Tallahassee Project Scoping Study Shows $203M NPV and 93% IRR at $90 Uranium

Scoping Study Highlights a Promising Uranium Development

Global Uranium and Enrichment Limited (ASX:GUE) has announced the completion of a comprehensive scoping study for the Hansen Deposit at its Tallahassee Uranium Project in Fremont County, Colorado. The study confirms the technical feasibility and economic viability of developing one of the largest undeveloped uranium deposits in the United States, leveraging innovative mining and beneficiation technologies.

The study outlines a 7-year life of mine producing an average of 1.8 million pounds of U3O8 annually. At a uranium price of US$90 per pound, the project delivers a pre-tax net present value (NPV) of approximately US$203 million and an internal rate of return (IRR) of 93%, underscoring a robust economic opportunity.

Innovative Mining and Beneficiation Methods Drive Efficiency

After evaluating several mining methods, Global Uranium selected Hydraulic Borehole Mining (HBHM) as the optimal approach. HBHM offers significant cost advantages and a smaller environmental footprint compared to conventional underground mining. This method involves high-pressure water jets to selectively disaggregate mineralized sandstone, pumping the slurry to the surface for processing.

Complementing HBHM, the project employs High Pressure Slurry Ablation (HPSA) for ore beneficiation. This mechanical process concentrates uranium-bearing minerals, producing a mill feed grading approximately 0.68% U3O8, substantially higher than the run-of-mine grade. This beneficiation reduces transportation costs and environmental impact by minimizing the volume of material shipped for processing.

Regulatory Landscape and Environmental Considerations

The project is situated on private lands in Colorado, with no identified federal, state, or local regulatory impediments that would preclude development. However, multiple permits will be required, including mining permits from the Colorado Division of Reclamation, Mining and Safety, radioactive materials licenses from the Colorado Department of Public Health and Environment, and underground injection control permits from the Environmental Protection Agency.

Environmental assessments highlight the minimal surface disturbance and reclamation advantages of HBHM and HPSA. The mining process recycles water in a closed loop, and all waste rock and coarse material will be used for backfilling mined caverns, eliminating tailings and reducing environmental risks.

Strategic Timing Amid US Policy Support

The study’s completion coincides with renewed US policy emphasis on domestic critical minerals, including uranium. Recent executive orders aim to accelerate mineral processing and strengthen energy security, positioning the Tallahassee Project favorably within the national agenda for reliable baseload power and nuclear energy expansion.

Global Uranium’s Managing Director, Andrew Ferrier, emphasized the project’s alignment with these policy tailwinds and the company’s strategy to build a 100 million pounds uranium portfolio. The company plans to advance permitting, optimize mining and processing methods, and engage with potential financiers to secure development funding.

Next Steps and Outlook

While the scoping study provides a strong foundation, it remains a preliminary evaluation with an accuracy of +/- 35%. No Ore Reserves have been declared, and further drilling, metallurgical testing, and pilot studies are planned to refine resource grades and operational parameters. The company also acknowledges funding and permitting risks, noting that financing terms could impact shareholder value.

Overall, the Tallahassee Uranium Project’s scoping study marks a significant milestone, demonstrating a technically sound and economically attractive pathway to develop a critical domestic uranium supply in the United States.