- Fission Uranium (FCU) announced the results of a feasibility study on the Patterson Lake South property (PLS) in the Athabasca Basin
- Ross McElroy, President and CEO of Fission, met with Sabrina Cuthbert to discuss the results
- The study found a longer mine life of 10 years, greatly increased after-tax NPV of $1.204B at an 8 per cent discount, and higher after-tax IRR of 27.2 per cent while still maintaining a very low OPEX of $13.02/lb
- Construction timeline of 3 years with an estimated initial capital cost of $1.155B
- Increased mine life to ten years with LOM production of 90.9 million lbs of U3O8
- Fission Uranium Corp. (FCU) opened trading at C$0.84
Fission Uranium (FCU) announced the results of a feasibility study on the Patterson Lake South property (PLS) in the Athabasca Basin.
The study was conducted by Tetra Tech Canada Inc. and found a longer mine life of 10 years, greatly increased after-tax NPV of $1.204B at an 8 per cent discount, and higher after-tax IRR of 27.2 per cent while still maintaining a very low OPEX of $13.02/lb.
Highlights:
- Construction timeline of 3 years with an estimated initial capital cost of $1.155B
- Increased mine life to ten years with LOM production of 90.9 million lbs of U3O8
- Addition of R840W orebody into the FS mine plan contributes to increased Mineral Reserves
- Average unit operating cost of $13.02/lb U3O8
- Robust post-tax economics:
- IRR of 27.2 per centNPV of $1.204B at an 8 per cent discount
- Payback period of 2.6 years
Infrastructure:
- Backfill plant and refrigeration plant
- Surface ventilation fans and LNG direct-fired heater
- Decline portal
- LNG power plant
- Process facilities
- Tailings management facility
- Administration building, fuel bay, warehouse and maintenance facility
- Effluent treatment facility
- Permanent camp
Ross McElroy, President and CEO of Fission, met with Sabrina Cuthbert to discuss the results.
“With greatly enhanced economics, including an increase of 42 per cent to the mine life, an incredible 71.5 per cent increase in post-tax NPV and a 10.2 per cent growth in post-tax IRR, this feasibility study confirms the Tier 1 PLS project as one of the most economically significant and elite uranium development projects in the world. Showing CAPEX to be lower than in the 2019 Prefeasibility report, particularly with the pressures of high global inflation, is a remarkable achievement and speaks volumes regarding the team’s design and planning abilities. Beyond the economics, the shallow, high-grade nature of our deposit gives us a very small environmental footprint – an advantage that we have built on with comprehensive monitoring since the start of drilling in 2012 and increasing Indigenous engagement. Going forward, thanks to the strength of this feasibility study and the success of our ongoing social engagement, we will continue advancing through the Environmental Assessment and on towards a construction decision.”
Fission Uranium Corp. (FCU) opened trading at C$0.84.