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Global Atomic Corporation

Global Atomic Corporation has unique project portfolio to generate cash flow

Snapshot

The mining company is generating cash flow from its Turkish zinc operations to advance a high grade uranium project in Niger

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Quick facts: Global Atomic Corporation

Price: $0.51

Market: TSX
Market Cap: $73.53 m
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  • Base metals company with a unique set of assets designed to drive cash flow
  • Large, high grade uranium project in Niger and zinc concentrate plant in Turkey
  • Prefeasibity study underway at uranium asset and blue chip partners at Turkish zinc plant

What Global Atomic does:

Global Atomic Corporation (TSE:GLO) (OTCMKTS:SYIFF) is a mining company with a unique combination of assets in Niger and Turkey to drive cash flow.

The company’s uranium division includes six exploration permits in the Republic of Niger covering an area of approximately 750 square kilometres.

Uranium mineralization has been identified on each of the permits, with the most significant discovery being the DASA deposit, which was a grassroots discovery in 2010 by Global Atomic’s geologists.

The firm signed an agreement with Orano Mines Ltd (formerly AREVA Mines Ltd) in 2017 to supply uranium ore from DASA to its milling facility in Arlit, Niger, located 80 kilometres to the north. Global Atomic plans to begin shipping ore to Orano in 2021 and is currently undergoing a feasibility study at DASA to support the plan of arrangement.

The company’s base metals division holds a 49% interest in the Befesa Silvermet Turkey SL (BST) joint venture, which operates a processing facility that converts Electric Arc Furnace Dust (EAFD) into a high-grade zinc oxide concentrate which is sold to zinc smelters around the world.

Befesa Zinc SAU holds a 51% interest in and is the operator of the BST joint venture. Befesa is a market leader in EAFD recycling, capturing approximately 50% of the European EAFD market with facilities located throughout Europe and Korea.

How is it doing:

The mining company uplisted onto the main Toronto Stock Exchange in May with 142.6 million shares issued and outstanding.

In July, Global Atomic released a new mineral resource estimate at DASA that showed a 56% boost in indicated resources and an 81% increase in the inferred category. In addition, all geotechnical data from drill core was incorporated, which has defined the boundaries of the block model.

At its Turkish processing plant, the firm’s partner Befesa Zinc SAU resumed operations in August after completing a successful expansion project. The expansion project kicked off in January 2019, and around 20,000 tons of EAFD is now stockpiled at warehouses and plant facilities.

The firm noted the plant will immediately operate at capacity for the remainder of 2019, thanks to existing stockpiles. The economics of the plant are expected to improve, including a boost in zinc recovery rates from 80% to 90%.

Global Atomic noted zinc in concentrate will double to around 60 million pounds annually, if fully utilized, and unit operating costs will be reduced, thanks to the utilization of available technology.

Inflection points:

  • The Turkish EAFD processing plant will resume full operations in September
  • Publication of a pre-feasibility study and environmental impact assessment ahead of the mining permit
  • DASA Mining Permit application to commence in mid-2020 with permits expected to be issued in 4Q 2020
  • Continued discussions with Orano Mining about the potential for early delivery of ore from DASA

What the CFO says:

In a recent interview with Proactive, Global Atomic’s executive vice president Merlin Marr-Johnson talked about the unique nature of the DASA project and what sets it apart from other base metals deposits.

“This is a large, high grade resource and there are very few those out there in the world with the possibility of getting permitted,” the executive said.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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Global Atomic reports significant new mineral resource estimate for DASA...

Global Atomic Corporation's (TSE:GLO) Merlin Marr-Johnson talks Proactive's Andrew Scott through a new mineral resource estimate at their DASA project in Niger. Among some of the main numbers was a boost in indicated resources by 56% to 101.6 million pounds. As far as the inferred...

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