The total expenditure is less than the previous budget due mainly to deferral of Four Mile West capital costs associated with placing the first FMW well field into production.

The cost is to be shared with joint venture partner and Heathgate Resources affiliate Quasar Resources, which is the manager of the project.

Alliance said it expected its subsidiary Alliance Craton Explorer to pay $19.2 million of the $76.9 million in spending this year.

Quasar approved the plan and budget, with ACE dissenting.

“ACE elected to vote against the proposal because it considers the parties should construct an appropriately sized stand-alone plant at Four Mile in order to reduce operating costs to the parties,” Alliance said today in a statement.

“It also considers some of the costs included in the budget to be exploration rather than mining costs for which Quasar should be solely responsible.”

Cash costs for mining, processing, shipping, marketing and royalties at the project were estimated at $31.48 per pound of uranium oxide.

Development costs were estimated at $8.65/lb of uranium oxide, including drilling, well field construction, infrastructure and engineering expenses but excluding resource delineation drilling.

Rehabilitation costs are to be covered separately by bonds put up by Quasar (as to 75%) and ACE (as to 25%).

Under the revised start-up plan, in situ recovery mining operations will begin at Four Mile East in April, with uranium capture at Heathgate’s Pannikan satellite plant and precipitation, drying and packing at Heathgate’s Beverley plant.

First uranium oxide sales are scheduled for July at a forecast price of $US44.42/lb of uranium oxide.

Uranium was last trading at $35.75/lb.

The budget predicted a total project revenue of $74 million from November 2012 to December 2014, with a negative cash flow of $13.5 million.

Alliance said, however, that due to sales lagging production, ACE anticipated a positive cash flow in the first half of 2015.

Quasar made the decision to restart development of the project in 2012, voting its 75% stake in favour.

However, Alliance voted against the plan.

Legal action initiated by ACE against Quasar and Heathgate is seeking damages and restitution of the 75% stake in Four Mile with allegations of misleading and deceptive conduct on the part of Heathgate.

It is due to be heard in June.

Shares in Alliance were up 9.4% today at A17.5c.