The Western Australian Department of Mines Industry Regulation and Safety has ticked off on Vimy's project management plan, is one of three state government departmental approvals required to develop the mine.

 

It still requires main works approval, and for its mining proposal and mine closure plan to be a ticked off, with the company recently providing additional material relating to the in-pit tailings and mine closure to the regulator. 

 

A resolution to native title issues is also outstanding.

 

Vimy has already appointed a registered manager to supervise the project, and has commenced mobilising its field crew to support early site works at Mulga Rock, recently reopening the camp to support short-term goals such as upgrading access roads, installing infrastructure such as communications and water bores, and undertaking the initial cutback of the existing Ambassador North pit.

 

The company's ministerial approval requires that substantial works commence before December 16, and Vimy believes its efforts will satisfy that condition.

 

Young said the latest approval was a significant milestone along the path to developing the Mulga Rock, and he remains hopeful of securing financing the development.

 

"Diversification and security of supply are front of mind for nuclear utilities as global uranium production shrinks from the middle of this decade," he said.

 

If developed, Mulga Rock could produce 3.5 million pounds per annum over 15 years at all-in sustaining costs of US$34 per pound, with Vimy's modelling using a $60/lb uranium price. Spot prices are about half that level.

 

It remains to be seen if uranium mining in WA is palatable to the community.

 

Restrictions on the development of mines were removed by the Barnett government in 2008, but there have been no developments since that time.

 

In 2017 the ban was restored by the McGowan government, but exceptions were carved out for Mulga Rock and three other projects: Cameco's Kintyre and Yeelirrie and Toro Energy's Wiluna project as they had been okayed by the prior conservative government.

 

The Conservation Council of WA continues to campaign against uranium developments in the state and recently described Mulga Rock as "unwanted and uneconomic" and "a very real threat to the environment and the WA taxpayer".

 

Vimy is targeting a final investment decision over the next year. 

 

Front-end engineering and design studies are ongoing, refining aspects of the development, such as the ion exchange flowsheet, which may reduce capital and operating costs at a time when labour costs in WA are climbing.

 

Vimy was recently included in the New York-listed Global X Uranium Exchange Traded Fund.

 

The company raised some $27 million at 11c during the June quarter, deploying some funding towards securing Rio Tinto's remaining 21% stake in the Alligator River project in the Northern Territory.

 

Vimy's stock has traded between 3-17c over the past year and closed at 11c yesterday, valuing it at $116 million.