Ore milled for the quarter was 21% higher than the previous quarter and 7%higher than the June 2008 quarter, due to improved utilisation and milling rates. The laterite processing plant also contributed to production in the June 2009 quarter.
Ore grade processed was 0.28% uranium oxide (March 2009 quarter: 0.29%), 29% higher than the June 2008 quarter (0.22%) when the mill processed stockpiled lower grade ore for the majority of the quarter. In the June 2008 quarter, lower average grade resulted from restrictions in access to higher grade ore located at the bottom of the pit, and the depletion of stockpiled higher grade ore as a result of the effects of the significant weather event in February 2007.
Ore mined was 48% higher and material mined 23% higher than the March 2009 quarter, due to improved access to the pit following the end of the 2009 wet season and the sequencing of waste and ore removal. Compared to the corresponding period in 2008, ore mined was 10% lower primarily due to mine sequencing and material mined was 16% lower primarily due to longer haul distances.
EXPLORATION AND EVALUATION
Work continued on the Ranger Expansion Project, involving the development of a heap leach facility at the Ranger operations for the extraction of 15,000 to 20,000 tonnes of uranium oxide contained in low grade mineralised material currently on the stockpiles and yet to be mined.
On 19 May 2009, ERA announced that the proposed heap leach facility would be subject to environmental assessment under the Northern Territory Environmental Assessment Act and the Commonwealth of Australia Environmental Protection & Biodiversity Conservation Act (EPBC Act), at the level of an Environmental Impact Statement. The Northern Territory and
Commonwealth governments have not yet released the draft guidelines for the
Environmental Impact Statement for public comment.
Studies are continuing regarding the Ranger 3 Deeps ore body, with a current resource of around 34,000 tonnes of uranium oxide. On May 19, 2009, ERA announced that the Commonwealth government had determined that the proposed exploration decline project, to conduct close spaced underground exploration drilling to further evaluate the extent and continuity of the Ranger 3 Deeps ore body, would not be subject to environmental assessment under the Commonwealth EPBC Act. ERA has not yet been notified by the Northern Territory government whether this project will be subject to further environmental assessment under the Northern Territory Environmental Assessment Act.
Total evaluation expenditure during the June 2009 quarter was $4.9 million, compared with $5.4 million in the March 2009 quarter, for a total of $10.3 million in the June 2009 half year, which has been expensed.
During the June 2009 quarter, 12 exploration drill holes were completed for 3784 metres. Exploration expenditure for the June 2009 quarter was $1.5 million (June 2008 quarter: $4.2 million), compared with $2.2 million in the March 2009 quarter, for a total of $3.7 million in the June 2009 half year (June 2008 half year: $8.0 million), which has been expensed.
