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GoviEx’s big Niger steps to become large uranium producer

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GoviEx’s drill rigs in Africa. Image credit: GoviEx from https://goviex.com/

GoviEx’s big Niger steps to become large uranium producer

TSX listed GoviEx Uranium Inc. is another step closer in reaching its goal of becoming a major uranium producer in the world.

GoviEx Uranium is advancing the Madaouela Uranium Project in the Agadez region of northern Niger. Madaouela is 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.

The project is adjacent to French company Orano’s Somair and Cominak operations and will benefit from the existing infrastructure and an experienced local uranium mining labour force.

GoviEx operates the project and holds an 80% interest of the Nigerien operating company Comima with the remaining 20% held by the Republic of Niger, of which 10% represents a free-carry interest.

Niger is currently the fifth largest producer of uranium in the world and was the largest supplier of U3O8 to Europe in 2021, accounting for approximately a quarter of total imports.

Good results from Feasibility Study

Yesterday GoviEx announced the results of Madaouela’s Feasibility Study (FS), which is an important milestone for the company as its advances the project towards 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 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.

According to Govind Friedland, Executive Chairman of GoviEx, the completion of the FS represents a major step in the 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 maximising shareholder value. We maintain our projection to be able to start producing in 2025, subject to project financing,” says Friedland.

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.

FS indicates technical strength

According to Daniel Major, CEO of GoviEx, the series of engineering solutions the company’s technical team achieved means the Madaouela project is 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,” says Major.

The project also includes a series of other deposits, not included in the 2022 FS, that are anticipated to be mined by either open pit or underground methods.

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. According to Major 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’s big Niger steps to become large uranium producer

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 GoviEx’s big Niger steps to become large uranium producer

    

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