Premier American files NI 43-101 report for Cebolleta

Executive Summary

• Premier American Uranium Inc. has filed a National Instrument 43-101 technical report for its Cebolleta uranium project in New Mexico, containing a Preliminary Economic Assessment (PEA) and an updated Mineral Resource Estimate (MRE).
• The PEA outlines a low-capital expenditure, long-life operation with strong baseline economics, projecting an after-tax NPV of $83.9 million and an Internal Rate of Return (IRR) of 17.7% based on a $90/lb U3O8 price assumption.
• The updated MRE shows growth in the Indicated resource category, increasing by 9% compared to the 2024 technical report, while also reporting Inferred resources.

Key Details

• Production Profile:
  • Average annual production of ~1.4 million pounds U3O8, with peak years approaching 2.0 million pounds.
  • Total production of 18.1 million pounds U3O8 over a 13-year mine life.
• Project Economics (After-Tax, 8% Discount Rate):
  • Net Present Value (NPV): $83.9 million (U.S.).
  • Pretax NPV: $106 million (U.S.).
  • Internal Rate of Return (IRR): 17.7%.
  • Life-of-Mine (LOM) Free Cash Flow: $287 million (U.S.).
  • LOM Operating Cash Flow: $496 million (U.S.).
• Capital and Operating Costs:
  • Direct Capital Expenditure (Capex): $64.2 million (U.S.).
  • Indirect Costs (EPCM/Owner’s/Indirect): $19.3 million (U.S.).
  • Contingency (35%): $29.2 million (U.S.).
  • Average Operating Cost: $41.60 (U.S.) per pound U3O8 recovered.
  • Heap Leach Processing Costs: $16.72 (U.S.) per short ton.
• Price Sensitivity Analysis:
  • Base Case Price: $90 (U.S.)/lb U3O8.
  • NPV at $100 (U.S.)/lb: $154 million (U.S.).
  • NPV at $125 (U.S.)/lb: $325 million (U.S.).
  • NPV at $150 (U.S.)/lb: $488 million (U.S.).
• Upside Potential:
  • Improved metallurgical recoveries could significantly enhance economics; a 90% recovery rate could increase the base case after-tax NPV by ~90% to $159 million (U.S.).
• Updated Mineral Resource Estimate (MRE):
  • Indicated Resource: 20.3 million pounds eU3O8 (8.3 million short tons grading 0.12% eU3O8). This represents an increase of 1.7 million pounds eU3O8 (9%) compared to the 2024 technical report.
  • Inferred Resource: 7.0 million pounds eU3O8 (3.6 million short tons grading 0.10% eU3O8). This represents an increase of 43% compared to the 2024 technical report.
• Technical Verification:
  • Report prepared by SLR International Corp.
  • Qualified Persons (QPs) verified data through review of historical/recent databases, geophysical logs, assay records, and a site visit on Sept. 12, 2023.
  • Database audits (2023 twin-hole and 2025 Willie P) confirmed strong correlation with historical results.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.