URANIUM STUDY: Roughrider PEA puts NPV at $1 billion

SASKATCHEWAN - Vancouver's Hathor Exploration has completed an encouraging preliminary economic assessment for two of three zones at its Roughrider uranium project in the Athabasca Basin.

SASKATCHEWAN - Vancouver's Hathor Exploration has completed an encouraging preliminary economic assessment for two of three zones at its Roughrider uranium project in the Athabasca Basin.

Including information from the West and East zones, but not the Far East zone, three separate scenarios for development were outlined. Based on the US$ 70/lb for uranium, the pre-tax net present value is approximately $1.0 billion, with an internal rate of return of 38% and payback of 1.2 years, using a discount rate of 7% and an exchange rate of C$1.05:US$1.00. The undiscounted pre-tax NPV is $2.0 billion over an estimated 11 year mine life, based on 5.0 million pounds U3O8 per year mill output, generating a total mine and mill production cost of $14.44/lb U3O8.

Roughrider will enjoy low production costs due to the low daily milling rate of about 200 t/d, itself a function of the compact and high grade and minimal separation of the West and East zones, high metallurgical recovery (97.7%), and shallow depth.

Hathor has estimated that pre-production capital requirements will be $468 million plus $100 million for sustaining capital. Construction, if approved, will take four years. During a 10-year mine life, the project should recover 52.3 million lb of U3O8.

Hathor is the target of a hostile takeover bid from Cameco. Further information may be found at www.Hathor.ca and www.Cameco.com.

Cameco commented on the Roughrider PEA, calling it "unrealistic," and has no plans to change its offer for Hathor.

Comments

Your email address will not be published. Required fields are marked *

Apr 08 2024 - Apr 09 2024
Apr 15 2024 - Apr 16 2024
Apr 16 2024 - Apr 16 2024
Apr 17 2024 - Apr 18 2024