Progressing A-Cap’s Uranium project towards development in Botswana
A-Cap Resources Limited is an ASX and Botswana listed (ASX: ACB, BSE: A-CAP) resources company operating in the investment friendly and low sovereign risk country of Botswana in Southern Africa, where it holds over 12,000km2 of licenses.
The company is well funded with strong support from major shareholders, and is focused on advancing its significant uranium prospect. It also has coal resources and Greenfield base metals exploration tenements.
Letlhakane Uranium Project
Letlhakane is one of the world’s largest undeveloped uranium deposits with a JORC resource of 365.7 million pounds U3O8 with high grade resource of 103.8Mt at 450ppm U3O8.
The project has the distinct advantage of having all the major infrastructure in place and is one of the only major undeveloped uranium projects in the world capable of being in production in 2 years at a low capital cost and competitive operating costs in a safe and stable jurisdiction following a board decision to mine.
A mining licence application over the Letlhakane Uranium deposit was submitted on 18 August 2015 and was granted on 12 September 2016 by the Botswana Department of Mines. An Environmental Impact Statement was submitted to the DEA on 24 April 2015, subsequently approved on 13 May 2016.
Considerable RC and Diamond drilling totalling over 149,000m has been completed over the project area. The shallow mineralisation has been evaluated in the technical study with the project economics indicating a low capex operation. Opex is comparable to similar projects and the project can provide a positive NPV and IRR. The operation is based on low risk, shallow open pit mining and heap leach processing aiming to produce ~3 million pounds of uranium per annum over a project life in excess of 18 years.
The overriding strategy is to prepare the project for early development to enable the company to fully capitalise on an expected recovery in the uranium price.
A-Cap have identified coal resources on the Mea and Foley prospects. The Foley Coal Project is interpreted as the up and down dip extensions of African Energy Resources’ Sese Coal Project, which extends directly onto A-Cap’s ground. The Foley Prospect is the up-dip section where in 2014 a 148 million tonne JORC resource was announced.
The Mea Coal Project contains some of the highest quality coal in Botswana and has a JORC compliant mineral resource of 335million tones coal, with an initial 95 million tonnes of export quality coal calorific values of 26.43 Mj/kg (6,313 cal/kg). Coal was found in multiple seams, ranging from high quality domestic thermal coal, export quality coal.
In 2014, 14 new tenements were acquired for Base metals. These tenements lie in southern Botswana and are named as projects Hukunski, Werda, Kokong, Jwaneng, Salajwe and Sojwe. Initial desktop studies are progressing with a view to identifying priority areas to further evaluate.