MetalNRG PLC (LSE:MNRG) has told investors that the Parliament of Kyrgyzstan has approved a bill lifting the ban on prospecting, exploration, and mining of uranium and thorium in the Kyrgyz Republic.
The company currently owns a 9.9% stake in the Kamushanovskoye uranium deposit, with an option to increase its interest, and described the reopening of Kyrgyzstan as “very welcome news”.
Kamushanovskoye, located in the Chuy province, was previously estimated to hold 3,371 tonnes of uranium reserves, with an in-situ value of approximately $253.1 million at historic uranium spot prices.
Since that estimate, the uranium price has increased fourfold from approximately $22/lb to around $88/lb, MetalNRG highlighted.
It said the project offers potential exploration upside estimated at 2.58 million pounds of uranium, subject to being brought into a compliant resource.
Kamushanovskoye was designed for in-situ recovery (ISR) to minimize capital and operational costs. Infrastructure for the project would include road access, electricity, and water, with three uranium refineries within 550 kilometres.
The company has an internal estimate of net present value for the project, pitched at around $250 million, and it estimates the project will have an initial CAPEX/OPEX requirement of $11 million.
It intends to review the project to determine the most appropriate strategy.
"The removal of the ban on exploiting uranium in the Kyrgyz Republic is very welcome news,” executive director Rolf Gerritsen said in a statement.
“We will now focus on how we can achieve the best value for our shareholders from the project, recognising there is a lot of work that needs to be done if we are to develop the project to a commercially viable producing asset."