Berkeley Energia Ltd (LON:BKY) reflected on a milestone quarter, ended March 31, in which it transitioned the Salamanca project, in Spain, into the development phase.
It comes after a decade of exploration and feasibility work expected to outline Salamanca as one of the world’s lowest cost uranium mines.
The company highlighted that initial infrastructure work began in the last quarter, and contracts were awarded to major Spanish contractors – for work to re-route mains power lines and changes to a road.
Continuing optimisation studies during the quarter have focused on further reducing the mine’s anticipated steady state costs, and Berkeley said this work has so far seen encouraging results.
A definitive feasibility study is anticipated in June, and it is expected to confirm Salamanca’s robust economics even at low uranium prices. Currently the study is said to be at a ‘well advanced’ stage.
At the same time Berkeley is continuing talks with potential commercial offtake partners, and the company said the negotiations are progressing well. Major global utilities confirming their strong interest in securing production from the project, it added.
Currently negotiations are focussing on contracts for the mine’s initial years of production, and Berkeley said the intention is to progressively enter into longer term contracts as the project moves closer to the start of production.
Exploration continues, meanwhile, with work focussing on other ‘Zona 7 type’ deposits, but, weather conditions during the quarter restricted access to higher priority areas which will now be tested later in the year.
Berkeley told investors it had A$6mln of cash at the end of the quarter, and no debt, meaning it was fully funded through the definitive feasibility study and into the development phase.