March 11, 2009 / 3:12 PM / 9 years ago

Khan Resources sees $333 mln capital cost for Mongolian project

March 11 (Reuters) - Canada’s Khan Resources Inc KRI.TO said it expects initial capital cost for its Dornod Uranium Project in north eastern Mongolia to be about $333 million and estimates the project to be completed in 36 months.

Khan Resources said it anticipates a through-put of 3,500 tonnes per day over a 15 year mine life, which will generate an average annual production rate of 3.0 million pounds of U3O8 (uranium oxide) at a cost of $23.22 per pound of U3O8.

The company said a definitive feasibility study for Dornod indicated 25.3 million tonnes at an average grade of 0.116 percent U308 for 64.3 million pounds of U3O8.

Khan Resources shares, which have lost more than 50 percent of their value in the last six months, were up 13 percent at 35 Canadian cents in late morning trade on the Toronto Stock Exchange. (Reporting by Krishna Chaithanya in Bangalore; Editing by Gopakumar Warrier)

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