AREVA discovers big uranium deposit in Mongolia

French nuclear giant AREVA (EPA:AREVA) recently revealed information about a new uranium discovery in Mongolia.

AREVA Mongol, its Mongolian subsidiary, reported 50,000 tonnes of uranium in inferred resources with a grade of 0.01% as a result of ongoing exploration efforts at the Zoovch Ovoo project.

The project is located in Ulaanbadrah Soum, in the southeastern Dornogobi province of Mongolia.

Uranium mineralization is characterized as roll-front type and potentially amenable for the most effective lowest-cost in-situ leaching (ISL, a.k.a in-situ recovery) mining method.

Thus, by the volume of uranium resources in-situ, the Zoovch Ovoo project is comparable to the biggest deposits of that type in Kazakhstan.

This is not the only Mongolian exploration success for AREVA in recent years.

Two years ago, the company announced the discovery of the Dulaan Uul deposit with 9,888 tonnes of uranium, following field tests which confirmed the ISL mining method as preferable.

AREVA Mongol has 28 exploration licenses covering more than 14,100 square kilometres in the East Gobi province of Mongolia. This huge sedimentary basin contains promising uranium deposits well-suited to ISL mining technology.

At this time, AREVA is investigating the feasibility of the Dulaan Uul uranium deposit .

Mongolia has all the prerequisites to become a large uranium producer in the foreseeable future.

At the same time, political and mining law uncertainties greatly hinder development of uranium projects in country.

Image: NEA, Mongolia