An engineering review of the Patterson Lake South (PLS) uranium project in Canada has confirmed the project’s strong economics, even as capital and operating costs increase, with first production now targeted for 2031.

Perth-based Paladin Energy on Thursday published the outcomes of the review as part of the ongoing front-end engineering design work on the PLS project.

The review maintained life-of-mine output at 90.9-million pounds of uranium oxide (U₃O₈), with average production of 9.1-million pounds a year. However, cost estimates have risen, with average life-of-mine (LoM) cash operating costs pegged at $11.70/lb and all-in sustaining costs at $15.20/lb.

The 2023 feasibility study, completed by previous owner Fission Uranium, estimated LoM unit costs at C$13.02/lb of U₃O₈.

Pre-production capital costs have been revised to $1.23-billion, up from earlier estimates of C$1.15-million or about $840 000, reflecting updated engineering, procurement, safety and inflationary impacts. Sustaining capital is expected at $325-million.

At a uranium price of $90/lb, Paladin said the project carries an after-tax net present value of $1.33-billion, an internal rate of return of 28.2%, and a 2.4-year payback. Average free cash flow is forecast at $430-million a year.

“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,” said incoming MD and CEO Paul Hemburrow. “The review confirms the technical robustness of the PLS project, providing a strong foundation for its successful development.”

Hemburrow added that the project remained on track for development in the early 2030s. “We are confident that this project will deliver long-term value for all stakeholders, while upholding the highest standards of safety, operational efficiency and sustainability,” he said.

Paladin acquired the PLS project and its Triple R deposit – one of the highest-grade undeveloped uranium resources in the Athabasca basin – through its 2024 purchase of Fission Uranium.

The updated project schedule reflects anticipated engineering, procurement, construction and regulatory approval timelines. Engineering firm Tetra Tech Canada led the review, with support from Mining Plus and Clifton Engineering.