Modern Mining November 2019

Aerial photo of Langer Heinrich Mine taken in March 2018 (photo: Paladin).

Improved economics for restart of Langer Heinrich

further de-risking of the rapid restart plan. Paladin has now completed PFS1, which focused on confirming effective C&M plans, practices and costs, while also developing a more detailed plan to execute a rapid restart at Langer Heinrich in an improved uranium market. Importantly, PFS1 has confirmed that Langer Heinrich could be back in production within 12 months of financing being in place. This assumes an appropriate return on investment for shareholders and that studies have been fully completed during the C&M period. Paladin estimates the initial capital for the rapid restart to be US$80 million, including US$38 million for plant repair and improvement and US$42 million for working capital. This is consistent with the restart capital estimate from the concept study. Upon restart, Langer Heinrich would have a production capacity on average of 5,2 Mlb/a while processing high and medium grade ores for approximately an eight-year period (after a 12-month ramp-up period) followed by a production capacity of 2,7 Mlb/a while processing low grade ores for approximately 12 years. This would result in an aver- age life of mine AISC of approximately US$33/lb. In addition, Paladin has identified opportunities to significantly debottleneck existing mining and mineral processing operations for a modest and

Uranium developer Paladin Energy, listed on the ASX, has announced improved economics to restart its flagship Langer Heinrich Mine (LHM) in Namibia following the completion of the first stream of the Pre-Feasibility Study (PFS1) examining the potential resumption of operations. The study has focused on a rapid, low capital and low risk restart at a production level of approximately 5,2 Mlb/a. The study has also identified an opportunity to increase production to 6,5 Mlb/a.

L anger Heinrich was transitioned to care and maintenance (C&M) in August 2018 due to the sustained low uranium price. Subsequently, Paladin completed a concept study in February 2019 that identified multiple options to reduce oper- ating costs, improve process plant performance and potentially recover a saleable vanadium product. Paladin commenced a two-stream Pre- Feasibility Study in March 2019 (PFS1 and PFS2) to improve the details of the Langer Heinrich restart plan and to pursue further improvement options to clearly present a compelling investment case. This included Paladin conducting: a study of numerous initiatives to reduce operating cost and to improve operability; approximately 16 200 m of resource verification drilling; an update of the mineral resource model for uranium and vanadium; and

34  MODERN MINING  November 2019