Marenica Energy Ltd. on Jan. 19 said it started work on a revised scoping study to estimate costs using its proprietary processing technology, U-pgrade, at its Marenica uranium project in Namibia.
The move follows the company receiving a mineral deposit retention license for the project in December 2016.
The new study will look to confirm the viability of the project considering the uranium price range of US$65 per pound to US$75 per pound, as well as to establish new mining operating costs and capital costs in light of mining cost deflation over the recent years.
The company plans to evaluate high-grade strategies for the current resources at Marenica and alternative low-cost mining methods, along with options analysis for concentrate processing and off-take.
The study is expected to be completed by April.
"Commencing the revised Scoping Study now would place the project studies on a timeline to compete with other projects when the market recovers to more sustainable long term prices," the company said.
As of June 30, 2016, the Marenica deposit hosts indicated and inferred resources of 57.3 million pounds of U3O8 contained within 276.1 million tonnes grading 94 parts per million of U3O8.
The MA7 deposit, meanwhile, hosts inferred resources of 4.0 million pounds of U3O8 contained within 22.8 million tonnes at 81 ppm of U3O8.