Namibia begins to look as if its resource future is in uranium mining

The future of mining in Namibia now points to uranium. With over 20 mining entities prospecting and exploring for the highly-priced mineral and with the announcement by ASX-quoted West Australian Metals (WME) last week of the discovery of uranium deposits at its Marenica Project, a fourth producing uranium mine may be on the horizon for the country.

The Marenica Project lies north of Rio Tinto’s Rã¶ssing Uranium Mine, the country’s oldest producing mine.

In a statement to the media, WME said sampling has revealed widespread, near surface mineralization and has identified possible extensions outside the main prospected area.

The first results from Phase 2 of a trench sampling programme, on part of the Marenica uranium project, had confirmed mineralization ”in excess of 100 metres in width and grades up to 1005 ppm (0.10%) U308 within the trenches”.

WME said it has pumped in US$1.9 million into exploration although the grade intercepted was lower than that of Rã¶ssing Uranium.

“The company is, however, most encouraged by these latest results which follow the widespread areas of significant uranium mineralization reported from Phase one of our trench and pit geo-chemical sampling programme,” said technical director, Leon Reisgys. ”In particular, the results now available confirm the finding that the highest uranium grades located in most north-western and southern trenches indicating likely extensions, or presence of higher grade zones outside the sampled area.”

”The company continues to evaluate the project with further prospecting and processing of the recently completed airborne radiometric survey currently under way to assist in planning of a drill programme(s) in the first half of this year and delineation of new targets,” he said

Reisgys however did not say when WME would move into exploiting the resource commercially.

Namibia now has eight known uranium deposits in the desert, currently accounts for about seven percent of the world’s production and is fast emerging as the new uranium frontier for Australian investors, whose country controls a quarter of the world’s uranium production.

In late December, Paladin Resources ”“ another uranium company ”“ commissioned its US$92 million Langer Heinrich Uranium mine, which became the country’s second producing company.

South African AIM-quoted UraMin is also developing the third mine, which is likely to go into production in 2008.

The following companies, according to Wise-Uranium, have been awarded uranium prospecting licences in Namibia in the last six months: Extract Resources; Kalahari Minerals; West Africa Gold Exploration; Forsys Metals Corporation; Westport Resources; Galahad Gold; UraMin; Namura Mineral Resources; Xemplar Energy; Australian United Gold; Bannerman Resources; Cheetah Minerals Exploitation; Corporate Resources Consultant; Etruscants Resources Namibia; the Chinese company Nam-China Minerals & Development; Namibia Mineral Mining Plants & Products; New Mining Company; Philco Twenty; Reptile Investment Four; Jaco Floris Smith and Nova Energy.

Last week, the government announced plans to enrich its uranium for uranium generation.

“Government made a policy decision last year to utilise nuclear power,” said Joseph Iita, the permanent secretary in the Ministry of Mines and Energy Wednesday.

Iita told Mineweb that the country was consulting with the United States and its southern neighbour South Africa ”“ countries that have effectively enriched uranium for electricity generation – but added that uranium was at this stage a long term option to ensure self sustenance.

The International Atomic Energy Agency (IAEA) says 442 nuclear power reactors operate worldwide in 30 countries, including South Africa, supplying about 16 per cent of the world’s electricity.

Uranium industry experts estimate global demand for the mineral to double in the next 25 years fuelled by China’s ambitious plan to increase nuclear energy capacity five-fold to 40 gigawatts by 2020.

Uranium prices have soared from US$7 in 2000 to over US$70 per pound recently.

Source: www.mineweb.net