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Cebolleta Project

Cebolleta Project

SNAPSHOT

Location:

New Mexico (Grants Mineral Belt), United States

Ownership:

100%

Deposit Type:

Sandstone-hosted uranium deposits

Primary Minerals:

Uranium

Stage:

Advanced Exploration

Current Status:

Potential development

OVERVIEW

Cebolleta is an advanced uranium exploration project located in the northeastern corner of Cibola County, approximately 40 miles west of the city of Albuquerque, NM, and approximately 10 miles north of the town of Laguna, NM. The property encompasses 6,717 acres (2,718 hectares) of privately held mineral rights (fee or deeded) and approximately 5,700 acres (2,307 hectares) of surface rights owned in fee by La Merced del Pueblo de Cebolleta (Cebolleta Land Grant). The Project is in a region that has a lengthy history of uranium exploration and mining activity dating to the 1950’s and is close to necessary infrastructure and resources.

Premier American Uranium acquired the Project through a Plan of Arrangement between the Company and American Future Fuel in June 2024.

An updated PEA completed in October 2025 outlined robust project economics, leveraging heap-leach uranium extraction coupled with ion-exchange resin loading and off-site resin processing to produce an average of 1.4 Mlb U3O8 annually over a 13-year mine life.

SUMMARY OF MINERAL RESOURCES – EFFECTIVE DATE OF APRIL 30, 2024

Classification

Grade Cut-off
(% eU3O8)

Tonnage
(Mst)

Grade
(% eU3O8)

Contained Metal
(Mlb eU3O8)

Indicated

        

Underground

0.00

5.89

0.15

18.14

Open Pit

0.02

3.81

0.07

5.61

Subtotal Indicated

  

9.70

0.12

23.75

Depletion

  

-1.40

0.12

-3.44

Total Indicated less Depletion

  

8.30

0.12

20.31
         

Inferred

        

Underground

0.00

1.79

0.12

4.42

Open Pit

0.02

1.81

0.07

2.62

Total Inferred

  

3.60

0.10

7.04

Notes:

  1. CIM (2014) definitions were followed for Mineral Resources.
  2. Mineral Resources are estimated using a long-term uranium price of US$90/lb U3O8.
  3. Underground Mineral Resources are reported at a cut-off grade of 0.0% eU3O8 within underground reporting panels designed at a cut-off grade of 0.06% eU3O8. Reporting panels have a maximum design height of 100 ft, length, minimum design height of 6 ft, and width of 50 ft.
  4. Open Pit Mineral Resources are reported at a cut-off grade of 0.02% eU3O8 and constrained by a preliminary optimized pit shell with a pit slope angle of 50° and bench height of 20 ft.
  5. The optimized pit shell, underground reporting shapes, and cut-off grades were generated by assuming metallurgical recovery of 80%, standard treatment and refining charges, mining costs of $3.31/st moved for open pit and $54/st marginal mining cost for underground, processing costs of $16.72/st processed, and general and administrative costs of $6.50/st processed.
  6. Mineral Resources have been depleted based on past reported production numbers from the underground JJ#1, Climax M-6 and Willie P underground mines.
  7. A minimum mining width of two feet was used for construction the wireframes.
  8. Tonnage Factor is 16 ft3/st (Density is 0.625 st/ft3 or 2.00 t/m3).
  9. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  10. Numbers may not add due to rounding.

See NI 43-101 Technical Report on the Cebolleta Uranium Project Cibola County, New Mexico, USA – effective date May 15, 2025, prepared by SLR International Corporation

HIGHLIGHTS FROM THE PRELIMINARY ECONOMIC ASSESSMENT AND UPDATED MINERAL RESOURCE ESTIMATE

Premier American Uranium has completed an updated PEA and MRE for the Cebolleta Project, outlining a strong base case with potential for further enhancement.

  • The base case mine plan outlines average annual production of 1.4 million pounds U3O8, with a peak of 2.0 million pounds, for a total of 18.1 million pounds U3O8 produced over a 13-year mine life.
  • The PEA delivers an after-tax NPV (8%) of US$83.9 million and an after-tax IRR of 17.7%, based on a US$90/lb U3O8 price assumption.
  • Pre-production capital costs are estimated at US$64.2 million in direct costs, US$19.3 million in indirect costs, and a 35% contingency of US$29.2 million, for a total initial capital of US$112.7 million.
  • The Project is expected to generate life-of-mine after-tax free cash flow of US$287 million and operating cash flow of US$496 million.
  • Average operating cost is estimated at US$41.60 per pound U3O8 recovered, supported by heap leach processing costs of US$16.72 per short ton, reinforcing Cebolleta’s potential as a low-cost U.S. uranium producer.
  • The Project shows strong leverage to uranium prices, with after-tax NPV (8%) increasing to:
    • US$154 million at US$100/lb U3O8
    • US$325 million at US$125/lb U3O8
    • US$488 million at US$150/lb U3O8
  • Sensitivity analysis also highlights upside from improved metallurgical recoveries, with the after-tax NPV (8%) rising approximately 90% to US$159 million assuming 90% recovery.
  • The updated MRE (effective May 15, 2025) shows a significant increase in resources, now totaling:
    • Indicated Resource: 20.3 Mlb eU3O8 (8.3 million short tons at 0.12% eU3O8), an increase from 9% from 2024.
    • Inferred Resource: 7.0 Mlb eU3O8 (3.6 million short tons at 0.10% eU3O8), an increase of 43% from 2024.

Variance

Metal Prices (US$/lb U3O8)

NPV at 8% (US$000)

78%

$70

($57,384)

89%

$80

$14,410

100%

$90

$83,857

111%

$100

$153,718

122%

$110

$222,911

139%

$125

$325,391

167%

$150

$487,514

 

 

 

Variance

Recovery (%)

NPV at 8% (US$000)

95%

64%

($41,713)

98%

72%

$21,288

100%

80%

$83,857

103%

82%

$99,590

112%

90%

$159,261

Description

US$ million

Realized Market Prices - U3O8 ($/lb)

$90

Payable Metal - U3O8 (klb)

18,101

Total Gross Revenue

$1,629

Mining Cost

$(705)

Mill Feed Transport Cost

$(1)

Process Cost

$(175)

G & A Cost

$(76)

Royalties

$(98)

Severance Tax

$(29)

Total Operating Costs

$(1,085)

Operating Margin (EBITDA)

$545

Operating Margin %

33%

Corporate Income Tax

$(48)

Working Capital*

$0

Operating Cash Flow

$496

Development Capital

$(113)

Sustaining Capital

$(81)

Closure/Reclamation

$(16)

Total Capital

$(209)

Pre-tax Free Cash Flow

$335.4

Pre-tax NPV @ 5%

$166.8

Pre-tax NPV @ 8%

$106.3

Pre-tax NPV @ 12%

$53.3

Pre-tax IRR

19.8%

Pre-tax Undiscounted Payback (Years)2

4.3

After-tax Free Cash Flow

$286.9

After-tax NPV @ 5%

$137.3

After-tax NPV @ 8%

$83.9

After-tax NPV @ 12%

$37.3

After-tax IRR

17.7%

After-tax Undiscounted Payback (Years) 2

4.9

See NI 43-101 Technical Report on the Cebolleta Uranium Project Cibola County, New Mexico, USA – effective date May 15, 2025, prepared by SLR International Corporation

GEOLOGY

The deposits that comprise the Project are classified as sandstone hosted uranium deposits with eight deposits occurring as a series of tabular bodies within the Jackpile Sandstone Member of the Upper Jurassic Morrison Formation within the boundaries of property.

These deposits are part of a broad and extensive area of uranium mineralization, including the Jackpile-Paguate deposit, located adjacent to the southern boundary of the property, which was one of the largest concentrations of uranium mineralization in the United States. The L-Bar occurrence area contains five distinct deposits, including Areas I, II, III, IV, and V. The historical JJ#1 Mine is situated in the northwest corner of the Area II Deposit area. In addition to the L-Bar deposits, three distinct deposits occur in the St. Anthony area of the property.

PAST EXPLORATION AND PRODUCTION

Cebolleta has been subject to extensive exploration and development from the 1950s through the 1980s.  Past efforts revealed several significant sandstone-hosted uranium deposits ranging from 200 to 800ft (60-240m) deep in the Jurassic Jackpile Sandstone. These deposits were amenable to both surface and underground mining, which culminated from 1975-1981 when over 3.8M lbs U3O8 was produced from the JJ#1 and St. Anthony Mines[2].

The vast majority of known uranium mineralization still exists at Cebolleta – namely from the Sohio Area (mineralization in Areas I-V) and the St. Anthony Area (mineralization adjoining the St. Anthony open pits and the Willie P underground mine).

The production history of the Project is as follows:

  • Climax M6 Mine (1956 to 1960): 78,722 short tons (71,415 tonnes) that averaged 0.20% uranium oxide (U3O8) and contained 320,942 pounds of U3O8.
  • Anthony Mine Complex (1975 to 1979): 1.6 million pounds of U3O8.
  • Sohio JJ#1 Mine (1976-1981): 898,600 short tons averaging 0.123% U3O8 and yielding 2,218,800 pounds of U3O8.

EXPLORATION TARGET

Significant exploration potential is believed to remain on the Project. The mineralized horizons of the Jackpile sandstone are open ended and potentially trend beyond the external limits of the drill hole grid. Potential exists to extend mineralization into previously untested areas of the Project, where this mineralized zone is present but not drill tested in a comprehensive manner.

DOWNLOADS

Technical Report for Cebolleta

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