Plateau Uranium Inc.announced strong initial drill results from the high-grade Pinocho Target at the Company Macusani Plateau Project in southeastern Peru. Initial results from six diamond drill holes drilled on two (2) platforms are reported from Pinocho, which represents one of the most prospective of several previously untested higher grade, near-surface uranium targets on the Company extensive 910 sq.km land package. Historical underground adits were established previously at Pinocho by IPEN (Institute of Peruvian Nuclear Energy). Drilling at Pinocho continues along a 1.4 km trend. Two drill holes from Platform 1, returned in excess of 2,000 ppm U (2,350 ppm U3O8) over 2 and 3 meters, respectively, within broader intervals of uranium mineralization ranging between 500-800 ppm U (590-940 ppm U3O8) over 8-9 meters, which is 2-3 times higher than the 288 ppm U3O8 average life-of-mine uranium grade reported in the Company 2016 Preliminary Economic Assessment (PEA).
Best uranium intersections are at depths amenable to open-pit development, within 50 meters of surface. Uranium mineralization is located within broader zones of lithium mineralization ranging from 12-37 meters thick, with consistent grades similar to the existing reported lithium resources at Macusani (550-700 ppm Li, 0.12-0.15% Li2O). Pinocho represents a potential higher grade starter resource area, which may serve to improve uranium project economics in early years of operation. Sensitivity analysis from the financial model reported in the Company PEA base case for uranium only, dated January 12, 2016, highlights a post-tax NPV of $360 million and an IRR of 29.2% with a payback period of 2.5 years using a $40 per lb U3O8 selling price.
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