Churchrock–Crownpoint (Crownpoint-Churchrock) PEA: $239M NPV, 56% IRR
Laramide Resources Ltd.'s Churchrock–Crownpoint (Crownpoint-Churchrock) in Grants Mineral Belt, New Mexico, U.S.A. has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $239M, an after-tax IRR of 56%, and initial capital of $48M. The mine plan runs 32 years at about 1 Mlb U3O8 per year.
Laramide Resources Ltd.'s Churchrock–Crownpoint (Crownpoint-Churchrock) has reported Preliminary Economic Assessment (PEA) results for the uranium project in Grants Mineral Belt, New Mexico, U.S.A.. The study headlines an after-tax net present value of $239M at a 8% discount rate. It reflects Laramide Resources Ltd.'s (LAM.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $239M using a 8% discount rate. After-tax IRR is 56%. Initial capital expenditure is estimated at $48M. All-in sustaining costs are pegged at 34.83 USD/lb. Economics are based on $75/lb U3O8.
Production and mine plan. The project envisions an isr (in-situ recovery) operation. Life of mine is 32 years. Average annual production is approximately 1 Mlb U3O8. Metallurgical recovery averages 68%.
Resources and ownership. Mineral resources: Churchrock Inferred: 33.88M tonnes @ 0.075% U3O8 = 50.82 Mlbs U3O8; Crownpoint Inferred: 4.16M tonnes @ 0.102% U3O8 = 5.08 Mlbs U3O8.
These figures are extracted from Laramide Resources Ltd.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Our Analysis
- IRR after-tax
- 56%
higher than 83% of 289 projects we track
- NPV after-tax
- $239M
- Initial capex
- $48M
20% of NPV
- Mine life
- 32yrs
- Discount rate
- 8%
- Study price assumption
- $75/lb U3O8
The 56% after-tax IRR places this project in the top quartile of our tracked universe and far exceeds the 20% threshold we apply for single-asset junior developers. That is the headline. The 8% discount rate used for NPV reporting is standard but low—it flatters the $239M NPV, which is 1.7x the company’s market cap. That gap can be read two ways: either the market has not yet priced in the project’s value, or it is discounting for financing, permitting, or jurisdiction risk. We lean toward the latter as the primary watch-item.
Capital intensity is low—$48M initial capex is only 20% of NPV—which reduces funding risk materially for a developer. The 32-year mine life supports long-duration cash flows, but the $75/lb price assumption is the single most important sensitivity; a sustained decline would compress returns quickly. The key risk is whether this junior can secure project finance and permits without excessive dilution, given the market cap is below the NPV.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.