Energy Fuels Inc (NYSEAMERICAN:UUUU) (CVE:EFR) has filed an updated technical report, including a preliminary feasibility study, for its Sheep Mountain uranium project in Wyoming.
The Sheep Mountain project consists of the Congo pit, a proposed open-pit mine, and the reopening of the Sheep underground mine. The Congo pit is estimated to contain a total of 3,955,000 tons of probable mineral reserves with an average grade of 0.115% eU3O8 (triuranium octoxide equivalent), containing 9,117,000 pounds of uranium. The Sheep underground mine is estimated to contain 3,498,000 tons of probable mineral reserves, with an average grade of 0.132% eU3O8, containing 9,248,000 pounds of uranium.
In a statement Friday, Energy Fuels said the updated PFS estimates that, based on an assumed uranium selling price of $60 per pound, the project will recover an average of approximately 1.4 million pounds of uranium per year over a 12-year mine life at an average operating cost of $36.80 per pound of recovered uranium.
Capital expenditures are expected to total $152.6 million during the life of the project, including $120.8 million of initial capital, representing $9.04 per pound of recovered uranium.
Key changes in the updated PFS compared with the 2012 PFS include the following:
- While probable mineral reserves for the project did not change (18.4 million pounds of uranium, contained in 7.5 million tons of ore with an average grade of 0.123% U3O8), the total project mineral resources decreased by 2.4 million pounds of U3O8, all of which are in the indicated mineral resource category;
- In addition, the pretax internal rate of return decreased from 35% to 28%, and the net present value (at a 7% discount rate) decreased from $173.5 million to $114.5 million;
Energy Fuels, based in Lakewood, Colorado, said the lowered economics are mainly due to a decrease in the assumed uranium sales price from $65 per pound to $60 per pound, an increase in direct costs from $32.31 per pound to $36.80 per pound and an increase in total capital expenditures from $122.4 million to $152.6 million.
The company's stock recently traded 2.1% higher to $1.20 a share in New York.
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