WildHorse Sees Scope for `Significant' Uranium Mine in Hungary

By Angela Macdonald-Smith

Sept. 26 (Bloomberg) -- WildHorse Energy Ltd., the Australian uranium explorer backed by Macquarie Group Ltd., said a study of a deposit in southern Hungary showed the potential for a ``significant scale'' mine.

The study in the Mecsek Hills region demonstrated the potential for production of more than 2 million pounds a year of uranium oxide for more than 20 years, Perth-based WildHorse said today in a statement to the Australian stock exchange.

A resurgence in interest in nuclear power because of rising fossil fuel costs and increased pressure to cut greenhouse gas emissions is boosting demand for uranium. About 46 million pounds of the radioactive metal was produced from the Mecsek Hills area before the closure of the mine in 1997.

``This is a very encouraging study, and suggests that at current long-term uranium prices, the project can be developed and mined,'' WildHorse said in today's statement. ``All of these studies will be updated in greater detail and consultation undertaken with a range of local stakeholders as part of the feasibility stage of the project before a decision to mine could be made.''

WildHorse fell 1 Australian cent, or 3.9 percent, to 25 cents in Sydney trading, partly offsetting a 13 percent gain yesterday.

WildHorse said last month it agreed to study the potential for restarting uranium mining at the site under an accord with state-owned Mecsekerc Zrt. The company may begin mining uranium at the site by 2010, Napi Gazdasag newspaper reported Aug. 28, without citing anyone.

The number of nuclear power reactors globally may jump 30 percent by 2020, buoyed in particular by investments planned in India and China, the World Nuclear Association estimates.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net