Fission Uranium says $1.1bn investment needed at Triple R Uranium project, Canada

6 September 2015 (Last Updated September 6th, 2015 18:30)

Fission Uranium's study on its high-grade Triple R deposit at its wholly owned PLS property in Canada's Athabasca Basin region has estimated that the open-pit underground mine would require a capital outlay of $1.1bn.

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Fission Uranium's study on its high-grade Triple R deposit at its wholly owned PLS property in Canada's Athabasca Basin region has estimated that the open-pit underground mine would require a capital outlay of $1.1bn.

Prepared by independent consultants led by RPA, the National Instrument 43-101 compliant Preliminary Economic Assessment (PEA) for the high-grade uranium resource includes inferred mineral resources.

According to the company, the study considers the PLS project as a standalone mine and mill operation, which includes development and extraction of the R00E and R780E zones (Triple R deposit).

In addition, the study outlined a combination of open-pit and underground mining, along with a dyke system for water control.

Fission Uranium president, COO, and chief geologist Ross McElroy said: "The study confirms this unique deposit is a robust project with very strong economics.

"We are looking at low-cost production with a payback and highly profitable life of mine."

"With anticipated operating costs of $14.02/lb and a pre-tax IRR of 46.7%, we are looking at low-cost production with a payback and highly profitable life of mine."

The company plans to improve the results with the addition of the R600W zone which was discovered 495m along strike to the west of R00E zone.

RPA performed resource estimation and mining work, assisted by BGC Engineering, DRA Taggart, and Arcadis Canada.

The PEA proposes a system of dykes and slurry walls, which are techniques that have been implemented at various Canadian mining operations.

The study also estimates that the project will generate a gross revenue of $7.71bn and a net revenue of $7.12bn, with a long-term uranium price of $65 / lb U3O8.


Image: Fission's new study considers the PLS project as a standalone mine and mill operation. Photo: courtesy of Stoonn/FreeDigitalPhotos.net.