Canadian Mining Journal

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URANIUM: Fission tables PFS and considers underground-only scenario at PLS



SASKATCHEWAN – Fission Uranium has tabled a prefeasibility study (PFS) for its Patterson Lake South uranium project in Saskatchewan’s Athabasca region, outlining an open pit and underground hybrid operation. It’s working on a preliminary economic assessment (PEA) level underground only scenario that it says could offer improved economics.

The PFS assigns the project a $693 million after tax net present value at an 8% discount rate and a 21% after tax internal rate of return.

According to the study, the project would produce 87.5 million lb. of uranium oxide over an eight year mine life. At US$50 per lb. uranium prices, it would generate more than $5.4 billion in net revenue at $9.03 per lb. uranium oxide average operating costs. It would require $1.5 billion in initial capital.

The study also included a maiden reserve estimate for the project.

Patterson Lake South now contains 2.8 million probable tonnes grading 1.42% uranium oxide for 90.5 million lb. of uranium oxide.

The PFS scenario would take four years to build and involve a dyke and slurry cut-off wall to create an open pit in the middle of Patterson Lake.

The PEA scenario would take three years to build and eliminates the need for a dyke and slurry cut off wall, but sacrifices some indicated resources to a crown pillar. The PEA case has a $696 million after tax NPV at an 8% discount rate and a 26% after tax IRR.

Under that model, the project would produce 81.4 million lb. of uranium oxide over a seven-year mine life at $9.57 per lb. of uranium oxide operating costs. It would require $1.2 billion in initial capital.

The company intends to progress the underground only scenario to the PFS level.

Shares of Fission Uranium are currently trading at 57¢ with a 52-week range of 46¢ to 80¢. The company has a $277 million market capitalization.

This story first appeared on www.NorthernMiner.com.