South Inkai Uranium Mine
Overview
South Inkai is an operating in-situ recovery mine located in the Suzak region of the South Kazakhstan Oblast, approximately 450 km northwest of Shymkent, Kazakhstan.
South Inkai is owned 100% by the Betpak-Dala Joint Venture, in which Uranium One has a 70% interest. The balance of the interest in the Betpak-Dala Joint Venture is owned by KazAtomProm, the Kazakh State uranium company.
The design capacity of the South Inkai mine is 5.2 million pounds (2,000 tonnes U) per year and it is expected that the annualized rate of production will reach this level during 2011.
Mineral Reserves and Resources
As at December 31, 2009 South Inkai had the following mineral resource estimate as provided by Hellman & Schofield Pty. Ltd. (“H&S”):
Table 1 - South Inkai Mineral Resource Estimate December 31, 2009 (Attributable to Uranium One)(1,2,3,4)
Reserve Category |
Tonnage |
Grade |
Contained U |
Contained U3O8 |
|
4,300,000 |
0.009 |
378 |
1.0 |
Probable |
23,200,000 |
0.038 |
8,750 |
22.7 |
Proven and Probable |
27,500,000 |
0.033 |
9,128 |
23.7 |
Notes:
- Figures are subject to rounding
- Low grade in proven reserves is due to near-completion of mining in blocks 1 and 2.
- Represents the reserve notionally attributable to Uranium One’s 70% equity interest in the Betpak Dala Joint Venture.
Table 2 – South Inkai Resources December 31, 2009 (Attributable to Uranium One) (1,2,3,4,5)
|
Tonnage |
Grade |
Contained U |
Contained U3O8 |
Measured |
4,300,000 |
0.009 |
378 |
1.0 |
Indicated |
23,200,000 |
0.038 |
8,750 |
22.7 |
Measured & Indicated |
27,500,000 |
0.033 |
9,128 |
23.7 |
Inferred |
30,000,000 |
0.040 |
12,000 |
31.2 |
Notes:
- Figures are subject to rounding
- Mineral resources that are not mineral reserves do not have demonstrated economic viability.
- Low grade in measured resources is due to near-completion of mining in blocks 1 and 2.
- Mineral resources are inclusive of mineral reserves.
- Represents the resource notionally attributable to Uranium One’s 70% equity interest in the Betpak Dala Joint Venture
Geology and Mineralization
The South Inkai deposit is located in the Chu-Sarysu depression which represents a large Cretaceous age basin up to 250 km wide and which extends northward for more than 1,000 km from the foothills of the Tien Shan Mountains. The basin is underlain and flanked by folded Proterozoic and early Paleozoic formations.
The South Inkai deposit is located at the southern end of the Inkai deposit which extends over a strike length of 55 kilometres and a width of 17 kilometres. The South Inkai deposit covers a 17 km length of the trend. There are eight mineralized beds identified to date; three are in the Mynkuduk horizon and five are in the overlying Inkuduk horizon.
Two resource areas have been delineated in the Mynkuduk horizon and mineralization is found at depths of 450 to 510 metres below surface. The mineralization in the Mynkuduk horizon is in the form of pitchblende and coffinite occurring interstitially in the sandstones and to a lesser extent, the clay layers. The main roll fronts can reach a thickness of 20 metres, but more commonly they average 7 metres to 10 metres at their thickest and 1 metre to 2 metres on the limbs. The grade ranges from 0.02% to 0.07% U, averaging 0.043% U for the deposit.
Mineralization has also been found in the Inkuduk horizon at depths of 425 to 450 metres below surface but to date insufficient drilling has been completed to establish resources. The grades are similar to that in the Mynkuduk horizon.
Operations
The South Inkai Mine is an operating ISR mine which produces a wet yellowcake uranium product. Commercial production commenced on January 1, 2009, following a 15 month pilot plant program conducted during the period from October 2007 to December 2008. Construction of the industrial complex at South Inkai is complete and fully operational. Two yellowcake dryers were installed, commissioned and licensed during 2010 allowing finished product to be shipped directly to conversion facilities. Two additional dryers are scheduled to be installed during 2011 and expected to be operational by the end of 2011.