Fission Uranium has revealed the summary results of a National Instrument 43-101 compliant Preliminary Economic Assessment (PEA) for its high-grade Triple R uranium deposit at the Patterson Lake South (PLS) property in Athabasca Basin region, Canada.
The company anticipates a gross revenue of $7.71bn and net revenue of $7.12bn after provincial royalties and transportation charges during an operational life of 14 years.
Prepared by RPA, the PEA has established a base case pre-tax net present value (NPV) of $1.81bn for the Triple-R project.
With expected operating costs of $14.02/lb and a pre-tax IRR of 46.7%, the project is estimated to have an average annual production of 7.2 million lbs U3O8 over the life of mine.
Fission Uranium 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."
The results also revealed that the mine is expected to produce 100.8 million pounds of yellow cake over a mine life of 14 years, at a metallurgical recovery of 95%.
The PEA has proposed a system of dykes and slurry walls to deal with water control and saturated sandy overburden at the project.
The Triple R deposit includes R00E zone on the western side and the R780E zone on the east.
Both zones have an overall strike length of around 1.2m with the R00E measuring approximately in strike length and R780E zones measuring approximately 900m in strike length, within the deposit.