Energy Ventures kicks off metallurgical testing at Aurora uranium project in Oregon

Energy Ventures (ASX: EVE) has commenced a program of metallurgical testing on mineralisation from its Aurora uranium project in southeast Oregon, USA, as part of the company’s ongoing feasibility assessment of the deposit.

The testing represents the first stage in developing a detailed process flowsheet for the uranium mineralisation at Aurora, which is the company’s most advanced development opportunity, and is designed to refine the understanding of material handling, comminution processes and liberation of uranium.
The company is also looking at potential opportunities for beneficiation of the mineralisation at Aurora which has potential for shallow open pit mining, and expects results of the first phase of testwork in October 2011.

Aurora has a well constrained resource base of 38 million pounds (Mlb) uranium (eU3O8) comprising an Indicated Resource of 36.7 Mlb eU3O8 at a grade of 253 parts per million (ppm) eU3O8, and an Inferred Resource of 1.2 Mlb eU3O8 at a grade of 151 ppm eU3O8 (grade cut‐off 100 ppm eU3O8).

Importantly, the Indicated portion of the resource contains a high‐grade zone of 18.4 million tonnes (Mt) at 444 ppm eU3O8 based on an interpreted grade envelope defined by a 300 ppm eU3O8 cut‐off grade. This zone contains 18.0Mlb of eU3O8 and occurs at the top of the deposit.

Energy Ventures has conducted a program of diamond drilling at the Aurora deposit during the year, totalling 32 holes for 2,815 metres of core drilling.

The company said the new core drilling has provided confirmation of the geological interpretation of the deposit as a near‐surface, flat‐lying, tabular zone of uranium mineralisation hosted by extensively altered volcanic units.

The work has also shown that uranium mineralisation is of a grade and continuity that is potentially amenable to exploitation by a low strip ratio open pit mining operation.

Significantly, high grade drill results and widths announced in July are significant and push the case for potential for shallow open pit mining at Aurora, which would improve project economics with lower CAPEX and earlier generation of cash flows.

The availability of new drill core has allowed the company to collect representative bulk samples that can be used to build on the extensive historical metallurgical testing that was previously completed on the
mineralisation.

The results of further metallurgical testing are required to establish a viable process flowsheet and to advance the economic feasibility assessment of the deposit.

The company intends to advance its understanding of the both the beneficiation opportunities and leaching characteristics of the Aurora mineralisation, subject to the results of the current testing.

A program of further testing is currently being developed to support the development of a process flowsheet for the deposit.

Energy Ventures, through its wholly owned US subsidiary Oregon Energy LLC, owns five uranium exploration and development projects located in the western USA, all of which have been subject to significant historical exploration and have historical resources.

The company is currently also exploring other project areas and actively evaluating other uranium opportunities in the western USA and has cash reserves and liquid investments that will allow it to continue with its strategy of advancing its technical projects toward development, increasing the overall resource base and demonstrating value.

Energy Ventures's ultimate aim is to supply product to the domestic US market, which is the largest consumer of uranium in the world and is expected to have consistent demand in the longer term.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19494/energy-ventures-kicks-off-metallurgical-testing-at-aurora-uranium-project-in-oregon-19494.html