Energy Resources of Australia (ERA) has reported uranium oxide production of 5,240 tonnes in 2009. For December 2009 quarter, uranium oxide production was 1,140 tonnes, 19 % lower than the September 2009 quarter and 30% lower than the prior year quarter.
The average ore grade processed during the quarter was 0.20% uranium oxide, compared with 0.29% in the September 2009 quarter and 0.37% in the corresponding period in 2008.
The company said that mine sequencing will continue to result in lower average head grades in the first half of 2010, with improved average head grades expected through the second half of the year.
Total material mined for the December 2009 quarter was 20% lower than the September 2009 quarter and 22% lower than the December 2008 quarter. Ore mined was 71% lower than the September 2009 quarter and 63% lower than the December 2008 quarter, primarily due to the effect of mine sequencing around the removal of waste and ore.
The total 2009 sales of uranium oxide of ERA were 5,497 tonnes as compared to 5272 tonnes in 2008. Total sales of uranium oxide from the Ranger mine now exceed 100,000 tonnes.
The company said that work has continued on the feasibility study for the proposed heap leach facility at the Ranger mine. This project is targeting the extraction of 15,000 to 20,000 tonnes of uranium oxide contained in low grade mineralised material within the current pit and on existing stockpiles.
ERA’s draft Environmental Impact statement for the proposed heap leach facility is expected to be submitted in 2010, as part of the formal environmental assessment process under the Northern Territory Environmental Assessment Act and the Commonwealth of Australia Environment Protection and Biodiversity Conservation Act.
Separate studies are advancing regarding the Ranger 3 Deeps mineral resource, including the development of an exploration decline to conduct close spaced underground exploration drilling to further evaluate the extent and continuity of the resource. The Ranger 3 Deeps studies are expected to be complete around the middle of 2010, with a decision on the development of the exploration decline to be taken thereafter.
Total evaluation expenditure during the December 2009 quarter was $7m, compared with $8m in the September 2009 quarter ($25m for the full year, compared with $14m for 2008), which has been expensed.
During the December 2009 quarter, the exploration team focussed on resource drilling and support for the Ranger 3 Deeps and heap leach facility studies. Total expenditure on exploration for 2009 was $5m compared to $16m in 2008. There was no exploration drilling expenditure during the quarter. All 2009 exploration drilling expenditure was expensed.