In the March quarter, ASX-listed Alligator Energy Ltd took a step closer to establishing a field recovery trial (FRT) plant for its Samphire uranium project in South Australia after being granted a retention lease (RL) by the state’s government.
If all goes to plan, construction of the facility is set to begin before the end of June, with results expected sometime in the second half of this year.
The FRT is designed to confirm operating assumptions utilised in the project’s scoping study. It will also assess leaching chemistry, look at hydrology, determine uranium recoveries and reagent consumption, as well as take into account any additional data that will ultimately take the company to the next development phase.
If successful, this trial should ultimately de-risk technical aspects of the undertaking.
Located 20 kilometres southwest of Whyalla on SA’s Eyre Peninsula, Samphire has a current mineral resource (MRE) of 17.5 million pounds at 640 parts per million uranium oxide and hosts two main target zones – Blackbush and Plumbush.
Alligator’s scoping due diligence on the Blackbush deposit confirmed the project is amenable to potentially low-cost in-situ mining. As a result, an early target of around 1Mlbs uranium oxide over 12 years has been established.
Under this scenario, the capital cost estimates range from $129.3-$136 million, while operating costs over the mine’s life sit at $24.3-$26.9/lb for C1 cash costs (operational expenses sans royalties and capital expenditure) as well as $41-$45.4/lb for all-in sustaining costs.
The RL has several conditions (primarily concerning environmental outcomes) covering a range of important areas, including stakeholder engagement processes, groundwater management, soil/vegetation/fauna strategies, air quality, radiation management on top of traffic, noise and public safety.
These conditions, after further consultation with the South Australian government, were incorporated into a program for environmental protection and rehabilitation (PEPR) that was submitted in the first half of March. Once approved, this document will govern how the FRT is to be conducted.
Fabrication of the containerised trial plant by Adelaide Control Engineering was completed in July 2024, along with acceptance testing of the ion exchange and well house modules. The pilot plant and associated equipment are currently in Alligator’s Whyalla yard.
Meanwhile, Whyalla-based contractor Ahrens Group Pty Ltd has been selected for the on-site construction of the pilot plant and associated civil works, as well as the pipe works and pumps, to connect with the three trial-production well patterns.
The construction contract will be ready for signing once the PEPR and environmental permits are approved.
Ahrens, Alligator said, was ready to mobilise its team and subcontractors. It is estimated that up to 25 skilled tradespeople will be needed for the two to three-month construction and commissioning phase.
Post completion of the FRT operations, and any additional test work identified in the short term, the pilot plant and wellfields will be removed and the area rehabilitated.
Alligator is in the process of procuring the remaining items for the FRT (like ablution and office blocks, laboratory items, tanks and well field polypipes), while preparation of scope documents ahead of starting a tender process to select definitive feasibility study consultants is also underway.
An update of the JORC-compliant MRE for Blackbush should be completed early in the third quarter.
So far the deposit has returned grades of up to 19,391ppm uranium oxide.
Judging from its March quarterly, Alligator is confident the future for the uranium market is looking good.
“The US Department of Energy (DOE) issued a report at the start of the quarter showing that US data centre energy use has tripled over the past decade and is projected to double or triple again by 2028, driven by increased adoption of AI technologies, domestic manufacturing growth, and industrial electrification,” the Queensland-based company noted.
“The DOE is working with key stakeholders to advance technologies and strategies ‒ including advanced nuclear power.”
Meanwhile, in Europe, a coalition of 11 pro-nuclear governments was urging the European Union to include nuclear energy in its Affordable Energy Action Plan for cost-effective and secure energy.
“Switzerland plans to amend its 2018 ban on new nuclear power plants, allowing future new nuclear plant builds, aiming to secure long term clean nuclear energy supply as a fallback if renewable energy goals are unmet,” Alligator added.