NYSE American-listed Uranium Energy Corp (UEC) has filed an initial economic evaluation for the Alto Paraná titanium project, in Paraguay, upgrading the resource, refining the technical approach to development and showing robust financial returns.
The base case design of 150 000 t/y of high titania slag and 100 000 t/y of purity pig iron, yielded a net present value (NPV) of $419-million and an internal rate of return (IRR) of 21%.
The base case will require startup capital of $338-million and has an aftertax payback of 4.7 years.
The stretch production case of 500 000 t/y of high titania slag and 320 000 t/y of high-purity pic iron delivered a $1.55-billion NPV and a 25% IRR. Startup capital came to $918-million with a payback of 4.2 years.
The total resource of Alto Paraná is 3.6-billion tonnes, grading 7.3% titanium dioxide with an average thickness of 6.3 m and no overburden.
“The project's excellent economic analysis and resources are solid precursors that provide UEC with various options in our strategy to enhance the value of the project,” said UEC VP for heavy minerals, leading the economic study, Jacob Deysel.