The Northern Miner, 6/3/2008

Western Prospector proposes new mill design to cut costs

A new mill design for its Gurvanbulag deposit in Mongolia could lower capital and operating costs, Western Prospector (WNP-V) says.

In a preliminary economic assessment completed last year, Western Prospector assumed a traditional solvent-extraction process would be used to recover pure uranium oxide from the bulk extraction system.

But now the company says recent test work suggests that the resin-in-pulp (RIP) method could be used to perform the same task at lower capital and operating costs.

Specifically, the RIP method would mean that flammable solvents in the traditional solvent extraction process would not be required, and therefore it would not be necessary for Western Prospector to build a separate building at the mill for that process.

On top of capital and operating cost savings, Western Prospector's management argues, the company could save money on lower insurance premiums because flammable solvents would not be used.

The Vancouver-based company says it is incorporating these changes in the processing mill design into its feasibility study, which is expected to be completed in the third quarter.

Western Prospector is currently the target of an unsolicited takeover bid by Khan Resources (KRI-T, KHRIF-O).

Late last month, Western Prospector's board rejected Khan Resources' unsolicited takeover bid for the company, saying it was "inadequate" and fell "significantly short of Western's true value."

In early afternoon trading, Western Prospector's shares were up 2¢ cents apiece to 72¢ per share, on a trading volume of 4,000.

The company has a 52-week trading range of 47.5¢-$6 per share.