Aussie miner moves towards massive Botswana uranium project

Australian miner A-Cap Resources will develop Botswana's first uranium mine by 2017, according to the company's annual report.

The plan is to exploit one of the world's largest untapped uranium deposits – some 350 million pounds – in the north east of the country at Letlhakane

Production is targeted at 3 million pounds per year and the mine life is expected to be over 20 years.

From the report:

"The project has the distinctive advantage of having the entire major infrastructure already in place."

"A recent scoping study completed during the March 2013 quarter shows that the Letlhakane is likely the only major undeveloped uranium project in the world capable of being in production in the next five years at a capital cost of $309 million with competitive operating costs."

"It is clear that no new uranium projects globally are likely to be economically developed at the current spot uranium price, including Letlhakane. However it is also clear that given the medium and long term demand for uranium stimulated by construction of new nuclear capacity, the uranium prices will recover."

Botswana is consistently ranked first among African mining destinations and near the top for mining-friendly destinations globally.

A-Cap holds over 3,600kmĀ² of exploration licenses in Botswana.

1 year uranium price