Toronto, ON: Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX: GLO, OTCQX: GLATF; FRANKFURT: G12) the multi-asset development company with cash flow from the BST zinc recycling facility in Turkey and one of the world’s premier uranium development assets, at the Dasa Project, in the Republic of Niger, West Africa, is pleased to announce the results of an optimized mine plan as the basis for a new Preliminary Economic Assessment (“Study” or “PEA”), outlined in this press release.
Global Atomic’s new PEA comprises an optimized Phase 1 of a larger mine development at the Dasa Project. The Phase 1 plan is a low Capex development targeting profitable production over a twelve year mine life. During Phase 1 implementation, Global Atomic will aim to upgrade the substantial mineral resources outside of the Phase 1 mine plan to feed the larger Dasa Project future mine plan (see Figure 1 below).
The results of the Study will be summarized in a technical report prepared pursuant to Canadian Securities Administrators’ National Instrument 43-101, which will be available on the Company’s website (www.globalatomiccorp.com) and filed on SEDAR within 45 days of today’s date.
HIGHLIGHTS: Optimized Phase 1 Project (All figures are in US dollars)
- After-tax NPV8 of $211 million and after-tax IRR of 26.6%
- Cash cost of $16.72 per pound1
- All-in sustaining cost (“AISC”) of $18.39 per pound2
- Average annual steady-state uranium production of 4.4 million pounds U3O8
- Initial capital costs of $203 million, including 20% contingency
- Phase 1 Project mine life of 12 years, mining 48 million pounds U3O8 @ 5,396ppm
The current PEA was prepared by CSA Global Consultants Canada Ltd (“CSA Global”). The PEA optimized Phase 1 is preliminary in nature and includes 12% Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. A plan to upgrade the Inferred resources to Indicated resources is being evaluated at present. Unlike mineral reserves, mineral resources do not have demonstrated economic viability. There is no certainty that the PEA results will be realized.
The current PEA and other scientific and technical information contained in this news release were prepared by CSA Global Pty. Ltd., in accordance with the Canadian regulatory requirements set out in National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”), and has been reviewed and approved by, as it relates to mineral resources: Dmitry Pertel, M.Sc., MAIG, Principal Resource Geologist (CSA Global); as it relates to metallurgy and processing: Russell Bradford BSc, MAusIMM (CP) Associate Principal Metallurgist (CSA Global); as it relates to sampling, drilling, exploration and QAQC: George Flach, P.Geo (Global Atomic); as it relates to mining, infrastructure, mining costs, environment and permitting: Michael Seymour, P.Eng., Associate Principal Mining Engineer (CSA Global); and as it relates to financial modelling and economic analysis: Alex Veresezan, P.Eng., Manager, Mining Americas (CSA Global). Dmitry Pertel, Russell Bradford, and Alex Veresezan are all independent Qualified Persons (“QP”), as defined under NI 43-101. George Flach is a non-independent Qualified Person (“QP”), as defined under NI 43-101.
The mineral resource and mineral reserve estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect the potential development of such mineral resources.
The results of the PEA optimized Phase 1 will be summarized in a technical report prepared pursuant to NI 43-101. Which will be available on the Company’s website (www.globalatomiccorp.com) and will be filed on SEDAR within 45 days. The technical report will include more information with respect to the key assumptions, parameters, methods and risks of determination associated with the foregoing.
SOURCE: GLOBAL ATOMIC
DATE: 15 APRIL 2020