GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) said it is one step closer to its principal objective of becoming a significant uranium producer with the release of positive feasibility study (FS) results for its Madaouela uranium project located in Niger.
The company said the FS, which was prepared by SRK Consulting (UK) Limited and SGS Bateman Ltd, showed Madaouela is one of the largest uranium resources in the world with 100 million pounds of U3O8 in measured and indicated mineral sources plus inferred resources of 20 million pounds of U3O8.
Based on a self-sustaining operation, including a process plant and renewable power supply with no reliance on third-party facilities, the FS showed life of mine (LOM) uranium production of 50.8 million pounds U3O8 averaging 2.67 million pounds U3O8 per annum over 19 years, and LOM earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$1.6 billion, at an average annual rate of US$82.6 million and net free cash flow of US$672 million.
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GoviEx executive chairman Govind Friedland said these solid results, coupled with strengthening sentiment in favor of nuclear and shortage of supply and the fact the project was fully permitted, distinguished Madaouela as a unique development opportunity.
"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,” Friedland said.
“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.”
He added that the company maintained its projection to be able to start producing in 2025, subject to project financing.
The next steps for GoviEx are to accelerate project financing and offtake discussions, the company said.
GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa.
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