URANIUM STUDY: Strateco puts Matoush resource near 20 million lb uranium oxide

QUEBEC - Strateco Resources of Montreal has updated the preliminary economic assessment of its Matoush uranium property in the Otish Mountains, 275 km north of Chibougamau. The latest 43-101 numbers are 436,000 tonnes at 0.78 U₃O₈ in the indicated category, and 1.16 million tonnes at 0.50% in the inferred category.

The study predicates an operation that would have an average output of 2,500 lb U₃O₈ annually over a seven-year project life. Average operating cost would be US$23.66/lb. Preproduction capital are expected to be $292.8 million. The internal rate of return before taxes is estimated at 41.5%.

"Regardless of the significant inflation in operating costs in the mining industry, our Matoush project indicates stronger economics, compared to the initial scoping study. Despite a possible price decrease, it is still possible to see our economics improve. We continue to evaluate different engineering alternatives to enhance the project's economics, such as the use of windmills to produce electricity," said Guy Hebert, Strateco president and CEO, in a news release.

"We continue to expand mineral resources with an aggressive drilling program of 120,000 meters over the next 24 months,'' he added.

The company's website is available in either French or English at www.StratecoInc.com.