PALADIN Energy’s share price has jumped as much as 11% today on news of a resource upgrade at its flagship Langer Heinrich uranium mine in Namibia, with the company saying the project is now the largest calcrete-hosted uranium deposit in the world.

The Perth-based company jumped A57c to an intraday high of $5.89 with 3.3 million shares changing hands by 2.20pm EST after announcing a 55% ramp-up in contained uranium at the project to 74,415 tonnes (over 164 million pounds) in the measured, indicated and inferred categories.

The upgrade comprises a 46% increase in the measured and indicated resources from 22,548t (49.7Mlb) to 32,858t (72.4Mlb) contained uranium and a 64% increase in the inferred resources from 25,308t (55.8Mlb) to 41,557t (91.6Mlb) contained uranium.

The overall average grade remains at 0.06% uranium and, as was the case in the 2006 resource estimate, the new estimate used a 250 parts per million uranium cut-off.

Paladin said there was a high potential the resource base could be increased further at Langer Heinrich.

“The directors believe a considerable amount of the inferred resources [70Mt grading 0.06% containing 41,557t uranium] will be able to be converted to measured and indicated resources categories in the future,” Paladin said.

Paladin expects the new resource estimates will contribute to extending the project’s mine life.

“Additional mine production is regarded as being essential to meet increasing worldwide demand,” Paladin said.

“Therefore the opportunity to readily and substantially expand production of the Langer Heinrich mining operation with long-term production output, places Paladin in an excellent position to capitalise on the market opportunities and further benefit shareholders.”

Shares in Paladin have cooled to $5.70 at market close.