Uranium Energy Corp Reports Positive PEA for Anderson Project

Uranium Energy Corp (NYSE:UEC) announced it had received results of a Preliminary Economic Assessment for its Anderson Project in Arizona. The PEA shows an internal rate of return of 63 percent with average production of more than one million pounds of uranium per annum. The CAPEX for the project is estimated at $8 million for pre-production and $43.9 million for initial capital.

According to the press release, highlights include:

• A robust pre-tax project Internal Rate of Return (“IRR”) of 63% and a Net Present Value (“NPV”) of $142.2 million at a discount rate of 10%, with a post-tax IRR of 50% and an NPV of $101.1 million, based on a uranium price of $65 per pound.
• Average production in excess of one million pounds per annum, for a total production of 16 million pounds of uranium over a 14-year mine life.
• CAPEX for the project is estimated at $8 million for pre-production costs and $43.9 million for initial capital.
• Average life of mine direct operating costs of $30.68 per contained lb. U3O8.
• Metallurgical testing demonstrates uranium can be recovered by conventional heap leach methods.
• Uranium recovery utilizing heap leach methods would allow production in the form of loaded resin which would be shipped to the White Mesa Mill near Blanding, Utah.

Amir Adnani, President and CEO, said:

In addition to our low-cost ISR business in Texas, the Anderson Project is another example of the deep portfolio of projects that will add significant shareholder value at higher uranium prices. Since acquiring the Anderson Project in September 2011, we have defined a major NI 43-101 mineral resource and have now completed a PEA which represents a significant milestone toward commercial development. We look forward to ongoing advancements at Anderson, and are confident that additional studies, including a study of the recovery of vanadium as a by-product credit, can further enhance project economics.

Click here to read the Uranium Energy Corp (NYSE:UEC) press release