QUEBEC – Abitex Resources of Val d’Or, QC, says the preliminary economic assessment on its Lavoie uranium-gold deposit in the Otish Mountains is positive. The company has an earn-in option and joint venture agreement to acquire a 50% interest in the property from Areva Resources Canada and Soquem. Abitex is the operator.
The base case proposes a 700-t/d operation with an average cash operating cost of US$30.87/lb uranium oxide. The deposit contains a minable deposit of 919,300 tonnes grading 0.47% U3O8, or 9.5 million lb of contained metal. A mine life of six years is expected.
Total project costs will be $387.4 million, but the project would pay for itself in 39 months. The company says the PEA points to a pre-tax net present value (10% discount) of $88.2 million or if exploration expenses are excluded, the NPV would be $132.2 million. Likewise, without exploration expenses the pre-tax internal rate of return will be 159%, or with exploration, 42%.
Abitex president and CEO Yves J. Rougerie said, “We believe there is very good potential for resource expansion along strike and significant undiscovered potential at depth which will impact positively on the project going forward.”
Learn more about the Lavoie project at Abitex.ca.