Vancouver, British Columbia–(Newsfile Corp. – November 15, 2017) – GoviEx Uranium Inc. (TSXV: GXU) (OTCQB: GVXXF) (“GoviEx” or “Company”) is pleased to announce that further to its news release of February 1, 2016, where the Company announced that the renewal application for Agaliouk exploration tenement adjacent to the current boundaries of the Madaouela Project in Niger had not been approved at that time, the Company now has been granted the Agaliouk Exploration Permit.
The Agaliouk Exploration Permit adds 11.67 million pounds (Mlb) U3O8 in the Measured and Indicated categories (of which 5.96 Mlb U3O8 relates to the open-pit amenable Miriam Deposit) and 9.35 Mlb U3O8 in the Inferred category to the Madaouela Project’s mineral resource statement relating to the Miriam, MSEE, and La Banane deposits. The mineral resource statement for the Madaouela Project now reflects aggregate mineral resources of 110.76 Mlb U3O8 Measured and Indicated and 27.66 Mlb U3O8 Inferred.1
GoviEx’s Founder and Chairman Govind Friedland stated, “On behalf of GoviEx and all local and international stakeholders, we warmly welcome the Niger Government’s issuance of the Agaliouk Exploration Permit to GoviEx, as approved by Nigerien Parliament, in support of the Company’s continued efforts in advancing the Madaouela Project towards commercial production.”
GoviEx CEO Daniel Major said, “The granting of the Agaliouk Exploration Permit allows us to add mineral resources amenable to lower-cost, open-pit mining to the Madaouela Project, which could result in prolonging the Madaouela Project’s mine-life beyond that projected in the Company’s 2015 Integrated Development Plan, which has the potential to further optimize the Madaouela Project’s economics.”1
The Mineral Resources contained within the Agaliouk Exploration Permit were previously reported by GoviEx for the Madaouela Project as part of the Mineral Resources related to the Madaouela I Exploration Permit as of April 20, 2015, prior to the Company having to relinquish 50% of the Madaouela I permit as part of the permit-renewal process in Niger.1
Part of the Measured and Indicated Mineral Resources related to the Miriam Deposit within the Agaliouk Exploration Permit area were previously reported as part of the mineral reserve statement for the Madaouela Project.1
GoviEx received approval of its Environmental Social Impact Assessment (“ESIA”) for the Madaouela Project from the Niger Minister in charge of the environment in 2015. The approved ESIA included the area covered by the Agaliouk Exploration Permit.
Based on the GoviEx 2015 Integrated Development Plan, which excludes the Agaliouk Exploration Permit, the fully-permitted Madaouela Project represents a proposed base-case that envisions a 2.69 Mlb per year U3O8 yellowcake production rate over an 18-year mine life, and a total production of 45.6 Mlb U3O8 with forecasted cash operating costs of US $24.49/lb U3O8, excluding royalties.1
The Company remains focused on implementing its integrated four-step strategy to advance the Madaouela Project towards a production decision. The strategy includes:
- Debt finance structuring, including engagement of various export credit agencies.
- Project optimization and completion of detailed engineering.
- Off-take structuring.
- Project equity financing.
Further updates on each of the steps will be provided as new information become available.
Summary of the classified mineral resources in accordance with CIM guidelines
for Madaouela (cut-Off: 0.4 kg/t eU) as of November 13, 2017
Notes: The Company’s mineral resources as at November 13, 2017 are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards – For Mineral Resources and Mineral Reserves” in accordance with the requirements of National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (the Instrument). Mineral reserve and mineral resource estimates reflect the Company’s reasonable expectation that all necessary permits and approvals will be obtained and maintained.
Mineral resources that are not mineral reserves do not have to demonstrate economic viability. Mineral resources are subject to infill drilling, permitting, mine planning, mining dilution and recovery losses, among other things, to be converted into mineral reserves. Due to the uncertainty associated with Inferred mineral resources, it cannot be assumed that all or any part of an Inferred mineral resource will ever be upgraded to Indicated or Measured Mineral Resources, including as a result of continued exploration.
Figure 1: Madaouela permits and deposits