A-Cap readies for uranium mining licence

Isaac Pinielo | Friday October 31, 2014 14:10

 

In its activities report for the quarter ended 30 September 2014, which was released yesterday, the company stated that it continues to progress the feasibility studies required to submit a mining licence application for the uranium project, in the first half of 2015.

A-Cap chief executive officer, Paul Thomson, stated that the company needed to prepare the project for early production in order to capitalise on a recovery in the uranium price.

The spot price of uranium increased by 28 percent during the last quarter.

Earlier this year, the Australia-based company reported that it was raising capital of $5.8-million (P53 million) for the development of the Letlhakane uranium project, and further drilling the company’s Mea and Bolau coal projects in the country.

The capital raising comprised a placement to raise $1.32-million (P12 million) and a fully underwritten non-renounceable rights issue to raised $4.5-million (P41.1 million).

Thomson explained that the proceeds from the capital raising would fund a major reverse circulation and diamond-drilling programme, designed to extend high-grade uranium mineralisation.

He added that it would also provide further data for mine planning and resource modelling and fund other feasibility work, including process design and environmental work necessary for the mining licence application.

The Letlhakane uranium project was reported to be one of the world’s largest undeveloped uranium deposits.

“The project lies adjacent to Botswana’s main north–south infrastructure corridor, which includes an all-weather highway, a railway line and the national power grid, all of which make significant contributions to keeping the capital cost of future developments low,” said Thomson.

An earlier research report released last year indicated that at least 95 million tonnes of the resource could be of export quality, adding that there was potential to expand the resources significantly.