-product credits will be around US$4.0 to US$4.5 (roughly A$5.24 to A$5.9) per pound of U3O8 produced.
The company is aiming to complete the assessment on the potential upside of including a base metal plant at Mulga Rock within the first half of 2021.
Shares closed 1.14 per cent lower at 8.7 cents.
