“This positive decision on behalf of the Government of Niger is the result of a decade of considerable effort by GoviEx and local stakeholders engaged on exploration, discovery, engineering, and the critical environmental and social aspect of this large and high-grade project,” states Govind Friedland, GoviEx’s founder and chairman.
“Since being awarded the exploration permits in June 2006, GoviEx has worked to achieve best international standards throughout the completion of the various technical studies. This decision of support is a stamp of approval for the quality of the work done to date by GoviEx, and the robustness of the Madaouela project.”
The Madaouela project is based on the mineral resources associated with the Madaouela I mining permit. The NI 43-101 Integrated Development Plan (IDP) has defined a large, low operating cost, commercially viable uranium project in the prolific Arlit uranium-mining district of northern Niger.
The confirmed mine permit and approved environmental and social impact assessment means that the Madaouela project is fully permitted for construction and production.
Highlights of GoviEx’s Madaouela project IDP
- The project development plan envisions an average 2.69 Mlb per year U3O8 yellowcake production rate over a 21-year mine life, with a 93.7% ultimate recovery of uranium.
- The IDP is based on Measured and Indicated Mineral Resources of 110 Mlb U3O8 and 61 Mlb of Probable Mineral Reserves.
- The base case project economics for this project at a long-term uranium price of US$70/lb U3O8 are positive, and indicate an after-tax net present value of $340 million (at 8% discount rate) with an internal rate of return (IRR) of 23.5% and a total life of mine (LoM) net free cash of $1.126 million.
- Initial capital costs are estimated at $359 million, and cash operating costs of $24.49/lb U3O8 including by-product credits and excluding royalties. It is noted that molybdenum has not been included in the Mineral Resource model and hence is not considered to be at the same level of confidence as the uranium grades.
In addition, the company has been advised by the Niger Government that its application for the Eralrar exploration tenement has been approved, as well as the renewal applications for the Madaouela II, III, IV and Anou Melle tenements.
However, the company’s renewal application for Agaliouk exploration tenement was not approved and the company remains focused assessing the various options available.