Could you comment on the key milestones achieved over the last 12 months at the Dasa uranium project in Niger?

We completed the excavation of the box cut and built our 150-man camp. Today we have a fully staffed mining team together with the required mining equipment and our contractor, CMAC-Thyssen, at the site. We also held the opening blast ceremony to mark the beginning of the Dasa Phase 1 underground development to produce yellowcake for delivery to utilities in early 2025. Phase 1, or the “Flank Zone” mining area, represents 20% of the 250-million-pound deposit.

In addition, we completed a 15,000 m drill program, which was initiated in September 2021 and due to excellent results, extended the program to 16,000 m. We are yet to update Dasa’a Mineral Reserve Estimate (MRE) from this campaign, however, based on our infill drilling, we estimate a significant upgrade in our Inferred Resources, which are expected to improve into the Measured and Indicated categories. In Q1 2023, we will publish our updated MRE, followed by a revised mine plan to reflect the higher resource later in 2023. Our Phase 1 Mine Plan is a small portion of the overall Dasa deposit, and, as the current drill program is indicating, we expect more resources will be converted into the Mineable Reserves category.

And finally, we engaged DCPL Inc., of India, and Lycopodium Minerals Canada Inc. to complete the detailed engineering and EPCM on the processing plant. On the project financing, we engaged London-based HCF International Advisors to assist through the process of completing a project debt package, as well as identifying two banks that are now engaged to provide this facility for our plant construction.

And when do you expect to start production?

Our plan is for the mill to be ready at the end of 2024 and the contracts signed with utilities currently envision we would start shipping yellowcake in 2025. To potentially start generating revenue earlier, we continue discussions with Orano Mining to directly ship ore from the Dasa mine to their Somair operation.

Could you remind our audience of the long-term timeline for fully developing the Dasa mine?

Scheduled to mine for 12 years, Phase 1, represents approximately 20% of the Dasa deposit, so, based on other large deposits in the region, it could have a 50-year mine life. The FS released last year includes the Flank Zone and some smaller zones for a production of 45.4 million pounds U3O8, over the 12-year Phase 1 period. As we complete more drilling and increase our Mineable Reserves through updated studies, our Phase 2 and potentially Phase 3, are expected to extend the Dasa operational life for many decades. The deposit remains open both on strike and down dip, as our recent exploration drilling has shown.

Global Atomic has incorporated a local mining company in Niger, known as “SOMIDA.” What is the corporate structure of the local company?

SOMIDA, is an acronym for “Société Minière de Dasa,” which is owned 80% by Global Atomic and the remaining 20% by the government of Niger – of which 10% is a free carried interest, typical in West Africa, with the other 10% funded by the Nigerien government. The Niger Government is fully supportive of the Dasa project and they have “Skin in the Game” with their participating interest.

How has the context for uranium changed in 2022?

There has never been a case in history where the world has adopted nuclear to the extent it does now. I believe we are entering a new era for clean, reliable, nuclear energy, which bodes well for uranium producers. Uranium prices have moved higher from our FS (done at US$35) and term contracts are now in the US$50-60 range. The value of Dasa will continue to appreciate in a rising uranium market.

Do you have a final message?

We delivered on all our milestones to date, despite difficult markets in the past, and we managed to keep share dilution to a minimum. Additionally, we retired our Befesa loan for the ultra-modern zinc recovery plant in Iskenderun, Turkey, that was built in 2019. The Befesa-Silvermet Joint Venture “BST”, has been a great source of cash flow for the partnership, which we expect will continue for many years.

Dasa is the largest and highest grade uranium deposit currently under development in Africa, with a unique geological model. We are excited to have started the underground development and look forward to transitioning from explorer to developer to a new uranium producer!