GoviEx Uranium feasibility projects 19-year life, US$343M capex for Madaouela

GoviEx Uranium (TSXV: GXU) says its feasibility study for a mine in the West African country of Niger shows it may earn US$1.6 billion over its 19-year mine life. 

Production is forecast at 50.8 million lbs. of U₃O₈ over the life of the mine, averaging nearly 2.7 million lb. a year, the Vancouver-based company said in a press release today. 

GoviEx described the project, called Madaouela, as one of the world’s largest uranium resources, with 100 million lb. of U₃O₈ in measured and indicated mineral resources, plus inferred resources of 20 million pounds. 

"The (feasibility study) confirms the strength of the Madaouela project and its ability to deliver good economic results at a time when inflationary pressures are having a significant impact on the development of new projects and operating mines,” GoviEx executive chairman Govind Friedland said. “We maintain our projection to be able to start producing in 2025, subject to project financing.” 

The open pit and underground mine has a price tag of US$343 million. Using a U₃O₈ price of US$65 per lb. And a molybdenum price of US$11 per lb., the after-tax net present value (at an 8% discount rate) is estimated at US$140 million and the internal rate of return at 13.3%.