The updated PEA carried out by mining consultants SRK Consulting can be viewed here.
SRK completed a Preliminary Economic Assessment for the project. The economic analysis results indicate an after-tax Net Profit Value ("NPV") of US$269 million at an 8% discount rate, with an Internal Rate of Return ("IRR") of 25%, based on long-term uranium price of US$58/lb U3O8.
The proposed base case envisions an average 2.4 Mlb per year U3O8 yellowcake production rate, and an 88% ultimate recovery, generating an eleven-year mine life and a total forecast production of 26.4 Mlb U3O8. The project economics are at a long-term uranium price of US$58/lb U3O8. Initial capital costs are estimated at US$112 million, with total LoM capital costs at US$269 million, cash operating costs of US$31.1 / lb U3O8 excluding royalties, and US$36.4/lb U3O8 including royalties.
The PEA is considered preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral Resources that are not Mineral Reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration or Mineral Reserves once economic considerations are applied; therefore, there is no certainty that the production profile concluded in the PEA will be realized.