Name of the Project
Arrow uranium project.
Location
The deposit is located on NexGen Energy’s 100%-owned Rook I project, in Saskatchewan’s Athabasca basin, in Canada.
Client
NexGen Energy.
Project Description
A preliminary economic assessment (PEA) on the project has shown the Arrow deposit potentially to be a leading source of mined uranium in the world, with a relatively low capital and operating cost per pound over the 14.4-year life-of-mine (LoM).
The PEA envisions a production profile supported by conventional longhole stope mining averaging 1 448 t/d at an average head grade of 1.73% uranium over the LoM. It is envisaged that mine production will be fed into a conventional uranium processing plant where uranium recovery is projected to be 96% over the LoM.
It is envisaged that cemented paste fill tailings will be used, where tailings are constituted into a paste, mixed with about 5% cement and delivered back underground. The cemented paste fill tailings will be used to backfill stopes and the excess will be placed in a purpose-built, underground tailings storage facility. This tailings management process is expected to significantly reduce the surface footprint of the project. Longhole stope mining methods will be used, conceivably extracting compact near-vertical high-grade uranium mineralisation localised in competent crystalline basement rocks. Arrow is considered an optimal deposit for this mining method because it comprises stacked high-grade veins with strong continuity on strike, dip and vertical extent.
Jobs to Be Created
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of C$3.49-billion and an internal rate of return of 56.7%, with a payback of 1.1 years.
Value
Preproduction capital costs have been estimated at C$1.19-billion.
Duration
Not stated.
Latest Developments
None stated.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
NexGen Energy investor relations, Travis McPherson, tel +1 604 816 2686 or email tmcpherson@nxe-energy.ca.