SASKATCHEWAN – Fission Uranium Corp. of Kelowna, BC, has released the preliminary economic assessment for the Triple R uranium deposit at its Patterson Lake South property. The project has a base case, pre-tax net present value of $1.81 billion, annual production of 7.2 million lb U3O8, and a mine life of 14 years. The base case, pre-tax internal rate of return is expected to be 46.7%.
Development of the Triple R mine has a projected pre-production capital cost of $1.1 billion. The expenditure would be repaid in 1.4 years with operating costs expected to average US$14.02 per lb of U3O8 over the life of the mine.
Fission anticipates there would be both open pit and underground mines. After three years of pre-production, a 1,000-t/d operation will be launched. The pit will contribute 1.56 million tonnes of ore grading 2.21% U3O8, and 3.25 million tonnes at 0.42% will be mined from underground. An average of 13 million lb of uranium oxide per year for six years will be produced, followed by an average rate of 3.0 million lb per year for another eight years.
The Triple R deposit contains an indicated resources of 2.3 million tonnes grading 1.58% U3O8 and 0.51 g/t Au. The inferred resource is 901,000 tonnes at 1.30% U3O8 and 0.56 g/t Au.
Fission president, COO and chief geologist Ross McElroy said in a release, “It’s also important to note that the recently discovered, high grade R600W zone, which was not included in the PEA, has the potential to add a great deal to the bottom line as the Triple R continues to grow. Additionally, a mill at PLS has the potential to become a key centerpiece for the Western Athabasca Basin with the potential to process ore from other high grade projects in the region as they are taken into production.”
Details of the PLS project are posted at FissionUranium.com.