SXR poised for uranium production in South Africa

SXR poised for uranium production in South Africa

SXR Uranium One Inc. said on Friday that it expects uranium processing, production and market delivery to start within two months from its Dominion Reefs mine in South Africa.

The company on Friday announced the mine’s first production of ammonium diuranate, a slurry that contains uranium and is processed for the final U3O8 product, also known as yellowcake.

“Through our partnership with Nufcor we will soon be in a position to deliver a saleable yellowcake product from Dominion to the market,” Chief Executive Neal Froneman said in a statement. “This is now our second production stream, with Akdala in Kazakhstan already in production.”

The Canadian-based company owns 70 percent of Akdala and is developing the South Inkai and Kharasan uranium projects in Kazakhstan. It also owns the Honeymoon uranium project in South Australia.

SXR Uranium One recently acquired the Shootaring Canyon Mill and associated assets in the western United States.

The spot price for uranium is $120 per pound this week, according to UxC, a leading publisher of prices, the highest level since the 1970s.

Tight supply and growing demand for the nuclear reactor fuel has also helped lift the share price of producers such as SXR Uranium One, which has seen a 53-percent jump in its stock over the last year.

Shares in the company added 32 Canadian cents, or 2.1 percent, to C$15.72 on the Toronto Stock Exchange in early trade.

Information from: Reuters via Yahoo! News

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