Global Atomic Corporation (“Global Atomic” or the “Company”),
(TSX-V: GLO, FRANKFURT: G12) is pleased to announce the results of
the Preliminary Economic Assessment (“PEA”) on the DASA Project
(“DASA” or the “Project”), located in the Republic of Niger.
A summary of the PEA is provided below,
including opportunities being explored through an alternate mining
strategy to accelerate development of the Project for early
mining. All figures are stated in U.S. dollars, unless
otherwise stated.
HIGHLIGHTS
- The objective of the PEA was to study the DASA Project as an
integrated underground mining operation, processing mineralized
material through an on-site mill (the “DASA Standalone
Scenario”) initially operating at 2,500 tpd and ramping up
to 3,000 tpd. Highlights include:
- High grade resource: 69 million lbs U3O8 recovered at an
average grade of 2,380 ppm U3O8 over a 15 year mine life.
- Scalable production: Annual production sustained from 4 Mlb to
7 Mlb U3O8 over the mine life.
- Low cost operation: All-in sustaining cost (“AISC”) of
US$28.51/lb U3O8.
- Initial CAPEX: US$320 million, including US$141 million for an
on-site mill; US$467 million with sustaining capital and
reclamation.
- Significant NPV and project return at expected long-term
uranium price:
NPV and IRR – DASA Standalone
Scenario
|
Unit |
Uranium Price (US$/lb
U3O8) |
|
$45.00 |
|
$50.00 |
|
$55.00 |
|
Pre-Tax |
|
|
|
|
NPV @ 8% |
US$ M |
$342 |
|
$539 |
|
$735 |
|
IRR (100% Equity) |
|
27% |
|
37% |
|
46% |
|
Post-Tax |
|
|
|
|
NPV @ 8% |
US$ M |
$172 |
|
$299 |
|
$437 |
|
IRR (100% Equity) |
|
18% |
|
25% |
|
32% |
|
The PEA was completed in accordance with NI
43-101, Canadian Institute of Mining, Milling and Petroleum (“CIM”)
standards. The PEA is preliminary in nature and includes
Inferred Mineral Resources that are too speculative geologically to
have economic considerations applied to them that would enable them
to be categorized as Mineral Reserves. There is no certainty
that PEA results will be realized. Mineral Resources are not
Mineral Reserves and do not have demonstrated economic
viability.
- An alternate mine plan scenario, the “Alternate Mining
Strategy”, based on the July 2017 MOU signed with Orano
Mining (“Orano”), in which high grade mineralized material is sold
to Orano targeting early cash flow, identified a significant value
opportunity. Highlights include:
- Fast track to cash flow: Accelerated underground development
with minimal infrastructure.
- Reduced initial capital: US$35 million to start mining, no mill
required.
- High grade material: Potential to ship 360,000 tonnes annually
for the 5 year contract containing on average 2.8 million lbs U3O8
grading 3,698 ppm
- Low cost mining: Minimizing operating costs, US$10.94 per lb
U3O8 before transport and processing, indicates this is potentially
profitable at low uranium prices.
- The Company expects it could permit the Alternate Mining
Strategy by Q4, 2019, with ramp development beginning as early as
2020.
- Management also identified the following additional value
opportunities which are currently being explored to improve overall
project economics:
- Improve modelled uranium recovery with further metallurgical
test work.
- Mine plan optimizations to reduce dilution and minimize
underground development.
- Improve grade and increase Mineral Resources with further
infill drilling.
- Value opportunities currently being explored are expected to be
reflected in an updated Feasibility Study targeted for 2019.
Stephen G. Roman, President and CEO of Global
Atomic, commented, “The DASA uranium project is a Tier 1 project in
a proven uranium mining jurisdiction where accelerated permitting
is possible. The PEA demonstrates the economic potential of
the Project and our agreement with Orano allows us to pursue ways
to fast track the Project to early mining at current commodity
prices.”
PEA SUMMARY
The PEA was completed by CSA Global Pty. Ltd.
(“CSA Global”) with the objective to assess the economic and
technical viability of uranium production at DASA as an integrated
operating facility to mine and recover a uranium concentrate on the
property, referred to as the DASA Standalone Scenario in this news
release.
As a “value opportunity”, Global Atomic also
requested CSA Global to study the Alternative Mining Strategy,
whereby the Company could achieve positive cash flow with minimal
up front capital by selling mineralized rock directly to Orano as
per a Memorandum of Understanding the Company has with Orano and
the Company believes it represents a compelling case at
current uranium prices.
Price AssumptionsA uranium
price of US$50/lb U3O8 was chosen for the PEA, consistent with the
consensus long-term spot price estimate as reported by industry
analysts.
PEA Summary – DASA Standalone
Scenario
Input |
Unit |
Value |
Mineralized Material Processed |
Million tonnes |
15.9 |
|
Extraction Ratio |
|
85% |
|
Dilution |
|
34% |
|
Mill Head Grade |
ppm |
2,380 |
|
Mill Recovery |
|
84.3% |
|
Total Recovered Uranium |
Million lbs |
69.1 |
|
Mine Life |
Years |
15 |
|
Annual Tonnage (Phase 1 – First 6
Years) |
Ktpa |
900 |
|
Average Annual Production (Phase
1) |
m lbs U3O8 |
7.0 |
|
Average Annual Production (Phase
2) |
m lbs U3O8 |
4.0 |
|
Capital Cost |
|
|
Mine Development |
US$ M |
$49.5 |
|
Mill |
US$ M |
$141.2 |
|
Surface Infrastructure |
US$ M |
$45.4 |
|
Owner's Cost |
US$ M |
$8.7 |
|
Indirects/EPCM |
US$ M |
$11.1 |
|
Contingency (25%) |
US$ M |
$64.0 |
|
Total Construction Costs Incl.
Contingency |
US$ M |
$319.9 |
|
Sustaining Capital Costs |
US$ M |
$137.2 |
|
Reclamation |
US$ M |
$10.0 |
|
Total Capital Costs |
US$ M |
$467.1 |
|
Operating Cost |
|
|
Mining |
US$/lb |
$12.26 |
|
Processing |
US$/lb |
$10.80 |
|
Transport and Marketing |
US$/lb |
$1.50 |
|
G&A |
US$/lb |
$1.91 |
|
Total Operating Cost |
US$/lb |
$26.52 |
|
Sustaining Capital |
US$/lb |
$1.99 |
|
All In Sustaining Cost |
US$/lb |
$28.51 |
|
MINERAL RESOURCE
Deposit OverviewDASA is a high
grade uranium deposit located in the Tim Mersoi Basin of Niger, a
sedimentary basin host to a large number of uranium deposits
including Orano’s COMINAK and SOMAIR mines, which combined have
produced over 240 million pounds of historical production.
Uranium mineralization in Niger is located exclusively in the
sandstone formations of the basin, however concentration and
tonnage vary widely by deposit. DASA is unique in that it
contains significantly higher concentrations of uranium making it
the highest grade project in the basin and one of the highest grade
deposits in the world.
Mineral Resource EstimateA NI
43-101 Mineral Resource Estimate was prepared by CSA Global dated
June 30, 2018 and filed on SEDAR.
Block modelling was based on the idea DASA would
be mined as open pit to start, transitioning to underground mining
in subsequent years. During the PEA process, it was
determined a more optimal approach was to start ramping underground
to the mineralized material. Opportunity exists to further
refine the resource model that could potentially improve the
underground mining assumptions.
Mineral Resource Estimate
Category |
Tonnes |
eU3O8 |
Contained metal |
Mt |
ppm |
Mlb |
Indicated – Pit Constrained |
7.08 |
3,251 |
50.8 |
Indicated – Underground |
2.5 |
2,553 |
14.1 |
Total Indicated |
9.59 |
3,068 |
64.8 |
Inferred – Pit Constrained |
0.26 |
1,135 |
0.7 |
Inferred – Underground |
8.18 |
2,647 |
47.7 |
Total Inferred |
8.44 |
2,600 |
48.4 |
* These results are based on chemical assays and
gamma probing using an Electomind DIL 1125 gamma probe. Additional
results will be released once chemical assaying is completed on the
Flank Zone drill holes currently at ALS Global in Vancouver,
Canada.
- Mineral Resources are based on CIM definitions and is reported
as at 1st June 2018.
- Mineral Resources for pit constrained resources are estimated
within the limits of an ultimate pit shell
- Mineral Resources for underground resources are estimated
outside the limits of ultimate pit shell.
- A cut-off grade of 320 ppm eU3O8 has been applied for pit
constrained resources.
- A cut-off grade of 1200 ppm eU3O8 has been applied for
underground resources.
- A bulk density of 2.36t/m3 has been applied for all model
cells.
- Rows and columns may not add up exactly due to rounding.
Grades were calculated using a comprehensive
suite of chemical assays for all diamond core intervals above a
cut-off of 100 ppm (pre 2014) or 300 ppm (post 2014) as measured in
down hole logging. This was calibrated against the results of
the down hole logging (which occurs in all drill holes) and found
to have a very good correlation. Based on this correlation
representative corrective adjustments were made in areas of the
high grades where sections of drill core were “saturated”.
Chemical assays are currently being conducted at ALS Global in
Vancouver, British Columbia on the recently drilled Flank Zone
holes which account for less than 10% of total drilling on the
project and will form part of the updated NI 43-101 resource to be
published in a later technical report.
MINE PLAN
DASA Standalone ScenarioThe PEA
proposes the development of an underground mine using a sub-level
blast-hole retreat and backfill mining method. The mining
method proposed includes the trackless short-hole development of
the main decline, ramps, strike and crosscut drives as primary and
secondary accesses to mineralized material on a 24 metre sub-level
spacing and a 20 metre collection drive spacing. Standard
trackless underground mining equipment is proposed and will
comprise electro-hydraulic face drilling rigs and support drilling
rigs. Proposed material handling equipment will comprise
diesel powered 7 tonne loaders and 33 tonne trucks. Ancillary
equipment will consist of diesel powered modified charge-up
vehicles, utility vehicles and other light vehicles. The
long-hole stoping operation proposed will utilise an
electro-hydraulic long-hole production jumbo capable of drilling
accurate holes up to 35 metres in a ring fired pattern and will be
developed on a retreat basis. Blasted material will be mucked
using a tele-remote capable 7 tonne loader and loaded into either
33 tonne haul trucks or a mucking bay. It is proposed that the
depleted stopes will be backfilled using a combination of waste
rock from development, classified tailings and binding agents.
Broken material will be transported via the ramp and main decline
system to surface in 33 tonne haul trucks for dumping at either ROM
Pad crusher feed bin, surface stockpile or waste dump storage
facility.
The PEA considered spatial distribution of the
mining areas based on grade distribution and determined a two stage
phased approach is optimal for mining the DASA resource:
- Stage 1 (Years 1 to 6): Optimize to grade by accessing high
grade areas of the deposit as early as possible, maintaining high
grade, 4,000 ppm U3O8 feed, at 900 Ktpa mining rate. Blending
of mineralized material will be managed from stockpiles during this
period to control feed grade to the processing plant.
- Stage 2 (Years 7+): Based on the current modelled resource,
grades will be blended to provide a target feed grade of 1,800 ppm
U3O8 at a mining rate of 1,200 Ktpa to the process plant. As
additional drilling is completed, high grades areas may continue on
strike and down dip.
Mineralization not included in the mine plan
schedule is highlighted in grey in the following
illustration. These areas could be economic at a lower
cut-off grade and may be included as potentially mineable
mineralization in the future.
Considerations for the Alternate Mining
Strategy Value Opportunity In this scenario mining
throughput is significantly reduced and the highest-grade stopes
are mined first. Average mining output is approximately 360
Ktpa and grade is similar to Stage 1 of mining in the DASA
Standalone Scenario. The initial ramp infrastructure to
access the first stopes is the same as the PEA mine plan.
Comparison of Mine Throughput and
Costs
|
Unit |
Alternate Mining
Strategy |
DASA Standalone Stage 1 |
DASA Standalone Stage 2 |
Annual Mining Tonnage |
tonnes |
360,000 |
900,000 |
1,200,000 |
Grade Mined |
ppm |
3,698 |
3,790 |
1,784 |
ROM Annual Contained Uranium |
Mlbs U3O8 |
2.8 |
7.5 |
4.7 |
PROCESSING AND RECOVERY
The metallurgical work stream to support the PEA
included comminution work, leach characteristics, settling tests
and mineralogy. Based on the work completed on the samples
selected from the mineralized material and the review of the
performance during various tests and conditions, an acid
leach/resin-in-pulp flowsheet has been suggested for the processing
of the DASA deposit. The process plant has been sized to process
1.2 million tonnes annually (3,500 tpd) and to recover up to 8
million lbs U3O8 on an annual basis. The plant will be run from
grid power and will require 7 MW of installed capacity.
Material processed in Stage 1 production (years 1 to 6) will be
limited to 900,000 tpa to support ~7 million lbs U3O8 product
annually. Mineralised material processed in Stage 2 production
(year 7 onward) will be limited to 1,200,000 tpa to support ~4
million lbs U3O8 product annually.
Mineralized material from the mine is crushed to
200mm and then milled to a particle size of 106um using a
semi-autogenous grinding mill (SAG). The slurry is pumped to a
series of leach tanks where sulphuric acid is mixed with the slurry
to leach the uranium. The slurry is then pumped to the resin tanks
where the uranium in solution is adsorbed onto the resin beads.
Once the uranium has been adsorbed onto the resin, the barren
slurry is then neutralized with lime and pumped to a tailings dam
for storage.
The slurry resin mixture is then screened so the
loaded resin can be collected into an elution column where the
uranium is removed or eluted off the resin using sulphuric acid.
The acidic uranium rich solution is now pumped to the refining
stage where hydrogen peroxide is used to precipitate the uranium as
final uranyl peroxide (UO4) or ‘yellowcake’ product. The mixture is
filtered, dried and packaged in drums for export.
Acid will be generated on site; an acid
consumption rate of 120 Kg/t of material treated is assumed.
Water will be supplied by local boreholes.
Overall process recovery is modelled at 84.3%
and is expected to improve with additional test work during the
Feasibility Study.
CAPITAL COSTS
DASA Standalone ScenarioMine
development includes a 3,778 m long x 6.5 m wide x 4.5 m high ramp
as the main decline. The ramp has been sized to potentially
support a future conveying system alongside vehicle access.
If no conveying system is needed, ramp dimensions will be reduced,
a value opportunity that will be explored.
Power will be provided through existing
electricity infrastructure. A cost of US$4.5 million is
assumed for connection to the grid which currently supplies power
to Orano’s operations in Arlit.
Other surface infrastructure includes basic
infrastructure (US$15.9 million), acid plant (US$10.0 million),
water purification (US$5 million) and tailings facility (US$8.5
million).
A 25% contingency (US$64 million) was added to
Total Construction Costs.
Total construction costs in the DASA Standalone
Scenario are US$319.9 million, including contingencies.
Sustaining capital of US$137 million is added
for provisioning of major equipment replacement and refurbishment.
These items will include mechanised mining equipment and major
processing plant equipment components.
Alternate Mining Strategy, Mine
OnlyCapital costs reduce significantly to US$34.8 million,
supporting a mine camp and critical surface infrastructure required
to begin mineralized rock shipments off-site. Mine
development is assumed to be completed by contract mining and
allocated as an operating expense.
The following table provides a comparison of
costs under each scenario:
Capital Costs Alternate Mining Strategy
Vs. DASA Standalone Scenario
|
Alternate Mining
Strategy (M US$) |
DASA Standalone Scenario
(M US$) |
Mine Development(1) |
$16.0 |
$49.5 |
Mill |
$0.0 |
$141.2 |
Surface Infrastructure |
$14.9 |
$45.4 |
Owner's Cost |
$0.3 |
$8.7 |
Indirects/EPCM |
$0.4 |
$11.1 |
Contingency |
$3.1 |
$64.0 |
Total Construction
Costs |
$34.8 |
$319.9 |
Sustaining Capital Costs |
$2.5 |
$137.2 |
Reclamation Costs |
- |
$10.0 |
Total Capital Costs |
$37.3 |
$467.1 |
- Under the Alternate Mining Strategy, all mine development costs
are expensed as incurred after the initial year. Approximately $16
million such development costs are incurred prior to mining.
OPERATING COSTS
DASA Standalone ScenarioMining
costs of US$12.26 per lb U3O8 (US$53.25/t) are based on an owner
operator model. Ramp and access development is capitalized
prior to initial production and expensed as a component of
operating costs thereafter.
Process costs are calculated to be $10.80 /lb
based on US$46.92 per tonne of material treated with the largest
consumable being reagents. The processing facility will be
operated and maintained by a staff of 150 people and work on 2 x 12
hour shifts, 365 days a year.
Costs for G&A include a 150 person camp and
facilities.
Cash operating cost totals US$26.52/lb U3O8
(US$114.96/t). Including sustaining capital, AISC totals
US$28.51/lb U3O8 (US$123.59/t).
Operating Costs – DASA Standalone
Scenario
|
US$/t
Processed |
US$/lb U3O8 |
Mining |
$53.25 |
$12.26 |
Processing |
$46.92 |
$10.80 |
Transport and Marketing |
$6.52 |
$1.50 |
G&A |
$8.28 |
$1.91 |
Cash Operating Cost |
$114.96 |
$26.52 |
Sustaining Capital |
$8.63 |
$1.99 |
All In Sustaining Cost |
$123.59 |
$28.51 |
Considerations for Alternate Mining
Strategy Contractor mining costs (12.5%) are factored into
the Alternate Mining Strategy. However, increased contractor
costs are offset by higher U3O8 production due to higher grade
stopes. The net effect is lower costs on a per pound of
uranium.
Comparison of Mine Costs
|
Unit |
Alternate Mining
Strategy |
DASA Standalone
Scenario |
Mining Cost – Per Tonne |
US$/ t |
$60.14 |
$53.25 |
Mining Cost – Per Pound |
US$/lb U3O8 |
$8.75 |
$12.26 |
ECONOMIC ANALYSIS
Indicative Tax AssumptionsAn after-tax cash
flow and NPV were calculated, based on the following tax
calculations:
- The income tax rate in Niger is 30%, companies are provided a
three year tax exemption and benefit from accelerated depreciation
on capital expenditures. All VAT is recoverable.
- A sliding scale royalty is paid on revenues, based on operating
margin percentages:
- Operating margin < 20%:
Royalty = 5.5%
- Operating margin of 20% to 50%:
Royalty = 9.0%
- Operating margin > 50%:
Royalty = 12.0%
DASA Standalone Scenario NPV and IRRNPV figures
are calculated using an 8% discount rate and cash flows are
discounted to the start of first construction.
Under Niger mining code, a Niger Mining Company
must be established, of which the Republic of Niger is granted a
10% carried interest in the share capital. Cash flows
calculated on an after-tax basis are considered attributable to the
project and have not been adjusted for Niger Mining Company share
interests.
NPV and IRR – DASA Standalone
Case
|
Unit |
Uranium Price (US$/lb
U3O8) |
|
$45.00 |
|
$50.00 |
|
$55.00 |
|
Pre-Tax |
|
|
|
|
NPV @ 8% |
US$ M |
$342 |
|
$539 |
|
$735 |
|
IRR |
|
27% |
|
37% |
|
46% |
|
Post-Tax |
|
|
|
|
NPV @ 8% |
US$ M |
$172 |
|
$299 |
|
$437 |
|
IRR |
|
18% |
|
25% |
|
32% |
|
The PEA was completed in accordance with NI
43-101, Canadian Institute of Mining, Milling and Petroleum (“CIM”)
standards. The PEA is preliminary in nature and includes
Inferred Mineral Resources that are too speculative geologically to
have economic considerations applied to them that would enable them
to be categorized as Mineral Reserves. There is no certainty
that PEA results will be realized. Mineral Resources are not
Mineral Reserves and do not have demonstrated economic
viability.
Alternate Mining Strategy Cash Flow
EstimateTotal costs including mining, G&A and
sustaining capital are US$10.94 per lb of contained uranium.
Considering this the Alternate Mining Strategy generates cash flow
at near term uranium prices as forecast by industry analysts and
that minimal initial capital of US$37 million (including
contingency) to achieve first production the Company believes this
scenario is potentially an economic alternative in an environment
of lower uranium prices.
Alternate Mining Strategy – Operating
Margin
|
Unit |
Uranium Price
Sensitivities(US$/lb U3O8) |
|
$30.00 |
|
$35.00 |
|
$40.00 |
|
Mineralized Material
Shipped |
tonnes/year |
360 |
|
360 |
|
360 |
|
Contained U3O8 |
lbs/year |
2.8 |
|
2.8 |
|
2.8 |
|
Operating Profit |
|
|
|
|
Sales Revenue |
US$/lb |
$30.00 |
|
$35.00 |
|
$40.00 |
|
Less: Mining Cost |
US$/lb |
($8.75) |
|
($8.75) |
|
($8.75) |
|
Less: G&A |
US$/lb |
($2.01) |
|
($2.01) |
|
($2.01) |
|
Less: Sustaining CAPEX |
US$/lb |
($0.18) |
|
($0.18) |
|
($0.18) |
|
Total Costs Before Transport /
Processing |
US$/lb |
($10.94) |
|
($10.94) |
|
($10.94) |
|
Operating Margin Before Transport /
Processing |
US$/lb |
$19.06 |
|
$24.06 |
|
$29.06 |
|
PERMITTING AND PROJECT
TIMELINE
A Mining Permit is required for mineral
extraction, granting the holder exclusive rights of prospecting,
exploration, mining and disposal of mining substances for which it
was issued and without limitation as to depth. Niger has a
long history of uranium development and foreign investment is
viewed as a key to economic growth. The Government of Niger
is supportive of DASA development and the Company’s strategy to
bring this into production in an accelerated timeline. To
meet permitting requirements, the Company is targeting to deliver a
Feasibility Study and Environmental Impact Study by Q2 2019.
The Company expects the overall permitting process to take four to
six months, consistent with the timeline of other uranium projects
recently permitted in Niger.
Should the company elect to commence the
Alternate Mining Strategy, the Company could ship mineralized
material to Orano under the MOU by 2020.
Once permitting is complete, the Company expects
site preparation and mine development to be completed in six
months, allowing the Company to access uranium bearing rock by Q3
2020.
OPPORTUNITIES TO EXPLORE
The Company has recognized several areas for opportunity to
further enhance value at the DASA Project.
Area |
Opportunities to
Explore |
Improve Recoveries |
- Previous metallurgical test work on DASA demonstrated +90%
recoveries.
- Additional test work is required, particularly from the Flank
Zone area of the deposit that will be the target for early
mining.
- Complete metallurgical modelling to maximize recovery over mine
life.
|
Optimize Mine Plan |
- Reduce dilution through improvements in the block model –
resolution, grade distribution, additional exploratory
information.
- Ramp development, optimized for size based on mining
activities.
- Refine cost models with more accurate mining parameters.
- Investigate geotechnical impacts on mining.
|
Grade Improvements |
- Increasing drill density to convert Inferred to Indicated
Mineral Resources.
- Incorporate new drilling into Mineral Resource model to
increase tonnage and potentially grade.
|
QP StatementThe 2018 PEA was
prepared and led by CSA Global. All relevant chapters of the Report
will be prepared by Qualified Persons (“QPs”) as defined under
National Instrument 43-101. The QPs have reviewed and
approved the technical content of this news release and confirm the
numbers are an accurate reflection of the content of the NI 43-101
report being prepared. All of the QPs are “independent” of
the Company pursuant to NI 43-101. The technical report supporting
the PEA will be filed on SEDAR within 45 days.
George A. Flach, Vice President of Exploration,
P.Geo. is the Qualified Person (QP) as defined in NI 43-101 and has
prepared, supervised the preparation of, and approved the
scientific technical disclosure in this news release.
About Global AtomicGlobal
Atomic is a TSX Venture listed company providing a unique
combination of high grade uranium development and cash flowing zinc
concentrate production.
The Company’s Uranium Division includes six
exploration permits in the Republic of Niger covering an area of
approximately 750 km2. Uranium mineralization has been
identified on each of the permits, with the most significant
discovery being the DASA deposit situated on the Adrar Emoles III
concession, discovered in 2010 by Global Atomic geologists through
grassroots field exploration.
Global Atomics’ Base Metals Division holds a 49%
interest in Befesa Silvermet Turkey, S.L. (“BST”) joint venture,
which operates a processing facility located in Iskenderun, Turkey
that converts Electric Arc Furnace Dust (“EAFD”) into a high-grade
zinc oxide concentrate which is and sold to zinc smelters around
the world. The Company’s joint venture partner, Befesa Zinc
S.A.U. (“Befesa”, listed on the Frankfurt exchange under ‘BFSA’),
holds a 51% interest in and is the operator of the BST joint
venture. Befesa is a market leader in EAFD recycling,
capturing approximately 50% of the European EAFD market with
facilities located throughout Europe and Korea.
BST has begun an expansion project to rebuild
its processing plant in Turkey. The expansion is targeted to
double annual production of zinc from 30 million lbs to 60 million
lbs and is supported by EAFD supply currently available for
processing in Turkey. The new plant is scheduled for
completion by September 2019, coinciding with the start-up of mine
construction in Niger. At a zinc price of US$1.20 per lb,
2020 EBITDA is projected to increase from its current level of
US$14.4 million to US$38.0 million. Global Atomic’s share of
distributed cash flow is projected to be US$12.5 million (Cdn$16.6
million).
Key contacts: |
|
|
|
|
|
Stephen G.
Roman |
|
George A. Flach,
P.Geo. |
Chairman, President
& CEO |
|
Vice President,
Exploration |
Tel: (416)
368-3949 |
|
Tel: (416)
368-3949 |
Email:
sgr@globalatomiccorp.com |
|
Email:
gaflach@globalatomiccorp.com |
The information in this release may contain
forward-looking information under applicable securities laws.
Forward-looking information includes, but is not limited to,
statements with respect to completion of any financings; Global
Atomic’s development potential and timetable of its operating,
development and exploration assets; Global Atomic’s ability to
raise additional funds necessary; the future price of uranium; the
estimation of mineral reserves and mineral resources; conclusions
of economic evaluation; the realization of mineral reserve
estimates; the timing and amount of estimated future production,
development and exploration; costs of future activities; capital
and operating expenditures; success of exploration activities;
mining or processing issues; currency exchange rates; government
regulation of mining operations; and environmental and permitting
risks. Generally, forward-looking statements can be identified by
the use of forward-looking terminology such as "plans", “targets”,
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". All information contained in this news release, other
than statements of current and historical fact, is forward looking
information. Forward-looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Global Atomic to be materially different from those expressed or
implied by such forward-looking statements, including but not
limited to those risks described in the annual information form of
Global Atomic and in its public documents filed on SEDAR from time
to time.
EBITDA is a non-IFRS measure, does not have a
standardized meaning prescribed by IFRS and may not be comparable
to similar terms and measures presented by other issuers. EBITDA
comprises earnings before income taxes, interest expense (income)
and financing expense (income), amortization expense, and other
expenses including management fees, sales commissions; gain on sale
of property, plant and equipment and impairment charges.
Forward-looking statements are based on the
opinions and estimates of management as of the date such statements
are made. Although management of Global Atomic has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Global Atomic does not
undertake to update any forward-looking statements, except in
accordance with applicable securities laws. Readers should also
review the risks and uncertainties sections of Global Atomic’s
annual and interim MD&As.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Photos accompanying this announcement are available at:
http://www.globenewswire.com/NewsRoom/AttachmentNg/6323e46d-f67b-4f04-bfbb-9f6950880601
http://www.globenewswire.com/NewsRoom/AttachmentNg/57368664-d836-44a0-be58-9132e881dccb
http://www.globenewswire.com/NewsRoom/AttachmentNg/c2e56244-bf75-4c98-9c20-6bc5cc805c69
http://www.globenewswire.com/NewsRoom/AttachmentNg/4d62fa94-b3d4-4394-9543-8e8a2b721000
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