REG - Berkeley Energia - DFS confirms Salamanca as a low cost producer <Origin Href="QuoteRef">BKY.AX</Origin> - Part 19
14/07/2016 07:29
- Part 19: For the preceding part double click ID:nRSN1376Er
U308 Produced Life-of-Mine = 48.6 million pounds Start of Construction = 2017Start of Production = 2018Cash flowAverage Sales
Price Received = US$52 per pound Average Cash Operating Costs = US$15.4 per poundAverage Annual Operating Earnings
beforeInterest, Taxes, Depreciation andAmortization (EBITDA) (steady state) = US$144.8millionNPV = $531.94 millionInternal rate
of return (IRR) = 60%
NPV ranges and sensitivity to variations in the significant assumptions and inputs. The sensitivity study shows the NPV at the 8-percent (real) discount rate when Base Case annual production tonnages, sales
prices, operating costs and capital costs are increased and decreased in increments of 5 percent within a +/-10-percent range.
Minus 10% NPV (US$ '000) Production (pounds U3O8) 431 Sales price 431 Operating costs 561 Capital costs 554 Minus 5% Production
(pounds U3O8) 482 Sales price 482 Operating costs 547 Capital costs 543 Base Case Production (pounds U3O8) 532 Sales price 532
Operating costs 532 Capital costs 532 Plus 5% Production (pounds U3O8) 582 Sales price 582 Operating costs 517 Capital costs 521
Plus 10% Production (pounds U3O8) 632 Sales price 632 Operating costs 502 Capital costs 510
Social The status of agreements with key stakeholders and matters leading to social licence to operate. An Exploitation plan was submitted to the regulatory body, the review of which included a public consultation. All stakeholders
were asked to provide comments on the project. A number of questions were raised and all of them answered. After the review of
the questions and the answers and after the review of all the documents shown by the company, the project was authorised by
relevant mining legislation. The Nuclear Safety Council has authorised the conceptual project and is reviewing the additional
information to authorise the plant construction.
Other To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves: None of the 487Ha needed to develop the project has been purchased yet.
Any identified material naturally occurring risks. N/A
The status of material legal agreements and marketing arrangements. No binding marketing arrangements in place yet, though advanced discussions are underway.
The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent. The key authorisation aspects of the project comprise:- Mining and environmental: Exploitation Project submitted-
Water uses: not initiated- Land use: Not initiated- Radiological protection: Not
initiated
Classification The basis for the classification of the Ore Reserves into varying confidence categories. Measured mineral resources have been classified as Proven ore reserves while Indicated mineral resources have been classified as
Probable ore reserves.
Whether the result appropriately reflects the Competent Person's view of the deposit. It is the view of the Competent Person that the outcomes of the feasibility study undertaken appropriately reflect the nature
and potential of the deposit to be developed, viable exploitation is considered feasible.
The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any). All mineral resources are classified as Indicated or Inferred and therefore only Probable ore reserves have been declared based
on the Indicated mineral resource inventory.
Audits or reviews The results of any audits or reviews of Ore Reserve estimates. Cameron Mining has done a review of the mining aspects of the project, focusing on scheduling and pit shell selection. For
processing purposes Randall Schiefeld and Russell Bradford have provided a general review, focusing first of them on heap
leaching and second on general structure of the project
Discussion of relative accuracy/ confidence Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate. The confidence level is reflected in the resource classification category chosen for the reported OR. The definition of current
Ore Reserves is appropriate for the level of study and the geological confidence imparted by the drilling grid.The reported OR
is considered appropriate and representative of the grade and tonnage at the 90ppm U3O8 cut-off grade.
The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. All ore reserves declared have been based on Indicated mineral resources, no inferred material has been accounted for in the
mining plan.
Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage. It is considered that all modifying factors applied to generate the ore reserve estimates have been developed to a level of
accuracy required to support a feasibility study.
It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available. No production has been carried out at Alameda.
582
Sales price
582
Operating costs
517
Capital costs
521
Plus 10%
Production (pounds U3O8)
632
Sales price
632
Operating costs
502
Capital costs
510
Social
The status of agreements with key stakeholders and matters leading to social licence to operate.
An Exploitation plan was submitted to the regulatory body, the review of which included a public consultation. All
stakeholders were asked to provide comments on the project. A number of questions were raised and all of them answered.
After the review of the questions and the answers and after the review of all the documents shown by the company, the
project was authorised by relevant mining legislation. The Nuclear Safety Council has authorised the conceptual project and
is reviewing the additional information to authorise the plant construction.
Other
To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore
Reserves:
None of the 487Ha needed to develop the project has been purchased yet.
Any identified material naturally occurring risks.
N/A
The status of material legal agreements and marketing arrangements.
No binding marketing arrangements in place yet, though advanced discussions are underway.
The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement
status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government
approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and
discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is
contingent.
The key authorisation aspects of the project comprise:- Mining and environmental: Exploitation Project
submitted- Water uses: not initiated- Land use: Not initiated- Radiological
protection: Not initiated
Classification
The basis for the classification of the Ore Reserves into varying confidence categories.
Measured mineral resources have been classified as Proven ore reserves while Indicated mineral resources have been
classified as Probable ore reserves.
Whether the result appropriately reflects the Competent Person's view of the deposit.
It is the view of the Competent Person that the outcomes of the feasibility study undertaken appropriately reflect the
nature and potential of the deposit to be developed, viable exploitation is considered feasible.
The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).
All mineral resources are classified as Indicated or Inferred and therefore only Probable ore reserves have been declared
based on the Indicated mineral resource inventory.
Audits or reviews
The results of any audits or reviews of Ore Reserve estimates.
Cameron Mining has done a review of the mining aspects of the project, focusing on scheduling and pit shell selection. For
processing purposes Randall Schiefeld and Russell Bradford have provided a general review, focusing first of them on heap
leaching and second on general structure of the project
Discussion of relative accuracy/ confidence
Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach
or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical
procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the
estimate.
The confidence level is reflected in the resource classification category chosen for the reported OR. The definition of
current Ore Reserves is appropriate for the level of study and the geological confidence imparted by the drilling grid.The
reported OR is considered appropriate and representative of the grade and tonnage at the 90ppm U3O8 cut-off grade.
The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages,
which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the
procedures used.
All ore reserves declared have been based on Indicated mineral resources, no inferred material has been accounted for in
the mining plan.
Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a
material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study
stage.
It is considered that all modifying factors applied to generate the ore reserve estimates have been developed to a level of
accuracy required to support a feasibility study.
It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy
and confidence of the estimate should be compared with production data, where available.
No production has been carried out at Alameda.
This information is provided by RNS
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