Mongolian uranium deposit feasibility study begins

21 February 2008

Western Prospector Group reported on 20 February that work has begun on a feasibility study for its Gurvanbulag uranium deposit in the Dornod region of Mongolia. Aker Kvaerner Canada is leading the work by consultants including Melis Engineering, SGS Lakefield Research, P&E Mining, Redpath and Golder Associates. Western said it expects to complete the feasibility study in the third quarter of 2008. A preliminary economic assessment of the Gurvanbulag deposit carried by Micon International of Canada concluded in 2007 that the deposit could be developed to produce uranium oxide (U3O8) for an average cost of $24 per pound. The preliminary assessment concluded that a production rate of 1500 tonnes of ore per day could be achieved, which would yield around 2 million pounds of U3O8 per year and exhaust the deposit in around ten years. Micon recommended that Western Prospector and its Mongolian subsidiary, Emeelt Mines, continue with a full feasibility study on developing a mine at Gurvanbulag.

Filed under: This article is not categorised