Name of the Project
Madaouela uranium project.

Location
Agadez region, in the north of Niger.

Project Owner/s
Africa-focused uranium company GoviEx Uranium (80%) and the Niger government (20%), of which 10% represents a free carry.

Project Description
The updated prefeasibility study (PFS) has succeeded in delivering a project that is technically robust and significantly simplified, reducing development and operational risk.

The project has probable reserves of 24.9-million tonnes run-of-mine (RoM) grading 0.85 kg of total uranium.

Mining operations for the project are initially planned to be based on standard truck-and-shovel openpit mining for the Miriam deposit at one-million tonnes a year of ore feed to the process plant, which results in an initial six years of mining operations at Miriam. This production rate ensures that the life of the Miriam deposit will exceed the expected potential debt tenor.

The Marianne-Marylin and MNSE-Maryvonne deposits are planned to be mined using room-and-pillar. Ore mining is designed to be undertaken at 1.4-million tonnes a year. Mined ore is to be fed onto a conveyor through feed breakers at each panel. RoM ore is then planned to be sorted using X-ray fluorescence to remove waste dilution. Thereafter, the ore is designed to be trucked to the process plant at one-million tonnes a year.

The life-of-mine (LoM) operations for the project is estimated at 20 years, producing estimated total uranium sales of 49.6-million pounds of uranium and averaging 2.48-million pounds uranium a year over the LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Based on a uranium price of $55/lb of uranium, the project has an estimated net present value, at an 8% discount rate, of $117-million and an internal rate of return of 13.7%, with a payback of five years.

Capital Expenditure
Initial capital is estimated at $347.26-million.

Planned Start/End Date
Not stated.

Latest Developments
GoviEx has signed drilling contracts with Esafor and Foraco to undertake drilling programmes pertaining to a feasibility study for its Madaouela uranium project.

GoviEx CEO Daniel Major has said that following the positive results of the updated PFS that were announced on February 18, and based on the company’s view that the uranium market fundamentals are demonstrating continued improvement, GoviEx has decided to progress to the completion of the feasibility study required to secure project financing.

“A key benefit from the updated PFS was the simplification and optimisation of the project, which has also simplified the scope of the remaining testwork expected to be completed in support of a feasibility study.”

As a result, GoviEx’s priorities for the advancement of Madaouela include a drilling programme designed to further the understanding of the molybdenum mineralisation of the project and confirmatory metallurgical testwork.

The drilling programme, located at the Miriam deposit, will focus on drilling a 50 m grid within the planned openpit shape to confirm an indicated mineral resource for molybdenum mineralisation; the final corroboration of the geotechnical slope design for Miriam, which was steepened from 51° to 53° in the updated PFS; and the verification of whether Miriam dewatering is sufficient to support process water requirements.

Positive results, if they are achieved, will potentially permit reduced operating and capital costs associated with water supply, and could also lower the potential environmental impact

Key Contracts, Suppliers and Consultants
Esafor and Foraco (drilling contracts).

Contact Details for Project Information
GoviEx Uranium, tel +1 604 681 5529 or email info@goviex.com.