Uranium

Content maintained by Aden McKay

• Uranium
• Resources
• Accessible EDR
• JORC Reserves
• World Ranking
• Exploration
• Production
• Exports
• Industry Developments
• Other Developments

Major uses for uranium (U) are as fuel in nuclear power reactors for electricity generation, in the manufacture of radioisotopes for medical applications and in nuclear science research using neutron fluxes.

On March 11, 2011, Japan suffered a devastating earthquake and tsunami. This natural disaster resulted in human tragedy and widespread damage to infrastructure. Damage to the Fukushima Daiichi nuclear power plant, caused by the tsunami led to a loss of emergency cooling systems and subsequently a substantial radiological release to the atmosphere in a nuclear incident involving four of the six units at the site (WNA¹, 2011).

In the wake of the incident, there have been a range of political responses issued by governments in countries around the world. Many countries with long established nuclear power industries such as the USA, France, the Russian Federation, China, the European Union, South Korea and others have completed comprehensive safety reviews of all their nuclear reactors and upgraded safety standards as required in the light of findings from the Fukushima incident. These countries have voiced support for their existing reactors and their nuclear electricity industries. Other countries, notably Germany and Switzerland, have decided to shut down their oldest reactors and plan to gradually phase out other nuclear power plants. Several counties (eg Italy) have formally decided not to proceed with nuclear power programs while others which have been considering introducing nuclear power have delayed plans at least until safety lessons from the Fukushima event have been learnt.

In Japan a number of its nuclear power plants have been shut down and a review of the pre-existing energy policy will be undertaken with a view to possibly reducing future dependence on nuclear power (WNA, 2011).

The number of nuclear power plants operating worldwide has fallen from 442 at December 2010 (in 30 countries) to 432 in October 2011 and their share of world electricity generation fell from 14% to 13.8% over the same period. The number of plants under construction worldwide has remained unchanged at 63. The World Nuclear Association reported that there was a short term decline in world uranium requirements for electricity generation between December 2010 and October 2011 (WNA², 2011). The Organisation for Economic Cooperation and Development Nuclear Energy Agency (OECD/NEA) (Cameron, 2011³) considers that enhanced safety measures will be implemented from the results of safety reviews on existing reactors and that the lessons from the Fukushima event will be integrated into the design and location of new and existing plants. Overall nuclear electricity generation (and uranium demand) are forecast to increase into the future.

Uranium spot market prices rose from US$45 a pound (lb) of uranium oxide (U₃O₈) in January 2010 to US$62.50 a lb by the end of 2010, but by October 2011 prices had fallen to US$52 a lb.

Geoscience Australia prepares estimates of Australia's uranium resources within categories defined by the OECD/NEA and the International Atomic Energy Agency (IAEA). The resource categories within this NEA/IAEA scheme reflect total costs of mining and milling ore.

In recent years, the cost of mining and milling uranium ores has increased in Australia. Prior to 2010, economic uranium resources were confined to the cost category of less than US$80 per kilogram (kg) U, however increasing costs of uranium mining and milling, and increases in market prices, have extended economic uranium resources up to the category of less than US$130/kg U.

The estimates in each category are for resources of recoverable uranium after losses resulting from mining and milling have been deducted (Tables 1 & 2).

Table 1. Australia's uranium resources at December 2010 (reported under corresponding categories of NEA/IAEA and Australian national schemes).

National Scheme	NEA/IAEA Scheme	Tonnes U recoverable (December 2010)
Economic Demonstrated Resources (EDR)	Reasonably Assured Resources (RAR) recoverable at less than US$130/kilogram (kg) U	1 158 000
Paramarginal Demonstrated Resources	RAR recoverable at US$130–260/kg U	22 000
Submarginal Demonstrated Resources	RAR recoverable at greater than US$260/kg U	0
Economic Inferred Resources	Inferred Resources recoverable at less than US$130/kg U	504 000
Paramarginal Inferred Resources	Inferred Resources recoverable at US$130–260/kg U	55 000
Submarginal Inferred Resources	Inferred Resources recoverable at greater than US$260/kg U	0

Australia’s RAR of uranium which can be produced at costs of less than US$130/kg at December 2010 were estimated to be 1.158 million tonnes (Mt), which was a decrease of 6% on the estimates for December 2009 resulting from the impacts of increasing mining and milling costs. As a result, resources in some uranium mines and deposits are now assigned to higher cost categories compared with the estimates for 2009.

Australia had an additional 504 000 tonnes of uranium in Inferred Resources recoverable at costs of less than US$130/kg. These Inferred Resources are mainly in the southeast area of the Olympic Dam deposit.

Although there are more than 35 deposits with RAR of uranium recoverable at costs of less than US$130/kg, the vast majority of these resources are within the following five deposits:

• Olympic Dam, which is the world's largest uranium deposit
• Ranger and Jabiluka, in the Alligator Rivers region of the Northern Territory (NT)
• Kintyre and Yeelirrie in Western Australia (WA).

Table 2. Uranium resources in States and the Northern Territory at December 2010.

	RAR recoverable at <US$130/kg U Tonnes U	Inferred Resources recoverable at <US$130/kg U Tonnes U	Total Resources Tonnes U	Percentage of Australia's Total Resources
South Australia	930 300	411 500	1 341 800	81%
Northern Territory	124 000	49 400	173 400	11%
Western Australia	72 100	34 300	106 400	6%
Queensland	31 600	8400	40 000	2%
New South Wales	0	0	0	-
Victoria	0	0	0	-
Tasmania	0	0	0	-
Australia Total (rounded)	1 158 000	503 600 (504 000)	1 661 600	100%

Approximately 10% of uranium in Economic Demonstrated Resources (equates with RAR at less than US$130/kg) is inaccessible for mining. All uranium deposits in Queensland (Qld) remain inaccessible because current State Government policy prohibits uranium mining. Applications for new mine developments in the NT are subject to approval by the Commonwealth Government Minister for Resources, Energy and Tourism, the Hon. Martin Ferguson. In the NT, inaccessible resources include the Jabiluka deposit, where the traditional Aboriginal land owners have not granted approval to mine the deposit, and the Koongarra deposit, which was added to the Kakadu World Heritage Area by the World Heritage Committee on 27 June 2011. In South Australia (SA), the Mount Gee deposit is within the Arkaroola Protection Area, which was established by the SA Government in July 2011. Exploration and mining titles will not be granted in this area.

Joint Ore Reserve Committee (JORC) Reserves comprise total uranium in Proved and Probable Ore Reserves as defined in the JORC Code. At December 2010, JORC Reserves of 391 000 tonnes recoverable uranium account for approximately 37% of accessible Economic Demonstrated Resources.

Australia has the world's largest resources of uranium with an estimated 1.158 million Mt in RAR recoverable at costs of less than US$130/kg. Based on the latest estimates⁴ for other countries, this represents approximately 33% of world resources in this category. Other countries with large resources in RAR recoverable at costs of less than US$130/kg include Canada with 10%, Kazakhstan 10%, Niger 7% and the United States 6%.

Australia's Inferred Resources of uranium recoverable at costs of less than US$130/kg are the world's largest resources in this category.

Uranium exploration expenditure in 2010 was $190.0 million⁵ which was an increase of 6% on expenditure in 2009 ($179.6 million). The majority of expenditure was in WA (44%), followed by SA (25%), the NT (20%) and Qld (11%). Uranium exploration expenditure in Australia increased progressively from 2003 to reach a peak level in 2008. This was in response to the significant increases in spot market uranium prices, which peaked in July 2007 but declined through 2008 and 2009.

Exploration drilling continued at Carrapateena deposit, 100 kilometres (km) southeast of Olympic Dam. It is a hematite breccia complex deposit hosted by brecciated granites (similar to Olympic Dam). The deposit is known over a vertical height of 1000 metres with the top of the deposit 470 metres below the surface. Total Inferred Resources are 203Mt, averaging 1.31% Cu, 0.56 g/t Au, 6 g/t Ag, 270ppm U. Metallurgical testwork to date has achieved uranium recoveries of approximately 75%. The average uranium grade of Carrapateena is the same as the average grade of total resources at Olympic Dam, although Olympic Dam ore reserves are higher grade, averaging 500ppm U.

Quasar Resources continued exploration for sandstone deposits in the Frome Embayment to north of the Beverley Mine east of Olympic Dam. Additional zones of mineralisation were intersected in Eyre Formation sands at Pepegoona and Pannikan deposits, which respectively are 10km north and 8km north of Beverley mine.

The Thunderball deposit, near Hayes Creek, 140km southeast of Darwin, occurs as disseminated to massive uraninite in sheared carbonaceous shales, cherts and tuffaceous siltstones of the Pine Creek Orogen. In February 2011, Thundelarra Exploration Ltd released initial resource estimate of 829 000 tonnes of Inferred Resources averaging 924ppm U₃O₈ which represents 766 tonnes of contained U₃O₈. Further drilling is planned to explore for other mineralised zones at depth and along strike from the known deposit.

Exploration drilling by Energy Resources of Australia in the Georgetown area, east of the Ranger 3 open cut, intersected 14 metres averaging 0.35% U₃O₈ from a depth of 403 metres. The company plans to conduct a major exploration drilling program in the Ranger 3 Deeps and Georgetown areas over the period 2012 to 2014 for a total expenditure of $40 million.

Ngalia Basin – Several companies explored the northern margins of the Ngalia Basin (Mount Eclipse Sandstone). Energy Metals in a joint venture with Paladin Energy continued regional exploration in the northern portion of the Basin between 180km and 350km northwest of Alice Springs. Bigrlyi is the main deposit in this area and other zones of mineralisation include Walbiri, Malawiri, Anomalies 4 and 15. Drilling intersected continuations of the mineralised zones at Anomaly 15 and Anomaly 4. High grade mineralisation was intersected at the Camel Flat prospect, in Mount Eclipse Sandstone 35km southeast of Bigrlyi.

Exploration drilling continued at Cappers deposit where mineralisation is associated with calcareous alluvium. Toro Energy continued exploration at the Napperby deposit which is in calcrete on the northeast part of the basin.

Energy Metals commenced a pre-feasibility study at the Bigrlyi deposit 300km northwest of Alice Springs. Metallurgical test work on large diameter drill core samples achieved good recoveries using acid leach techniques.

Cameco Australia Pty Ltd in a joint venture with Paladin Energy continued exploration drilling to locate extensions of the Angela-Pamela deposits, 25km south of Alice Springs. In November 2010, the joint venture announced that the project would have a reduced program and budget for the rest of 2010 and 2011. The announcement took into account the uncertainty created by a policy statement made the previous month by the NT government that it would not allow any uranium mine to be built in proximity to Alice Springs.

Toro Energy commenced exploration for sandstone hosted uranium mineralisation in the Wiso Basin.

Paladin Energy Ltd continued exploration drilling in an area extending from 10km to 110km north of the city of Mount Isa in northwest QLD. Exploration tenements are held in joint venture with Summit Resources Ltd and Fusion Mineral Resources. There are more than 14 uranium deposits within these tenements eight of which have significant resources. They are the Valhalla, Skal, Oldin, Bikini, Andersons, Watta, Duke-Batman and Honey Pot deposits. The total uranium resources in the Mount Isa region which are managed by Paladin and its subsidiary Summit Resources Ltd amount to 34 800 tonnes of U₃O₈ Measured+Indicated Resources and 23 900 tonnes of U₃O₈ Inferred Resources⁶. Latest resource estimates for these deposits can be viewed in the Paladin Energy Ltd annual report.

Drilling to extend the known resources was carried out at these deposits during the year and exploration work aimed at locating new deposits continued over part of the area of the tenements.

Several companies explored for sandstone hosted uranium deposits in Cenozoic (Eocene) sands and lignite of the Gunbarrel Basin overlying the eastern margins of the Yilgarn Craton. Energy and Minerals Australia Ltd continued exploration in areas adjacent to its Mulga Rock deposit, 250km east-north-east of Kalgoorlie. The company also released the finding of its scoping study, which investigated production by open pit mining and resin-in-pulp of the lignite hosted deposit, concurrent with in situ recovery of adjacent sandstone hosted deposits. The company reported that the project is expected to be a long term, low cost producer of uranium. Mulga Rock deposit has Inferred Resources of 24 250 tonnes contained U₃O₈.

Manhattan Corporation continued drilling into paleochannel sands at its Ponton project 180km northeast of Kalgoorlie (40km southwest of Mulga Rock). The Double 8 deposit and the Stallion South, Highway South and Ponton prospects are within exploration licence applications in the Queen Victoria Spring Nature Reserve (QVSNR). Granting these tenements requires consent of the WA Minister for Mines and Petroleum and the Minister for the Environment. Manhattan is seeking these approvals.

The paleochannel drilling undertaken by Manhattan Corporation was north of the QVSNR. Historic drilling (by PNC Exploration) at the Double 8 deposit was compiled and the company has reported Inferred Resources of 26Mt averaging 300ppm U₃O₈ (7800 tonnes contained U₃O₈). Mineralisation is at depths ranging from 40 metres to 70 metres below surface.

Toro Energy explored in several areas of eastern WA and the NT. At the company's Lake Mackay project adjacent to the border with NT in central eastern WA, drilling intersected mineralisation in Cainozoic paleochannel sands adjacent to uranium rich rocks of the Amadeus Basin.

Energy Metals continued exploration for calcrete hosted deposit at the Anketell and Lake Mason deposits southwest of Wiluna north of Kalgoorlie.

Australia's mine production for 2010 was 5899 tonnes of U (6957 tonnes U₃O₈), which was 26% less than for 2009. Production declined at all three operating mines. Ranger, which produced 3792 tonnes U₃O₈ was disrupted by heavy rainfall, Olympic Dam with 2747 tonnes U₃O₈ was disrupted by damage to the main haulage shaft and Beverley with 418 tonnes U₃O₈ was lower because of limited resources remaining at the main Beverley deposit. Mine production has decreased progressively at all three mines since 2007. For the calendar year 2010, Australia, with 11% of world production, was the third largest after Kazakhstan and Canada.

Total world production in 2010 was 53 663 tonnes of U (63 282 tonnes U₃O₈), an increase of 6% compared with 2009. Most of the increased production is attributable to significant growth in Kazakhstan’s output, which rose 27% to 17 803 tonnes U in 2010, and Niger which rose 29% to 4198 tonnes U in 2010. Uranium requirements in 2010 exceeded production by more than 8900 tonnes U.

Exports in 2010 were 6219 tonnes U (7334 tonnes U₃O₈) valued at $755 million.  Exports of Australian uranium are controlled by stringent safeguards conditions which ensure that it is used only for peaceful purposes and does not enhance, or contribute to, any military applications.  Australian mining companies supply uranium under long-term contracts to electricity utilities in the USA, Japan, China, South Korea and Canada as well as members of the European Union including the United Kingdom, France, Germany, Spain, Sweden, Belgium and Finland.

During 2010 and 2011 there were four uranium projects undergoing Australian/State Government environmental approval processes. They were the Olympic Dam Expansion in SA (BHP Billiton) and the Yeelirrie (BHP Billiton), Wiluna (Toro Energy) and Lake Maitland (Mega Uranium) projects in WA.

Olympic Dam (SA): BHP Billiton proposed a major expansion of the Olympic Dam operation based on a large open pit to mine the southeast portion of the deposit. At full production the open cut and underground operations will mine a total of 80 million tonnes per annum (Mtpa) of ore with annual production estimated to reach 750 000 tonnes of refined copper, 19 000 tonnes of U₃O₈, 800 000 ounces of gold and 2.9 million ounces of  silver. The capacity of the existing underground mine will be increased to approximately 20Mtpa by 2015. The company proposes to expand all four major components of the existing metallurgical processing plant (concentrator, hydrometallurgical plant, smelter and refinery). A further expansion of the concentrator is proposed, which will produce an additional 1.6Mtpa copper concentrates for export and further processing overseas.

BHP Billiton released the Supplement to the Environmental Impact Statement (EIS) on 13 May 2011, triggering the formal assessment process. Geoscience Australia provided advice to Commonwealth Department of Resources, Energy and Tourism and Department of Sustainability, Environment, Water, Population and Communities (SEWPaC). That advice centred on groundwater and tailings storage issues throughout the assessment of the EIS and Supplementary EIS. On 10 October 2011 the Australian and South Australian Governments formally approved the expansion project and imposed a comprehensive range of environmental conditions as part of the approval process.

BHP Billiton's estimates of ore reserves and mineral resources are shown in Table 3.

Table 3. Olympic Dam Mineral Resources and Ore Reserves at June 2010 (Source: BHP Billiton Annual Report 2010).

	Million tonnes	Copper %	U3O8 kg/tonne	Gold grams/tonne	Silver grams/tonne
Total resources(1) Measured+Indicated+Inferred	9075	0.87	0.27	0.32	1.50
Total reserves	598	1.84	0.58	0.71	3.44

1. Mineral Resources includes Ore Reserves

Total resources were slightly lower than estimates as at June 2009 which amounted to 9080Mt total resources with the same average grades as for June 2010.

Mine production for 2010 was reduced following damage to the haulage system in the Clark Shaft on 6 October 2009, which reduced the mine’s ore hoisting capacity. Following repairs, ore hoisting from the shaft resumed during the June quarter 2010 and the mine returned to full production.

Ranger mine (NT): As a result of near record rainfall in latter part of 2010 and early 2011 the level of water in the tailings storage facility (TSF) rose to almost the maximum operating limit. Because there was a large volume of water in Pit 3, mining operations ceased in January and the company suspended metallurgical processing operations to ensure water levels in the TSF remain below the authorised limit. Mining operations recommenced in April 2011 and milling operations resumed in June. Uranium oxide production during 2010 and early 2011 has been adversely impacted.

Energy Resources of Australia carried out detailed feasibility studies into the construction of an exploration decline for underground drilling to further evaluate the extent of the Ranger 3 Deeps ore zone (immediately east of No. 3 orebody open pit). In August 2011, the Board of ERA approved construction of the decline after receiving notification of approval from the NT Government. Work to prepare the site is underway with construction of the box cut scheduled to commence in May 2012. The exploration decline will allow ERA to conduct close spaced underground exploration drilling and explore areas adjacent to the Ranger 3 Deeps resource. The current Ranger 3 Deeps mineral resource contains an estimated 34 000 tonnes of uranium oxide (10Mt averaging 0.34% U₃O₈).

ERA completed the feasibility study of a proposed heap leach facility for extraction of U₃O₈ contained in low grade mineralised material, both in situ and in stockpiles. In August 2011, the company announced that the study demonstrated that this facility was technically feasible, but the high capital costs and present economic assumptions limit its value. There was uncertainty also surrounding stakeholder support so the ERA Board decided not to proceed with the proposed heap leach facility.

Beverley in situ recovery (ISR) mine (SA): Heathgate Resources operates the Beverley mine between the North Flinders Ranges and Lake Frome, approximately 300km northeast of Port Augusta. Uranium production has declined in recent years as the company mines the remaining resources within the Beverley mining lease. By 2010, the deposit had been completely mined and production was mainly from old wellfields, some of which closed several years ago. The company re-activated these old wellfields from where additional uranium was produced.

Beverley North ISR mine (SA): Beverley North comprises the Pepegoona deposit, 12km north of Beverley mine and the Pannikan deposit, 10km northwest of Beverley. Field leach trials were completed in late 2010 at the Pepegoona deposit. Following assessment of the environmental impacts under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) in 2010 formal approval by the Australian and South Australian Governments was granted in February 2011 and ISR operations commenced in the same month. Total time from discovery in late 2009 to full operations was 16 months.

Beverley North is mined by a satellite ISR operation. Although commonly used in the USA and Kazakhstan, this is the first time the technique has been used in Australia. The satellite operation comprises wellfields, pumps, pipelines and facilities for circulation of the mining (leach) solutions, and ion exchange columns. Uranium is captured on resins within the ion exchange columns and when the resin is completely loaded with uranium, it is transferred into a road tanker and transported to the Beverley plant for metallurgical processing to recover the uranium. After the uranium has been removed, the clean resin is transported back to Beverley North for reuse in the ion exchange columns.

During the first quarter of 2011, combined production at Beverley plant was 30% from old re-activated wellfields at Beverley deposit and 70% from Beverley North.

Four Mile ISR project (SA): Four Mile comprises two large sandstone-hosted uranium deposits, Four Mile West and Four Mile East and is 75% owned by Quasar Resources (affiliate of Heathgate Resources) and 25% owned by Alliance Resources. It is proposed to construct a satellite ion exchange plant at Four Mile East. Loaded resin will be transported to the Beverley plant where uranium will be stripped form the resin and processed to produce uranium hydroxide concentrates. The clean resin will be returned to the Four Mile satellite plant for reuse.

In October 2009, Alliance Craton Explorer Pty Ltd, which is owned by Alliance Resources, issued legal proceedings against Quasar Resources. As a result, issues surrounding the registration of a Native Title Mining Agreement have not been resolved and the SA government is unable to issue a mining lease for the project until these legal issues are resolved. Development of the project has been delayed pending resolution of litigation.

Honeymoon ISR mine (SA): Honeymoon mine is located 75km northwest of Broken Hill. Construction of the solvent extraction plant, pulse columns and water treatment facilities for the ISR operations continued. Commissioning of the ground water treatment plant and operation of the calcium sulphate removal circuit commenced in the latter part of 2010 and early 2011. The South Australian Environmental Protection Authority and Primary Industry and Resources SA have granted authorisation to begin wellfield acidification. Production commenced in late 2011 at 400 tonnes U₃O₈ a year.

Oban ISR project (SA): Curnamona Energy carried out field leach trials at the Oban deposit, about 100km northwest of Broken Hill. Acid leach solutions and an oxidant were used in the trials. A five well pattern, comprising four injection and one central extraction well was used, which is analogous to in situ recovery operations at Beverley and Honeymoon.

The trials continued for several months and the company reported that plant and wellfield worked according to design but only low levels of uranium were detected in leach solutions. Commenting on the results, Curnamona Energy reported⁷:

"The reasons are not entirely clear but it is most likely that the bulk of the uranium minerals are contained in thin (5-20mm) bands of clay which occur in the sand bands that we are attempting to leach. These thins bands are not detected in the gamma and Prompt Fission Neutron logging and only show up in the core samples which are very difficult and expensive to obtain. Experiments with alternative lixiviants have dissolved some uranium in solution but the rates of dissolution are low and not acceptable. We suspect that this is due to the impervious nature of the clay bands".

Work on the field leach trial will continue. Further sonic drilling is planned in new areas where further leach tests are proposed.

Yeelirrie project (WA): BHP Billiton plans to mine the Yeelirrie deposit, 70km southwest of Wiluna. Uranium mineralisation occurs in calcretes within a paleochannel and the deposit is at shallow depths down to 15 metres below the surface. Yeelirrie currently has total resources of 52 500 tonnes U₃O₈ and is Australia's second largest undeveloped uranium deposit. BHP Billiton produced an environmental scoping document for the Yeelirrie EIS and the environmental impacts will be assessed by the WA government under a bilateral agreement with the Australian Government. In mid 2011, BHP Billiton placed the Yeelirrie project on hold until further notice.

Wiluna project (WA): Operated by Toro Energy Limited the project comprises two shallow (less than 8 metres deep) calcrete hosted deposits, Lake Way and Centipede, which are 15km south and 30km south of Wiluna respectively. Lake Way has Inferred Resources of 10.53Mt averaging 543ppm U₃O₈ (5714 tonne contained U₃O₈) and Centipede has total Measured+Indicated+Inferred Resources of 9.7Mt averaging 553ppm U₃O₈ (5355 tonne contained U₃O₈). In mid 2010, the company mined an evaluation pit (45 000 tonne) at the Centipede deposit to increase confidence in the resource estimates and in the proposed mining method. Mining was carried out using a surface miner together with excavators and trucks. Bulk samples were collected for metallurgical test work. Two options for processing the calcrete ores were investigated, alkaline heap leaching and agitated alkaline leaching in tanks. Optimisation studies showed that alkaline agitated leaching in tanks at elevated temperatures to be the preferred process option. It is proposed to produce uranium concentrates containing approximately 1000 tonnes U₃O₈ per annum.

In March 2011, Toro Energy Ltd submitted a draft Environmental Review and Management Program which will be the basis for environmental assessment of the project by both the Australian and Western Australian Governments.

Lake Maitland project (WA) is a calcrete hosted uranium deposit 100km south east of Wiluna which occurs as a single horizontal layer 1 metre to 3 metres thick and the top of the mineralised zone is 1 metre to 2 metres below the surface. In 2010, Mega Uranium Ltd commenced feasibility studies on developing an open cut operation and focused on various processing, engineering and infrastructure options. In late 2010 two test pits, approximately 34 metres long by 19 metres wide and 5metres deep were mined as part of the feasibility study. The objectives of the test pits were to:

• Validate the geological model interpreted from drilling data and costean programme;
• Demonstrate that a truck and excavator mining method is viable and that the ore and overburden can be excavated without blasting; and
• Demonstrate that selective mining is achievable using high precision GPS equipment on an excavator.

In October 2010, Mega Uranium Ltd received approval from the Environmental Protection Authority of Western Australia for the Environmental Scoping Document (ESD) for the project. 

The ESD identified the key potential environmental impacts in connection with the project and defined the scope of the environmental investigations and studies which are being carried out to complete the environmental review and management program, which is the next stage in the assessment and approval process.

Kintyre project WA Cameco completed a mineral resource estimate on 31 March 2011 which had Indicated Resources of 25 583 tonnes contained U₃O₈ at an average grade of 0.49% U₃O₈ and Inferred Resources of 2404 tonnes contained U₃O₈ at an average grade of 0.47% U₃O₈. Further drilling was aimed at testing the depth extensions of the deposits. The company submitted an Environmental Scoping Document to the Australian and Western Australian Governments in November 2010. It is proposed to mine the deposit by open cut with planned production in the range 2700 tonnes to 3500 tonnes U₃O₈ per annum.  

In recognition of its important natural and cultural values, the Koongarra area, along with its contained uranium deposit was added to the Kakadu World Heritage Area by the World Heritage Committee on 27 June 2011. The inclusion of Koongarra into the Kakadu World Heritage Area means that it will have protection under the EPBC Act.

On 22 July 2011, the Premier of SA announced the establishment of the Arkaroola Protection Area which will, as a first step, be reserved from operation as a result of the Mining (Reservation from Act) Proclamation 2011 under section 8 of the SA Mining Act. It is proposed ultimately to enact legislation protecting the area and follow that with an application for World Heritage Listing. As a result, future exploration and mining titles will not be granted in the designated Area.

The Four Mile (both East and West) deposits, the Four Mile South prospect and the area of the mining lease application (MLA) are outside the Arkaroola Protection Area and are not affected by this announcement. However it does cover approximately 38% of exploration licence (EL) 3666 in which Alliance Resources has a 25% interest. Based on the announcement, that area will not be available when application for a subsequent licence is lodged later this year. This will prevent mining on the area covered by Marathon Resources’ Mount Gee exploration licence (EL4355).

1. WNA, 2011: Policy Responses to the Fukushima Accident. World Nuclear Association
2. WNA, 2011: World Nuclear Power Reactors and Uranium Requirements.
3. Cameron, R. 2011: Nuclear Development in the aftermath of Fulushima Dai-ichi Accident. Australian Nuclear Association Conference. Sydney, October 2011.
4. Latest estimates for other countries as reported in 'Uranium 2009: Resources Production and Demand'. OECD Nuclear Energy Agency and International Atomic Energy Agency. Paris.
5. ABS Mineral and Petroleum Exploration, December quarter 2010.
6. Paladin Energy Ltd Annual Report 2011.
7. Curnamona Energy Ltd, 2011. Annual report to Australian Securities Exchange, October 2011.