SASKATOON, SASKATCHEWAN – Titan Uranium Inc. (TSX VENTURE: TUE) (FRANKFURT: T4X) is pleased to announce that it has completed a preliminary feasibility study (PFS) for its subsidiary 100% Sheep Mountain uranium project in Fremont County, Wyoming. The study was prepared by a group of consultants led by BRS Inc., a firm of independent engineering consulting firm based in Denver, Colorado. A number of other independent consulting firms, including Western States Mining Consultants, Inc. and Lyntek McNulty and Associates, provided their study results for use in the development of PFS. The project generates a pre-tax IRR of 25% with a NPV of $ 101 million. All currency amounts are expressed in U.S. dollars.
Brian Reilly, president and CEO of Titan Uranium said: “The results of the PFS confirm our view that the Sheep Mountain is a high quality project which has the robust economy. This is an important milestone in the development of the project, which will use conventional mining methods, and the state of the art equipment. We will continue to work with all stakeholders to advance the project towards production. ”
Highlights include:
* PFS estimates are based on capital and the estimated cost to operate a uranium mine using conventional open pit and underground mining methods and recovery from heap leaching, with a maximum annual capacity of 1.5 million pounds;
* The financial model is based on the price of uranium long-term $ 60.00/lb. provided by Ux Consulting Company in March 2010;
* Probable Mineral Reserves 6,393,000 tonnes at an average grade of 0.111% eU3O8 containing eU3O8 £ 14,186,000;
* Life of the initial mine: 11 years
* Capital cost estimate: $ 118 million including allowances for contingencies and risks;
* Operating Cost estimate: $ 28.67 per pound recovered;
* Estimated pre-tax net present value (NPV) at a discount rate of 7%: 101 million;
* Estimated pre-tax Internal Rate of Return (IRR): 25%
* Estimated payback period before taxes: 5 years
For more information, please contact
Titan Uranium Inc.
Investor Relations
306-651-2405 or 604-925-1810
306-651-5105 (FAX)
ir@titanuranium.com
www.titanuranium.com
Sell Golf Discs Bearish Moves in Oil, Silver ETFs
A Broad in commodities sell-off sent investors scurrying for options market in defensive positions in exchange traded funds die Crude Oil and silver track. . . Read more »
Kinross expects Tasiast bounty
Kinross gold mine in Alaska's Fort Know. . . Read more »