LABRADOR – Paladin Energy of Perth, Western Australia, has updated the resource numbers at the Michelin uranium deposit 140 km north of Goose Bay. The open pit portion of the deposit is now estimated to contain 12.62 million measured and indicated tonnes grading 691 ppm U3O8 plus 3.39 million inferred tonnes grading 326 ppm U3O8 (200 ppm cut-off). The underground portion has 17.46 million measured and inferred tonnes at 1,244 ppm U3O8 plus 12.58 million inferred tonnes at 1,213 ppm U3O8 (500 ppm cut-off).
Paladin estimates contained uranium oxide in the measured and indicated resources at 84.1 million lb, an increase of 25% from earlier estimates. The inferred resource contains 22.9 million lb. The greatest increase was in the open pit measured and indicated grade that increased by 36%.
All historical data, both Brinex from the 1970s and Aurora data for the period 2005 to 2008 were entered into the geological database and validated. The additional drilling that Paladin completed in 2012 and 2013 has infilled some areas within the previous mineral resource and has allowed for the creation of a more robust geological interpretation.
The mineral resource detailed above is broken down on a similar basis to the previous mineral resource estimated by Aurora in 2009. The open pit and underground split is determined now to be approximately at 230 metres below surface following pit optimization studies using previous costs and a variety of uranium prices. This is slightly lower (80 metres) than the boundary used in the previous estimate.
The Michelin project was subject to a three-year moratorium on uranium exploration imposed by the Nunatsiavut government in 2008.
A description of the Michelin geology is available at PaladinEnergy.com.au.
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