Vancouver-based Blue Sky Uranium Corp. has announced positive results from the preliminary economic assessment of its Ivana uranium-vanadium deposit. The deposit is part of the company’s Amarillo Grande project in Rio Negro Province.
The PEA calls for an open pit mine that will produce both uranium and vanadium for 13 years. The pre-production capex will be $128.1 million (all figures in U.S. dollars) including $28.3 million for contingency. The sustaining capital requirement will be $35.5 million, including $7.21 million for contingency.
Blue Sky says the project will have an after tax net present value of $135.2 million and an after tax internal rate of return of 29.3%. All-in sustaining costs are expected to be $18.27 per lb. of uranium oxide, net of credits.
With a cut-off of 100 ppm uranium, the Ivana deposit has an inferred resource of 28.0 million tonnes grading 0.037% uranium oxide and 0.019% vanadium pentoxide. Contained metals amount to 22.7 million lb. U3O8 and 11.5 million lb. V2O5.
This story first appeared in Canadian Mining Journal.