The WA-based uranium miner said the acquisition of the uranium deposit will allow the company to consolidate its control of an emerging uranium province around the Manyingee Uranium Project in the Carnarvon Basin, where preparation work for an In Situ Recovery field leach trial is being advanced.
John Borshoff, Paladin’s Managing Director/CEO, believes the strategic acquisition will deliver operational synergies and lower capital costs for combined future development.
“The current low uranium price and sustained sector weakness have created an opportunity to consolidate our portfolio in strategically important regions for the Company. We remain focussed on recapitalising our balance sheet, but can now pursue opportunities to enhance our development pipeline in a balanced and cost effective manner,” Mr Borshoff said.
“This acquisition is certainly a game changer for us in terms of our Australian projects. With this land package, we have cornered a significant portion of the emerging Carnarvon Basin uranium province. This acquisition has the clear potential to improve the economics of a key development project by delivering valuable synergies in regional infrastructure.”
The Carley Bore deposit contains an Indicated Mineral Resource of 5 million pounds of uranium oxide grading 420 parts per million and an Inferred Mineral Resource of 10.6 million pounds of uranium oxide grading 280 parts per million at a cut-off grade of 150 parts per million.
According to Paladin’s estimate, the acquisition of the tenements containing the Carley Bore uranium deposit will increase the Company’s indicated mineral resources within the area by more than 30% to 20.7 million pounds of uranium oxide at a grade of 680 parts per million, and the inferred mineral resources by more than 100% to 20.9 million pounds at a grade of 415 parts per million.
In addition, Paladin believes that the land package holds excellent potential to increase the company’s resource base by at least 15 to 25 million pounds.
“The potential to develop a significant mining operation with a long mine life extending well beyond 20 years within a new uranium district is compelling. In-house studies indicate the acquisition of Carley Bore will be value accretive independent of the significant resource upside Paladin considers exploration may deliver,” the company said in a statement.
Because Paladin is considered to be a foreign corporation under Australia’s foreign investment laws, the acquisition is subject to Australian Foreign Investment Review Board approval.