Global Atomic Corporation (“Global Atomic” or the “Company”),
(TSX-V:GLO) is pleased to provide an update on the exploration and
development program now underway at the Company’s 100% owned DASA
deposit (“DASA”) in the Republic of Niger, West Africa, as well as
its Turkish zinc operations.
Highlights:
- Commencement on January 22, 2018, of a 62 hole, 26,400 meter
drill program focused on step out and infill drilling at DASA to
both expand the current deposit and prepare the first area for open
pit mining.
- Exploration drilling of 11,200 meters in 20 drill holes on high
potential targets such as Azouza North East, also commencing on
January 22.
- Net proceeds of C$1.5 million raised following completion of
merger will fully fund the first phase of DASA development.
- In 2017, the Turkish zinc operations processed 62,000 dry
metric tonnes of electric arc furnace dust (“EAFD”), producing
approximately 33 million pounds of payable zinc in concentrate
(100% basis).
- The Turkish steel industry is improving and the Company expects
its zinc operations to maintain a high production rate throughout
2018.
- Positive cash flow from the Turkish zinc operations is expected
during 2018.
DASA Exploration UpdateGlobal Atomic has
commenced a 37,600 meter drill program for 2018 designed to test
the northeast and southwest extensions of the current high grade
zone at DASA and to better define current areas of known
mineralization. Previous drill holes have returned up to
2.4% U3O8 over 12.7 meters, including 4.6
meters at 5.9% U3O8, as well as thicker mineralized
sections of up to 94.5 meters grading 4,462 ppm (0.44%
U3O8).
Upon completion of the drill program, the
Company intends to complete a Feasibility Study, mine plan and
Environmental Impact Statement to obtain the required permits for
production in order to start delivery of ore to AREVA Mines SA
(“AREVA”) as per the Memorandum of Understanding signed with New
AREVA and announced August 1, 2017.
Stephen Roman, Chairman, President and CEO of
Global Atomic, commented “The completion of the merger with
Silvermet and concurrent equity raise has enabled Global Atomic to
increase its pace of development at DASA. The current drill
program is expected to better define the high grade nature of the
deposit and position Global Atomic as one of the premier, high
grade uranium developers globally. Early production from a
high grade open pitable resource will be defined over the coming
months in order to begin mining operations and ore shipments to
AREVA’s mill in Arlit as soon as all the requirements for
production are met.”
Turkish Zinc Operations UpdateThe
zinc recycling plant in Iskenderun, Turkey operated at 100%
capacity for the majority of 2017, processing a total of 62,000
tonnes of EAFD. High plant utilization and excellent zinc
prices are expected to contribute to solid earnings from this
operation.
Global Atomic receives cash flow from its Turkish zinc
operations through its 49% share of the following:
- Annual dividend payment based on net free cash flow. The
dividend is typically declared in March and paid in Q2;
- Quarterly management fees of 3% of net revenues; and
- Sales commissions of US$20 per tonne of zinc concentrate
shipped.
Mr. Roman commented “With zinc prices at record
highs, we are generating very attractive returns from a well
operated asset. We have the opportunity to reinvest
those cash flows both in improving and expanding our Turkish zinc
operations as well as moving the DASA project towards production
status.”
QP StatementMr. George A. Flach, P.Geo., Vice
President of Exploration, has reviewed this press release as the
Qualified Person (QP) as defined in National Instrument 43-101.
About Global Atomic Global
Atomic is a publicly listed, TSX Venture traded, Ontario
Corporation, providing a unique combination of high grade uranium
development and cash flowing zinc concentrate production.
Global Atomic’s uranium assets include six exploration permits in
the Republic of Niger covering an area of approximately 750 km2.
Uranium mineralization has been identified on each of the permits,
with the most significant discovery being the DASA deposit situated
on the Adrar Emoles III concession, discovered in 2010 by Global
Atomic geologists through grassroots field exploration.
In a technical report dated July 31, 2017,
Perth, Australia based CSA Global Pty Ltd (“CSA”)
estimated the mineral resources for DASA as follows:
|
Tonnes(millions) |
U3O8(ppm) |
U3O8(million lbs) |
Indicated |
3.7 |
2,608 |
21.4 |
Inferred |
7.7 |
2,954 |
49.8 |
CSA estimated the mineral resource based on a
cutoff grade of 1,200 ppm
Global Atomic also holds a 49% interest the
Befesa Silvermet Turkey, S.L. (“BST”) joint venture, operating a
facility located in Iskenderun, Turkey that converts electric arc
furnace dust (“EAFD”) into a high grade zinc oxide concentrate sold
to zinc smelters throughout the world.
Global Atomic’s joint venture partner, Befesa
Zinc S.A.U. (“Befesa”), holds a 51% interest and is the operator of
BST. Befesa is a market leader in EAFD recycling, capturing
approximately 45% to 50% of European EAFD market with facilities
located throughout Europe and also Korea.
For further information, please contact:
Stephen G. Roman
George A. Flach, P.Geo.Chairman, President & CEO
Vice President,
ExplorationTel: (416) 368-3949
Tel:
(416) 368-3949 Email:
sgr@globalatomicfuels.com
Email: gaflach@globalatomicfuels.com
The Company’s new website www.globalatomiccorp.com is currently
being updated and will be launched shortly.
The information in this release may contain
forward-looking information under applicable securities laws. This
forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to
differ materially from those implied by the forward-looking
information. Factors that may cause actual results to vary include,
but are not limited to, inaccurate assumptions concerning the
exploration for and development of mineral deposits, political
instability, currency fluctuations, unanticipated operational or
technical difficulties, changes in laws or regulations, the risks
of obtaining necessary licenses and permits, changes in general
economic conditions or conditions in the financial markets and the
inability to raise additional financing. Readers are cautioned not
to place undue reliance on this forward-looking
information. The Company does not
assume the obligation to revise or update this forward-looking
information after the date of this release or to revise such
information to reflect the occurrence of future unanticipated
events, except as may be required under applicable securities
laws.
Photos accompanying this announcement are available at:
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