30th Apr 2018 18:29
LONDON (Alliance News) - Berkeley Energia Ltd said Monday it is targeting further cost reductions at its Salamanca mine in Spain.
The company has been carrying out an "extensive" review of the mine to determine whether a further reduction of capital costs can be achieved.
Berkeley believes it has identified a number of areas where there is potential to reduce upfront cost required.
The company has 2.75 million pounds of triuranium octoxide under contract for the first six years, with a further 1.25 million pounds of optional volume, at an average price above USD42, compared with a spot price of USD21 per pound.
It collected 1,600 soil samples during the second phase of the geochemical sampling programme at Zona 7 at Salamanca, which is now being analysed.
The company is in a "strong" financial position with USD100 million in cash.
Managing Director Paul Atherley said: "Having completed the financing, we are finalising the selection of contractors and are undertaking detailed final reviews to ensure that we have the most optimal capital and operating costs.
"There is a huge amount of support for the Salamanca mine, which is located in a region experiencing some of the highest levels of unemployment in the European Union.
"Recently the Minister of Economy and Finance for Castilla y Leon, Pilar del Olmo, heralded the investment that the Company is making in the region, commenting that the Salamanca mine will bring 'a generation of direct employment.'
"But our investment goes beyond just employment - it will boost local businesses, improve schools that haven't been refurbished for decades and see other key services such as petrol stations return to the area.
"We work closely with the surrounding communities and through cooperation agreements have provided Wifi networks for local villages, built play areas for children, repaired sewage water plants, upgraded sports facilities, and sponsored various sporting events and local festivals."
Shares in Berkeley closed up slightly Monday at 4,072.00 pence each.
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