An initial assessment technical report summary that includes an economic analysis and mineral resource estimate for Uranium Energy Corp's project in Northern Saskatchewan envisages production of 61.2 million pounds U3O8 (23,540 tU) over nine years of underground operations.
Corpus Christi, Texas-based Uranium Energy Corp (UEC) acquired the project from Rio Tinto in 2022, for USD150 million. The company has now filed an updated S-K 1300 Technical Report Summary for the project with total resources of 27.86 million pounds U3O8 at an average grade of 1.81% U3O8 in the indicated category and 33.38 million pounds U3O8 at 2.45% U3O8 in the inferred category.
Annual average production is expected to be 6.8 million pounds U3O8 of 61.2 million pounds U3O8 9 years of high-grade operations, with a 2.36% U3O8 life-of-mine feed grade. Initial capex is estimated at USD545 million including a mill and underground mine.
The newly completed studies position Roughrider as an underground development project with one of the one of the lowest capex profiles in Canada, UEC President and CEO Amir Adnani said: "This Initial Economic Assessment marks a pivotal milestone for Roughrider, validating it as a top-tier, high-margin operation with a clear path to development into a world-class mine and mill. With a post-tax estimated net present value of USD946 million, today's results underscore the strength of our 2022 decision to acquire Roughrider from Rio Tinto for $150 million," he said.
"Additionally, we see significant potential for further value creation as we advance the project through the prefeasibility stage, supported by recent exploration drill results and the discovery of the Roughrider North Deposit," he added.
The project's location in the Eastern Athabasca Basin means that future development will benefit from proximity to power, roads, and the Points North Landing airport and construction facility.
"Given UEC’s capabilities as an established uranium producer, we are uniquely positioned to leverage our operational expertise and financial strength to advance and de-risk Roughrider," Adnani said.
UEC's portfolio includes in-situ leach (also known as in-situ recovery) uranium mining projects in the USA as well as its high-grade conventional projects in Canada, with the company beginning production at its Christensen Ranch project in Wyoming in August.