Environmental Licence Granted For Spanish Uranium Project

Tuesday, 8 October, 2013

Berekly Resources, the AIM and ASX quoted Uranium explorer operating in North Central Spain today announced the granting of its Environmental License for the project as part of its pre-feasibility study. Spain has a notoriously bureaucratic regime, especially with regards to licensing for mining as evidenced by EMED's long term issues rehabilitating the Rio TInto copper mine, and the granting of the Environmental License is a significant step forward for Berekly to progress the Retortillo project towards development and full mining licenses. 

Highlights form RNS release:

"Regional Government has granted a Favourable Declaration of Environmental Impact ('Environmental Licence') for Retortillo following submission and extensive review of the Company's Environmental and Social Impact Assessment ('ESIA'); and

Approval of the Company's Exploitation and Reclamation and Closure Plans is now the only outstanding prerequisite for the granting of the Exploitation Concession ('Mining Licence') for Retortillo."

Project information

"The PFS results clearly demonstrated the Project's potential to support a significant scale, long life, low cost uranium operation (refer ASX announcement dated 26 September 2013).

Using only the current Mineral Resource Estimates for Retortillo and Alameda, as a base case scenario, the PFS showed the Project can support an average annual production of 3.3 million pounds of U3O8 during the seven years of steady state operation and 2.7 million pounds of U3O8 over a minimum eleven year mine life. Operating cost estimates (C1 cash costs) average US$24.60 per pound U3O8 over the life of mine. The initial capital cost (nominally ± 20% accuracy) for the Project was estimated at US$95.1 million. This cost is inclusive of all mine, processing, infrastructure and indirect costs required to develop and commence production at Retortillo. A further US$74.4 million of capital, incurred in the second year of production, is required to develop Alameda and achieve steady state operation. The Project's capital cost reflects the excellent existing infrastructure that services the region, the use of heap leaching as the preferred processing route, and the use of contractor mining."