Pele Mountain Reviews Economics at Eco Ridge Mine Rare Earth and Uranium Project

Pele Mountain Resources Inc. (TSXV:GEM, OTCQX:GOLDF) reported the results of an updated economic review of the Eco Ridge Mine Rare Earth and Uranium Project in Elliot Lake, Ontario.

According to the press release:

The economic review, which is a sensitivity analysis on Pele’s 2012 Preliminary Economic Assessment (the “PEA“), evaluates the impact of the recent increase in the NI 43-101 Mineral Resource estimate for Eco Ridge (see Pele’s press release of June 10, 2013) 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 (“REO“) and uranium oxide (“U₃O₈“).

Pele Mountain compared the new economics to those found in the PEA and found:

• 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.

For a more indepth look at the study, click here.