REO-URANIUM STUDY: Pele Mountain’s Eco Ridge start-up to cost US$212 million

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.