Pele Mountain Resources Inc. (TSXV:GEM.OTCQX:GOLDF) release an updated economic review of its Eco Ridge Mine Rare Earth and Uranium Project in Elliot Lake, Ontario. The review evaluated the impact of the recent increase in the NI 43-101 Mineral Resource estimate for Eco Ridge, along with reduced rare earth price assumptions, while maintaining all unit operating costs and process recoveries unchanged from the PEA. The PEA demonstrated that Eco Ridge has excellent potential to become a profitable producer of rare earth oxides and uranium oxide.
As quoted in the press release:
The economic review concludes that the recent increase in Mineral Resources extends mine life and improves project economics. While this improvement is offset by a reduction in rare earth price forecasts, the net result demonstrates that Eco Ridge economics remain positive.
When compared to the PEA the economic review demonstrates the following:
Pre-tax NPV(10%) remains at $1.02-Billion;
Pre-tax IRR reduced to 43-Percent from 50-percent;
46-percent increase in life-of-mine REO production to 141.6-million pounds;
52-percent of Project revenue from REO; nearly 80-percent of REO revenue from Critical REO (neodymium, dysprosium, yttrium, terbium, and europium oxides) plus scandium oxide;
55-percent increase in life-of-mine U3O8 production to 42.7-million lbs;
U3O8 revenue forecast to exceed operating costs for first five years of production and thereafter to offset the majority of operating costs, reducing financial risks associated with REO production.
Sustaining capital increases by $33-million due to longer projected mine life;
Economic sensitivity that reflects 30-percent decrease in REO prices;
An increase in mine life and an expanded block of higher-grade material for mining early in the production schedule.
Pele President and CEO Al Shefsky said:
The economic review demonstrates, once again, that our Eco Ridge Mine Project has excellent economic potential. Eco Ridge is ideally situated in the historic Elliot Lake Mining camp, which contains one of the largest and most readily accessible concentrations of critical rare earths in North America. We are focused on the sustainable development of a safe, secure, and reliable Canadian REO supply chain that will support downstream value chain opportunities within North America.
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