Uranium Energy Corp. (NYSEMKT:UEC) announced results of a Preliminary Economic Assessment for the Slick Rock Project in Colorado showing a pre-tax Internal Rate of Return of 33% and a post-tax IRR of 29%, a pre-tax Net Present Value, at a discount rate of 10%, of $43.8 million and a post-tax NPV of $31.9 million based on a uranium spot price of $60 per pound and a vanadium spot price of $10 per pound.

As quoted in the press release:

PEA Highlights:

  • The PEA shows a robust project pre- tax Internal Rate of Return (“IRR”) of 33% and a post-tax IRR of 29% and pre-tax Net Present Value (“NPV”), at a discount rate of 10%, of $43.8 million and a post-tax NPV of $31.9 million based on a uranium spot price of $60 per pound and a vanadium spot price of $10 per pound.
  • Drilling-to-date has outlined an Inferred Mineral Resource (at a 0.15% eU3O8 cut-off) of 2,549k tons at an estimated 0.228% eU3O8 grade which contains an estimated 11.6 million pounds of uranium oxide and 69.6 million pounds of vanadium oxide at an estimated 1.37% V2O5 grade.  These resources rank Slick Rock among the highest grade uranium and vanadium deposits in the US.
  • Initial capital for the Project is estimated at $21m and assumes production of 100,000 tons per annum.
  • The PEA is based on the projected sale of mined product to the White Mesa mill located in Blanding, Utah, and assumes operating costs of $67.78 per ton.
  • Production of uranium and vanadium, estimated in the PEA, average 438,000 pounds and 2.6 m pounds per annum, respectively, for a total production of 7.4 m pounds uranium and 44.3 m pounds of vanadium over a 21 year life of mine.

Uranium Energy Corp. President and CEO, Amir Adnani, said:

We are very pleased to reach this important milestone for the Slick Rock Project, which is just one of five conventional uranium properties we have in the Colorado Plateau. The PEA shows robust economics for the project which is capable of delivering meaningful uranium and vanadium production over a long mine life. Production in South Texas from our hub-and-spoke platform remains our top priority, however, the value of our extensive pipeline of growth projects should not be understated. This pipeline also includes advanced stage projects in Arizona and Paraguay that are inexpensive to maintain but can be monetized or developed further at higher uranium prices.  To this end, we have completed the majority of similar level studies on our large Anderson project in Arizona and expect to issue a new technical report in 90 days.

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