September 20, 2022
- Feasibility Study brings GoviEx closer to its principal objective of becoming a significant uranium producer
- Solid results coupled with strengthening sentiment in favour of nuclear and shortage of supply underpin project development
Vancouver, British Columbia–(Newsfile Corp. – September 20, 2022) – GoviEx Uranium Inc. (TSXV: GXU) (OTCQX: GVXXF) (“GoviEx or the Company”) is pleased to announce the results of its Feasibility Study (“FS”) representing an important milestone as GoviEx advances the Madaouela Uranium Project (the “Project”) towards Project financing and development.
The FS was prepared by SRK Consulting (UK) Limited and SGS Bateman (Pty) Ltd., in the format of the Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) with the support of the Company’s internal technical team. The Feasibility Study will be filed by GoviEx under its profile at www.sedar.com within 45 days from the date of this news release.
The FS represents an extremely detailed, fully costed, and updated engineering study of the Project taking into account international best practices and standards for responsible project development.
- One of the largest uranium resources in the world, with 100 million pounds of U3O8 in measured and indicated mineral resources, plus inferred resources of 20 million pounds of U3O8
- Located in a mining-friendly jurisdiction with all major permits required for development already secured.
- FS is based on a self-sustaining operation including process plant and renewable power supply with no reliance on third party facilities
- After tax NPV 8% of USD 140 million and IRR of 13.3%
- Life of mine (“LOM”) uranium production of 50.8 million pounds U3O8; averaging 2.67 million pounds U3O8 per annum over 19 years
- Intensive pilot plant testing underpinning LOM recovery of 92.2% for uranium and 80.7% for molybdenum
- Total initial capital costs of USD 343 million
- LOM EBITDA of USD 1,570 million, at an average annual rate of USD 82.6 million and net free cashflow of USD 672 million
- Reduced construction and operational risks through process simplification utilizing industry standard process design
- Strong commitment to ESG through prioritizing the use of local skilled labour, local vendors, and labour force diversification
- Grid connection with the addition of 8MW of hybrid solar power plant resulting in 26% of renewable power generation
- Next steps to accelerate Project financing and offtake discussions
Commenting on the completion of its FS, Govind Friedland, Executive Chairman, said:
“The FS confirms the strength of the Madaouela project and its ability to deliver good economic results at a time when inflationary pressures are having a significant impact on the development of new projects and operating mines. The completion of our FS represents another major step in our company’s development and its goal of becoming a significant uranium producer. This FS, along with the current strengthening uranium demand combined with the fact that our project is fully permitted, distinguishes Madaouela as a unique development opportunity.
We believe the results of this FS will appeal to stakeholders, potential investors, customers, and lenders and will allow us to evaluate a wide range of development alternatives as we continue to focus on maximizing shareholder value. We maintain our projection to be able to start producing in 2025, subject to project financing”.
The FS succeeded in delivering a project that is technically robust and significantly simplified, reducing development and operational risk at a time of high inflationary pressure.
Daniel Major, CEO, added: “We are delighted with the series of elegant engineering solutions our technical team has achieved to place the Madaouela project ready for development and to potentially become one of the first new mines developed in this exciting new uranium cycle. The strong FS results further indicate the technical strength of GoviEx’s main uranium project in Africa. The next steps for us are to accelerate project financing and to continue to pursue offtake opportunities.
With two permitted mines in two mining-friendly jurisdictions, the backdrop of a strengthening uranium market, we are well positioned to become a uranium producer. Additionally, we have a huge exploration potential upside as we hold one of the largest underdeveloped uranium resources in the world”
The Project will provide considerable employment opportunities in the area, contributing towards social and economic development through the payment of royalties and taxes to the government of Niger. GoviEx is committed to acting responsibly across all of the activities it undertakes, and the Company strategy includes diversification of the workforce and a commitment to local employment and local procurement. Our partnership with the Niger government has been strong and reliable and GoviEx looks to continuing this cooperative relationship as the project is developed.
Please read the complete news release at the following link: LINK