Uranium developer Global Atomic would move ahead with construction of its Dasa uranium project, in Niger, and would break ground in January, president and CEO Stephen Roman said this week, announcing the results of its feasibility study.
The study confirmed that the Dasa project was economically compelling, even at a price of C$35/lb of uranium oxide.
The decision to proceed was based on the feasibility study, the strong uranium market and anticipated supply deficits, the company stated.
The study is focused solely on Phase 1, primarily comprised of the Flank zone, and represents the initial 12 years of the project and less than 20% of the Dasa mineralisation, which has been delineated through 160 000 m of drilling since 2010.
The study delivered a net present value (NPV) of C$157-million and an aftertax internal rate of return (IRR) of 22.7%. This compares with the 2020 preliminary economic assessment (PEA) NPV of C$211-million and the IRR of 26.6%.
The Dasa project is forecast to produce 3.8-million pounds of uranium oxide, at an all-in sustaining cost of $21.93/lb.
“We are now ready to negotiate project financing, advance offtake negotiations with utilities, complete detailed engineering and complete the bidding process for an EPCM contract to build and commission our processing plant by the end of 2024,” Roman said.
The feasibility study estimated a capital outlay of $208-million, in line with the PEA estimate.
“The mining industry has seen significant pandemic-induced increases in input costs since the PEA was completed in 2020. We are very pleased to have duplicated our previous PEA project capital costs and thank METC Engineering, Bara Consulting, Insight R&D and Process Research Ortech for their excellent work in this regard. In the event pandemic-related cost increases return to historical levels, project economics will be further enhanced,” commented Roman.
Global Atomic also declared a maiden mineral reserve of 4.3-million tonnes, grading 5 184 ppm uranium oxide.
Meanwhile, the company has said that it would raise C$25-million to continue exploration and development work at Dasa.
Global Atomic entered into an agreement with Red Cloud Securities to act as lead underwriter and sole bookrunner to purchase for resale 6.25-million units at C$4 each on a “bought deal” basis in a private placement for gross proceeds of C$25-million.