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Equinox contracts Ausenco to manage uranium resources

Equinox contracts Ausenco to manage uranium resources
By Kabanda Chulu
Tuesday August 21, 2007 [04:00]

EQUINOX Minerals has contracted Ausenco Limited to manage and implement the Uranium Feasibility Study (UFS) on the uranium resources that occur within the Lumwana Copper project in North Western Zambia. Initially, Equinox completed a Bankable Feasibility Study (BSF) in 2003 at Lumwana, which included work on the extraction of the Uranium mineralisation to produce uranium oxide (yellowcake). Equinox president and chief executive officer Craig Williams yesterday stated that Ausenco Limited has been engaged to carry out a four-phased programme designed for the UFS.

“Our first objective is to review the 2003 BFS uranium study including resources, metallurgy and process plant design and conduct a further metallurgical test work that will include the designing of a processing plant and infrastructure to produce yellowcake on site,” Williams stated. “And an infill drilling programme would be conducted as part of the UFS to facilitate mine design and develop proven and probable reserves.”

He stated that the positive long-term outlook for uranium has the potential to enhance the economics of the Lumwana Project if a uranium by-product is economically viable.

“The Company is evaluating this potential and considering alternatives for realising any uranium development option. This Uranium Feasibility Study will however not impact on Equinox’s current construction schedule for the commissioning of the Lumwana Copper Project in the second quarter of 2008,” stated Williams.

The Lumwana Uranium Resources lies within the Malundwe and Chimiwungo copper deposits and occurs as discrete uranium-enriched zones that will be separately mined during the copper mining operation. Lumwana Uranium Mineral Resources have been estimated to be at 9.5 million tonnes and is consistent with international requirements.

Currently, Ausenco Limited, in a joint venture with Bateman Engineering, is engaged for the construction contract on the Lumwana copper project.

And in preparation to execute this new contract, Ausenco has assembled a team with considerable uranium expertise that would work in parallel with their construction team already on-site at Lumwana.

Labels: DEVELOPMENT AGREEMENTS, EQUINOX, URANIUM

posted by MrK @ 4:25 PM