EnCore Energy Corp. (TSXV: EU) shared today the results of its preliminary economic assessment for the recently consolidated Juan Tafoya and Marquez projects located in the Grant’s uranium district in northwest New Mexico. The results highlighted an US$18.5 million after-tax NPV5% and 16% after-tax IRR at a base case price of US$60 per yellowcake (U3O8) pound.
The PEA is based on the property containing 12.2 million pounds of yellowcake mineral at a diluted grade of 0.188% contained in a total of 6.0 million tonnes, mined over 15 years life of mine. Still working at base case price of US$60 per yellowcake pound, the study projects total revenue for the life of mine to be US$694.5 million while total cash flow after tax and royalties is estimated to be US$54.7 million.
Total capital costs for the life of mine are pegged at US$79.3 million while operating expenses are assessed to be US$558.0 million. Direct costs for the life of mine are expected to be at US$523.7 million and cash cost is at US$42.53 per yellow cake pound.
The preliminary economic study, a first for both properties, is effective starting June 9, 2021.
You may view the detailed results of the study here.
EnCore Energy Corp. last traded at $1.41 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.