Uranium One Inc., the Canadian company that is set to start up Australia’s fourth mine for the radioactive metal, plans to extend drilling at the Honeymoon site as it seeks to extend the life of the project.

Drilling at the Granite Project, two kilometers (1.2 miles) southeast of Honeymoon in South Australia state, will start after Easter, Colin Skidmore, vice president for exploration at Toronto-based Uranium One, told a conference today in Adelaide, an e-mailed statement of his remarks shows.

Uranium mining companies in South Australia may invest A$25 billion ($24 billion) in as many as 30 projects and developments, including BHP Billiton Ltd.’s planned expansion of Olympic Dam, Paul Holloway, state resources minister, said yesterday. The Honeymoon project, due to start up this year, may now start early 2009, the statement shows.

“Uranium One regards it as a strategic drilling campaign as any discovery could enhance Honeymoon’s mining operation and potentially extend its initial mine life,” Skidmore said in the statement distributed by Field Public Relations Pty. Production is due to start at a rate of 400 metric tons a year, he said.

Uranium One plans further exploration and development drilling of deposits at Goulds Dam to the northwest of Honeymoon and at East Kalkaroo, two kilometers to the east on the same mining license, according to the statement. Goulds Dam may contain 2,000 tons of uranium oxide, while East Kalkaroo may hold 910 tons.

“A substantial part of the plant being assembled at Honeymoon could be relocated to Goulds Dam toward the end of Honeymoon’s mine life should Goulds Dam be approved for commercial production, Skidmore said in the statement.

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