Mineral resources company GoviEx Uranium has filed a technical report titled ‘A feasibility study for the Madaouela uranium project, Niger' dated November 1.

The feasibility study is noted to represent an extremely detailed, fully costed, and updated study of GoviEx’s Madaouela uranium project, taking into account international best practices and standards for responsible project development.

The study succeeded in delivering a project that is technically robust and significantly simplified, reducing development and operational risk at a time of high inflationary pressure, says GoviEx.

“The completion of our feasibility study represents another major step in our company’s development and its goal of becoming a significant uranium producer. This study, along with the current strengthening uranium market, combined with the fact that our project is fully permitted, distinguishes Madaouela as a unique development opportunity.

“The GoviEx team along with Endeavour Financial, our debt advisers, have increased the pace of our engagement with potential lenders and utilities in order to develop a financial structure suitable to finance the development of the Madaouela project.  We maintain our projection to be able to start producing in 2025, subject to project financing,” says executive chairperson Govind Friedland.

The study show that the project has one of the largest uranium resources in the world, with 100-million pounds of uranium octoxide (U₃O₈) in measured and indicated mineral resources, plus inferred resources of 20-million pounds of U₃O₈.

It indicates that the project is located in a mining-friendly jurisdiction with all major permits required for development already secured.

The study is based on a self-sustaining operation including process plant and renewable power supply with no reliance on third-party facilities.

The feasibility study indicates an after-tax net present value, as an 8% discount, of $140-million and internal rate of return of 13.3%.

Moreover, it outlines life-of-mine (LoM) uranium production of 50.8-million pounds of U₃O₈ averaging 2.67-million pounds of U₃O₈ a year over 19 years.

Intensive pilot plant testing underpins the LoM recovery of 92.2% for uranium and 80.7% for molybdenum.

Total initial capital costs are $343-million.

There are reduced construction and operational risks through process simplification using industry standard process design.

The study outlines a strong commitment to environmental, social and governance through prioritising the use of local skilled labour, local vendors and labour force diversification.

It indicates grid connection with the addition of 8 MW of hybrid solar power plant resulting in 26% of renewable power generation.

The next steps are to accelerate project financing and offtake discussions.