TORONTO, Oct. 23, 2018 (GLOBE NEWSWIRE) — Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX-V: GLO, FRANKFURT: G12) is pleased to announce the results of the Preliminary Economic Assessment (“PEA”) on the DASA Project (“DASA” or the “Project”), located in the Republic of Niger.
A summary of the PEA is provided below, including opportunities being explored through an alternate mining strategy to accelerate development of the Project for early mining. All figures are stated in U.S. dollars, unless otherwise stated.
- The objective of the PEA was to study the DASA Project as an integrated underground mining operation, processing mineralized material through an on-site mill (the “DASA Standalone Scenario”) initially operating at 2,500 tpd and ramping up to 3,000 tpd. Highlights include:
-High grade resource: 69 million lbs U3O8 recovered at an average grade of 2,380 ppm U3O8 over a 15 year mine life.
-Scalable production: Annual production sustained from 4 Mlb to 7 Mlb U3O8 over the mine life.
-Low cost operation: All-in sustaining cost (“AISC”) of US$28.51/lb U3O8.
-Initial CAPEX: US$320 million, including US$141 million for an on-site mill; US$467 million with sustaining capital and reclamation.
-Significant NPV and project return at expected long-term uranium price.
The PEA was completed by CSA Global Pty. Ltd. (“CSA Global”) with the objective to assess the economic and technical viability of uranium production at DASA as an integrated operating facility to mine and recover a uranium concentrate on the property, referred to as the DASA Standalone Scenario in this news release.
As a “value opportunity”, Global Atomic also requested CSA Global to study the Alternative Mining Strategy, whereby the Company could achieve positive cash flow with minimal up front capital by selling mineralized rock directly to Orano as per a Memorandum of Understanding the Company has with Orano and the Company believes it represents a compelling case at current uranium prices.
A uranium price of US$50/lb U3O8 was chosen for the PEA, consistent with the consensus long-term spot price estimate as reported by industry analysts.