Photo by: GoviEx
Name of the Project
Madaouela uranium project.
Location
Agadez region, northern Niger.
Project Owner/s
GoviEx.
Project Description
The project hosts one of the biggest uranium resources in the world, with 100-million pounds of uranium in measured and indicated mineral resources, and inferred resources of 20-million pounds of uranium.
The mineral resources comprise the Miriam, M&M, MSNE, MYVE, MSEE and MSCE sandstone-hosted uranium deposits.
The project is based on a self-sustaining operation, including process plant and renewable power supply, without any reliance on third-party facilities.
Mining operations for the project are planned to be based on standard truck-and-shovel openpit mining for the Miriam deposit at one-million tonnes a year of ore feed to the process plant.
The M&M and MSNE-Maryvonne deposits are planned to be mined as two separate underground room-and-pillar operations. M&M is to be mined first after the completion of the Miriam openpit operation, with MSNE-Maryvonne mined after M&M.
At both underground operations the mine development and ore production operations are planned to be mined using conventional drill-and-blast methods. The process plant is designed around two-stage acid leaching to maximise uranium and molybdenum recovery while reducing overall acid consumption. Plant feed is designed at one-million tonnes a year, with ore initially crushed before milling.
Life-of-mine uranium production is estimated at 50.8-million pounds of uranium, averaging 2.67-million pound of uranium a year over 19 years.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $140-million and an internal rate of return of 13.3%.
Capital Expenditure
$343-million.
Planned Start/End Date
Not stated.
Latest Developments
GoviEx has been working with its financial adviser Endeavour Financial to develop the optimum financing solution for the mine-permitted project.
The initial phase involved Endeavour reviewing the feasibility study technical and financial information and issuing a project marketing document to prospective financiers to solicit interest in providing project-related debt financing.
This initial phase is now complete and has resulted in a preliminary shortlist of about 20 institutions that will now move forward with the detailed due diligence phase.
Prospective project financiers include a mix of commercial banks, export credit agencies, development finance institutions, equipment suppliers and alternative finance providers.
Prospective financiers will now be provided with additional information pertaining to the company and project through a virtual data room, with the objective of obtaining formal expressions of interest (EoLs).
Following receipt of EoLs, Endeavour and GoviEx intend to select a small group of preferred financiers to advance into the detailed due diligence phase.
The project finance process is expected to take several months and is being run in parallel to discussions with utilities regarding offtake.
Key Contracts, Suppliers and Consultants
SRK Consulting and SGS Bateman (feasibility); and Endeavour Financial (financial adviser).
Contact Details for Project Information
GoviEx, tel +1 604-681-5529 or email info@goviex.com.