Extract Resources released a definitive feasibility study that states that the company's Husab site in Namibia could be developed into one of the world’s largest and most productive uranium mines.
The study predicts maiden reserves of 205 million tons of uranium ore at 497 ppm in zones 1 and 2 at the site. To extract it, the company envisions two open pit mines producing 15 million tonnes of ore annually leached on site to produce roughly 15 million pounds of U-308.
“The DFS has demonstrated the technical and economic viability of developing Husab, the world’s fifth-largest uranium-only deposit,” the company said in a release.
Capital costs for the current mine plan, including the mine fleet, processing plant and supporting infrastructure, are estimated at $1.48 billion, not including $179 million in pre-production operating costs.
The study addresses only two of 15 suspected uranium deposits on the site. The company also said it plans to release an updated resource estimate during the second quarter of this year that is expected to add significant value to the project.