Name and Location
Norasa uranium project, Namibia.

Client
Forsys Metals.

Project Description
The Norasa project comprises the Valencia main and satellite pits and the Namibplaas deposits are considered as potentially one of the next big uranium-producing mines in the near future.

The project has an estimated measured and indicated mineral resources of 237-million tonnes at a grade of 197 part per million (ppm) of uranium oxide (U₃O₈), which equates to 103-million pounds of U₃O₈.

The total proven and probable Norasa mineral reserve is estimated at 177-million tonnes at a grade of 202 ppm, which equates to 79-million pounds of U₃O8. According to the key performance indicators (KPI) in the National Instrument (NI) 43-101-compliant technical report released on the project on March 27, Norasa could average 5.2-million pounds a year of U₃O₈ at a processing rate of 11.2-million tonnes a year for a life-of-mine of 12.5 years.

Net Present Value/Internal Rate of Return
The KPI estimates the project’s pretax net present value at $637.3-million and its internal rate of return at 42%, with a payback of 3.9 years.

Value
The KPI estimates initial capital expenditure at $392-million.

Duration
Not stated.

Latest Developments
Forsys Metals has engaged AMEC to start a feasibility study (FS) on the Norasa uranium project. AMEC was previously involved in the development of NI 43-101 technical reports for Norasa. SGS South Africa has also been appointed to complete additional metallurgical studies, which will include pilot plant testwork. The FS will also include the input of other specialist consultants for certain aspects of the study, including an update of the pit designs, tailings handling systems and bulk water and power supply.

Some technical aspects have been completed to a level suitable for the FS, including the resource model and pit geotechnical designs.

Forsys is targeting the first quarter of 2015 for completion of the study.

The FS will also incorporate the development of an engineered construction and operating plan, with considerations for social, environmental and water management, additional permitting, geotechnical engineering, metallurgical testing, process design and mine planning.

An environmental-impact assessment on the project was completed in 2008, resulting in the granting of an environmental clearance certificate by the Nambian Ministry of Environment and Tourism to cover all activities associated with the construction, operation and closure of the Valencia mine, the flagship deposit at Norasa.

Key Contracts and Suppliers
AMEC (FS) and SGS South Africa (metallurgical studies).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Forsys Metals, tel +1 416 367 4242 or email info@forsysmetals.com.