GoviEx Receives Approved Mining Permit for Madaouela Project

GoviEx Uranium Inc. (CSE:GXU) is pleased to confirm that the Government of Niger has advised the company that its Mining Permit application for the Madaouela I tenement area has been approved by its Counsel of Ministers.
Highlights of GoviEx’s Madaouela Project IDP:

• The project development plan envisions an average 2.69 million pounds per year U3O8 yellowcake production rate over a 21-year mine life, 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 base case project economics for this project at a long-term uranium price of US$70/lb U3O8 are positive, and indicate an after-tax net present value of US$340 million (at 8% discount rate) with an internal rate of return (IRR) of 23.5% and a total life of mine (LoM) net free cash of US$1,126 million.
• Initial capital costs are estimated at US$359 million, and cash operating costs of US$24.49/lb U3O8 including by-product credits and excluding royalties. It is noted that molybdenum has not been included in the Mineral Resource model and hence is not considered to be at the same level of confidence as the uranium grades.

 
Govind Friedland, GoviEx’s Founder and Chairman stated:

This positive decision on behalf of the Government of Niger is the result of a decade of considerable effort by GoviEx and local stakeholders engaged on exploration, discovery, engineering, and the critical environmental and social aspect of this large and high-grade project. Since being awarded the exploration permits in June 2006, GoviEx has worked to achieve best international standards throughout the completion of the various technical studies. This decision of support is a stamp of approval for the quality of the work done to date by GoviEx, and the robustness of the Madaouela Project. We are extremely proud of the entire team who have helped the company and the State reach this important milestone.

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