Sean Heathcoat highlighted the completion of an updated economic study by Erudite Strategies on the Henkries Project, which included revised operating and capital cost estimates based on a 1979 feasibility study.
The company has developed three financial modelling scenarios: a conservative low case, a more realistic CPR case with the potential for increased resources, and an ambitious target case aimed at extending the mine’s life to 10 years.
Neo Energy is actively pursuing the CPR case, focusing on realistic resource expansion through additional surface sampling and infill drilling, aiming to achieve a resource estimate of over 10Mlb Uranium in during 2024.
Key points include:
- Economic Study Update: The study, conducted by South African mining consultancy Idite Strategies, updates a feasibility study from 1979. It includes three financial modelling scenarios:
- Low Case: Conservative estimate with a 4.7 million pound uranium resource.
- CPR Case: Includes additional surface sampling and infill drilling to achieve a 7 million pound resource.
- Target Case: Aims for a 10-year mine life with a 10 million pound resource.
- Funding Options: The company is backed by QGC, which is exploring debt funding options to avoid diluting existing shareholders. Other entities have shown interest in providing investment through streaming and trading perspectives.
- Next Steps: The immediate focus is on additional drilling to update the Henkries North deposit, aiming to reach the CPR case resource estimate. The goal is to achieve the 10 million pound target, leveraging historical drilling data and confidence in the project’s resource potential.
- Strategic Goals: Neo Energy Metals aims to increase the JORC resource to over 10 million pounds of uranium, making the project more attractive to investors and offtake partners. They plan to use debt and streaming funding to advance the project without significant equity dilution.
