GREY:BHNGF - Post by User
Post by
deninsaskon Feb 13, 2007 2:03pm
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Post# 12226351
Its a Fact #11
Its a Fact #11
CUT-OFF GRADE ESTIMATION.
Scott Wilson RPA carried out an order of magnitude estimate of the operating costs for the deposit based on using the underground mining and processing methods used previously at Elliot Lake With this production scenario, about one half of the mine production would be processed through a surface mill and extraction plant and one half left underground for leaching.
The uranium recovery is estimated at 90% for the resource
processed through a conventional mill and extraction plant on surface, based on the reported recovery from the historic production at Elliot Lake and 65% for underground leaching based on the production tests carried out by Denison at Elliot Lake.
There is an additional potential to exploit a portion of the lower grade mineralization in the hangingwall of the Main Conglomerate Bed as part of an underground leaching program, however this potential was not included in the order of magnitude evaluation or the mineral resource estimate.
After an extensive uranium Price Analysis a cut-off grade of 0.03% U3O8 was selected for mineral resource reporting as the break-even grade for the underground leaching production.