TORONTO, Dec. 30, 2021 /CNW/ - Global Atomic
Corporation ("Global Atomic" or the "Company") (TSX: GLO)
(OTCQX: GLATF) (FRANKFURT: G12) reports that it has published and
filed the recently announced NI 43-101 compliant, Phase 1 Dasa
Project Feasibility Study (the "Study").
The Study confirms that the Project is economically compelling,
even at a price of US$35/lb
U3O8. Based on the Study, the strong
uranium market and anticipated uranium supply deficits, the Board
of Directors have made a production decision to proceed with the
Dasa Project.
The Study is focused solely on Phase 1, primarily comprised of
the Flank Zone, and represents the initial 12 years of the Project
and less than 20% of the Dasa mineralization, which has been
delineated through 160,000 metres of drilling since 2010. The
Study is an update from the Preliminary Economic Assessment (the
"PEA") filed in May 2020 and can now be found on www.SEDAR.com
as well as the Global Atomic website
(www.globalatomiccorp.com). The Study was completed by METC
Engineering of Johannesburg, South
Africa with contributions from Bara Consulting, Epoch
Resources and Insight R&D.
As stated in the news release of November
15, 2021, the Study estimates cash costs of $18.91/lb U3O8 inlcuding
royalties, and an all-in sustaining cost of $21.93/lb U3O8. Based on a
U3O8 price of $35/lb, the after-tax NPV8 was
estimated at $157 million for an
after-tax IRR of 22.7%. All monetary amounts are in U.S.
dollars.
Stephen G. Roman, President &
CEO commented, "The Phase 1 Dasa Project Feasibility Study is the
culmination of a large body of work and thorough study by our
consultants and internal team. On behalf of the Company's Board of
Directors, I thank them all for their extraordinary work.
"Although uranium prices have improved since the 2020 PEA and
are widely expected to continue rising, we purposely kept the base
case for this Study at US$35/lb for
comparative purposes and to highlight the superior economics of
Dasa compared to most uranium projects currently under
development.
"The completion of this Study sets the stage for the Company to
move forward with the construction of the mine, finalization of an
agreement to ship development ore to Orano Mining during
mine development, signing of initial offtake agreements and
completion of financing to build the Dasa processing plant by the
end of 2024."
About Global Atomic
Global Atomic Corporation
(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 includes four deposits with the
flagship project being 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.
Global Atomics' 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, Turkey. 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")
listed on the Frankfurt exchange
under 'BFSA', 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.
The information in
this release may contain forward-looking information under
applicable securities laws. Forward-looking information includes,
but is not limited to, statements with respect to completion of any
financings; Global Atomics' development potential and timetable of
its operations, development and exploration assets; Global Atomics'
ability to raise additional funds necessary; the future price of
uranium; the estimation of mineral reserves and resources;
conclusions of economic evaluation; the realization of mineral
reserve estimates; the timing and amount of estimated future
production, development and exploration; cost of future activities;
capital and operating expenditures; success of exploration
activities; mining or processing issues; currency exchange rates;
government regulation of mining operations; and environmental and
permitting risks. Generally, forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "is expected", "estimates", variations of such words and
phrases or statements that certain actions, events or results
"could", "would", "might", "will be taken", "will begin", "will
include", "are expected", "occur" or "be achieved". All information
contained in this news release, other than statements of current or
historical fact, is forward-looking information. Statements of
forward-looking information are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Global Atomic to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited to those
risks described in the annual information form of Global Atomic and
in its public documents filed on SEDAR from time to
time.
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Forward-looking
statements are based on the opinions and estimates of management at
the date such statements are made. Although management of Global
Atomic has attempted to identify important factors that could cause
actual results to be materially different from those
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance upon forward-looking statements. Global Atomic
does not undertake to update any forward-looking statements, except
in accordance with applicable securities law. Readers should also
review the risks and uncertainties sections of Global Atomics'
annual and interim MD&As.
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The Toronto Stock
Exchange has not reviewed and does not accept responsibility for
the adequacy and accuracy of this news release.
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SOURCE Global Atomic Corporation