Forsys Metals Corp, (TSX:FSY) announced the result of a feasibility study for its Norasa uranium project in Namibia, which increased mineral reserve estimates to 90.7 million pounds of U3O8, up 14.8 percent from 79 million pounds U3O8 in October 2013.
Forsys Metals Corp. (TSX:FSY) announced the result of a feasibility study for its Norasa uranium project in Namibia, which increased mineral reserve estimates to 90.7 million pounds of U3O8, up 14.8 percent from 79 million pounds U3O8 in October 2013.
Highlights from the feasibility study:
- A material increase in Mineral Reserve estimates to 90.7 million pounds of U3O8, up 14.8 percent from 79.0 million pounds U3O8 as of October 2013. The changes to the Mineral Reserve estimates are primarily as a result of the addition of 10.7 million lbs of U3O8 of Reserves from the Namibplaas deposit, using a 140ppm cut-off grade.
- The operating costs per pound are estimated to average $32.96 per pound U3O8over the first 5 years of production and $34.72/lb U3O8over the life of the mine. The updated cost estimates represent a significant reduction from the 2013 Engineering Cost Study (“ECS”) estimates of $34.76 and $38.20/lb U3O8,respectively.
- The economic analysis results in an estimated pre-tax net present value (NPV) at a discount rate of 8 percent of $622.6 million (post-tax NPV $383.4 million). Using the initial investment and operating cash flows from inception, the pre-tax internal rate of return is estimated to be 32 percent.
- The Norasa production schedule has been modified to incorporate the updated Mineral Reserves and to include a processing rate increase to 11.2 million tonnes per annum (Mtpa), up from 8.2 Mtpa in 2010. Estimated annual production over the 15 year life of mine (LoM) is approximately 5.2 million pounds of U3O8.
Marcel Hilmer, CEO of Forsys Metals, commented:
Norasa is one of the very few uranium projects in the world that is construction ready with a Mining Licence. The completion of the FS confirms the robustness of Norasa’s economics. The FS delivered a number of outstanding results, including increases in tonnage, annual and life of mine production whilst lowering operating costs. We believe that the study results will attract strategic partners and investors, and provide us with alternatives for the next phase of Norasa’s development.