Marenica Energy will test its proprietary U-pgrade process technology on uranium ore samples from Deep Yellow Limited’s Tumas project. Tumas is located in the same region as the Marenica project and shares many similar metallurgical properties. The test-work will be undertaken as part of a Services Agreement and Statement of Work with Deep Yellow Limited and relate principally to a bench scale test-work program to assess the level of amenability of Marenica’s proprietary U-pgrade process technology to the Tumas bulk samples.
Marenica has already started test work on the first bulk sample provided. An additional bulk sample arrived in Perth last week. The program is expected to be completed towards the middle of 2016, although interim milestone results will be released to the market as they become available.
Deep Yellow will meet the total cost of the program, including the extraction and delivery of the samples to the test-work laboratories in Perth. The cost of the local test work program is estimated at N$2.8 million. Approximately N$764 000 of this represents fees for services provided directly by Marenica it said in a statement.
The parties have agreed in principle that commercialisation discussions will follow a successful outcome of this testwork program. These discussions will focus on an arrangement in which the Tumas ore body and the U-pgrade technology can be commercially combined.
“This is an important stepping stone to demonstrating that U-pgrade can be applied successfully on another resource. The successful completion of this test-work will build further industry credibility and generate momentum amongst resource owners to utilise this game changing technology,” said Marenica CEO, Murray Hill.
The agreement follows successful trials carried out on ore bodies in western Australia leading Hill to conclude, “this agreement with Deep Yellow follows an earlier arrangement in which Marenica successfully demonstrated the commercial potential of our U-pgrade technology on ore samples from Toro Energy Limited’s western Australian calcrete hosted uranium ore from their Wiluna project in Western Australia.