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Global Atomic to break ground at $208m Dasa uranium project in January

Core from the Dasa uranium project in Niger. Credit: Global Atomic

Global Atomic (TSX: GLO) has completed the feasibility study for the first phase of its Dasa uranium project in the Tim Mersoi Basin of Niger. The company says the study confirms that the project is economic even at a price of $35 per lb. uranium oxide, thanks to an estimated all-in sustaining cost of $21.93 per lb.

The Global Atomic board has given the okay to proceed with the project.

Global Atomic plans to break ground at Dasa in January 2022 and begin underground development in April. The processing plant is to be commissioned by the end of 2024. The project is already fully permitted.

With initial capital costs pegged at $208 million, the Dasa project has an after-tax net present value (using an 8% discount rate) of $157 million and an internal rate of return of 22.7%. the project will pay for itself over the first five years of operation. Over a 12-year mine life, 45.4 million lb. of uranium oxide (U3O8) will be recovered.

At a mining rate of 1,000 t/d and an ore head grade of 5.18% U3O8, annual average production is forecast at 3.8 million lb. U3O8.

The probable reserve is 4.25 million tonnes grading 5.18% U3O8 for 48.6 million lb. of U3O8.

Phase one mining will take place in the Flank zone, which represents only 20% of the known Dasa mineralization. Phase two will also recover underground ore, and after several decades, phase three will consider an open pit to mine the lower grade surface mineralization.

(This article first appeared in the Canadian Mining Journal)