PERTH (miningweekly.com) – A prefeasibility study (PFS) into the Temrezli ISR uranium project, in Turkey, confirmed the project to be technically low risk, but highly profitable, ASX-listed Anatolia Energy reported on Monday.
The PFS was based on a central processing plant delivering 1.2-million tonnes a year of uranium oxide (U3O8), which would process uranium-bearing solutions from the Temrezli well field. The PFS was based on the current resource of 5.2-million tonnes, grading 1 157 parts per million for 13.3-million pounds of U3O8.
It was expected that about 9.9-million pounds U3O8 would be recovered over a 12-year mine life.
The PFS revealed that the project would require a capital investment of $41-million, and would have a pay-back period of 11 months. The project would have a net present value of $191.1-million and would deliver gross revenue of $644-million over the mine life, along with an operating cash flow of $345.5-million, based on a $65/lb uranium price.
“Completion of the PFS is a significant milestone for Anatolia and takes the company a great deal closer towards achieving our objective of becoming a high margin producer of uranium in the near-term,” said CEO and MD Paul Cronin.
He noted that the strong economics of the project, at the current uranium price, provided a robust foundation for project financing and uranium sales discussions.
“Our focus over the coming months will be to complete detailed plant designs and seek to assess the project capital based on local Turkish plant costs, which we believe may substantially reduce up-front capital requirements.”
The company would also submit the fist stage of its environmental and social-impact assessment by the end of February. The company would also work to convert its operating licence into an operating permit.