Uranium producer and Rio Tinto subsidiary, Energy Resources of Australia (ERA) remains in limbo while it awaits a board decision about the significant new expansion project called Ranger 3 Deeps.
That means the company once again depended on stockpiled ore for its production of uranium oxide from the Ranger mine in the Northern Territory in the three months to June 30.
The company told the ASX in its June quarterly report yesterday that it produced 950 tonnes of uranium oxide in the period, 6% higher than the previous quarter and 50% higher than the corresponding quarter in 2012.
All of that extra output came from stockpiled ore.
"Uranium oxide production for the quarter benefited from milling higher grade ore which had been stockpiled prior to the completion of Pit 3 in November 2012," directors said.
"The majority of that higher grade ore was processed during the first half of 2013.
"Until the commencement of production from the proposed Ranger 3 Deeps mine (which remains subject to ERA Board and regulatory approvals), the mill will be fed with lower grade stockpiled material.
"Accordingly, ERA expects that the mill head grade in the second half of 2013 will be similar to the mill head grade achieved in the first half of 2012."
The company said that its forecast for the production of uranium oxide for 2013 remained unchanged in the range of 2,700 tonnes to 3,300 tonnes.
"Progressive rehabilitation of the Ranger Project Area continued during the June 2013 Quarter.
"During the June 2013 Quarter, the evaluation expenditure related to the Ranger 3 Deeps Underground Mine Prefeasibility Study. This study continues to progress on schedule and on budget.
"Total exploration expenditure for the June 2013 Quarter was $10 million, compared to $9 million in the previous quarter and $12 million in the corresponding quarter in 2012.
"During the June 2013 Quarter, work continued on the Ranger 3 Deeps exploration decline with the face position reaching 1,000 metres from the surface on 26 June 2013.
"Underground exploration drilling of the Ranger 3 Deeps resource began in late May 2013 with 2 holes drilled in the quarter totalling 1,002 metres. Analysis and interpretation of the core from these holes is underway with the results to be provided in due course.
"The Ranger 3 Deeps Exploration Decline project remains on schedule and on budget.
"There was no surface exploration conducted during the June 2013 Quarter. This compared to expenditure of $3 million on surface exploration in the June 2012 Quarter. The surface exploration programme will recommence on the Ranger Project Area early in the next quarter," the company said.
ERA shares traded rose 1.1% or 1.5c to $1.375 yesterday.
ERA 1Y – ERA dipping into stockpiles to keep itself ticking over
