News Summary
On December 9, 2025, Premier American Uranium Inc. announced the filing of a technical report, compliant with National Instrument 43-101, for its Cebolleta Uranium Project in New Mexico. This report contains the Preliminary Economic Assessment (PEA) and an updated Mineral Resource Estimate (MRE).
The PEA outlines a low-CAPEX, long-life uranium operation with the following baseline economics (at a US$90/lb U3O8 base case price):
– After-Tax NPV (8%): US$83.9 million
– After-Tax IRR: 17.7%
– Pre-production CAPEX: US$113.5 million (Direct CAPEX US$64.2M, Indirect Costs US$19.3M, Contingency US$29.2M)
– Mine Life: 13 years
– Total Production: 18.1 Mlb U3O8
– Average Annual Production: 1.4 Mlb U3O8 (Peak: 2.0 Mlb U3O8)
– Average Operating Cost: US$41.6/lb U3O8
– Life-of-Mine Free Cash Flow: US$287 million
– Life-of-Mine Operating Cash Flow: US$496 million
The updated MRE shows:
– Indicated Resource: 20.3 Mlb eU3O8
– Inferred Resource: 7.0 Mlb eU3O8
Sensitivity analysis indicates higher NPVs at increased uranium prices (e.g., US$154M at US$100/lb, US$325M at US$125/lb, US$488M at US$150/lb).
The company highlighted the PEA’s potential to establish Cebolleta as a cornerstone U.S. uranium project with strong leverage to rising uranium prices.
Material Impact
This news release announces the *filing* of the NI 43-101 technical report for the Cebolleta Uranium Project, containing the PEA and updated MRE. The core financial and resource estimates presented in this release are identical to those previously announced on October 30, 2025. At that time, the announcement of these positive PEA results was considered “Material – Positive” by the company and would have been factored into the stock price.
The act of formally filing the technical report, while an important regulatory step, does not introduce new material information beyond what was already disclosed in the October 30th announcement. Therefore, from a critical equity analyst’s perspective, this particular news release is a procedural confirmation rather than a new catalyst that would materially impact the company’s stock price or valuation. It is in line with previous expectations following the initial announcement of the PEA results. The company had initially targeted “early summer 2025” (Feb 19, 2025) for the PEA/MRE completion, which was then revised to “targeting summer 2025” (Jan 16, 2025), and ultimately delivered in late October, indicating a slight delay from the initial aggressive timeline but still a successful deliverable.
Catalysts
– Cebolleta Project Advancement: Look for news regarding the continuation of cultural, archeological, and biological studies to support a Part 4 permit application (for more robust and flexible drilling). The company also mentioned potential resource expansion drilling (partly contingent on permit amendment) and initiating certain technical drilling recommended in the NI 43-101 technical report.
– Capital Needs: The company’s cash position and burn rate will be critical to monitor. With significant exploration and development planned, and a short-term notes payable balance, future financing activities or strategic partnerships will be important.
– Wyoming Projects: Updates on the drilling programs at the Kaycee and Cyclone exploration projects, especially results from the 2025 drilling program at Cyclone Rim, will be key. The CEO’s comments (July 29, 2025) indicated active evaluation of expanding the 2025 program.
– Uranium Market: Continued shifts in U.S. nuclear policy, such as new Executive Orders supporting domestic uranium supply, could provide a tailwind for the company’s projects.
Materiality Conclusion
While the underlying Preliminary Economic Assessment for the Cebolleta Uranium Project itself represents a material positive development for Premier American Uranium, as it outlines viable project economics and resources, the *filing* of the technical report on December 9, 2025, is a routine administrative event. The key economic metrics and resource estimates were already publicly announced on October 30, 2025. Therefore, this specific news release is categorised as Routine – Neutral. It confirms prior information but does not add new value to the investment thesis that wasn’t already available.
