Niger uranium draws interest

Vancouver — The hot uranium market has spurred explorers to broaden the global hunt for the energy metal, putting the West African country of Niger in the spotlight again.

Although a “sleeper” when one thinks of major uranium-producing nations, Niger ranked as the world’s sixth-largest primary producer in 2005, with mine output of 3,093 tonnes (just over 8 million lbs. U3O8). The figure represents about 7.5% of the 108.4 million lbs. U3O8 of global production from 2005.

Production comes from two large mines operated by French energy giant Areva (ARVCF-O) in partnerships with the government of Niger. The Akouta underground operation (which produced 4.62 million lbs. U3O8 in 2005) and the Arlit open pit (which produces 3.42 million lbs. U3O8 annually) both rank among the world’s 10-largest uranium mines.

Underground mining at Akouta is conducted through the entity Cominak (owned 34% by Areva, 31% by the Niger government, 25% by Japanese company OURD and 10% by Spanish company Enusa). Operations at the mine began in 1978; more than 48,000 tonnes of uranium has been produced there from ore averaging 4.5-5 kg uranium per tonne (about 0.5% uranium). The deposits, situated about 250 metres below surface, currently produce about 2,000 tonnes of uranium in concentrates annually.

Open-pit operations at Arlit, conducted by Somair (63.4%-owned by Areva and 36.6%-owned by the Niger government), have produced about 40,000 tonnes of uranium since 1971, with an average grade of 2 kg per tonne (about 0.2% uranium). Current annual production is about 1,300 tonnes of uranium in concentrates from multiple open pits averaging about 70 metres deep.

Uranium mineralization at both deposits, situated in the western border region of the Air (Massif) Mountains in north-central Niger, is sediment-hosted within the Tim Mersio sub-basin of the Iullemmeden sedimentary basin, which unconformably overlies a granitic basement complex. The deposits currently being mined at Akouta are hosted in a conglomerate unit, while at Arlit, uranium is primarily hosted in a sandstone formation.

Somair has also tabled plans for a second mining operation (employing in situ leaching) at Imouraren — a large, but lower-grade deposit estimated to contain about 80,000 tonnes (176 million lbs.) of recoverable uranium in material grading about 0.11% uranium.

With about two-thirds of its uranium concentrates sold to Areva and one-third to the Spanish and Japanese partners, Niger provides about 12% of total European uranium supply.

Despite its producing history of more than 35 years, Niger receives little recognition from uranium explorers — although a few are now testing the waters.

Toronto-based Northwestern Mineral Ventures (NWT-V, NWTMF-O) holds a pair of 2,000-sq.-km exploration licences, In Gall and Irhazer, located in the Agadez area of north-central Niger. The properties display similar geology to Areva’s deposits.

An airborne geophysical survey has identified favourable fault structures with potential to concentrate uranium mineralization in the sediment host rocks. The company plans to begin a drill program in the spring.

North Atlantic Resources (NAC-T, NOATF-O) acquired a single 2,000-sq.-km uranium exploration licence in early 2006. Its Abelajouad project is also in the Arlit region and situated about 5 km west of the Imouraren deposit. North Atlantic has a number of active gold projects under exploration in neighbouring Mali.

Bayswater Uranium (BAY-V, BAYFF-O) holds four uranium exploration licences in the sub-Saharan country totalling more than 7,800-sq. km. The adjacent Tikikitene and Eghizi concessions, and the Anwala and Emi Lulu properties are all within 60 to 400 km of the Arlit-Akouta mine area.

This year, Bayswater plans to compile all available information from previous exploration work on the properties, then perform a high-resolution airborne radiometric survey and follow-up ground surveys.

Another Canadian junior, Greencastle Resources (VGN-V, GRSFF-O), reports having three uranium concessions under application in Niger. The explorer also has two gold concessions in the country under option to Orezone Resources (OZN-T, OZN-X).

In mid-2006 the Niger government also awarded a Chinese group of companies, led by China National Uranium Corp., uranium licences at Madaouela and Teguidda. Madaouela, in the Arlit region, is estimated to contain about 6,200 tonnes (13.6 million lbs.) of uranium while the Agadez-region Teguidda deposit hosts an estimated 12,800 tonnes (28.2 million lbs.) of uranium.

The Chinese consortium is reportedly advancing the deposits toward production.

Niger’s uranium industry hit the spotlight in 2002, when U.S. and British intelligence groups alleged Iraq was seeking to buy yellowcake from the country for a nuclear weapons program.