Paladin Energy (ASX:PDN) is targeting first uranium production at the Patterson Lake South (PLS) Project in Saskatchewan, Canada to occur in 2031.
In an update on the project following a detailed technical review, including capital and operating costs, as part of the ongoing front-end engineering and design (FEED) work, incoming CEO Paul Hemburrow says the schedule reflects positive progress.
The engineering review identified design improvements and enhancements including changes to the process plant layout and footprint, improved site logistics and access and upgrades to offices, workshops and camp infrastructure.
The estimated economics incorporate FEED stage pre-production capital costs are US$1.226 billion ($1.89) billion average life of mine cash operating costs US$11.7 per pound, U3O8, and LOM sustaining capital costs estimated as US$325 million, inclusive of contingency.
There was no change to the mineral reserve or mineral resource estimates, or any other material scientific or technical information.
PLS has an estimated NPV (8% real discount rate, post-tax) of US$1.325 billion, IRR of 28.2% (post-tax), and payback period of 2.4 years using a US$90/lb (real) long-term uranium price assumption.
“Completing our comprehensive review of the 2023 Feasibility Study, together with our recent First Nations agreements and NROP exemption, represents a significant advance in the derisking and delivery of the PLS project,” Hemburrow says.
“The review confirms the technical robustness of the PLS project, providing a strong foundation for its successful development, and it also highlights for investors the significant progress that has been achieved since Paladin acquired this important asset.”
The CEO says Paladin has a commitment to bringing PLS into production by early next decade, while continuing to derisk the development through FEED, and conducting further exploration.
PLS hosts Triple R, a shallow, undeveloped uranium deposit located in the Athabasca Basin Region, in Saskatchewan, Canada.
Paladin acquired the PLS project through its acquisition of Fission Uranium Corp in December 2024.
Tetra Tech Canada was engaged to develop an updated FEED stage cost estimate, including a review focused on all mining, process and surface infrastructure, supported by Mining Plus Canada Consulting and Clifton Engineering Group.
Write to Adam Orlando at Mining.com.au
Images: Paladin
