All monetary amounts are in U.S. dollars, unless otherwise indicated.
(1) Cash cost per pound represents mining, processing, site and offsite general and administrative costs and royalties, divided by
recovered uranium of 45.4 million pounds U3O8.
(2) All-in sustaining cost per pound of uranium represents mining, processing, site and offsite general and administrative costs,
royalties and sustaining capital expenditures, divided by recovered uranium of 45.4 million pounds U3O8.
NEWS RELEASE
Global Atomic Completes Phase 1 Dasa Project Feasibility Study and
Issues a Maiden Mineral Reserve
Feasibility Study Confirms PEA Project Capital and Lowest-Quartile Operating Costs
All monetary amounts are in U.S. dollars, unless otherwise indicated.
Toronto, ON, November 15, 2021: Global Atomic Corporation (“Global Atomic” or the
“Company”), (TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) announce d today the results of
the Phase 1 Dasa Project Feasibility Study (the “Study”) for the Company’s Dasa Uranium Project
(the “Project”) in the Republic of Niger.
The Study confirms that the Project is economically compelling, even at a price of $35 per pound
U3O8. Based on the Study, the strong uranium market and anticipated uranium supply deficit s,
the Board of Directors have made a production decision to proceed with the Dasa Project. The
Study is focused solely on Phase 1, primarily comprised of the Flank Zone , and represents the
initial 12 years of the Project and less than 20% of the Dasa mineralization, which has been
delineated through 160,000 metres of drilling since 2010. The Study is an update from the
Preliminary Economic Assessment (the “PEA”) filed in May 2020.
The Dasa Project is located in Niger’s Tim Mersoï Basin, which has successfully produced
uranium for export to France, the United States and other countries for 50 years, contributing to
Niger’s status as the 5th largest exporter of U3O8 for use in nuclear power plants.
Highlights
Study Base Case price is $35 per pound U3O8
After-tax NPV8 of $157 million and after-tax IRR of 22.7%
Cash cost(1) of $18.91 per pound
All-in sustaining cost(2) of $21.93 per pound
Steady-state mill recovery rate of 94.15%
Average annual steady-state uranium production of 3.8 million pounds U3O8
$208 million capital costs include a 10% contingency
Mining reserve of 4.3 million tonnes grading 5,184 ppm U3O8
Recovering 45.4 million pounds U3O8 over 12 years
Stephen G. Roman, President and CEO commented, “ We are pleased to report our Maiden
Reserve and confirm robust economics for the Dasa Project. We had already decided to move
ahead with construction contracts to break ground in Janu ary 2022 and begin underground
development in April 2022. We are now ready to negotiate project financing, advance offtake
negotiations with utilities, complete detailed engineering and complete the bidding process for an
EPCM contract to build and commission our processing plant by the end of 2024.”
“The mining industry has seen significant pandemic -induced increases in input costs since the
PEA was completed in 2020. We are very pleased to have duplicated our previous PEA project
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capital costs and thank METC Engineering, Bara Consulting, Insight R&D and Process Research
Ortech for their excellent work in this regard. In the event pandemic related cost increases return
to historical levels, project economics will be further enhanced.”
Feasibility Study Overview and Comparison to the Preliminary Economic Assessment
The objective of the Study was to confirm the findings of the May 2020 PEA, apply detailed design
and current costing to the Project, and reduce the risks of the Project thus decreasing the
previously applied 20% contingency rates. The Study proves the viability of the Project and will
serve as the basis for the Company to negotiate project financing, advance off -take agreement
discussions with utilities, finalize detailed engineering and select an EPCM contractor to build the
processing plant.
Table 1 below compares key metrics from the PEA to the Study.
Table 1. Summary Phase 1 Dasa Project Metrics @ US $35 / pound U3O8
Project Economics
Units of
Measure
2020 PEA
Feasibility
Study
Average Royalty rate (based on Mining Code) % 9.1% 9.3%
After-tax NPV8 $M $211 $157
After-tax IRR % 26.6% 22.7%
Undiscounted after-tax cash flow (net of capex) $M $437 $332
After-tax payback period Years 4 5
Unit Operating Costs
Average cash cost(1) $/lb U3O8 $16.72 $18.91
AISC(1) $/lb U3O8 $18.39 $21.93
Production Profile
Phase 1 Mine Plan Years 11 12
Total tonnes processed M Tonnes 4.0 4.3
Tonnes processed per day Tonnes/day 1,000 1,000
Mill head grade ppm/T 5,396 5,184
Steady-state mill recovery rate % 92% 94.15%
Total pounds U3O8 processed Mlbs 47.9 48.6
Total pounds U3O8 recovered Mlbs 44.1 45.4
Average annual pounds U3O8 production Mlbs 3.9 3.8
Peak annual pounds U3O8 production Mlbs 5.2 6.0
Capital Costs
Initial project capital costs $M $203 $208
Sustaining capital costs $M $73 $137
(1) Average cash costs and AISC are inclusive of royalty payments to the Republic of Niger
With the issuance of the Dasa Mining Permit and an Environmental Compliance Certificate by the
Republic of Niger, the Dasa Project is fully permitted for commercial production. Excavation of
the Box-Cut and collaring of the mine Portal are planned for early 2022.
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Economics
The Study was completed to Class 3 Standards of the Association for the Advancement of Cost
Engineering (“AACE”) and has an accuracy of +/- 9.6%.
The economic analysis for the Study was done with a discounted cash flow (“DCF”) model based
on a uranium price of $35 per pound U3O8. The discount rate used for the base-case analysis is
8% (“NPV8”). Sensitivity analysis was applied at intervals from $35 per pound to $60 per pound,
as shown in Table 2 below.
The DCF includes the current tax regime and royalty requirements in Niger. Net present value
(“NPV”) figures are calculated using a range of discount rates as shown in Table 3.
Table 3. Economic sensitivity with varying discount rates using base-case uranium
price of $35 per pound
Discount rate (%) 5% 8% 10% 12%
Before-tax NPV $248 M $187 M $152 M $122 M
After-tax NPV $211 M $157 M $126 M $99 M
The Study is focused solely on Phase 1, which represents the initial 12 years of the Project. The
longitudinal section of the Dasa Deposit (see Figure 1 below) highlights the Flank Zone area being
mined in Phase 1 ( within the solid red-lined square), representing less than 20% of the Dasa
mineralization. After Phase 1, the Company plans to continue with the underground mining of
Phase 2 and after several decades consider an open- pit operation to mine the lower -grade
surface mineralization of Phase 3.
Table 2. Economic sensitivity with varying uranium prices
Uranium price (per pound) $35/lb $40/lb $50/lb $60/lb
Before-tax NPV8 $187 M $309 M $556 M $804 M
After-tax NPV8 $157 M $259 M $468 M $676 M
After-tax IRR 22.7% 30.6% 44.6% 57.2%
Page 4 of 8
Figure 1
Global Atomic Declares Maiden Mineral Reserves
The Mineral Resource Estimate (“MRE”) prepared by CSA Global with an effective date of June
1, 2019 is used as the basis for the Study. Economic analysis, including a cut-off grade of 2,074
ppm U3O8 based on a U3O8 price of $35 per pound, was applied to the Indicated Resources of the
MRE, comprising primarily the Flank Zone. A resultant Phase 1 Mine Plan was developed for the
Dasa deposit to yield the following reserves:
Probable Reserves
Tonnes Ore 4.25 million tonnes
Grade of U3O8 5,184 ppm
Contained U3O8 48.6 million pounds
Processing
The Project will use operationally proven uranium processing techniques, comprised of dry SAG
grinding and classification; pug -leaching and curing; urani um extraction circuit (re -pulping and
solid/liquid separation); uranium purification and precipitation circuit; drying and packaging. Based
on extensive metallurgical work and a six-month pilot plant study, a steady-state recovery rate of
94.15% is estimated over the12-year mine plan of the Project, which is expected to produce 45.4
million pounds of U3O8 as Yellowcake.
Page 5 of 8
Operating Costs
The cash cost of $18.91 per pound places Dasa in the lowest quartile of uranium companies.
Capital Costs
Table 5: Capital Costs
($millions) Initial Sustaining Total
Mining 55 114 169
Processing 90 6 96
Infrastructure 18 18
Total Direct Capital Costs 163 120 283
Indirect & Owner’s Costs 27 27
Total Direct & Indirect Capital Costs 190 120 310
Contingency 18 17 35
Total Capital Costs 208 137 345
Project Financing
In April 2021, Global Atomic engaged London-based HCF International Advisers (“HCF”) to assist
in project financing. HCF specializes in financing mining projects in Africa. With HCF, the
Company has short-listed a group of banks and financial institutions who are interested in funding
the Project. With the application of cash flow from the Company’s Turkish Zinc JV and the
potential to Direct Ship Ore (“DSO”) to Orano Mining’s Somaïr processing facility in Niger to
generate revenue during the development stages of the Dasa mine, the Company plans to
minimize the amount of equity required for project financing. With the completion of the Study,
the Company expects to accelerate these financing discussions and conclude a financing
agreement in the first half of 2022.
Table 4: Operating Costs
Tonnes mined (millions) 4.3
Pounds mined (millions) 48.6
Grade (ppm) 5,184
Mill recovery rate (including ramp up) 93.4%
Pounds produced (millions) 45.4
$/lb U3O8
Recovered
$/tonne of
Feed
Mining cost 6.17 66
Processing cost 6.01 64
Overhead cost 3.46 37
Cash costs before royalties 15.64 167
Royalties 3.27 35
Total cash costs 18.91 202
Sustaining capital 3.02 32
AISC 21.93 234
Page 6 of 8
Value Opportunities
In 2021, the Company has been actively engaged in discussions with Orano Mining regarding the
potential of a DSO arrangement with their Somaïr processing plant, situated approximately 100
kilometers north of the Dasa Project. Orano Mining processed samples of Dasa ore through the
Somaïr plant in a series of successful metallurgical tests earlier in 2021. The Memorandum of
Understanding signed with Orano in 2017 included the shipment and sale of 500,000 tonnes of
ore to Somaïr within the initial five -year period of mining at Dasa. By the end of 2024 , Global
Atomic intends to commission its own plant to process ore from Dasa . Discussions have since
been ex panded to include the option of toll milling, combining certain logistics and shipping
Yellowcake to Global Atomic customers.
One of the objectives of the 15,000 -meter drilling program that began in September 2021, is to
explore extensions of the Flank Zone located close to surface which could result in extending the
mining of shallow ore, thereby lowering development and operating costs for the Project.
Currently, the Phase 1 Mine Plan is focused on mining the Flank Zone area which comprises
approximately 80% of U3O8 pounds mined. The Phase 1 Mine Plan also took into account more
remote locations as depicted in Figure 2.
Figure 2
The areas referred to as Zones 3, 4 and 5 had sufficient drill density to be classified as Indicated
Resources, thereby enabling them to be converted into Probable Reserves. As further drilling
upgrades the Inferred Resources around Zones 1 and 2, Global Atomic expects mining would
continue in these areas, which would require less development, thereby reducing costs
associated with mining Zones 3, 4 and 5 until mining progressed to these areas in the natural
course of mine development over succeeding years. Figure 3 shows the distribution of Indicated
and Inferred Resources throughout the Dasa deposit.
Page 7 of 8
Figure 3
Presently, the Company is infill drilling an area referred to as Zone 2 East, which is above Zone
3. The drilling density in this area was only sufficient to classify it as Inferred Resources. A
previously drilled hole adjacent to the current drilling is ASDH 476, which contained a 100 meter
section averaging 3,497 ppm, including a higher grade portion w ith a width of 50 meters and a
grade of 5,972 ppm.
A NI 43-101 compliant technical report related to the Feasibility Study will be filed on SEDAR and
posted to the Company website (www.globalatomiccorp.com) by December 30, 2021.
QP Statement
The scientific and technical disclosures in this news release have been reviewed and approved
by Andrew Pooley and John Edwards . Andrew Pooley is the Managing Director of Bara
Consulting. He has obtained a B.Eng (Hons) in Mining Engineering from Nottingham University
in the UK, he is a Fellow of the Southern African Institute of Mining and Metallurgy, and has over
25 years of experience in the mining industry. John Edwards is a Professional Metallurgist and is
the Chief Metallurgist at METC Engineering Pty Ltd. having graduated with a BSc Hons in Mineral
Processing Technology in 1985 from Camborne School of Mines, UK. He is a Fellow of the
Southern African Institute of Mining and Metallurgy with over 35 years of experience as a
metallurgist.
Page 8 of 8
About Global Atomic
Global Atomic Corporation (www.globalatomiccorp.com) is a publicly listed company that
provides a unique combination of high- grade uranium mine development and cash- flowing zinc
concentrate production.
The Company’s Uranium Division includes four deposits with the flagship project being the large,
high grade Dasa Project, discovered in 2010 by Global Atomic geologists through grassroots field
exploration. With the issuance of the Dasa Mining Permit and an Environmental Compliance
Certificate by the Republic of Niger, the Dasa Project is fully permitted for commercial production.
Global Atomics’ Base Metals Division holds a 49% interest in the Befesa Silvermet Turkey, S.L.
(“BST”) Joint Venture, which operates a modern zinc production plant, located in Iskenderun,
Turkey. The plant recovers zinc from Electric Arc Furnace Dust (“EAFD”) to produce a high-grade
zinc oxide concentrate which is 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, with approximately 50% of the European EAFD market and facilities located
throughout Europe, Asia and the United States of America.
Key contacts:
Stephen G. Roman
Chairman, President and CEO
Tel: +1 (416) 368-3949
Email: [email protected]
Bob Tait
VP Investor Relations
Tel: +1 (416) 558-3858
Email: [email protected]
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 Atomics’ development potential and timetable of its operations, development and exploration assets; Global Atomics’ ability to raise additional funds necessary; the future price of uranium;
the estimation of mineral reserves and resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and
exploration; cost 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”, “is expected”, “estimates”, variations of such words and
phrases or statements that certain actions, events or results “could”, “would”, “might”, “will be taken”, “will begin”, “will include”, “are expected”, “occur” or “be achieved”. All information contained in this
news release, other than statements of current or historical fact, is forward -looking information. Statements of forward -looking information 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.
Forward-looking statements are based on the opinions and estimates of management at the date such statements are made. Although management of Global Atomic has attempted to identify important factors
that could cause actual results to be materially different from those 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 sho uld not place undue
reliance upon forward-looking statements. Global Atomic does not undertake to update any forward-looking statements, except in accordance with applicable securities law. Readers should also review the risks
and uncertainties sections of Global Atomics’ annual and interim MD&As.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this news release.