Vimy reports uranium grade increased by 70% at Alligator River Project

• Uranium grade in sample concentrate increased by 70% to 2.0% U3O8
• Potential for estimated capital and operating costs to be materially reduced
• Confirms Alligator River’s potential for 1st quartile position on global uranium cost curve
• Further enhances the Project’s prospective economics and attraction to strategic partners
• Enhanced sample concentrate gold grade warrants further investigation of recovery options

Vimy Resources Limited (ASX:VMY) announced the results of the ore sorting trial on a composite of mineralised material from the Angularli deposit at Alligator River in Australia’s Northern Territory (NT).

The results of the test, which were carried out by leading sorting systems supplier TOMRA, highlight the potential of ore sorting to lower project costs and improve the Project’s potential economics.

Mike Young, CEO of Vimy, said, “The results of the TOMRA ore sorting trial at the Alligator River Project’s Angularli deposit have exceeded our expectations. The high-grade nature of the deposit, coupled with the ore sorting outcomes, enhances the prospect of Angularli’s potential future development as a low-cost uranium operation.

“Our next step is to progress the upgrade trials and investigate the potential for the recovery of high-value by-products associated with the uranium mineralisation at the Angularli deposit.”

Key Findings
Beneficiated Feed Grades
• Proof of concept trial undertaken on 41.5 kg sample broadly representative of deposit mineralisation
• Uranium concentrate grade increased from 1.2% to 2.0% U3O8 (70% increase) with high U3O8 recovery
• Sample gold concentrate grade increased from 0.7 g/t to 1.1 g/t (47% increase). This warrants further investigation given no gold processing or recovery testwork has been undertaken to date
• Gold mineralisation spatially coincident with the uranium mineral resource
• High-grade material (13.5 kg of the 41.5 kg sample) not sorted due to high uranium grade but provides additional upside in future trials
• Other potential by-products were identified including platinum and palladium Potential for Reduced Capital and Operating Costs
• A higher feed grade from ore sorting would likely result in lower operating costs
• Smaller hydrometallurgical plant circuits would likely be required for the same level of production.

Coupled with a potential reduction in acid-consuming phases in the concentrate, ore sorting has the potential to lower reagents (and water) usage and costs on a per lb U3O8 produced basis, noting that
expected reagent use is already low. A smaller plant would result in a lower overall disturbance footprint with commensurate approvals and capital cost benefits.

Angularli Uranium-Gold Deposit.

The Angularli deposit is part of the Alligator River Project which lies approximately 380km by road eastnortheast of Darwin in the Northern Territory of Australia (Figure 1). The Angularli deposit is located in the King River-Wellington Range tenement group which is managed in a joint venture (Vimy 79%: Rio Tinto 21%) with Rio Tinto Exploration Pty Limited (Rio Tinto), a wholly owned subsidiary of Rio Tinto Ltd. Rio Tinto is currently not contributing to joint venture expenditure, with its interest diluting based on expenditure by Vimy.

Angularli has an Inferred Mineral Resource estimate of 26Mlbs U3O8 (0.91Mt @ 1.3% U3O8) (see ASX announcement of 20 March 2018: Maiden Mineral Resource at Angularli Deposit, Alligator River Project).

In December 2018, Vimy released the results of a Scoping Study based on the Inferred Mineral Resource,which concluded that the Project had the potential to have operating costs within the first quartile of the global uranium cost curve.

Mineralisation at Angularli is well understood and comprises predominantly uraninite (UO2) within the matrix of brecciated, silica-altered sandstone. Metallurgical testwork to date suggests that the high silica content of the ore will result in low reagent consumption and very high metallurgical recoveries owing to the silica being chemically inert.

About Vimy
Vimy Resources Limited (ASX: VMY) is a Perth-based resource development company.
Vimy’s flagship project is the Mulga Rock Project, one of Australia’s largest undeveloped uranium resources which is located 290km by road ENE of Kalgoorlie in the Great Victoria Desert of Western Australia. Vimy also owns (79%) and operates the largest granted uranium exploration package in the world-class Alligator River uranium district, located in the Northern Territory.

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