Uranium Energy reports S-K 1300 Initial Assessment and Economic Study for Alto Paraná Titanium Project, Paraguay
Uranium Energy Corp. [NYSE –UEC; FSE-U6Z] announce that it has filed an Initial Assessment Technical Report Summary in accordance with Item 1302 of Regulation S-K on EDGAR disclosing Mineral Resources and an economic assessment for the 100%-owned Alto Paraná Titanium Project located in Paraguay.
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: 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.”
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 metres and no overburden.
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 metres.
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.
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.
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.