Premier American Uranium Announces Preliminary Economic Assessment and Mineral Resource Update for the Cebolleta Uranium Project, Outlining Project Economics and Framework for Enhancement

Core Viewpoint - Premier American Uranium Inc. has released a Preliminary Economic Assessment (PEA) for the Cebolleta Uranium Project, indicating a potential for significant uranium production and strong economic returns, particularly with rising uranium prices [1][2][3] Economic Highlights - The base case mining concept shows an average production of 1.4 million pounds (Mlb) U₃O₈ annually, with a total output of 18.1 Mlb over a 13-year mine life [2][3] - The after-tax net present value (NPV) at an 8% discount rate is estimated at US$83.9 million, with a pre-tax NPV of US$106 million [2][3] - The after-tax internal rate of return (IRR) is projected at 17.7% [2] - Total pre-production costs are estimated at US$64.2 million for direct capital expenditures and US$19.3 million for indirect costs, with a contingency of US$29.2 million [2] - Life of Mine (LOM) after-tax free cash flow is projected at US$287 million, with operating cash flow of US$496 million [2] Mineral Resource Estimate (MRE) - The updated MRE indicates an increase in Indicated Mineral Resources by 1.7 Mlb eU3O8 (+9%) to 20.3 Mlb eU3O8 and an increase in Inferred Mineral Resources by 2.2 Mlb eU3O8 (+45%) to 7.0 Mlb eU3O8 [1][2][3] - Cebolleta is positioned as one of the largest undeveloped uranium deposits in the western United States [1][3] Sensitivity Analysis - The project shows strong leverage to uranium prices, with a sensitivity analysis indicating that an increase to US$100/lb U₃O₈ raises the after-tax NPV (8%) to US$154 million, and to US$125/lb U₃O₈ raises it to US$325 million [4][5] - A 12% increase in metallurgical recovery from 80% to 90% could increase the after-tax NPV (8%) by approximately 90% to US$159 million [5] Project Infrastructure and Processing - The project will utilize a heap leach strategy for uranium extraction, with a focus on low capital expenditures and operational costs [1][2][3] - The processing design anticipates an average head grade of 0.11% U₃O₈, with a nominal leach recovery assumed at 80% [20][22] - The project infrastructure includes a heap leach pad and a resin-in-column processing plant, designed to minimize environmental impact [26][27] Future Recommendations - The PEA recommends a multi-phase plan to further de-risk and refine project scope, including advanced metallurgical test work and additional drilling for confirmation [31] - The Technical Report detailing the PEA and MRE will be filed within 45 days of the announcement [32]