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Fission Uranium (TSX:FCU) released results of a preliminary economic assessment for its Triple R deposit at its Patterson Lake South property. Highlights included a post-tax $1.02 billion NPV and a post-tax IRR of 34.2 percent with a 1.7 year payback period.

Fission Uranium (TSX:FCU) released results of a preliminary economic assessment for its Triple R deposit at its Patterson Lake South property. Highlights included a post-tax $1.02 billion NPV and a post-tax IRR of 34.2 percent with a 1.7 year payback period.
As quoted in the press release:

  • Base case pre-tax Net Present Value (“NPV”) of $1.81 billion, post-tax NPV of $1.02 billion (10% discount rate)
  • Mine life of 14 years producing an estimated 100.8 million pounds of yellowcake at a metallurgicalrecovery of 95%with 77.5 million pounds of U3O8 recovered in the first 6 years of production
  • Average annual production of 7.2 million lbs U3O8 over the life of mine
  • 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
  • Base case pre-tax Internal Rate of Return (“IRR”) of 46.7%, post-tax IRR of 34.2%
  • Pay back estimated at 1.4 years (pre-tax), pay back at 1.7 year (post-tax)
  • Estimated initial capital costs (“CAPEX”) of $1.1 billion
  • Average operating costs (“OPEX”) of US$14.02/lb U3O8 over the life of mine

Fission president, COO and chief geologist, Ross McElroy, said:

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. With anticipated operating costs of US$14.02/lb and a pre-tax IRR of 46.7%, we are looking at low cost production with a payback and highly profitable life of mine. It’s also important to note that the recently discovered, high-grade R600W zone, which was not included in the PEA, has the potential to add a great deal to the bottom line as the Triple R continues to grow. Additionally, a mill at PLS has the potential to become a key centerpiece for the Western Athabasca Basin – with the potential to process ore from other high-grade projects in the region as they are taken into production.

Click here for the full press release.

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