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Berkeley Energia (LON:BKY) is aiming to become one of the world’s lowest cost uranium producers.
The company has kicked-off optimisation studies on the Salamanca uranium project in Spain to help make production cheaper.
It is expected to reduce operating costs making it the one of the world's lowest cost uranium sites once developed, the company said.
Earlier this month, Berkeley reported an updated pre-feasibility study including the Zona 7 deposit for the first time.
The high grade deposit has “transformed” the economics of the site, lifting the net present value to more than US$871mln (£580mln), Berkeley said.
The firm added that the ramp-up of production at the new deposit could cut operating costs to US$15.60 per pound of uranium produced from US$24.
Paul Atherley, managing director, said: “We are now focused on further reducing the operating costs with the aim to make the Salamanca project the world's lowest cost producer.”
The project has already benefited from foreign exchange changes with the weak euro making costs cheaper while a strong dollar lifts the price of uranium.
Meanwhile, on-going competition among contractors and suppliers has also reduced costs.
Further updates on the progress of the site will be reported in the firm’s interim results early next year.
WH Ireland said: “Berkeley clearly think there is more to come from this promising district and we await the results of this study with interest.
“This optimisation process is just one strand of the company’s objectives as it finalises its DFS, begins to close its funding requirements and aims to begin construction in mid-2016.”
Shares were flat at 24.6p on Monday.