CORPUS
CHRISTI, Texas, Nov. 13,
2023 /PRNewswire/ - Uranium Energy
Corp (NYSE American: UEC), the "Company" or
"UEC") is pleased to announce that it has filed an Initial
Assessment Technical Report Summary ("TRS") in accordance
with Item 1302 of Regulation S-K ("S-K 1300") on EDGAR
disclosing Mineral Resources and an economic assessment for the
Company's 100% owned Alto Paraná Titanium Project located in
Paraguay (the "Project" or
the "Alto Paraná Project").
Key Highlights
- Alto Paraná Titanium Project is a world-class project with a
combined Regional Resource of 3.6 billion tonnes, grading at 7.3%
TiO2.
- The TRS and economic assessment considered two scenarios
using Inferred and Indicated Resources:
1. NPV8 of $419 million and a 21% post-tax IRR, utilizing
less than 0.2% of the Regional Resource per annum; and
2.
NPV8 of $1.55 billion and
a 25% post-tax IRR, utilizing less than 0.7% of the Regional
Resource per annum.
- The TRS and economic assessment was co-authored by TZ
Minerals International Pty Ltd (TZMI), a global, independent
consulting and publishing company which specialises in the mineral
sands, titanium dioxide and coatings industries.
- UEC will commence a global strategic review process to
determine the best value-enhancing option for Alto Paraná.
Amir Adnani, UEC President and
CEO, stated: "UEC is a uranium focused company and through our
presence and uranium exploration activities in Paraguay since 2012 we identified a unique
opportunity to acquire the world-class Alto Paraná Titanium Project
in 2017 for a nominal investment.
We are delighted to present an initial economic evaluation of
the Project that provides a pathway forward in unlocking its
substantial value. The study confirms Alto Paraná as one of the
highest grade and largest known ilmenite deposits on the globe with
compelling economics.
We are looking forward to the next steps in our monetization
strategy and plan to retain a financial advisor to conduct a global
strategic review, with the aim of maximizing the value of this
world-class project for UEC shareholders, stakeholders and the
country of Paraguay."
Background:
- Total Alto Paraná Titanium Project Regional Resources are 3.6
billion tonnes grading at 7.3% TiO2 (titanium dioxide)
with an average thickness of 6.3 meters and no overburden (see
Table 1 below).
- Following the acquisition of the Project in 2017 from CIC
Resources, UEC has undertaken additional delineation drilling
during 2019 through 2023 and further process test work to increase
the confidence level of the resource and process.
- UEC has completed this S-K 1300 TRS and economic assessment
with the team at TZ Minerals International Pty Ltd.
("TZMI"), a global, independent consultant which specialises
in mineral sands, titanium dioxide and coatings industries. TZMI
fulfilled the role of Qualified Person under S-K 1300.
- The Alto Paraná Titanium Project Initial Assessment examined a
base case and a more tentative stretch case for production of high
titania slag and high purity pig iron.
- The base case design (~150,000 tonnes per annum ("tpa") high
titania slag and ~100,000 tpa high purity pig iron), using Inferred
and Indicated Resources produced the following results:
- $419 million post-tax net present
value ("NPV") using an 8% discount rate;
- A 21% internal rate of return ("IRR");
- Startup capital expenditures of $338
million and real after-tax payback of 4.7 years;
- An average life of mine operating cost of $712 per tonne of slag before pig iron
credit over the 23 years modelled;
- Average life of mine annual revenue of $200 million;
- A revenue to cash cost ratio of 2.2; and
- Utilizing less than 0.2% of the available Regional Resource per
annum.
- The stretch production case design (~500,000 tpa high titania
slag and ~320,000 tpa high purity pig iron), examined in less
detail and with less certainty regarding the resource and market
availability, using Inferred and Indicated Resources produced the
following outcomes:
- $1.55 billion post-tax NPV
using an 8% discount rate;
- A 25% IRR;
- Startup capital expenditures of $918
million and real after-tax payback of 4.2 years;
- An average life of mine operating cost of $681 per tonne of slag before pig iron credit
over the 23 years modelled;
- Average life of mine annual revenue of $652 million;
- A revenue to cash cost ratio of 2.3; and
- Utilizing less than 0.7% of the available Regional Resource per
annum.
- The Project is planned to be powered by low-cost renewable
power from the world's second largest hydro-electric power
infrastructure (Itaipu), < 25km from the proposed smelter
site.
- The estimated carbon intensity is below 0.6t
CO2e/tonne of final product, less than half that of the
next lowest ilmenite smelting operation considered in the
study.
- The Project is 100% owned by UEC's wholly owned subsidiary, CIC
Resources (Paraguay) Inc., and is
located within Eastern Paraguay,
near established logistical infrastructure.
Jacob Deysel, UEC VP for Heavy Minerals, leading the Alto Paraná
economic study and next steps, stated: "Alto Paraná is a
best-in-class titanium Project with substantial resources,
relatively low environmental impact, low greenhouse gas footprint,
exceptional lifespan, located near supportive infrastructure in a
mining friendly jurisdiction and well supported by market
fundamentals. This Initial Assessment TRS marks an important
step in our efforts to capture the value from this heavy mineral
asset in Paraguay. It has upgraded
the Alto Paraná resource, refined the technical approach to the
development of the Project and the financial assessment shows
robust financial returns.
In advancing the project further, we are pleased to employ a
dedicated heavy minerals team that includes well-respected experts
in the heavy minerals industry, including, Ian Egan (Marketing Consultant) and Colin Rothnie (Geologist) together with
specialist consultant, TZ Minerals International Pty Ltd
(TZMI). The Project's excellent economic analysis and
resources are solid precursors that provide UEC with various
options in our strategy to enhance the value of the
Project."
About the Alto Paraná
Project
The Alto Paraná Project is one of the world's highest-grade and
largest ilmenite deposits with a combined Regional Resource of 3.6
billion tonnes grading at 7.3% TiO2.
Mineralization occurs at the surface, with an average thickness of
6.3 meters. Future expanded development and mining can
benefit from the highly reliable and accessible infrastructure in
the area with proximity to a major hydroelectric power source and
various bulk commodity transport routes (see Figure 1 below).
Prior to UEC's acquisition of the Alto Paraná Project,
approximately $25 million was
invested in the Project, including pilot testing from mining
through to the smelting processes.
As part of the recent Project development, infill drilling has
been undertaken in the initial target mining area which has
improved the current resource classifications (see Table 1
below). Both in-field and laboratory scale test work were
carried out to further improve and simplify the previously proven
flowsheet for the Project. The field work and resource
estimate were overseen by Colin Rothnie, BSc Hons (Geology),
MAusIMM, (201546), employed by UEC as a consulting geologist and a
Qualified Person for the TRS. The TRS was co-authored by
TZMI, an independent, third-party consulting firm comprised of
industry experts, such as professional metallurgists and
professional engineers. TZMI professionals fulfill the requirements
to be a "Qualified Person" for the purposes of S-K 1300.
Table 1 – UEC's Alto Paraná Resource
Zone
(Model)
|
Resource
category
|
Volume
(Mm3)
|
Tonnes
(Mt)
|
Ilmenite1,2
|
Whole rock
TiO2
|
MYNM Regional3,
4
|
Inferred
|
2,900
|
3,500
|
|
7.3 %
|
Block E1
(E1E)
|
Indicated
|
28
|
34
|
4.9 %
|
7.5 %
|
Block A
(A5C)
|
Indicated
|
30
|
36
|
4.8 %
|
7.7 %
|
Block A
(A5C)4
|
Inferred
|
67
|
80
|
|
7.7 %
|
TOTAL3
|
|
3,000
|
3,600
|
|
7.3 %
|
|
|
|
|
|
|
Notes:
|
1.
|
Ilmenite: 'heavy
mineral' particles between 45µm and 1mm, denser than
2.8g/cm3 containing an average of 50%
TiO2
|
2.
|
All grades are
expressed as in situ grades.
|
3.
|
Estimates for the
MYNM Regional Resource and the Total are rounded to two significant
figures, as appropriate for Inferred
Resources.
|
4.
|
On the basis of
sampling and comparison assays done to date it is estimated the
Inferred Resources contain between 4 and 5%
ilmenite.
|
5.
|
A cut-off grade of
2% ilmenite has been applied where the ilmenite grade is known,
otherwise whole rock TiO₂ of 5.75%.
|
Economic Analysis
The TRS demonstrates the potential for the Alto Paraná Project
to be a significant high titania slag and high purity pig iron
producer which is expected to rank in the first quartile of the
TZMI long-term industry revenue to cash cost ratio curve, with
exceptional low greenhouse gas emission intensity (see Figure 2
below). Among other matters, it highlights six key areas of
refinement over previous studies, being: the resource; the
flowsheet; tailings disposal; product marketing; environmental
aspects; and financial modelling; with the following results:
- A base case after-tax IRR of 21% and an NPV after-tax of
$419 million using Inferred and
Indicated Resources:
- Initial design production capacity of approximately 150,000
tonnes per annum of high titania slag and 100,000 tonnes per annum
of high purity pig iron.
- An initial mine life of 23 years with potential for significant
expansion and extension;
- Startup capital expenditures of $338
million;
- A real after-tax payback of 4.7 years;
- An average life of mine operating cost of $712 per tonne of slag before pig iron
credit;
- Average life of mine annual revenue of $200 million;
- A revenue to cash cost ratio of 2.2, likely placing it in the
first quartile of the TZMI revenue to cash cost ratio curve;
and
- The lowest greenhouse gas emissions per tonne of final
products compared to five existing ilmenite smelters considered in
the analysis; and
- The stretch production case using Inferred and Indicated
Resources produces significant improved economics with an after-tax
IRR of 25% and an NPV after-tax of $1.55
billion.
- In the base case economic analysis 58% of the resources are
Inferred and in the stretch case 86% of the resources are
Inferred.
- The economic assessments are preliminary in nature, they
include Inferred Mineral Resources that are considered too
speculative geologically to have modifying factors applied to them
that would enable them to be categorized as Mineral Reserves, and
there is no certainty that these economic assessments will be
realized.
The Alto Paraná Project is well supported by current market
fundamentals. Chloride slag, the primary product of the Alto Paraná
Project, is anticipated to be a key beneficiary of the long-term
structural deficit in natural rutile to supply high-grade feedstock
to chloride pigment producers. TZMI forecasts demand growth for
chloride slag in TiO₂ pigment end-use markets to show a Compound
Annual Growth Rate of 7.7% from 2022 to 2030 (March 2023 Estimate).
In due course, it is expected that additional regional drilling
will be completed such that the current resource estimate may be
upgraded for the purpose of potentially initiating a Preliminary
Feasibility Study.
The technical information in this news release has been reviewed
and approved by Colin Rothnie, BSc Hons (Geology), MAusIMM,
(201546), employed by UEC as a consulting geologist and a Qualified
Person for the TRS, and by TZMI, an independent, third-party
consulting firm comprised of industry experts, such as professional
metallurgists and professional engineers. TZMI professionals
fulfill the requirements to be a "qualified person" for the
purposes of S-K 1300.
About Uranium Energy
Corp
Uranium Energy Corp is the fastest growing supplier of the fuel
for the green energy transition to a low carbon future. UEC is the
largest, diversified North American focused uranium company,
advancing the next generation of low-cost, environmentally friendly
ISR mining uranium projects in the United States and
high-grade conventional projects in Canada. The Company has
two production-ready ISR hub and spoke platforms in South
Texas and Wyoming. These two production platforms are
anchored by fully operational central processing plants and served
by seven U.S. ISR uranium projects with all their major permits in
place. Additionally, the Company has diversified uranium holdings
including: (1) one of the largest physical uranium portfolios of
U.S. warehoused U3O8; (2) a major equity
stake in Uranium Royalty Corp., the only royalty company in the
sector; and (3) a Western Hemisphere pipeline of resource stage
uranium projects. The Company's operations are managed by
professionals with decades of hands-on experience in the key facets
of uranium exploration, development and mining.
Stock Exchange Information:
NYSE American: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103
Safe Harbor Statement
Except for the statements of historical fact contained herein,
the information presented in this news release constitutes
"forward-looking statements" as such term is used in applicable
United States and Canadian
securities laws. These statements relate to analyses and other
information that are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of
management. Any other statements that express or involve
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that certain actions, events or results "may", "could", "would",
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statements of historical fact and should be viewed as
"forward-looking statements". Such forward looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such risks and other factors include,
among others, the actual results of exploration activities,
variations in the underlying assumptions associated with the
estimation or realization of mineral resources, the availability of
capital to fund programs and the resulting dilution caused by the
raising of capital through the sale of shares, accidents, labor
disputes and other risks of the mining industry including, without
limitation, those associated with the environment, delays in
obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, title
disputes or claims limitations on insurance coverage. Although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Many of these factors are
beyond the Company's ability to control or predict. There can be no
assurance that such statements will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news
release. Important factors that may cause actual results to differ
materially and that could impact the Company and the statements
contained in this news release can be found in the Company's
filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
The Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise. This news release shall not constitute
an offer to sell or the solicitation of an offer to buy
securities.
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