URANIUM STUDY: PEA for Hidden Bay “positive”, says UEX

SASKATCHEWAN - The preliminary economic assessment for the Horseshoe and Raven deposits is done and the results are positive, says UEX Corp. of Vancouver. The deposits form part of the Hidden Bay uranium project on the eastern edge of the...

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SASKATCHEWAN - The preliminary economic assessment for the Horseshoe and Raven deposits is done and the results are positive, says UEX Corp. of Vancouver. The deposits form part of the Hidden Bay uranium project on the eastern edge of the Athabasca Basin.

Using a base case with a uranium oxide price of US$70/lb, the project would have earnings before interest and taxes (EBIT) of C$394 million, a pre-tax net present value (NPV) at a 5% discount rate of C$267 million and a pre-tax internal rate of return (IRR) of 55%. Scenarios using $60/lb and $80/lb uranium oxide were also examined.

The mining plan calls for ramp access underground methods at the Horseshoe deposit and an open pit at the Raven deposit. Using US$60/lb, the PEA suggests the operation would mine a total of 2.49 million tonnes of ore and 15.0 million tonnes of waste over a seven-year mine life, producing 16.6 million lb of U3O8. The ore would likely be milled at Cameco's nearby Rabbit Lake facility.

According to UEX, the pre-production capital cost of developing the mine would be C$88 million and the owner's costs would be $28 million (with a 25% contingency). Sustaining capital and mine closure are estimated at $29 million. Capital payback would occur within a one-year period from the beginning of production.

The Hidden Bay project will advance to the preliminary feasibility stage at which point the additional resources of the West Bear deposit will be included.

Please see www.UEX-Corporation.com for additional information.

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