Global Atomic hits new milestones at Dasa project in Niger

Global Atomic (TSX: GLO; US-OTC: GLATF) has finalized the formation of Societe Miniere de Dasa (Somida) as its mining subsidiary for the Dasa uranium project in Niger and the government has increased its interest to 20%, which includes a 10% free carried interest and an additional 10% interest to be funded.

Somida will be headed up by Moussa Souley, a Nigerian mining engineer who previously served as the managing director of the Cominak underground mine, about 100 km north of Dasa. Cominak is a subsidiary of Orano Group, a French nuclear energy company.

The news follows two significant announcements in June. The first, that the company had entered into a letter of intent with a major North American utility to supply 2.1 million lb. 0f U308 over a six-year period starting in 2025, which represents about 7% of phase 1 production. The second, that it had received letters of intent from a banking syndicate made up of North American financial institutions, including Export Development Canada (EDC), to finance Dasa’s processing plant.

Last month, Global Atomic engaged Enernet Global Inc. to design a hybrid power solution for the project, which Enernet would build, own and maintain.

With all permits in place for commercial production and project financing scheduled for completion by the end of the year, Global Atomic said in an August 12 update, Dasa “remains on track for yellowcake production by the beginning of 2025.”

The outlook for the remainder of 2022, according to the company, is to close the project financing on the processing plant in the fourth quarter and to continue discussions with Orano Mining regarding the direct shipment of development ore to its Somair processing facility.

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

Mine excavation began in the first quarter of 2022 and surface infrastructure construction continues to support mine and mill development, Global Atomic says, with all equipment and supplies expected on site by the end of the third quarter. In addition, a box cut has been completed and is prepared for development of the portal.

A phase 1 feasibility study for the project filed in December 2021 represented about 20% of the current resource and estimated 45.4 million lb. U308 production over a 12-year period. The study outlined an after-tax net present value (using an 8% discount rate) of US$157 million and an internal rate of return of 22.7% based on a uranium price of US$35 per pound.

The mining inventory included in the feasibility study measured 4.06 million tonnes grading 5,267 parts per million U308 for 47.22 million lb. U308 with inferred resources adding 187,236 tonnes grading 3,375 ppm U308 for 1.39 million lb. U308.

Infill drilling that began in the fourth quarter of 2021 is designed to convert inferred resources to the indicated category and the drill campaign likely will be completed at the end of the third quarter of this year. An updated resource will be used to develop an updated mine plan.

The company discovered Dasa in 2010 through grassroots field exploration. The project is 105 km south of the uranium mining town of Arlit.

Over the last year Global Atomic’s shares in Toronto have traded in a range of $2.32 and $5.10 per share and at presstime in Toronto were trading at $3.40 apiece. The company has about 177.6 million common shares outstanding for a market cap of about $591.3 million.