Impact: Very Positive
Global Atomic announced an updated mineral resource estimate (MRE) for its 80%-owned Dasa uranium project in Niger. The new estimate saw extensive resource conversion and outlined 10.1Mt at 4,926 ppm eU3O8 for 109.6M lbs indicated, and 4.4Mt at 5,349 ppm for 51.5M lbs inferred resources, using a 1,500 ppm cut-off grade and an underground-only mine model. We anticipate a considerable amount of these indicated resources to be upgraded to mineable reserves when included in the planned revision to Dasa’s mine plan and Feasibility Study (FS) by the end of this year. The previous study was completed at US$35/lb, while current prices are over US$50/lb, leaving room to lower cut-off grades further and increasing the size of reserves. Overall, this is a massive de-risking event. The new ~110M lb indicated resource should mostly convert to the mineable category, representing a doubling of the previous mineable resource, extending LOM. Grades also held up very well and should help maintain robust project economics (low costs). There was excellent replacement of low-grade surficial material as open pit material is removed from the resource given that underground mining is now being contemplated and thus a higher cut-off grade was used. The large, inferred resource also saw considerable grade improvement. This should provide for further conversion upside as these pounds will become a drill target. Meanwhile, underground ramp sinking continues with development ore anticipated to be reached in Q4/23. We await project financing (debt) details in the coming weeks.
