Atomic Eagle (ASX:AEU) said an independent engineering review undertaken by PRODEO Consulting confirmed that the reported production targets, capital costs, operating costs, and financial outcomes of the feasibility study for the Muntanga uranium project in Zambia were supported by reasonable technical inputs, according to a Wednesday Australian bourse filing.

The firm declared a maiden probable ore reserve of 39.6 million tonnes at 320 parts-per-million (ppm) grade of triuranium octoxide, containing 28 million pounds of triuranium octoxide. Low-strip ratio open pit mining and heap leaching, along with conventional processing methods, are forecast to produce an average of 2.2 million pounds of triuranium octoxide saleable product per annum, per the study.

The study projected a life of mine of around 12 years, with a life-of-mine average recovery rate of over 90%. It estimated C1 operating costs of $32.20 per pound and a post-tax net present value at an 8% discount rate of $243 million.

Its shares fell 7% in recent trading on Wednesday.