Uranium Exploration Program | Scoping study
Scoping Studies
2010
Click here to read the complete report dated April 9, 2010: Part 1 and Part 2 .
*** Does not take into account the most recent resource estimate by Roscoe Postle Associates Inc. dated January 2012.
Abstract:
The scoping study was conducted by Scott Wilson Roscoe Postle Associates Inc. (“Scott Wilson RPA”) with the participation of Melis Engineering Ltd. for processing and SD Energy Associates Ltd. for marketing and price determination.
The revised Preliminary Assessment is based on the National Instrument 43-101 compliant indicated and inferred resource estimate done by Scott Wilson RPA in September, 2009.
Mineral Resource Estimate for Matoush, September 1, 2009 |
||||
|
Tonnes |
Grade |
Pounds U3O8 |
|
|
(x 1,000) |
(% U3O8) |
(x 1,000) |
|
Indicated |
|
|
|
|
AM-15 |
262 |
0.70 |
4,039 |
|
MT-34 |
174 |
0.89 |
3,420 |
|
Total Indicated |
436 |
0.78 |
7,458 |
|
|
|
|
|
|
Inferred |
|
|
|
|
AM-15 |
33 |
0.34 |
249 |
|
MT-22 |
822 |
0.53 |
9,526 |
|
MT-34 |
302 |
0.45 |
3,003 |
|
Total Inferred |
1,157 |
0.50 |
12,777 |
Notes:
1. CIM Definition Standards have been followed for classification of Mineral Resources.
2. The cut-off grade of 0.1% U3O8 was estimated using a U3O8 price of US$75/lb and assumed operating costs.
3. High U3O8 grades were cut to 9%.
4. The Mineral Resource estimate uses drill hole data available as of September 1, 2009.
5. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
6. Totals may not sum correctly due to rounding.
The Preliminary Assessment is based in part on inferred resources, and is preliminary in nature. Inferred resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves. There is no certainty that the reserves development, production and economic forecasts on which this preliminary assessment is based will be realized.
I PRODUCTION AND RECOVERED METAL
The mining plan was based on mineral resources with factors applied for dilution and extraction. Recovered metal is based on metallurgical tests done at SGS Lakefield Research Ltd. in Lakefield, ON; an average of 97.6% recovery is used. Potential grade implied mining dilution at 15% at zero value. Mill design was modified to increase annual mill capacity from 2.0 M to 2.7 M pounds U3O8.
Year |
Mill Feed (x 1,000) Tonnes |
Grade % U3O8 |
Recovered Metal 97.6% (x 1,000 pounds) U3O8 |
1 |
169.8 |
0.639 |
2,391.3 |
2 |
240.6 |
0.400 |
2,124.2 |
3 |
262.7 |
0.461 |
2,668.9 |
4 |
262.2 |
0.522 |
3,018.9 |
5 |
249.5 |
0.561 |
3,085.0 |
6 |
224.1 |
0.496 |
2,451.2 |
7 |
239.6 |
0.468 |
2,472.3 |
TOTAL |
1,648.6 |
0.501 |
17,774.8 |
II REVENUE
- The price scenario was established by SD Energy in September 2008, in the initial scoping study, with a long-term price of US$60.00 to US$90.00 per pound U3O8 over the life of the project and an evaluation price of US$75.00 per pound U3O8.
- The US$/CAN$ exchange rate is 0.85.
- Transport to smelter in North America is $0.10 per pound.
- Royalty 2%
|
(x 1,000) CAN$ |
Gross revenue |
1,568,363 |
Transport to smelter |
1,777 |
Royalty |
31,332 |
NSR Gross revenue after the royalty |
1,535,253 |
III OPERATING COSTS (CAN$)
Mining |
$91.64/T milled |
Maintenance |
$24.86/T milled |
Process |
$92.74/T milled |
Site services |
$32.68/T milled |
Power (generators) |
$35.77/T milled |
G&A |
$22.43/T milled |
Average Operating Cost: $300.12/T milled |
|||
CAN$27.84/pound |
US$23.66/pound |
IV OPERATING PROFIT
Year |
CAN$ |
Year |
CAN$ |
1 |
131,819,000 |
5 |
189,170,000 |
2 |
107,096,000 |
6 |
136,345,000 |
3 |
153,437,000 |
7 |
139,824,000 |
4 |
182,793,000 |
|
|
Total Operating Profit: CAN$1,040,484,000 |
V CAPITAL COSTS
|
(x 1,000) CAN$ |
(x 1,000) CAN$ |
Direct Capital Costs |
|
191,009 |
Mine |
32,466 |
|
Process |
143,146 |
|
Infrastructure |
15,398 |
|
|
|
|
Indirect Capital Costs |
|
48,568 |
|
|
|
Contingency |
|
52,273 |
|
|
|
Capital Spare |
|
980 |
Before Start Up |
|
292,830 |
|
|
|
Sustaining Capital (6 years) |
|
19,126 |
|
|
|
Closure |
|
30,000 |
Mine Life Capital Costs |
|
341,955 |
VI FINANCIAL VII SENSITIVITY TO PRICE
Internal Rate of Return before Tax: 41.5%
NET PRESENT VALUE (NPV) before Tax |
|
Discount Rate % |
(x 1,000) CAN$ |
5 |
475,550 |
8 |
377,640 |
10 |
323,530 |
15 |
218,070 |
PRICE |
US$/lb |
NPV |
|
75.00 |
$ 323,530 |
0.67 |
50.00 |
$ 31,700 |
O.80 |
60.00 |
$ 148,260 |
1.00 |
75.00 |
$ 323,530 |
1.07 |
80.00 |
$ 381,890 |
1.14 |
85.50 |
$ 446,220 |
2008
Click here to read the complete report dated December 17, 2008, Part 1 and Part 2.
Strateco carried out the first economic assessment of its Matoush uranium exploration property as a basis for the underground uranium exploration program. The scoping study is based on the NI 43-101 compliant indicated and inferred resource estimate established by Scott Wilson RPA in its Technical Report on the Mineral Resource Update for the Matoush Uranium Project, dated September 16, 2008. The scoping study on Matoush indicates very strong economics.
The scoping study contains many sections that were given to different firms known for their expertise in the subject.
- Scott Wilson RPA with the participation of Melis Engineering Ltd for capital and processing costs.
- Golder Associates for radiation, environment and reclamation costs.
- SD Energy Associates Ltd (SD Energy) for marketing and price determination.
- Melis Engineering Ltd for metallurgical testwork.
Cautionary Notes
- The preliminary assessment is preliminary in nature, it 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, and there is no certainty that the preliminary assessment will be realized.
- Mineral resources that are not mineral reserves do not have demonstrated economic viability.
I ORE PRODUCTION AND RECOVERED METAL
The mining plan was developed on mineral resources configuration. Recovered metal is based on metallurgical tests done at SGS Lakefield Research Ltd in Lakefield, ON; an average of 97.6% recovery is used.
Year |
Mill Feed (x 1,000) Tonnes |
Grade % U3O8 |
Recovered Metal 97.6% (x 1,000 pounds) U3O8 |
1 |
175.0 |
0.633 |
2,382 |
2 |
236.3 |
0.454 |
2,306 |
3 |
262.5 |
0.362 |
2,046 |
4 |
262.5 |
0.553 |
3,124 |
5 |
262.5 |
0.439 |
2,479 |
6 |
262.5 |
0.372 |
2,100 |
7 |
188.4 |
0.267 |
1,082 |
TOTAL |
1,649.7 |
0.437 |
15,519 |
II REVENUE
- The price scenario was established by SD Energy with a long term price from US$60.00 to US$90.00 per pound U3O8 over the life of the project with an evaluation price of US$75.00 per pound U3O8.
- The US$/CAN$ exchange rate is 0.85.
- Transport to smelter in North America is $0.10 per pound.
- Royalty 2%.
(x 1,000) CAN$ |
|
Gross revenue |
1,369,515 |
Transport to smelter |
(1,552) |
Royalty |
(27,359) |
NSR Gross revenue after the royalty |
1,340,604 |
III OPERATING COSTS
Mining | $82.80/T milled | Maintenance | $24.84/T milled |
Process | $107.77/T milled | Site services | $28.96/T milled |
Power (generators) | $35.75/T milled | G&A | $22.41/T milled |
Average Operating Cost: $302.53/T milled |
|||
CAN$32.15/pound |
US$27.33/pound |
IV OPERATING PROFIT
Year |
(x 1,000) CAN$ |
Year |
(x 1,000) CAN$ |
1 |
133,894 |
5 |
142,051 |
2 |
128,177 |
6 |
109,992 |
3 |
105,145 |
7 |
23,809 |
4 |
198,453 |
|
|
Total Operating Profit: CAN$841,522,000 |
V CAPITAL COSTS
(x 1,000) CAN$ |
(x 1,000) CAN$ |
|
Direct Capital Costs |
193,443 |
|
Mine |
28,159 |
|
Process |
149,886 |
|
Infrastructure |
15,398 |
|
|
||
Indirect Capital Costs |
49,928 |
|
|
||
Contingency |
53,305 |
|
|
||
Capital Spare |
575 |
|
|
||
Before Start Up |
297,251 |
|
|
||
Sustaining Capital (6 years) |
15,564 |
|
|
||
Closure |
30,000 |
|
|
||
Mine Life Capital Costs |
342,815 |
VI FINANCIAL
Internal Rate of Return before Tax: 37.1%
NET PRESENT VALUE (NPV) before Tax |
|
Discount Rate % |
(x 1,000) CAN$ |
5 |
341,610 |
8 |
271,200 |
10 |
231,850 |
15 |
154,110 |
VII SENSITIVITY TO LBS PRODUCED
Total lbs (x 1,000) |
NPV @ 10% (x 1,000 CAN$) |
IRR (before taxes) |
15,521 |
231,850 |
37.1% |
20,000 |
326,970 |
40.4% |
22,500 |
375,890 |
41.4% |
25,000 |
419,870 |
42.0% |
27,500 |
459,400 |
42.3% |
30,000 |
494,920 |
42.6% |
Due to the growth in mineral resources and grade and the reduction of various estimated operating costs, the scoping study done in the fall of 2008 will be updated in the coming months. We expect the estimated production cost of US$27.33 per pound of U3O8 to come down.