Australia-based A-Cap Resources has completed a scoping study at its 100% owned Letlhakane uranium project located in northeast Botswana.

The Letlhakane project hosts a large global resource of 352 million pounds of uranium, including a higher grade resource at 284ppm.

Designed as a shallow open pit mining and heap leach processing operation, the mine is projected to produce 3 million pounds of uranium annually over the 20 years of mine life.

A-Cap expects to commence production in 2016 as the company anticipates a shortfall in uranium supply and increase in uranium prices.

Operating costs at the mine are estimated at $42 a pound of uranium oxide in the first 5 years and $48 a pound in the first 10 years.

Price of uranium is predicted to range between $70 and $97 for each pound for the first five years of production.

The company projects capital costs of $309m for plant development and infrastructure.