Fission Uranium (TSX: FCU) has tabled a prefeasibility study (PFS) for its Patterson Lake South uranium project in Saskatchewan\u2019s Athabasca region, outlining an open pit and underground hybrid operation. It\u2019s working on a preliminary economic assessment (PEA)-level underground only scenario that it says could offer improved economics.<\/p>\n
The PFS assigns the project a $693 million after tax net present value at an 8% discount rate and a 21% after-tax internal rate of return.<\/p>\n
According to the study, the project would produce 87.5 million lb. uranium oxide over an eight year mine life. At US$50 per lb. uranium prices, it would generate more than $5.4 billion in net revenue at $9.03 per lb. uranium oxide average operating costs. It would require $1.5 billion in initial capital.<\/p>\n
The study also included a maiden reserve estimate for the project.<\/p>\n
Patterson Lake South now contains 2.8 million probable tonnes grading 1.42% uranium oxide for 90.5 million lb. uranium oxide.<\/p>\n
The PFS scenario would take four years to build and involve a dyke and slurry cut-off wall to create an open pit in the middle of Patterson Lake.<\/p>\n
The PEA scenario would take three years to build and eliminates the need for a dyke and slurry cut off wall, but sacrifices some indicated resources to a crown pillar. The PEA case has a $696 million after tax NPV at an 8% discount rate and a 26% after-tax IRR.<\/p>\n
Under that model, the project would produce 81.4 million lb. uranium oxide over a 7 year mine life at $9.57 per lb. uranium oxide operating costs. It would require $1.2 billion in initial capital.<\/p>\n
The company intends to progress the underground only scenario to the PFS level.<\/p>\n
(This article first appeared in The Northern Miner<\/a>)<\/em><\/p>\n The post Fission Uranium tables PFS for Patterson Lake South<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" The PFS assigns the project a $693m after-tax net present value at an 8% discount rate and a 21% after-tax internal rate of return.<\/p>\n The post Fission Uranium tables PFS for Patterson Lake South<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1278,404,369,451],"tags":[25,303],"class_list":["post-1111067","post","type-post","status-publish","format-standard","hentry","category-fission-uranium","category-mining-news-and-commentary","category-miningcom","category-saskatchewan","tag-canada","tag-uranium"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1111067","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1111067"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1111067\/revisions"}],"predecessor-version":[{"id":1111068,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1111067\/revisions\/1111068"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1111067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1111067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1111067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}