MinRes adds to global lithium production cuts amid downturn
The company will put its Bald Hill lithium mine in Western Australia under care and maintenance starting this week.
Toronto-based Plateau Uranium (TSX VENTURE:PLU)(FRANKFURT:QG1) has just announced the signing of a non-exclusive, non-binding Letter of Intent European-based Curzon Resources.
The deal with the commodity trading company could be the first potential sale of 7% the of future production from the Macusani Plateau Uranium Project in southeastern Peru. According to Plateau, the idea is to sell up to two million pounds of uranium concentrates (U3O8) over a five-year period beginning in the first year of commercial production from the Macusani Project.
Following the completion of a preliminary economic assessment in January 2016 and the advancements in its feasibility study, Plateau’s goal is to start production in late 2020. The PEA outlined a project to produce 6Mlbs U3O8 for 10 years with just under $300 million capital expenditure and an all-in production cost of $22.91 per pound.
The average price contemplated with Curzon over the period within the LOI is above US$42 per pound compared with the current spot price of around US$23 per pound. Plateau’s executives say they’re also discussing a combination of fixed and market-related hybrid pricing.
Late last month, Plateau shared results from six diamond drill holes drilled on two platforms at
its Pinocho target in Macusani. Two of the drill holes returned in excess of 2,000 ppm U (2,350 ppm U3O8) over 2 and 3 metres, respectively, within broader intervals of uranium mineralization ranging between 500-800 ppm U (590-940 ppm U3O8) over 8-9 metres, which is 2-3 times higher than the ~288 ppm U3O8 average life-of-mine uranium grade reported in the company’s PEA.
Plateau controls all reported uranium resources known in Peru.
