Global Atomic Updates its Dasa Project Feasibility Study and Announces Off-Take Agreement
NEWS RELEASE
Global Atomic Updates its Dasa Project Feasibility Study and
Announces Off-Take Agreement
All monetary amounts are in U.S. dollars, unless otherwise indicated.
Toronto, ON, March 5, 2024: Global Atomic Corporation (“Global Atomic” or the “Company”),
(TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) announced today the results of the updated
Dasa Project Feasibility Study (the “2024 Study”) replacing the previous Phase 1 Feasibility Study
(“Phase 1 Study”).
The 2024 Study has extended the Dasa Mine Life from 12 to 23 years , Mineral Reserves have
increased by 50% to 73 million pounds U 3O8, and uranium production from Dasa has increased
by 55% to 68.1 million pounds.
Highlights
Table1 below compares the metrics of the 2024 Study to the Phase 1 Study:
Phase 1
Study
2026-2037
2024
Study
2026-2037
2024
Study
2026-2049
Mine plan (years) 12 12 23
Uranium price ($/lb) $35 $75 $75
Average mill feed grade (ppm) 5,267 5,103 4,113
Uranium production (Mlb) 44.1 44.1 68.1
Average cash cost before royalty ($/lb) $15.72 $20.35 $25.62
Average cash cost1 ($/lb) $19.02 $25.38 $30.73
Average AISC2 ($/lb) $22.13 $31.49 $35.70
Internal After-tax Rate of Return (“IRR”) 22.3% 38.4%
After-tax Net Present Value (“NPV8”) ($ million) $147 $917
Pay-back (years)3 3.25 2.5
1. Cash cost per pound represents mining, processing, onsite and offsite general and administrative costs, selling expenses and
royalties, divided by recovered 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 including rehabilitation provision, divided by recovered U3O8.
3. Pay-back is based on total cost, including amounts already paid.
Stephen G. Roman, President and CEO commented, “The 2024 Study has identified significant
improvements in the Dasa Project from the Phase 1 Feasibility Study including a 50% increase in
Mineable Reserves and a near doubling of the mine life. The payback period estimated in the
2024 Study is expected to be 2.5 years, including recovery of amounts already spent.”
“With several layers of contingency built into the 2024 Study, we believe that the estimated returns
are conservative providing numerous opportunities to add value. For example, t here are 51. 4
million pounds of Inferred Resources grading at 5, 243 ppm in the Dasa deposit that could be
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converted to the Indicated category and brought into the mine plan. We expect to have full project
financing in place soon and are on track for plant construction to commence in the second half of
2024 and plant commissioning to occur at the end of 2025.”
The Dasa Project is defined in three Phases, with the Phase 1 comprising the shallow high-grade
Flank Zone, Phase 2 comprising several ore bearing zones at lower depths and the Phase 3
surface mineralization that could be mined as an open pit. See figure 1 below.
Figure 1: Schematic of Dasa deposit and hypothetical underground infrastructure.
Figure 1 above outlines the ore body based on the 2019 Mineral Resource Estimate (“MRE”).
The 16,000 -meter drill program conducted during 2021/22 resulted in significant resource
conversion from Inferred to Indicated. The previous 2019 MRE had been based on both an open
pit and underground mine, while the current MRE is based solely on an underground mine. The
MRE was revised in a news release dated May 23, 2023.
Figure 2 below shows the resource categories delineated by the 2023 MRE, which includes
results of the 16,000 metres of drilling, most of which was infill and at a 1,500-ppm cutoff grade
increased Indicated Resources by 50% from the 2019 MRE.
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Figure 2: Dasa Project longitudinal section based on 2023 Mineral Resource Estimate
In figure 2 above, Inferred Resources are delineated in yellow and represent 51.4 million pounds
which will be targeted in future drilling programs with the intention of converting these to Indicated
Resources and converted to Mineral Reserves in the next f easibility study. The Dasa ore body
also remains open down dip and along strike. The Company has delineated three other deposits
in Niger which could eventually feed the Dasa processing plant.
The new MRE was calculated by AMC Consultants, (“AMC”), of Perth, Western Australia.
Table 2: Dasa Mineral Resources as at May 12, 2023
Category Tonnes
Mt
eU3O8
ppm
Contained Uranium
Mlb
Indicated 10.09 4,913 109.3
Inferred 4.45 5,243 51.4
1. Mineral Resources are based on CIM definitions.
2. Assumes all resources to be mined from a ramp access, underground mine.
3. A cut-off grade of 1,480 ppm eU3O8 has been applied for underground resources.
4. A bulk density of 2.36t/m3 has been applied for all model cells.
The 2024 Study has estimated the current reserves for the Dasa Project to be:
Table 3: Dasa Mineral Reserves as at February 28, 2024.
Category Tonnes
Mt
U3O8
ppm
Contained Uranium
Mlb
Probable Reserves 8.04 4,113 73.0
1. Mineral Reserves are based on CIM definitions.
2. Assumes all resources to be mined from a ramp access, underground mine.
3. A cut-off grade of 1,500 ppm U3O8 ppm has been applied for the Mine Plan.
Economics
The 2024 Study was completed by METC Engineering Pty Ltd. (“METC”), who also completed
the Phase 1 Study.
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The economic analysis for the 2024 Study was done with a discounted cash flow (“DCF”) model
based on a uranium price of $75 per pound U 3O8. Sensitivity analysis was applied at intervals
from $60 per pound to $105 per pound, as shown in Table 4 below.
The DCF includes the current tax regime and royalty requir ements in Niger. Net present value
(“NPV”) figures are calculated using a range of discount rates as shown in Table 5. The discount
rate used for the base- case analysis is 8% ( “NPV8”). NPV is based on discounting to
commissioning date, January 1, 2026, less undiscounted remaining capital costs.
Table 5. Economic sensitivity with varying discount rates using base-case uranium
price of $75 per pound (USD)
Discount rate (%) 6% 8% 10% 12%
Before-tax NPV $1,323 M $1,122 M $960 M $828 M
After-tax NPV $1,073 M $917 M $791 M $687 M
Processing
The process plant has been designed for a throughput of 1, 200 tonnes per day . Long l ead
equipment has been purchased with delivery expected late summer through the fall of 2024. In
view of the on-site construction schedule, cold commissioning is expected to be complete in Q4
2025 and hot commissioning beginning in early 2026. Procurement and construction of supporting
infrastructure is underway. The processing plant recovery is forecast to be 94.15% in steady state.
Additional Project Costs
In the Phase 1 Study, development and commissioning of the mine and processing plant were
projected over 16 and 19 months, respectively, with costs integrated into the ongoing capital. The
2024 Study revises this timeline, extending mine development from 2022 through the end of 2025,
a total of 48 months, to align with the processing plant's commissioning schedule. This adjustment
results in more comprehensive development work and, consequently, an increase in cumulative
costs, including a rise in owners' and indirect expenses due to the extended development phase.
Some of the key capital cost increases are due to the following:
• Extended support for site and Niamey staff over 48 months, a $22 million increase.
• Prolonged mine development period contributing an additional $36 million.
• Enhanced EPCM and project team expenses due to increased complexity and extended
duration, for an extra $12 million.
• Shift from a power purchase agreement to a grid connection with Dasa having its own power
station, adding $20 million in upfront capital.
• A larger mine camp increases costs by $8 million.
• Additional site support buildings necessary for an extended mine life, adding $21 million.
Table 4. Economic sensitivity with varying uranium prices (USD)
Uranium price (per pound) $60/lb $75/lb $90/lb $105/lb
Before-tax NPV8 $656 M $1,122 M $1,572 M $2,022 M
After-tax NPV8 $551 M $917 M $1,269 M $1,621 M
After-tax IRR 27.9% 38.4% 47.1% 55.1%
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Contingencies
The 2024 Feasibility Study incorporates a range of contingencies to address potential risks and
uncertainties. These provisions ensure the project's resilience and flexibility, safeguarding against
unforeseen events and enabling adaptive responses to marke t fluctuations and operational
challenges. By proactively integrating these measures, the study underscores our commitment to
project viability and stakeholder confidence.
Contingency
Undiscounted
Amount
(USD millions)
Additional transport time for mill equipment $2.3
Use of average 23 year power cost in first 5 years $3.1
Mobilization & start-up costs for international construction contractors $3.5
Reagent transport cost using Lome rather than Cotonou $15.3
Mill and infrastructure capital cost contingency $28.7
Mine development cost contingency $33.6
Mill availability contingency $65.7
Mining dilution contingency $80.0
Total $232.2
• Due to slower transport via the port of Lomé in Togo through Burkina Faso, project timelines
have been extended by 1.5 months. Utilizing the Cotonou route will eliminate additional site
and Niamey costs and advance the Project delivery timelines.
• Power costs are carried at an average cost of $0.26/kwh over the production period. As power
requirements ramp up over the first 5 years, the power source mix of grid connection and our
own power station should result in lower costs.
• Local contractors have been identified for site development and construction. The 2024 Study
assumes international construction contractors for all site work which would result in higher
costs.
• Reagent costs for the mill are assumed to be transported through the Togo – Burkina Faso
rather than the traditional route via the port of Cotonou in Benin.
• Initial capital costs include a general contingency provision of 12% for the mill and
infrastructure.
• A 15% contingency has been included for all mine development and capital costs.
• The mill has been designed for 1,200 tonnes per day throughput, however cash flows for the
2014 Study are based on 1,000 t onnes per day . If plant availability is 92%, similar to the
experience of other Niger uranium mills, fixed cost s for the mill and infrastructure will be
reduced.
• Mine dilution has been increased to 10% in the 2024 Study compared to 5% in the Phase 1
Study. The additional tonnes are therefore processed at cost of $210/tonne.
Value Opportunities
Global Atomic is poised to enhance the Dasa Project's value through strategic infill drilling
targeting the 51.4 million pounds of high- grade Inferred R esources. This initiative, set to
commence in Q3 2024 from both underground and surface positions, aims to elevate mineable
grades post-2038 and extend the mine's operational life beyond 2048. Additionally, exploration
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drilling will seek to expand the deposit further, leveraging its open at depth and on - strike
potential.
Power costs account for 28% of cash costs, up from 22% in the Phase 1 Study. Cash costs during
the first 12 years have increased from $15.72/lb to $20.34/lb. The cost of a kilowatt of power has
increased by 50% since the Phase 1 Study, accounting for $2.12/lb of the increase in cash costs
during this period. Once operational, a potential investment in solar and battery storage or other
power generation alternatives will be assessed to reduce power costs.
Once Dasa has achieved commercial production of U3O8, the Company will conduct a third-party
review of the plant processes to optimize operating rate and plant efficiency that would result in
higher production volume and lower costs.
Based on growing global demand for uranium, Global Atomic is planning to complete a pre -
liminary feasibility study in the early years of the mine plan for a plant expansion to 2,000 tonnes
per day and incorporate additional drilling results.
The mine is already designed for higher production. Additional capital requirements are expected
to be minimal and primarily used to expand the mining fleet and increase mill throughput. The
current mine plan is based on throughput of 1,000 tonnes per day, the plant has been designed
to handle up to 1,200 tonnes per day, with most equipment sized by 20% more than this. At 92%
availability, throughput could be increased to 1,325 tonnes per day with minimal additional
investment.
Technical Report
A NI 43-101 compliant technical report related to the 2024 Study will be filed on SEDAR and
posted to the Company website ( www.globalatomiccorp.com) within 45-days of today’s news
release.
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 Chairman of Bara Consulting. He
has obtained a B.Eng (Hons) in Mining Engineering from Nottingham University in the UK and
has over 29 years of experience in the mining industry. He is a Fellow of the South African Institute
of Mining and Metallurgy 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 South African
Institute of Mining and Metallurgy with over 35 years of experience as a metallurgist.
Off-take Agreements
Global Atomic has finalized a Letter of Intent (“LOI”) for the sale of uranium from the Company’s
Dasa Project in the Republic of Niger to a strategic Europe-based nuclear power utility. The LOI
is subject to the successful conclusion of a purchase-sale contract, which the Company will now
progress.
The LOI represents the supply of 260,000 pounds U 3O8 over a three-year delivery window
beginning in 2026 and is characterized as representing “starter volume”. This is the fourth such
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agreement signed by the Company and brings the Company’s total current committed volume up
to 9.5 million pounds U3O8, representing revenue of up to US$770 million at current market levels.
This LOI is priced close to current term market prices escalat ing each year , reflecting the
Company’s continued strategy of layering in sales contracts in support of Tier 1 global utilities at
volumes sufficient to underwrite debt financing, thereby limiting equity dilution as the Dasa
operation moves into production.
Niger Update
On February 24, 2024, Niger’s neighboring ECOWAS nations lifted the sanctions imposed on
Niger subsequent to the July 2023 change in government, including re- opening Niger’s historic
primary trade route to ocean shipping channels through the port of Cotonou in Benin. During the
sanction period, Global Atomic continued to open up underground ore access and development
of mine infrastructure, as well as site preparation for the processing plant. Supplies for these
activities used an alternate shipping route through Togo and Burkina Faso.
The Government of Niger places great value on the local, regional and national economic
potential of the Dasa Mine through their 20% ownership, corporate taxes and mining royalties,
and more importantly the creation of hundreds of jobs and many business opportunities for local
suppliers to help build and maintain the Dasa Mine.
The Government sees the Dasa Mine as playing a significant role in revitalizing the central Agadez
region of Niger. Recent changes in the Niger Government’s cabinet, have split the Mining portfolio
away from the Petroleum and Energy portfolios, thus enabl ing improved access to the Mines
Minister.
Project Financing Update
Financing for the construction of the processing plant continues to advance as the Company
anticipates that the 60% debt portion of the project financing is expected to be satisfied in Q2
2024 in the form a debt facility from Export Development Canada and a US development bank.
The 40% equity portion of the financing cost will be partially satisfied by the $73.4 million invested
to date in the Dasa Project by Global Atomic and cash on hand. Any remaining equity required
may be raised in the form of pre-payments on future uranium sales agreements, which would be
put in place following banks’ board approval of the debt facility. The current estimate for capital
required by Dasa to commence production is as follows:
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About Global Atomic
Global Atomic Corporation (https://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 has identified three additional deposits in Niger additional to
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. Mine excavation began in Q1 2022, and commissioning of the processing plant is
expected at the end of 2025/ beginning 2026.
Global Atomic’s 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,
Türkiye. 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) 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.
T otal Spent R emainder
M ining $90.4 $31.5 $58.8
Process plant 88.0 2.7 85.3
Infrastructure 79.3 11.1 68.2
Owners costs 69.9 21.9 48.0
327.6 67.2 260.4
Contingency 36.7 36.7
W orking capital 27.8 27.8
Capital cost in F easibility S tudy $392.0 $67.2 $324.8
Corporate cost allocation (50%) 7.6 4.0 3.6
Financing costs 25.0 2.3 22.7
Capital cost for project financing $424.6 $73.4 $351.2
Bank funding (60%) $254.8 $0.0 $254.8
E quity (40%) 169.8 73.4 96.4
$424.6 $73.4 $351.2
Initial Capital Cost (U S D millions)