Fission Uranium announced the summary results of a National Instrument 43-101 compliant Preliminary Economic Assessment (PEA) for the high-grade uranium resource identified to date on the Triple R Uranium Deposit, at its 100% owned PLS property in the Canadian Athabasca Basin region. The PEA was prepared by RPA Inc. Highlights:
- 1. Base case pre-tax Net Present Value (NPV) of $1.81 billion, post-tax NPV of $1.02 billion (10% discount rate),
- 2. Mine life of 14 years producing an estimated 100.8 million pounds of yellowcake at a metallurgical recovery of 95% with 77.5 million pounds of U3O8 recovered in the first 6 years of production,
- 3. Average annual production of 7.2 million lbs U3O8 over the life of mine,
- 4. Base case pre-tax Net Cash Flow over the proposed mine life of $4.12 billion, post-tax Net Cash Flow of $2.53 billion,
- 5. Base case pre-tax Internal Rate of Return of 46.7%, post-tax IRR of 34.2%,
- 6. Pay back estimated at 1.4 years (pre-tax), pay back at 1.7 year (post-tax),
- 7. Estimated initial capital costs (CAPEX) of $1.1 billion,
- 8. Average operating costs (OPEX) of US$14.02 per lb U3O8 over the life of mine, and
- 9. Assumptions - Base case using US$65 per U3O8 sold, and an exchange rate of US$0.85 to C$1.00).
The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized. Fission president, COO and chief geologist, Ross McElroy, said that this PEA is an incredibly important milestone, and shows the viability of development and profitability of the unique, shallow, large and high-grade Triple R uranium deposit. The study confirms this unique deposit is a robust project with very strong economics.
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