Mega flags delay at Maitland project
Mega flags delay at Maitland project

Mega Uranium has become the second WA yellowcake hopeful in as many weeks to flag delays to a major uranium project.

The Canadian group's mid-2013 production target for Lake Maitland, 100km south-east of Wiluna, is in doubt after it delayed a feasibility study over the project to enable more diamond drilling to boost the size of its resource.

The move comes a little over a fortnight after BHP Billiton put the environmental approvals process for its Yeelirrie project on hold because it did not meet 'internal standards'.

As revealed by WestBusiness this week, the mining giant is also understood to have begun dismantling the project's senior management team.

A spokeswoman for Mega said a study suggested the group had understated the size and grade of the resource at Lake Maitland.

She said it was too early to say how extensive a planned diamond drill program at the project would be or how long it would take.

The Barnett Government lifted WA's uranium ban in late 2008, prompting a wave of exploration.

But the State's first mine remains at least two years away.

Of the most advanced uranium projects - Yeelirrie (BHP), Wiluna (Toro Energy), Lake Maitland (Mega), Mulga Rock (Energy and Minerals Australia) and Kintyre (Cameco and Mitsubishi) - Wiluna is the most advanced.

Toro hopes to be in production by 2013.

It will have to overcome weak investor sentiment in the face of a depressed uranium price and opposition to uranium mining, including from the Federal Government's coalition partners, the Greens.

The West Australian

Popular videos

Compare & Save

Latest

Compare & Save

Follow Us

More from The West