In a statement, Mega said it had delayed the study in order to carry out a diamond drilling program at Lake Maitland, which lies 108 kilometres southeast of Wiluna in Western Australia’s Eastern Goldfields.

The decision to conduct further drilling came after a disequilibrium study and density determinations showed potential to increase the magnitude of the known resource at the project.

Mega noted environmental studies for the Environmental Review and Management Program (ERMP) were nearing completion and that the draft ERMP would be submitted to the Environmental Protection Authority at an appropriate time.

The company also said its farm-in partners – Japan Australia Resources Development and ITOCHU Minerals and Energy Australia – continue to support the project.

Mega had previously said Lake Maitland would begin production in 2012.

A uranium mining lease was granted for Lake Maitland back in 2009, the first awarded in WA after the ban on uranium mining was lifted in 2008 on the election of the Liberal state government.

Lake Maitland is one of four major uranium projects undergoing state and federal approval processes.

The others are BHP Billiton’s Yeelirrie project, Toro Energy’s Wiluna project, and the Cameco/Mitsubishi joint venture at Kintyre.

The news comes after BHP delayed its environmental review and management program (ERMP) into Yeelirrie after originally aiming to have the program completed mid-year, prompting rumours the mining heavyweight was cooling on the idea of developing the uranium project.

However, a BHP spokeswoman told MiningNews.net the company “remains committed to developing the Yeelirrie deposit and is continuing to progress the project with a focus on developments in technologies to improve the project’s environmental and economic outcomes”