GoviEx Uranium Inc (CVE:GXU) (OTCQB:GVXXF) (FRA:7GU) revealed the results from an updated pre-feasibility study (PFS) on its Madaouela uranium project on Thursday, that reduced the capital and operating costs required.
Operating cash costs over the first four years of the mine life were reduced by 20% (or US$4.70 per pound) to US$18.30 per pound of uranium, and capital costs shrank by 8% or US$29 million.
READ: GoviEx Uranium to be included in index composition of Global X Uranium ETF
In a statement, GoviEx told shareholders that the updated PFS succeeded in delivering a project that is “technically robust and significantly simplified,” reducing development and operational risk. The company is planning an open-pit scenario to begin at the Miriam deposit to improve cash flows in the early years of the project, while achieving it at a much lower uranium price with potential for attractive debt financing.
The updated PFS now accounts for five years of inflation and currently quoted costings since the previous PFS issued in 2015, according to a statement.
Madaouela is located in the Agadez region in the northern part of the Republic of Niger, adjacent to the existing Orano SA operations of Somair and Cominak, and near existing infrastructure and an experienced uranium mining labour force. GoviEx holds an 80% interest with the remaining 20% held by the Republic of Niger, of which 10% represents a free-carry. The project also includes a series of other deposits that are anticipated to be mined by either open-pit or underground methods.
Total mineral reserves at Madaouela are reported as 24.9 million run-of-mine ore tonnes with an average ore grade of 0.85 kg/tU in the Probable category, with the contained uranium of 21,054 tU (54.7 Mlb U3O8).
Lower costs, lower risk and financing potential
"We are delighted with the series of elegant engineering solutions our technical team has achieved under the leadership of our CEO, Daniel Major, to place the Madaouela Project in pole position and to potentially bring Madaouela online as one of the first new mines developed in this exciting new uranium cycle," said Govind Friedland, GoviEx's executive chairman in a statement.
"The Updated PFS further indicates the technical strength of GoviEx's main uranium project in Africa," CEO Major told shareholders, adding that the Vancouver-based company took another “important step” towards developing its mining plans.
"Lower costs, lower technical risk and financing potential are the main results from this study. The current structural deficit in the uranium market requires that new mines are developed in the near term to continue the generation of carbon-free nuclear power.”
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas
