Consolidation increases Macusani resource base
13 November 2014
Macusani Yellowcake has seen its Peruvian uranium resource base grow following the completion of a series of consolidation transactions and the company says it is taking steps towards project permitting as well as expanding exploration work.
The completion of the acquisition of Minergia, a Peruvian subsidiary of Azincourt Uranium, in September, saw Toronto-based Macusani capture all known uranium resources in Peru's Macusani Platuea uranium district. Azincourt acquired Minergia from Cameco and Vena Resources in January 2014.
In the process, Macusani's resource base has now increased to 49.7 million pounds U3O8 of measured and indicated resources (19,117 tU) and 47.5 million pounds U3O8 (18,271 tU) resources, up from 31.5 million lbs U3O8 (12,116 tU) and 30.1 million pounds U3O8 (11,578 tU), respectively.
Macusani CEO Ted O'Connor said that the company was now focused on implementing an action plan to advance the development of the project. "Timely execution of our plan, including a number of upcoming milestones, is expected to occur in tandem with the ongoing recovery of the uranium sector," he said. The company's team in Peru has already started work to integrate the projects and resources, he noted.
A preliminary economic assessment (PEA) for Macusani's Peruvian deposits filed in January estimated production costs at just under $21 per pound U3O8, for output of an average 4.3 million pounds U3O8 (1654 tU) per year over a ten-year mine life. The company says it will now use the integrated, larger resource base, including data from Minergia, to update the PEA, and says it is "reasonably expected" that the increase in resources, information and other synergies from the consolidation will be reflected in a "superior outcome" compared to the original assessment.
Researched and written
by World Nuclear News