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
SGS South Africa has completed a metallurgical study on Forsys Metals’ Norasa project, which comprises the Valencia and Namibplaas projects.

The metallurgical study is a major component of the feasibility study (FS) for the project, which is being prepared by Amec Foster Wheeler and which is scheduled for completion in the first quarter of next year.

The metallurgical study has shown an increase in uranium recovery to 91.3%, compared with the 85% determined in a 2013 engineering cost study.

Leach acid consumption had decreased by 36.8%, leach oxidant consumption had decreased by 31.5% and no iron addition would be needed once steady-state operation was achieved.

The company hopes that the results will translate into lower operating costs and reduced plant complexity. Forsys expects that the integration of these metallurgical study outcomes in the FS will result in improved economics for the Norasa project.

The company has also confirmed that it remains on target to complete the FS in the first quarter of 2015, while remaining within budget.

“The completion of a satisfactory FS will allow the board to consider feasible alternatives for financing the development of the project,” said Forsys Metals CEO Marcel Hilmer.

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.