ONTARIO – Toronto-based Pele Mountain Resources has released the results of the preliminary economic assessment of its Eco Ridge uranium and rare earths project in Elliot Lake. The mine and a 9,400-t/d plant would generate two-thirds of its revenue from heavy rare earth oxides (HREO). The project would produce 10.7 million lb of total rare earth oxides (TREO) and 24.9 million lb of U3O8 over a 14-year life.
Eco Ridge is expected to produce 2.08 million lb of Y2O3, 430,000 lb of Dy2O3, 1.28 million lb of Nd2O3, and 67,000 lb of Sc2O3. The indicated resource is 14.3 million tonnes grading 0.165% TREO and 0.048% U3O8 and containing 51.9 million lb of TREO and 15.2 million lb of uranium oxide. The 33.1 million tonnes of inferred resources grading 0.132% TREO and 0.043% U3O8 contain 96.4 million lb of TREO and 31.4 million lb of uranium oxide.
According to the PEA, the project will have a cumulative operating cash flow of US$1.72-billion and a cumulative pre-tax cash flow of US$1.31 billion. Expressed another way, the net present value is US$662 million and the internal rate of return will be 47%.
Pele recently announced that it has started a 7,000-metre drill program, results of which will be posted at www.PeleMountain.com.