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Fission releases pre-feasibility study results of PLS project
Released at:11:06:00 2019-04-18

On April 15, our affiliated company Fission released the pre-feasibility study results of Patterson Lake South project (“PLS project” for short). The results show that the resource amount and economics at the control level of the PLS project have increased significantly.

Resource amount at the control level increased by 18%

The total resource amount of PLS project was about 140 Mlbs U3O8, among which the resource amount at the control level was about 104 Mlbs U3O8, an increase of 18% compared with the resource amount reported in February 2018.

The 5 ore bodies identified in the PLS project are R1620E, R780E, R00E, R840W and R1515W from east to west. The pre-feasibility study only targets at R780E and R00E, so it is expected that there will be further improvement for resource amount and mine life of the project in the future.

Mineral resources of PLS project (October 23, 2018)

Resource level

Natural uranium

Gold

Grade (%U3O8)

Mlbs

Grade (g/t)

Ounce

Control level

1.85

136.768

0.49

44,400

Inferred level

1.20

32.886

0.49

19,600

Total

1.67

136.654

0.49

64,000








Significant economic improvement (October 23, 2018)

According to the pre-feasibility study, the PLS project adopts the development form combining open-pit mining and underground mining, with a construction period of 4 years and a deposit life of 8.2 years. The total output is 90.5 Mlbs U3O8, of which the average annual output is M15 Mlbs U3O8 in the first five years. The initial capital expenditure of the project is approximately CAD 1.5 billion, and the subsequent capital expenditure and reclamation costs are CAD 214 million. The operating cost of the project is only USD 6.77 per pound of U3O8, 45% lower than that in the 2015 preliminary economic assessment report. The pre-tax payback period is only 2 years, the after-tax NPV is CAD 693 million, and the after-tax IRR is 21%.

The pre-feasibility report also proposes an alternative development plan (still in the early stage), namely fully adopting underground mining. Although the plan may lead to loss of resources, it will save the construction of dams and cofferdams, thereby reducing investment in construction, mitigating the impact on the surrounding environment, and improving project economics.

CGN will give full play to the power of shareholders to assist in the feasibility study of PLS project and promote the improvement of project economics. 

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Fission Uranium Corp. (“Fission”) is a Canadian natural uranium exploration company that is now listed on the Main Board of the Toronto Stock Exchange (stock code: FCU.TO). As the largest single shareholder of Fission, CGN is currently holding a 19.9% stake in Fission, and 20% underwriting rights of Fission’s natural uranium products and an additional 15% product underwriting options.

Fission owns a 100% equity interest in the Patterson Lake South Project (“PLS project”). The PLS project is located in the southwest of the Athabasca Basin in Saskatchewan, Canada. The 3.18km-long mineralization zone is the longest high-grade uranium mineralization continuous zone in the basin. At present, the main mine body identified in the PLS project is the 3R uranium mine.

The 3R uranium mine is high-grade with unconformity profile. The mine body is completely distributed in the basement stratum below the unconformity surface. With good engineering geological conditions, the main uranium mine body is buried at a depth of 150m only. It is planned to make comprehensive use of open-pit and underground mining methods for development in the future.

 


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