of 1.750M tonnes U3O8 grading
0.163% U3O8, but also has 1.553M tonnes
U3O8 grading 0.197% U3O8.
Cash costs per pound of uranium sold at
Honeymoon are relatively high at US $47,
given that Uranium One's cash cost forecast
for all its mines in 2012 is US $19. The company says, however, it expects Honeymoon
cash costs to drop to the mid-US $30s as the
mine and plant ramp to full production.
The Honeymoon Mine began production in September 2011 and uranium
is extracted using the in-situ recovery
method, and then processed using solvent
extraction on site. The project has a design
capacity of 880,000 lbs U3O8 a year.
Production has been steady in 2012
despite the post-Fukushima uranium
market doldrums. Honeymoon produced
100,000 lbs U3O8 in Q1 2012 and 70,000
lbs in Q2. The Q3 production of only
11,000 lbs reflects the operation being
closed during that period to test drying
DECEMBER 2012/JANUARY 2013
Uranium One's 100%-owned Honeymoon
uranium mine in Australia. Photo by Robert
Poulton/Photo courtesy Uranium One Inc.
procedures. The company expects to
produce 300,000 lbs from Honeymoon by
year end.
While Uranium One is focused on its
Honeymoon Mine, it is keeping an eye
on positive developments for the uranium sector in other parts of Australia.
In October Prime Minister Julia Gillard
announced that Australia would drop
its objection to selling uranium to India.
The huge Indian market represents
an opportunity for companies like
Uranium One to ramp up production and
to look for new projects. n
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