Premier American Uranium Inc. (“PUR” or “Premier American Uranium” or the “Company”) (TSXV: PUR, OTCQB: PAUIF) is pleased to announce the filing of a technical report (the “Technical Report”) containing its Preliminary Economic Assessment (“PEA”) and updated Mineral Resource Estimate (“MRE”) for the Cebolleta Uranium Project (“Cebolleta” or the “Project”) in New Mexico. The PEA outlines the potential for a low-CAPEX, long-life uranium operation with strong baseline economics and several clear avenues for possible enhancement.
The Technical Report, which includes both the PEA and the updated MRE, was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) by SLR International Corporation (“SLR”), an independent consulting firm with extensive experience in mining and mineral processing, including uranium in the United States. The Technical Report is available on SEDAR+ at www.sedarplus.ca under the Company’s issuer profile.
Highlights
- Base case production and mine life:
- Average annual production of approximately 1.4 million pounds U₃O₈, with peak years approaching 2.0 Mlb.
- Total production of 18.1 Mlb U₃O₈ over a 13-year mine life.
- Project economics (after-tax):
- After-tax Net present value (NPV 8%) of US$83.9 million (pre-tax NPV 8%: US$106 million).
- Internal rate of return (IRR) of 17.7%.
- Life-of-mine (“LOM”) free cash flow of US$287 million.
- LOM operating cash flow of US$496 million.
- Capital and operating costs:
- Direct CAPEX: US$64.2 million.
- Indirect costs (EPCM/owner’s/indirect): US$19.3 million.
- Contingency (35%): US$29.2 million.
- Average operating cost: US$41.60 per lb U₃O₈ recovered.
- Heap leach processing costs: US$16.72 per short ton.
- Uranium price assumptions and sensitivity:
- Base case uranium price: US$90/lb U₃O₈
- Sensitivity to higher uranium prices:
- US$154 million NPV at US$100/lb
- US$325 million NPV at US$125/lb
- US$488 million NPV at US$150/lb
- Upside potential:
- Improved metallurgical recoveries could significantly enhance project economics:
- Base case after-tax NPV of US$84 million could increase by ~90% to US$159 million using a 90% metallurgical recovery.
- Improved metallurgical recoveries could significantly enhance project economics:
- Updated MRE:
- Indicated resource: 20.3 Mlb eU₃O₈ (8.3 Mst grading 0.12% eU₃O₈, up 1.7 Mlb eU₃O₈ or 9% compared to the 2024 technical Report.
- Inferred resource: 7.0 Mlb eU₃O₈ (3.6 Mst grading 0.10% eU₃O₈ or 43% compared to the 2024 technical report.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.
About the Cebolleta Uranium Project and Mineral Resources
Located in New Mexico, the Cebolleta Uranium Project is a past-producing property with extensive historical work and infrastructure. Its location in one of the premier uranium districts in the US provides strategic advantages, including proximity to utilities and existing processing facilities.
Contiube at Premier American Uranium
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