Monday 11 May 2009

A U-turn may save hot rocks

Herald Sun
Tuesday 5/5/2009 Page: 32

IT SEEMS all is not lost for fans of geothermal energy. Last week was a dismal story after GeoDynamics' hot rocks project near Innamincka suffered a major setback - a noise in a deep well was followed by a cloud of unexpected steam. Yesterday Petratherm made an interesting announcement that it could be providing a world first - emissions-free electricity to a uranium mine.

Drilling on Petratherm's Paralana project will start in July, with the $90 million Four Mile uranium mine a key customer. With only 5km separating the projects, Alliance Resources' chief executive Patrick Mutz said the plan was a natural, given that both projects produced electricity without greenhouse emissions.

"We believe the hot rocks pilot plant will have the capacity, if proven commercial, to provide Four Mile's total power needs," said Patrick. "If that eventuates, it would be the first uranium mine in the world to source its electricity requirements from a renewable energy source."

Alliance is a 25% joint venture partner in the development of Four Mile, which is Australia's largest recent uranium discovery and promises to be a high-grade mine by world standards. Initial annual production is forecast at 1400 tonnes of uranium oxide and Patrick said there was considerable upside for an expanded resource base when that is updated in about two or three months.

Heathgate Resources' nearby Beverley uranium mine is also a keen electricity customer and there are plans to run power lines to BHP Billiton's massive Olympic Dam copper-uranium mine as well. Speaking at Paydirt 2009's South Australian investment conference in Adelaide yesterday, Petratherm chief executive Terry Kallis said a specialist drill rig was due to arrive at Port Pirie next weekend. Petratherm shares firmed 14.5% to 35.5i while Alliance shares rose 11.3% to 73.5¢.

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