NexGen rises on uranium PFS results
Investors have rewarded British Columbia uranium developer NexGen by pushing its Toronto-listed equity up by nearly 14% on Monday, following the release of the prefeasibility study (PFS) results and a mineral resource update of the Arrow deposit in the Athabasca basin in Saskatchewan.
The PFS delivered a “substantial improvement” to the 2017 preliminary economic assessment (PEA) with a 64% increase in average yearly after-tax net cash flow, CEO Leigh Curyer said in a news release announcing the study results.
The PFS incorporated only the indicated mineral resource of Arrow, which reduced its mine life, but increased the average grade, while maintaining a consistent capital expenditure and lowered yearly operating expenses.
The PFS envisions an underground mine that will operate for nine years, rather than the previously estimated 15 years at a lower mining rate of 1 039 t/d, compared with 1 448 t/d considered in the PEA.
The focus on the indicated mineral resource increased the average grade from 1.73% U3O8 to 3.09% U3O8, lifting production to 25.4-million pounds a year, from 18.5-million pounds a year.
The initial capital costs increased by 5% to C$1.25-billion owing to the introduction of the provincial sales tax (PST). Excluding the PST, initial capital costs were about 0.5% lower than the PEA.
Operating expenses fell by 31% to C$5.81/lb.
The project’s net present value, at an 8% discount, increased to C$3.7-billion, from $3.49-billion, while the internal rate of return remained unchanged at 56.8%,
NexGen increased the indicated mineral resource of Arrow from 179.5-million pounds of U3O8 contained in 1.18-million tonnes, grading 6.88%, in the March 2017 mineral resource estimate, to 256.6-million pounds of U3O8 contained in 2.89-million tonnes, grading 4.03% U3O8.
The company said that it would expedite Arrow to feasibility study stage and that it would initiate a Stage 2 drilling programme of 125 000 m in December.
NexGen’s stock closed 13.73% higher at C$3.23 a share.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation