Global Atomic (TSX: GLO; US-OTC: GLATF) has completed a preliminary economic assessment (PEA) for the first phase of a larger underground mine at its Dasa uranium deposit in the Republic of Niger.
During the first phase, the operation would operate for 12 years and mineralization would be extracted from the high-grade Flank zone.
“Our development plan is a low capex route into production that uses conventional underground mining and a processing technology similar to that used by the two existing uranium mines in Niger,” Stephen Roman, the company’s president and CEO, said in a news release.
“This mine plan also provides future access to the contained uranium inventory of over 200 million lb. in the mine’s deeper horizons. The optimized phase 1 mine plan initially targets high-grade mineralization that starts from a depth of 70 metres below surface that, together with a mining-friendly jurisdiction, positions the company as being the next entrant to the worldwide uranium supply chain.”
The early-stage study of the first phase envisions average annual production of 4.4 million lb. U3O8 at all-in sustaining costs (AISCs) of US$18.39 per pound.
At a uranium price of US$35 per lb., the study puts the after-tax net present value for the project at US$211 million, at an 8% discount rate, and the post-tax internal rate of return at 26.6%.
The capital cost estimate for the first phase is US$203 million. The study envisions conventional uranium processing techniques operating at a rate of 1,000 tonnes per day.
The PEA presents a mine plan extracting material from depths of 70 metres to 600 metres. There are additional inferred resources outside of the plan at depths of 400 metres to 800 metres.
The deposit remains open at depth and on strike.
The next step for the company is a final technical report (FTR), incorporating impact assessment studies underway. The FTR document is part of the country’s mining permit application process.
— This article first appeared in the Canadian Mining Journal.