Name and Location
Anderson uranium project, Arizona, US.

Client
Uranium Energy Corp.

Project Description
The project covers 15.4 square miles and comprises 459 contiguous, unpatented lode mining and placer claims, as well as two Arizona state land sections.

A preliminary economic assessment (PEA) on the project envisions a four-year preproduction period, which includes development drilling, mine and heap design, and permitting. Mineral processing and recovery will be accomplished by heap leaching the mined materials on site.

Based on the current metallurgical testing, the PEA assumes that the mined material will be crushed and screened to 80%, passing one-and-a-half inches, then stacked on a lined pad using a radial stacker to a nominal height of 20 feet. A nominal 50 lb of 93% sulphuric acid a ton of mineralised material will be applied to the heap through a drip system to leach the contained uranium. Test results indicate that an overall recovery of 90% is achievable. Leach solutions will be removed from the solution using a solvent extraction circuit that loads the concentrate uranium onto resin.

The base case for the PEA considers conventional mining in conjunction with on-site heap-leach recovery, producing an intermediate uranium concentrate in the form of loaded resin, which could be shipped to the White Mesa mill near Blanding, in Utah, for final processing. However, once the uranium is concentrated and loaded on resin it could be shipped to other central processing facilities.

Net Present Value/Internal Rate of Return
The PEA shows a robust pretax project internal rate of return (IRR) of 63% and a net present value (NPV) of $142.2-million at a discount rate of 10%, with a post-tax IRR of 50% and an NPV of $101.1-million, based on a uranium price of $65/lb.

Value
Preproduction expenses are estimated at $8-million. Initial capital for openpit- mining equipment, mineral-processing facilities, site preparation, access, infrastructure, buildings and the initial heap-leach pad construction total $43.9-million. Additional capital totalling $87.6-million for highwall and underground mining equipment will be added during years four to eight of the operations. Total life-of-mine capital, including contingencies, replacement capital and additional heap-leach pads, is estimated at $139.2-million.

Duration
None stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Uranium Energy Corp investor relations, tel +1 866 748 1030, fax +1 361 888 5041 or email info@uraniumenergy.com.