SCOPE CHANGE FOR THE CHIRUNDU URANIUM JV PROJECT FEASIBILITY STUDY
The Bankable Feasibility Study for the Chirundu Uranium Project commenced in May 2008. It comprises two deposits in Zambia, Njame and Gwabe, and is a joint venture between African Energy Resources Limited (the JV Manager and 70% equity holder) and Albidon Exploration Limited (30 equity holder).
The Participants of the Chirundu Uranium JV have reviewed the scope of the BFS in the context of the current global financial instability. A decision has been made to defer further progress on all aspects of the BFS with the exception of the following:
The updating of the resource estimation at both Njame and Gwabe to deliver a Measured and Indicated Resource for the project. This is expected by the end of the current quarter.
A modified metallurgical test programme at Mintek Laboratories will continue to evaluate processing options and process optimisation, which will permit the completion of the process flow-sheet design.
The Participants will continue to monitor the situation on an on-going basis and expect to resume the outstanding components of the BFS once market conditions improve.