Fission announces economics for Patterson Lake South uranium

Fission Uranium’s Patterson Lake South facility, Saskatchewan. Fission Uranium photo

Fission Uranium (TSX: FCU) has announced the results of a feasibility study conducted by Tetra Tech Canada for the Patterson Lake South property in the Athabasca Basin.

The company says these study results further enhance the economics outlined in the 2019 pre-feasibility study. Highlights include a longer mine life of 10 years, an increased after-tax net present value at 8% discount of C$1.2 billion and a higher after-tax internal rate of return of 27.2%, while still maintaining a very low operating cost of C$13.02 per pound.

Other important parameters from the study suggest a construction timeline of three years with an estimated initial capital cost of C$1.1 billion and life-of-mine production of over 90 million lb. of uranium oxide.

“Showing capex to be lower than in the 2019 prefeasibility report, particularly with the pressures of high global inflation, is a remarkable achievement and speaks volumes regarding the team’s design and planning abilities,” said CEO Ross McElroy in a news release. 

“Going forward, thanks to the strength of this feasibility study and the success of our ongoing social engagement, we will continue advancing through the environmental assessment and on towards a construction decision,” McElroy added.