Uranium Energy has received the results of the preliminary economic assessment (PEA) for its Anderson project near Phoenix, Arizona.
Located in western Yavapai County north-west of Phoenix, the project covers a 9,852 acres area, 450 mining and placer claims and two Arizona state land sections.
The project is anticipated to produce more than one million pounds of uranium a year or a total aggregate of 16 million pounds of uranium during its 14-year mine life.
The PEA study also found that the project would require capital expenditure of around $8m during the pre-production stage, which includes development drilling, mine and heap design and permitting.
In addition, around $43.9m would be needed as initial capital for open pit mining equipment, mineral processing facilities, site preparation, access, infrastructure, buildings and for construction of an initial heap leach pad.
The company will need to employ conventional heap leach methods to mine the uranium and, after recovery, ship it to White Mesa Mill near Blanding, Utah.
Uranium Energy president and CEO Amir Adnani said: "In addition to our low-cost ISR business in Texas, the Anderson project is another example of the deep portfolio of projects that will add significant shareholder value at higher uranium prices.
"Since acquiring the Anderson project in September 2011, we have defined a major NI 43-101 mineral resource and have now completed a PEA, which represents a significant milestone toward commercial development.
"We look forward to on-going advancements at Anderson, and are confident that additional studies, including a study of the recovery of vanadium as a by-product credit, can further enhance project economics."