A-Cap forges ahead with mining plans despite global crisis

The company yesterday announced its plans for the continued development of the Letlhakane Uranium Project towards becoming Botswana's first uranium mine in 2011.
The company's recently published Scoping Study (released to the ASX on October 17 2008) indicates the project is financially robust with an operating cost of US$29/lb. 'An operating cost of US$29/lb would represent an operating margin of over US$25/lb in comparison to the current uranium oxide spot price of US$55/lb and over US$40/lb when considering the current long-term contract price of (US$70/lb),' says the company's CEO Andrew Tunks in a statement.

'Important stages in the progression of the project from exploration to mine are about to commence, which are planned to result in the completion of a full feasibility study by the end of 2009.'

A-Cap says they are committing to a number of milestones for 2009 in order to be in a position to seek approval from the Botswana Government for a mining licence in early 2010 with a view to being in production by 2011.

The company says it will start a full Environmental Impact Assessment (EIA) managed by Metago Environmental Engineers and Ecosurv Environmental Consultants in the New Year.
Also next month, a ground water resource study will be carried out to identify a source of water, vital for processing of ore on heap leach pads.

They will also start drilling in preparation for a resource upgrade across the project. Tunks says in early 2009, they will also finalise metallurgical test work and call for tenders for a full feasibility study for completion in late 2009.

Through a tendering process, the contract to manage the EIA has been awarded to a consortium comprising two southern Africa based consultancies, Metago Environmental Engineers and Ecosurv Environmental Consultants. Both companies have extensive experience in environmental aspects of uranium mining developments and sound track records in delivering completed EIAs on Botswana projects.

Tunks says detailed drilling in preparation for a resource upgrade from Inferred Resource to Indicated Resource has already been completed for the Mokobaesi portion of the resource. 'Further drilling will be required for the Gorgon portion of the resource that falls within the current Option 1 mine plan. This drilling will commence in early 2009 at the end of the current wet season. A resource upgrade will be prepared after the completion of other necessary drilling.

Previous work completed on the metallurgy of the resources at the Letlhakane Uranium Project indicates that recoveries within the oxide portion of the resource are excellent with recoveries in bottle rolls in excess of 90 percent from the calcrete hosted mineralisation. Detailed studies on the characteristics of the ore types during heap leaching are currently being undertaken in the form of 'column leach tests' at MINTEK in Johannesburg, South Africa. Results from the column tests will be available early in 2009.
A-Cap will continue with its programme of metallurgical test work throughout 2009 to continue to develop an understanding of the metallurgical properties of all ore types.
Primary ore represents approximately 60 percent of the global resource inventory and if the metallurgical issues can be addressed will make an enormous impact across the long-term of the project.