Premier American Uranium Announces Preliminary Economic Assessment and Mineral Resource Update for the Cebolleta Uranium Project, Outlining Project Economics and Framework for Enhancement
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On October 30, 2025, Premier American Uranium (PUR) announced the results of a Preliminary Economic Assessment (PEA) and an updated Mineral Resource Estimate (MRE) for its flagship Cebolleta Uranium Project in New Mexico.
Key PEA highlights (at US$90/lb U3O8): - After-tax Net Present Value (NPV) at an 8% discount rate: US$83.9 million. - After-tax Internal Rate of Return (IRR): 17.7%. - Initial Capital Expenditure (CAPEX): US$113.5 million. - Life of Mine (LOM): 13 years. - Average annual production: 1.4 million pounds (Mlbs) U3O8. - Average LOM operating cost: US$41.60 per pound U3O8.
The updated MRE shows an increase in the resource: - Indicated Resources: 20.31 Mlbs eU3O8 (from 8.3 million tons at 0.12% eU3O8). - Inferred Resources: 7.04 Mlbs eU3O8 (from 3.6 million tons at 0.10% eU3O8).
The PEA outlines a heap leach strategy, producing uranium-loaded resin for off-site processing. The study shows significant leverage to higher uranium prices, with the after-tax NPV increasing to US$325 million at a US$125/lb price.
The release of a PEA is a major de-risking milestone for any development-stage company, and this one is no different. The company has successfully advanced its flagship project from a geological resource to a project with a preliminary economic framework, meeting a key objective set out earlier in the year.
Premier American Uranium is a U.S.-focused uranium exploration and development company. Following its September 2025 acquisition of Nuclear Fuels Inc., the company has a large portfolio of 12 projects across key U.S. uranium districts. - Flagship Project: The Cebolleta Uranium Project in the Grants Mineral Belt, New Mexico. It is now at the PEA stage, with a defined resource of 20.3 Mlbs Indicated and 7.0 Mlbs Inferred eU3O8. The property is subject to a 5.75% production royalty. - Key Exploration Projects: The company holds significant land packages in Wyoming, including the Kaycee Project in the Powder River Basin and the Cyclone Project in the Great Divide Basin. These projects are at an earlier exploration stage and represent the company's growth pipeline.