Plateau Uranium Announces Positive Updated PEA Results

 

TORONTO, ON - Plateau Uranium Inc. reported results from the Company's updated Preliminary Economic Assessment (PEA) for the Macusani Plateau uranium project, located in the Puno Department of southeastern Peru. The PEA was completed by UK based, mining engineering consultants Wardell Armstrong International ("WAI") and GBM Minerals Engineering Consultants Limited (GBM), and contains a detailed base case as well as four alternate development scenarios using higher grade feed material.

Ted O'Connor, CEO of Plateau Uranium, said, "Completing the updated PEA is a very important milestone for Plateau Uranium. The new PEA results show the significant potential of the Macusani Plateau uranium district to become a future uranium production centre. Using a currently realistic, albeit conservative US$50/lb U3O8 future price, both the estimated NPV and IRR for the project are excellent.

The low cost potential of the Macusani Plateau uranium project, with estimated production costs similar to some of the best uranium operations in the Athabasca Basin and Kazakhstan, combined with significant estimated annual production levels, and estimated capital costs of less than US$300 million, near significant infrastructure in mining friendly Peru, all highlight the potential strategic nature of our project to supply the growing near-term uranium demand expected within the next 4 years.

The strong PEA results further validate the merits of the Company's consolidation and organic growth strategy to control all defined uranium resources in Peru.

Our plan is to move the Macusani Plateau uranium project further along the path to development by progressing our environmental permitting strategy in Peru, initiating further delineation, expansion and exploration drilling, and following through with additional pre-feasibility metallurgical and engineering study work over the coming year. The work completed on the high-grade heap leach and tank leach scenarios has provided up-front, potentially economic options to consider in the future pre-feasibility work.