Strateco Resources Inc. MATOUSH

Strateco Resources Inc.
Strateco Resources Inc. is primarily
engaged in the exploration of uranium
mining properties with a view to
commercial production. It currently
owns or holds interests in various
mining properties in Quebec. Strateco's
Matoush project in the Otish Mountains
of northern Quebec is considered one of
the highest-grade uranium projects in
the world. Strateco intends to
aggressively pursue its exploration
program, with the prime objective of
increasing the resource through the
identification of new mineralization and
bringing the Matoush property into
production.
Strateco qualifies for Quebec refundable
tax credits of up to 38.75% and a
refundable credit on duties from Quebec
of 16% to 50% of eligible exploration
expenses. As of March 2012, the
Company had working capital of $11.5
million.
MATOUSH
An exceptional uranium exploration project
on its way to become a world-class uranium mining camp
Located in the Otish Mountains of northern
Quebec, about 275 km north of
Chibougamau,
the
Matoush
project
comprises the Matoush, Matoush Extension,
Eclat and Pacific Bay-Matoush properties.
Since the outset of the project, work has
yielded excellent results that confirm the
enormous potential for increasing the
resource on the Matoush and Eclat
properties along the Matoush fault, which
extends over a distance of more than 15 km.
According to the most recent resource
estimate by Roscoe Postle Associates Inc.
(“RPA”) dated January 2012, the inferred
resource at the Matoush property has
increased by 50% since the last resource
estimate in September 2009. The inferred
resource now stands at 2.04 million tonnes
grading 0.43% U3O8 containing 19.22
million pounds of U3O8. Indicated
resources are estimated at 453,000 tonnes
at a grade of 0.78% U3O8 for 7.78 million
pounds of U3O8.
© STRATECO RESOURCES INC.
In April 2010, Scott Wilson RPA also
published an update to the 2008 Technical
Report on the Preliminary Assessment of the
Matoush Project. The scoping study
indicates once again very strong economics
for Matoush.
Due to the ever-growing potential of the
Matoush project, the Company’s objective is
now to determine the possibility of reaching
60 million pounds of U3O8. Outside of the
Athabaska Basin in Saskatchewan, the
Matoush property appears to have one of
the highest average ore grades in the world.
The Company plans to sustain and
accelerate its efforts to achieve its objectives
of increasing the uranium resource on its
wholly-owned Matoush property, and
becoming the first so-called junior company
in Quebec and Canada to advance a uranium
exploration project to the underground
exploration stage.
www.stratecoinc.com
In May 2010, Strateco presented its environmental impact study to the communities of Mistissini and Chibougamau. The study
concludes that the project will have a negligible impact on workers, the local population and the environment. Public hearings
were held in Mistissini and Chibougamau in November 2010, providing a forum for the commissioners of the federal review panel
(“FRP-S”) and the provincial review panel (“COMEX”) to assess differing views on the Matoush project. In February 2012, Strateco
received the approval from the federal Minister of the Environment and the federal administrator of the James Bay and Northern
Quebec Agreement for the Matoush project underground exploration program. The Canadian Nuclear Safety Commission
(“CNSC”) held public hearings in Mistissini and Chibougamau, from June 5 to 7, 2012, on the technical aspects of the Matoush
project through the licencing process for the underground exploration program. On October 16, 2012, the CNSC has granted the
licence; this is a first for a junior company in Canada. The licence is for the maximum allowable period of five years. Strateco is now
waiting for the provincial administrator of the James Bay and Northern Quebec Agreement to issue the certificate of
authorization, after which work on the exploration ramp can begin.
In terms of communications, Strateco intends to maintain and strengthen communications with the First Nations and residents of
the municipality of James Bay. The Company will therefore take the measures required to ensure that all project work and activities
are part of an open, transparent process.
Scoping Study (April 2010) – Summary
*** Does not take into account the most recent resource estimate by Roscoe Postle Associates Inc. dated January 2012.
Ore Production (over seven years)
Mill Feed: 1,648,600 tonnes at an average grade of 0.501% U3O8
17,775,000 pounds of U3O8 (97.6% recovery)
Gross Revenue (NSR), net of the royalty (2%): $1,535,253,000
U3O8 price: US $75.00 –US $/CAN $ exchange rate = 0.85
Average Operating Cost: $300.12/t milled (CAN $27.84/pound or US $23.66/pound)
Total Operating Profit: CAN $1,040,484,000
CAN $ (x 1,000)
Direct Capital Costs
Indirect Capital Costs
Contingency
Before Start Up
Sustaining Capital (6 years)
Closure
Mine Life Capital Costs
191,009
48,568
52,273
292,830
19,126
30,000
341,955
Financial
NET PRESENT VALUE (NPV) before taxes
Discount Rate %
5
8
10
15
CAN $ (x 1,000)
475,550
377,640
323,530
218,070
Pre-tax Internal Rate of Return: 41.5%
Guy Hébert, President & CEO
Proven Track Record
Active in the international mining industry for the
last 40 years.
Architect of over $400 million in financing for
various gold, uranium and base metals mining
projects in Canada and overseas.
Brought 3 mines into production.
Cambior named the Bouchard-Hébert mine in
recognition of his achievements with Audrey
Resources Inc.
MARKET FACTS
Symbols: (TSX: RSC) (FSE: RF9)
Shares Outstanding: 167 million
MANAGEMENT
Guy Hébert, President & CEO
Jean-Pierre Lachance, Executive & Exploration Vice President
Pierre H. Terreault, Vice President, Operations & Engineering
Yvon Robert, Vice President, Finance
FOR MORE INFORMATION: [email protected]
Last Update: November 2012
© STRATECO RESOURCES INC.
www.stratecoinc.com