The uranium sector has been suffering the effects of drastically low uranium prices (~$40/lb) since the 2011 Fukushima nuclear power plant catastrophe.
But the outlook within the next two or three years looks brighter as prices are expected to increase, which is good news for Niger focused uranium junior GoviEx Uranium, writes Laura Cornish
GoviEx Uranium (GoviEx) hopes to start construction of its USD$340 million Madaouela uranium mine and plant in north Niger (located on one of its seven licences – Madaouela I) sometime between 2016/2017, ideally positioning it to benefi t from predicted higher uranium prices when production starts.
“Our initial focus (based on current reserves and resources) aims at mining 4020 tpd (ROM) to produce approximately 2.5 Mlbpa of uranium oxide (U3O8) for between 18 and 20 years. And we have focused extensively on ensuring a viable and robust project with a cash cost forecast of just $26.39/lb,” says GoviEx Uranium CEO Daniel Major.
The mine will be a combination of open pit/underground (room and pillar) mining operation, ranging in depth from 30 m to 130 m. Underground comprises a 1 m-thick, flat-lying ore body. “A pancake flat ore body is easy mining – once you’re in the ore body, you can mine in 360O,” Major notes. Marianne and Marilyn (M&M), which is the biggest of the deposits with nearly half the total resource, stretches 7 km in length…