GoviEx Uranium has submitted an updated integrated development plan (IDP) for the Madaouela uranium project in Niger.
The new IDP, which generated higher net present value and reduced operating costs than April 2014 IDP, defines a large, low operating cost, commercially viable project in the Arlit uranium-mining district of northern Niger.
SRK Consulting (UK) prepared the IDP, which includes an average 2.69 million pounds per year U3O8 yellowcake production rate over a mine life of 21 years, with a 93.7% ultimate recovery of uranium.
The IDP is based on measured and indicated mineral resources of 110 million pounds (Mlb) U3O8 and 61 Mlb of probable mineral reserves.
The company expects an initial capital costs of $359m, and cash operating costs of $24.49/lb U3O8 including by-product credits and excluding royalties.
The project is an advanced stage property, for which Marianne, Marilyn, Miriam, MSNE and Maryvonne deposits have been developed to a high level of confidence, GoviEx said.
The Madaouela property is located in the Tim Mersoi basin, which covers majority of the western portion of the Republic of Niger with extensions in Algeria, Mali, Benin and Nigeria.
There are two producing mines in the Arlit region that are immediately adjacent to the Madaouela project.