Uranium Exploration Program | Scoping study

 

Scoping Studies

2010 

2008

 


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.