Dumont Nickel-Cobalt Project — A Robust, Long-Life Nickel-Cobalt Sulphide Project

The Dumont Nickel-Cobalt Project is the 3rd largest nickel reserve in the world, the 5th largest nickel sulphide discovery ever (largest since 1960), and one of the largest cobalt resources outside of Africa. Additionally, the project is structurally low-cost, large-scale, shovel-ready, and once in production, will be the largest cobalt operation in North America.

The jurisdictionally advantaged, fully-permitted and community-supported project will have a mine life of approximately 33 years with an initial production of 73 million pounds of nickel and 2.3 million pounds of cobalt contained in concentrate annually, with an expansion in year 5 to 113 million pounds of nickel and 4.3 million pounds of cobalt annually.

Cobalt Potential

Dumont - World Class Cobalt Potential


1 Billion Tonne Reserve + Upside Potential


1 Billion Tonne Reserve + Upside Potential


RNC Mineral’s Nickel Roasting Approach: A Significant Breakthrough

RNC’s strategic alliance with Tsingshan led to the development of the first integrated nickel pig iron (“NPI”) plant to directly utilize nickel sulphide concentrate as part of the stainless steel production process through concentrate roasting. Roasted nickel concentrate is effectively a very high grade laterite ore feed which effectively creates a new source of demand for nickel sulphide concentrate, notably at a time when many NPI and ferronickel producers face feed shortages as a result of Indonesia’s nickel ore export ban.

RNC Minerals: End Notes

The Dumont Project is a 50/50 joint venture limited partnership with Waterton Global Resource Management, funded with US$35M in capital commitments to develop Dumont and acquire additional nickel assets, and backed by Waterton’s two largest funds with a total of US$1.725B in committed capital.

The joint venture’s objective is to establish a pure-play nickel company with multiple projects operating in stable jurisdictions.

How We Buy Stocks

How We Buy Stocks
1.) We buy stocks at or near the bottom of their respective cycles. When they revert a little, we sell them and use the proceeds to buy other stocks at cycle lows. We do this over and over and over again. That’s it.

2.) And because we know beyond a shadow of a doubt that we aren’t the brightest investors on Earth, we diversify in spite of its probable impact on alpha, and we ignore anything without a substantial perceived margin of safety.

The Bottom

If there is one thing we have learned, it is this: whether or not one can pick a bottom correctly does not also forecast one’s ability to survive it. A tiny fraction come out of those sorrowful valleys alive and with their spirits intact. [LINK]


We perceive the stocks of which our portfolio is composed as ‘inventory,’ like a warehouse filled with fur coats. It’s not personal and we’re not married to any of it. Pace of turnover at a profit is one of the chief metrics whereby which we measure performance. [LINK]

GVXXF : GoviEx Uranium (TSXV: GXU) Stock Research Report

Vancouver-based GoviEx Uranium Inc. is a growing Africa-focused uranium company with a strong shareholder base, a robust project development pipeline, jurisdictional diversification, considerable exploration potential, and one of the largest resource bases among publicly listed peers, with combined National Instrument 43-101 Measured & Indicated resources of 131.7 Mlbs U308 plus Inferred resources of 76.9 Mlbs U308.

Mineral Properties

Madaouela Uranium Project (Niger)

  • Located ~10 km south of Arlit, and Areva’s mining subsidiaries of Cominak and Somair, in north central Niger
  • Deposits hosted within sandstones of the Tim Mersoi Basin
  • Approved Mad 1 Mine Permit (Jan 2016), and ESIA (July 2015)
  • Infrastructure includes: road access, labor, ground water and available grid power
  • Integrated Development Plan (PFS) updated August 2015
  • Probable mineral reserves are 60.54 Mlbs U3O8
  • Uranium Recovery forecast at 93.7%
  • Cash Operating Cost forecast at 24.49 USD/lb U3O8
  • Startup Capital Expenditure of USD 359 million
  • NPV post all taxes and royalties, and for 100% of the Madaouela Project at US$70/lb U3O8 and 8% discount rate of US$340 million
  • Further recovery and cost optimization to be focus of future studies
Classification Tons (Mt) Grade (kg/t eU3O8) eU3O8 (t) eU3O8 (Mlb)
Measured 2.14 1.79 3,835 8.45
Indicated 14.72 1.43 21,000 46.30
Inferred 5.04 1.17 5,908 13.02
Measured 9.62 1.08 10,397 22.92
Indicated 2.68 0.79 2,112 4.66
Inferred 0.58 1.33 773 1.70
Indicated 5.05 1.61 8,111 17.88
Inferred 0.10 1.34 13 0.29
Indicated 1.23 1.79 2,195 4.84
Inferred 0.42 1.66 703 1.55
Inferred 0.72 1.81 1,308 2.88
Inferred 1.45 1.64 2,373 5.23
La Banane
Indicated 1.5 1.64 2,589 5.71
Inferred 1.15 1.18 1,358 2.99
TOTAL MEASURED 11.76 1.21 14,232 31.37
TOTAL INDICATED 25.25 1.43 36,007 79.39
TOTAL INFERRED 9.46 1.33 12,554 27.66

The Madaouela Uranium Project is situated southeast of the mining town of Arlit, and the Marianne-Marilyn deposit is located approximately 9km from Arlit. The land surface of the tenement forms a rectangle of less than 250km2.


Topographic relief in the Madaouela tenements is minimal, a few tens of meters from high to low. Areas of drilling are at approximately 430m elevations. Over much of the areas drilled, relief is less than 15m from low ridges of sandstone outcrops to essentially flat sand covered plains.


Niger is landlocked and almost entirely located within the semi-desert belt of Western Africa. Its climate is characterized by very scarce rainfall, mostly concentrated during the summer months (July to September), and with very hot temperatures notably at the end of spring (April to June).


The proximity of the town of Arlit and Akokan are an asset for Madaouela permits. The towns have over 160,000 people supporting local mining operations with airports, drilling companies, electricity, potable water and a hospital. Arlit is connected to the Southern part of Niger via the so-called “uranium-highway” through Agadez and Tahoua to Niamey, the Niger capital further south. A power line connects the town to the Sonichar coal-fired power station located North of Agadez. Access by plane is possible through an airstrip in Arlit and also Agadez.


The French Commissariat à l’Energie Atomique (CEA) discovered the Madaouela uranium mineralized areas in the early 1960’s. They conducted drilling operations using drilling grids of 800 down to 100m, over vast areas of the permit. The discovery of the Marilyn deposit was then drilled locally at 50m. CEA sunk a 67m deep shaft and drove 330m of drifts within the mineralized formation. The simultaneous discovery of the Somaïr uranium deposits was responsible for the decision to stop all works at the Madaouela site.

PNC, the Japanese Pacific Reactor and Nuclear Fuel Development Corporation, took over the CEA tenement in 1980 in association with ONAREM, a Niger State-Owned Organization. PNC conducted additional uranium exploration work up to 1992 and produced a report on the feasibility of the Madaouela deposit in 1993, which was later updated (1999) by the Japan Nuclear Cycle Development Institute, the new company name for PNC. Very few drill holes (less than 20) were drilled by PNC in Madaouela I, and none on Marianne or Marilyn. The feasibility study was fully based on CEA drill holes. In 1999, the economic assumptions and data for the 1993 feasibility study were updated and concluded that underground mining could be cost-effective, provided the uranium price stabilized at the US$27-28/lb U308 level.

A Chinese company (CNUC) took over Madaouela and held the land from 2003 to 2006. They drilled a limited number of holes and departed, apparently because they could not access the original CEA data. Little exploration work seems to have been carried out until GoviEx Niger Holdings Ltd (GNH Ltd.) took over the property in 2007.

Regional Geology

The Madaouela property is located in the Tim Mersoi Basin. This basin covers most of the western part of the Republic of Niger with extensions in Algeria, Mali, Benin and Nigeria. In early Paleozoic, an open gulf developed to the south of the Central Saharan Massif and fed continental sediments to the developing basin. During the Mesozoic and Tertiary, the area was mainly continental, periodically invaded by marine transgressions diminishing in thickness to the south and passing laterally into continental series. Uplift movements beginning in the Middle Eocene gave the basin its present aspect.

Pre-Carboniferous sedimentation consists of Cambro-Ordovician sandstones and graptolite shales. These formations are of major interest because they host the major reduced uranium deposits in the Arlit area. The stratigraphic sequence begins by the grey-black Talak Visean argillites. It consists of black shale. This is overlaid by the Guezouman formation that includes a lower and an upper member. The lower member is composed of fine- to coarse-grained cross-bedded sandstone units with minor conglomerates (Teleflak). The upper member consists of fine sandstone, siltstone and shale units.

Geological Structures

West dipping units mark the structure of the Tim Mersoi basin. The deformation of the sedimentary body resulted from basement fault activities located between the Air Massif and the Azaoua lineament. Several large faults systems cut the sediments and have played a major role during the sedimentation.

The main structure is the Arlit fault. It has been active during the sedimentation, especially during Carboniferous time, and has been reactivated several times. All the major uranium deposits are located immediately to the east of the fault.

The Madaouela fault shows similar characters, with a large uplift of the North- western compartment (Quart-de-brie) that is situated across the GoviEx Madaouela tenements. In Anou Melou the Airlet and Madaouela fault converge and present GoviEx with a clear future exploration target.

Mineralization is always localized at the contact between the Guezouman sandstone and the underlying Talak argillite. The mineralization is located on the flank of the channel, following the reducing unit of the Talak, and always associated with coarse sandstone of the Guezouman.

In 2012 GoviEx geologists made a major scientific breakthrough and discovered the La Banane deposit as a result of its area exploration program. This discovery has had a major impact on the exploration philosophy in the Tim Mersoi basin as the La Banane deposit is situated in the Madaouela sequence of sandstones where previously it was not envisaged that uranium mineralization could significantly occur.

Deposit Type

Sandstone-hosted uranium deposits occur in permeable medium-coarse grained sandstone, usually deposited in continental fluvial or marginal marine sedimentary environments. The source of uranium is usually igneous or volcanic rocks either in close proximity to or inter-bedded with the sandstone units. The uranium mineralization typically precipitates from oxidizing fluids, under reducing conditions caused by a variety of reducing agents. The reducing agent for Madaouela is most likely in-situ organic material (lignite) or hydrocarbons transported along major fault. The main primary uranium minerals are uraninite and coffinite with minor secondary uranium minerals being noted in exposed (weathered) mineralization.

Sandstone deposits are an important source of uranium representing approximately 30% of the world’s known uranium resources and accounting for over 18% of the African uranium deposits in 2007. This style of uranium deposit typically yields small to medium size individual deposits (10,000 to approximately 50,000t of U3O8) characterized by low to medium grade (0.05 to 0.5% U3O8), but deposits typically occur in clusters.

Mineralized Zones

The Marianne-Marilyn deposit is a nearly flat tabular body of mineralization that spans approximately 5km by 2km across in plan, and the deposit thickness varies from 0.2 to over 2m (average thickness of about 1m). The mineralization occurs at depths from about 30m on the east-end of Marilyn, to approximately 60m in depth in the middle of the Marianne-Marilyn deposit, up to 120m in depths on the west extensions of Marianne.

The MSNE deposit is approximately 4 km south of Marianne-Marilyn with Maryvonne deposit in between. The geology of these deposits is very similar to Marianne-Marilyn. Ore depth ranges from 100 m to 160 m across the deposits. Miriam deposit was discovered in 2011 and is located in the Southern portion of Madaouela I tenement. The ore is 20 to 30 m in thickness at Miriam and at a depth of 60 to 80 m

Adjacent Properties

There are currently two producing mines in the Arlit region that are on property positions immediately adjacent to the Madaouela Uranium Project. Both mines are subsidiaries of Areva and have operated uninterrupted since starting production:

  • Somaïr: operates an open pit and an acid leaching plant since 1968 producing 1,500t uranium annually and have recently started a heap leaching operation; and
  • Cominak: operates underground and has its own acid leaching plant to produce more than approximately 2,000 tpy uranium.
Exploration Drilling

Exploration is undertaken with mud-rotary drill rigs that drill 120mm diameter holes. Historical drill holes have been located where possible in the field, and re-drilled with this larger diameter drill bit, and re-logged. GoviEx is therefore relying of GoviEx data from historical drill holes, not historical data.

In uranium exploration, the usual technique consists in:

  • Measuring the radioactivity in the drill holes using dedicated probes; and
  • Transforming the radioactivity into uranium grade (equivalent uranium grade (eU or eU3O8)

Core drilling is therefore done with the rotary drill rig as conventional drilling to collect core from the mineralized horizons for assay comparisons with gamma probe eU308 determinations.

GoviEx exploration approach is complete surface mapping and sampling along traverse lines approximately 1.6 kilometres apart. Data collected during these traverses includes geological mapping and radioactivity measurement on regular spacing.

Once areas of exploration interest have been defined the Company commences with a wide spaced drilling program starting at 400mx 400m, and based on these results exploration drilling continues but on a decreasing spacing towards those required for resource classification.

Based on analysis Inferred material is where the drilling density of the deposit is 200m x 200m or lower, while Indicated material is defined a nominal drillhole spacing of 100m x 100m. GoviEx has reduced drillhole spacing to as low as 25m x 25m in large parts of Marianne- Marilyn and Miriam.

Mining Operations

Three primary mining targets are defined for future possible development : the Marilyn and Marianne deposits that are located adjacent to each other along a 6.5km NE-SW strike length, the MSNE and Maryvonne deposits and the Miriam deposit to the south of the Madaouela I license.

The Marilyn/Marianne deposits are shallow with depths below surface from 30m in the NE to 120m in the SW, while the MSNE/Maryvonne deposits are approximate 160m in depth. The deposits are generally flat lying (0-15° slope) with thicknesses varying from 1-3m. Tabular deposits such as these generally lend themselves to room and pillar type mining methods.

The mineralized material will be mined using low profile mining equipment capable achieving mining heights of 1.8 m. Panel development will be undertaken using 7 m wide drifts. A primary pattern of 17 m x 17 m pillars will be developed during the initial advance through the panel. On retreat from the extremities of the panel, each 15 m x 15 m pillar will be split by 7 m drifts to leave four 5 m x 5 m pillars.

The mineralized material is transported by LHD to the conveyor feeder that is located at the entrance to the panel, where initial crushing will occur. The crushed material is to be transported by conveyor to a coarse ore stockpile situated before the process plant. A panel mining fleet will consist of a single boom face drill, a ground support jumbo with fully automated rockbolt installation and a 3m3 bucket capacity LHD.

While the Miriam deposit is approximately 60 m to 80 m deep, but has a greater thickness up to 30m with local grades over 1% U308 thus containing the highest grade*thickness (GT) in four main seams (11, 21, 31 and 41) that coalesce locally in a redox front system. The mining of Miriam is planned to be by open pit operations inline with that under taken at Areva’s Sominak mine.


Mined ore is transferred to the run of mine (“ROM”) stockpile. Feed preparation consists of primary crushing with the ore then routed to radiometric ore sorter (“ROS”) where by the radiometric selection ore is pre-concentrated to provide a higher grade material. Following the ROS stage the ore is secondary crushed and mixed with water to produce a slurry for the Ablation stage, where two slurry streams are impacted together to form a high impact energy zone that separates fine heavier uranium minerals from the host rock. The combination of ROS and Ablation results in a 810tpd of feed for feed to the leaching circuit, with approximately 97% of the uranium that was contained in the initial 4020 tpd mined feed.

The two stage leaching circuit consists of primary and secondary agitated leach tanks in recirculation. In the first stage solution from the second stage belt filters is recirculated to leach the fresh feed after which the slurry is thickened with the thickener overflow routed to the uranium recovery circuit as pregnant leach solution (“PLS”). The thickener underflow is routed to the second stage leach, which uses fresh acid to further leach the milled solids. After the second stage the slurry is filtered and the filtered solids residue is washed with fresh solution and discarded to the tailings disposal system.

Leach tanks are agitated and aerated to allow the milled ore to react with sulfuric acid allowing dissolution of the contained uranium. The solution from leach (thickener overflow) is routed to uranium recovery. Uranium recovery from the neutralised PLS takes place through Solvent Extraction (“SX”).

SX is undertaken using a new process to recover both molybdenum and uranium from acidic solutions using CYANEX® 600 extractant. The overall circuit configuration would consist of two extraction steps, one stripping step for iron, two stripping steps for molybdenum, an ammonia washing step and two uranium stripping steps. A wash stage swill be used after the Uranium strip to prevent phosphoric acid transfer. Phosphoric acid will be recovered through an evaporation step in order to reduce reagent requirements. Additional uranium recovery will come from this step through a bleed stream that would feed back into the solvent extraction process.

As a result of the Cyanex 600 solvent the Madaouela Project will be able to produce molybdenum oxide and uranium oxide in a saleable form.

SRK completed a technical economic analysis for the project. The economic analysis results indicate an after-tax Net Profit Value (“NPV”) of USD340 M at an 8% discount rate with an Internal Rate of Return (“IRR”) of 21.9%. Payback will be in production Year 3.

The proposed base case envisions a 2.69 Mlb per year U3O8 yellowcake production rate, and an 93.7% ultimate recovery; generating an eighteen year mine life and a total production of 45.6 Mlb U3O8. The project economics are at a long-term uranium price of USD 70 /lb U3O8. Initial capital costs are estimated at USD 359 M, total LoM capital costs at USD 676 M, and cash operating costs of USD 24.49 /lb U3O8 excluding royalties, and USD 31.49 /lb U3O8 including royalties.

Mutanga Uranium Project (Zambia)

  • Located ~200 km south of Lusaka, immediately north of Lake Kariba, at elevations of 500 metres – 960 metres
  • Resource (September 2013) of10.3Mt @ 0.034% U3O8 (7.8Mlbs U3O8 contained) in the measured and indicated, and 65.2Mt @ 0.03% U3O8 (41.4Mlbs U3O8 contained) in the inferred category
  • Mutanga, Dibwe and Dibwe East deposits defined to date
  • Uranium deposits hosted within sandstones of the Escarpment Grit Formation of the Karoo Super Group
  • 25 year mine license; based on open-pit mining + heap leach
  • Considerable technical and environmental work completed to date
  • Infrastructure includes: road access via 39 km gravel road, ground water and available grid power (~60 km away)
Category Tonnes U3O8 (ppm) U3O8 (Mlbs)
Indicated 8.4 314 5.8
Inferred 65.20 287 41.4

The Mutanga Uranium Project consists of three main deposits; Mutanga, Dibwe and Dibwe East, which make up the bulk of the Mineral Resources described herein. There are also three minor deposits called Mutanga East, Mutanga Extension and Mutanga West. In addition several other mineral prospects have been identified.

The Mutanga Project area is situated in the Southern Province of Zambia about 200 km south of Lusaka immediately north of Lake Kariba, approximately 31 kilometres northwest of Siavonga. GoviEx acquired 100% of the Mutanga Project (“the Project”) in 2016 from Denison Mines Corp. (“Denison”). Denison had acquired 100% of the Project in 2007 through the acquisition of OmegaCorp Limited (“Omega”).

The Mutanga Project is currently comprised of two mining licenses (13880-HQ-LML and 13881-HQ-LML) encompassing 457.3 square kilometres. The mining licenses have a term of 25 years to April 2035.

Geological Setting

Regionally, the Karoo Supergroup is a thick succession of late Carboniferous to late Triassic terrestrial strata deposited across much of what is now southern Africa. The Karoo Supergroup comprises at least six regional depositional sequences, which reflect broadly synchronous episodes of basin subsidence and climate change, but vary considerably in detail from one sub-basin to another. Karoo strata typically overlie Precambrian crystalline basement rocks.

Three formations in the Lower Karoo Supergroup in the mid-Zambezi Valley of southern Zambia and four in the Upper Karoo Supergroup have been identified. The Late Carboniferous – Permian Lower Karoo Supergroup consists of the basal Siankondobo Sandstone Formation, overlain by the Gwembe Coal Formation, in turn overlain by the Madumabisa Mudstone Formation. The Triassic – Early Jurassic Upper Karoo Supergroup is sub-divided into the Escarpment Grit, overlain by the Interbedded Sandstone and Mudstone, the Red Sandstone and the Batoka Basalt Formation.

The Escarpment Grit sandstones are interpreted to be fluvial deposits, but they record a major change in fluvial style. Maps produced in the 1970s show southwesterly directed paleocurrents in the “Braided Facies” throughout most of the Mutanga region. The relatively small variance in paleocurrent direction, prevalence of trough cross-bedded sandstones, pebbly sandstones and conglomerates and lack of laterally extensive beds all support interpretation of the “Braided Facies” sandstones as braided stream deposits.

In the overlying “Meandering Facies” member, thick, upward-fining sandstone beds with cross-bedding and ripple lamination; locally capped by mudstones which can be traced laterally for hundreds of meters, are likely point-bar and flood plain deposits.

The uranium mineralisation identified to date appears to be restricted to the Escarpment Grit Formation (“EGF”). Dibwe East is predominantly composed of EGF. The surface geology is characterised by a few scattered sandstone outcrops. Two major units can be distinguished, the “Braided facies” member (EGFb-f) of the lower EGF and the “Meandering facies” member (EGBm-f) of the upper EGF in core, the two units appear to be transitional from one another. The “Braided Facies” is distinguished in outcrop as gritstones, very-coarse-grained to coarse grained sandstones and pebbly sandstones. Ripple lamination is common and mudstone beds are laterally continuous.

Mineralization appears to be later than at least some of the normal faults which cut the Escarpment Grit Formation. This is evident from the good correlation of the radiometric logging data between adjacent holes within the Mutanga mineral deposit separated by interpreted faulting.

The source of the uranium is believed to be the surrounding Proterozoic gneisses and plutonic basement rocks. Having been weathered from these rocks, the uranium was dissolved, transported in solution and precipitated under reducing conditions in siltstones and sandstones. Post lithification fluctuations in the groundwater table caused dissolution, mobilization and redeposition of uranium in reducing, often clay-rich zones and along fractures.


In 2006 a detailed aeromagnetic and radiometric survey (Symons and Sigfrid, Report on the Interpretation of Aeromagnetic and Radiometric data 2006) was completed over the areas of interest which were revealed during an earlier pre-digital airborne survey. The 2006 survey has confirmed the position and tenor of the existing targets and identified additional, targets.

Prior to Omega/Denison involvement, AGIP and the Zambian geological survey undertook drilling across the Mutanga project area.

The drill program consisted of 14,794 metres of drilling (50 diamond holes for 6833 metres, 119 percussive (wagon drill) holes for 6998 metres and 83 percussive (shallow wagon drill) holes for 963 metres.

In 2006, 11 diamond drill holes were drilled by OmegaCorp to twin previous drilling at the Mutanga mineral deposit. Results confirmed the broad tenor of the historical U3O8 intercepts. Work was also carried out at Bungua, Mutanga and at Dibwe.

During 2007 to 2008 Denison completed work on the Mutanga mineral deposits, focussing on the Mutanga area and the Dibwe area in particular. The work included an appraisal of all available data (maps, plans, sections, limited geological interpretations and radiometrics and AGIP resource estimations). From this information Denison produced several databases covering Mutanga and other prospects.

After a two year delay due to suspension of exploration activities, a two phase drilling campaign resumed in April, 2011. Phase 1 drilling on Dibwe East and Mutanga West targets commenced in April and ended in July 2011 with 72 holes being drilled for a total of 7,564 m. The results for Phase 1 confirmed the continuity of uranium mineralization identified in 2008 drilling program at Dibwe East with a northeast-southwest strike length greater than 2.5 km. Results from the Mutanga West target still require further evaluation and are not considered material to the current Mutanga West resource.

Based on the encouraging results obtained with the Phase 1 drilling over the Dibwe East Zones 1 and 2 targets, a Phase 2 drilling program of 74 holes totalling 7,732 m was completed between August-October 2011. This drilling program discovered primary mineralization at depth and it also increased the strike length to 4.0 km.

Exploration for uranium typically involves identification and testing of sandstones within reduced sedimentary sequences. The primary method of collecting information is through extensive drilling (both RC and diamond drill coring) and the use of downhole geophysical probes. The downhole geophysical probes measure the electrical properties of the rock from which lithologic information can be derived and natural gamma radiation, from which an indirect estimate of uranium content can be made. The downhole geophysical probes measure conductivity, resistivity, self-potential, SPR, deviation and natural gamma. Geophysical probe data was collected from drilling over the property.

Metallurgical Test Work

Metallurgical test work (2012) has been completed by Mintek, South Africa on Dibwe East Deposit drill core samples. Denison supplied Mintek with 18 drill core samples, which were sourced from three different zones over Dibwe East. The test work included head sample characterization and preliminary bottle roll leach tests.

The average grade of samples was 586ppm U3O8. This is higher than the grades of the Mutanga (237 ppm U3O8) and Dibwe (247 ppm U3O8) mineral deposits.

Bottle roll leach tests (-25mm samples) yielded averaged uranium extractions of 85% which are comparable to results achieved for Mutanga (85%) and higher than for Dibwe (75%).

Leaching of fine milled material on six of the drill core samples achieved similar uranium extractions as for the – 25 mm samples. Therefore it appears that the uranium-bearing minerals of the Dibwe East samples are reasonably accessible to leaching at a crush size of -25 mm.

The average acid consumption of 10 kg/t for the Dibwe East samples is comparable to that of Dibwe (12 kg/t); both being higher than for Mutanga (2.3 kg/t).

Falea Uranium, Silver and Copper Project (Mali)

  • Located within the Falea – North Guinea-Senegal Neoproterozoic Basin, ~80 km from Areva’s Saraya East uranium deposit
  • Three licenses: Bala; Madini; Falea
  • In addition, Falea contains 63Mlbs Cu and 21Moz Ag
  • Only 5% of the 225 km2 land package has been explored
  • Most known ore zones remain open for exploration
  • Considerable technical and environmental work completed to date
  • Forecast underground mining operation
  • Process route includes recovery of copper and silver
  • Road and air access, including a gravel airstrip on-site
Category Tonnes U3O8 (MT) Cu (%) Ag (g/t) U3O8 (Mlb) Cu Ag (Moz)
Indicated 6.88 0.115 0.161 72.8 17.4 24.4 16.11
Inferred 8.78 0.069 0.200 17.3 13.4 38.7 4.9

The Falea uranium, silver and copper project is located in Mali, West Africa in the Prefecture of Kenieba, District of Kayes.

The Property is approximately 350 km west of Bamako, the capital of Mali, and approximately 240 km south of the city of Kayes. The nearest town is Kenieba, which is an 80 km drive north from the Property. The Project is located approximately 80 km to the east of AREVA’s Saraya East uranium deposit in Senegal and approximately 13 km along trend from Merrex Gold Inc.’s Siribaya gold deposit.

GoviEx acquired the Property from Denison Mines Corp. (Denison) in June 2016. Denison acquired the Property following completion of the acquisition of 100% of Rockgate Capital Corp. (Rockgate) in January 2014.

The Property comprises three contiguous exploration permits, namely the Falea, Bala, and Madini Permits. The Mineral Resources occurring within the Bodi, Central, North, and East Zones are wholly contained within the Falea Permit.

The total surface area of the Falea Permit in terms of the Exploration Rights is approximately 7,500 ha. The Madini Permit adjoining to the east covers an area of 6,700 ha and the Bala Permit adjoining to the south covers an area of 12,500 ha.

Geology and Mineralization

Mineralization at the Property is hosted in the Neoproterozoic to Carboniferous sedimentary sequence of the Taoudeni Basin, a shallow interior sag basin with flat to very shallow dips. The Taoudeni Basin is located over a large portion of the West African Craton between the Reguibal Shield to the north and the Leo Shield to the south and encircles the Pan-African Belts to the west and east. The Taoudeni Basin is underlain by the Birimian greenstones which have been intruded by uranium-bearing Saraya granites.

The deposition of the Taoudeni Basin sedimentary sequence within the Project area was largely controlled by north-south and east-southeast trending structures. The orientation of the structural trends is coincident with the structural orientations within the Birimian greenstones. A dolerite sill ranging in thickness from a few metres to more than 160 m is present throughout most of the basin, intruding 65 m to 120 m above the Kania sandstone and forming prominent cliffs in the area.

Most of the mineralization at Falea occurs in the flat lying Kania sandstone, which is underlain and overlain by argillaceous units. The Kania sandstone is located near the bottom of the Taoudeni Basin sequence. The mineralization is interpreted as an unconformity type uranium deposit, since it is associated with the unconformity between the Kania sandstone and the underlying Birimian greenstones.

Four main mineralized areas have been identified, the North Zone, the Central Zone, the East Zone, and the Bodi Zone. The North, Central, and Bodi zones are further subdivided into the North Upper and North Deep, the Central Upper and Central Deep, and the Bodi Upper and Bodi Deep areas. The subdivisions of the Upper and Deep areas are based on their positions relative to the cross-cutting Road Fault.

Some of the highest grade uranium mineralization occurs in the Plateau Edge Structure (PES), a northwest trending zone of higher grade uranium-silver-copper mineralization which extends from the southeastern flank of the North Upper Zone, past the Road Fault, to the plateau edge and then parallel to it. Higher grade silver mineralization seems to be related to areas where northeast trending structures intersect the PES.

Exploration and Development History

Uranium, silver, and copper mineralization at Falea was first discovered by COGEMA in the 1970s at the Central Zone. Drilling by Rockgate began in the Central Zone and progressed northward, resulting in the discovery of the North Zone in late 2007 and the high-grade Plateau Edge Structure (PES) in late 2009.

The North Zone discovery was significant because it hosts higher uranium grades than Central Zone in addition to strong silver grades associated with native silver mineralization throughout much of the zone. The PES is a northwest-trending zone of thick, high-grade uranium-silver copper mineralization running along the northeastern margin of the North Zone. The zone hosts higher grades and thicknesses than North Zone proper and sits adjacent to the plateau edge.

From January to August 2011, 160 diamond drill holes totalling 45,691 m focused on resource definition in the North Zone and initial exploration drilling at Bala, south of Central Zone, East Zone, and Road Fault. The program resumed in October 2011 running through July 2012 and comprised 398 diamond drill holes totalling 88,350 m. Drilling continued to infill and step-out on the North Zone, and expanded north into the Bodi Zone. An additional 44 diamond drill holes were completed at the East Zone and 19 more at the Central Zone as part of an expanded resource definition program.

In October and November 2012, a total of 15,936 m was completed in 66 diamond drill holes located in the Bodi and North Zone areas. Almost all work to date has been completed on the Falea Permit.

Deposit Type

The Falea deposit is interpreted as an unconformity-associated uranium deposit, using a polymetallic egress model for the geological model. The unconformity at Falea is between the Birimian and overlying sedimentary sequences. The egress model was applied due to the presence of the Road Fault, which could have introduced fluids into the sandstones.

Unconformity-associated deposits are high-grade concentrations of uranium that are located at or near the unconformity between relatively undeformed quartz rich sandstone basins and underlying metamorphic basement rocks.

The compositional spectrum of unconformity-associated uranium deposits can be described in terms of monometallic (simple) and polymetallic (complex) end-members on the basis of associated metals. Polymetallic deposits are typically hosted by sandstone and conglomerate, situated within 25 m to 50 m of the basement unconformity. Polymetallic ores are characterized by anomalous concentrations of sulphide and arsenide minerals containing significant amounts of nickel, cobalt, lead, zinc, and molybdenum. Some deposits also contain elevated concentrations of gold, silver, selenium, and platinum-group elements.

Mineral Processing and Metallurgical Testing

In March 2010, Rockgate commissioned SGS South Africa (Pty) Ltd (SGS) to perform mineralogical characterization and deportment analysis of a composite sample from the Falea Project. The Summary and Discussions and Conclusions sections of the SGS report (SGS, 2010) focuses on the liberation characterization, flotation response and/or leaching efficiency in general of the sample, and how this could impact the mineral processing at Falea.

The grading analysis completed indicates that uranium, silver, sulphur, and base metals preferentially upgrade into the finer fractions. The silver displays no up- or downgrading in the 106 μm fraction.

The uranium-phases are dominantly U-silicates and U-oxides, both of which are readily leachable by acid leaching. Leach tests indicated approximately 90% dissolution of uranium after 48 hours, however, after six hours, the uranium dissolution was already at 86%.

The silver is present as native silver and silver-sulphide. Both minerals will dissolve in a cyanide solution, however, the silver-sulphide (acanthite) dissolves at a much slower rate than native silver. Only 77.56% of the silver was dissolved after 48 hours during the leach testwork. The leach kinetics may be improved by employing a stronger cyanide solution, however, the presence of chalcopyrite and pyrite may increase ferricyanide consumption. Due to the very fine-grained nature of the silver-phases, it is expected that finer grinding (to approximately 80% -65 μm) will improve silver recoveries.

Copper is present in low concentrations (approximately 0.16%). Copper is predominantly hosted by chalcopyrite and lesser chalcocite/covellite. A small amount of copper is also hosted in a silver-sulphide phase. Since chalcopyrite is not acid soluble, the acid leach recovery of copper is poor (approximately 17% after 48 hours), however, at a grind of 80% -75 μm, chalcopyrite is well liberated (>90% liberated and high middlings). Pyrite, the main sulphide mineral, exhibits similar degrees of liberation at this grind. Therefore, sulphide and copper recovery by flotation is expected to be high. Preliminary flotation tests indicated approximately 95% copper recovery with a mass pull of 11%, resulting in a copper grade of approximately 1.7%. Cleaning of this rougher concentrate to achieve the required saleable grades appears possible.

In March 2011, the Australian Nuclear Science and Technology Organisation (ANSTO) was appointed to complete the metallurgical testwork for the Falea Property. The following> summary of mineralogy and metallurgical testwork commissioned by Rockgate is taken from Rockgate’s 2013 Annual Information Form.

The Falea deposit is polymetallic, containing significant quantities of uranium, silver, and copper. The uranium is present as an oxide (U3O8) and is leachable with either acid or alkaline. The silver is present as either elemental or sulphide. The copper is present as both leachable and non-leachable (refractory) forms in varying proportions.

For the current flowsheet proposed the first step would be flotation of the ore and then an alkaline leach on both the flotation concentrate and the flotation tails.

Subsequent work indicated that the most suitable process would be Alkali leach, followed by Counter Current Decantation (CCD), Ion Exchange (IX) and Sodium Diuranite (SDU). The test work indicated an overall recovery of 90% uranium, including 99% recovery from the sulphide concentrate, using MgO as the precipitant. The precipitated uranium is recycled to the alkali circuit. Overall silver recovery of 88% has been achieved, including 97% silver recovery in the cyanide leach. Overall copper recovery of 73.5% has also been achieved, including 90% recovery from solvent extraction from the float concentrate.

African Energy — Zambian Uranium Assets

On October 30, 2017, GoviEx announced the completion of its transaction to acquire the uranium mineral interests of African Energy Resources Ltd. in Zambia. The combination of African Energy’s Chirundu and Kiraba Valley tenements with GoviEx’s Mutanga Project unites these neighboring properties and significantly expands and improves the potential economies of scale. A Preliminary Economic Assessment based on the consolidated land holding is forthcoming.

The Chirundu and Kariba Valley properties include a mining license, a prospecting license, and a pending exploration license. The Chirundu mining license covers two uranium deposits – Gwabe and Njame – containing Joint Ore Reserves Committee (JORC) mineral resources of 7.4 Mlbs U3O8 in the Measured and Indicated categories, plus 3.8 Mlbs U3O8 in the Inferred category.

The Chirundu and Kariba Valley properties, combined with the Mutanga Project, represents a regional consolidation and will result in contiguous tenements of approximately 140 km in strike length, including three mining licences, containing combined Mineral Resources of 15.2 Mlb U3O8 in the Measured and Indicated categories and 45.2 Mlbs U3O8 in the Inferred category. Sections between the known deposits remain under-explored with a number of prospective drill targets that could further expand GoviEx’s NI 43-101 resource.

With the conclusion of the transaction, GoviEx has one of the largest combined uranium Mineral Resource bases amongst its peer group, with combined Measured and Indicated Resources of 131.7 Mlbs U3O8 and Inferred Resources of 76.9 Mlbs U3O8 estimated in accordance with NI 43-101.

Major Shareholders

GoviEx -- Strong Sponsorship

Proposed Development Strategy

GoviEx Proposed Development Strategy

Developer Peer Group Comparison (Enterprise Value/lb.)

Developer Peer Group Comparison (Enterprise Value/lb.)

Management Team

Daniel Major (Chief Executive Officer)
  • Career spans over 25 years in the mining industry.
  • Solid track record initially with Rio Tinto at the Rössing Uranium Mine in Namibia.
  • Formerly mining analyst with HSBC Plc as well as JP Morgan Chase & Co. based in in London.
  • Chief Executive and later Non-Executive Chairman of Basic Element Mining and Resource Division in Russia.
  • Leadership positions in several Canadian listed mining companies with exploration and producing assets in Canada, and South America.
  • Mining engineer from the Camborne School of Mines in the UK.
Aminou Boukary (Country Manager, Niger)
  • Over 10 years of experience in the Niger mining sector.
  • Prior to joining GoviEx in 2007, was Country Administration Manager for the Exxon Mobil – Petronas JV from 2002 through 200.7
  • Background includes complex logistics management, strategic planning, public relations, human resources management, organisational management, and professional translation.
  • Holds degrees from Sophia Antipolis Technopole (DESS – MBA, Management/Marketing), Nice University (MA, English Studies) and University of Cambridge (Translation).
  • Also holds various certificates in Health, Safety, Environment and Security Awareness.
Jerome Randabel (Chief Geologist)
  • Geologist with over 20 years experience, with the last 13 years specialising in the exploration and development of uranium deposits.
  • Worked on projects in Australia, Botswana, Kazakhstan, Kyrgyzstan and the US.
  • Chief Mine Geologist at the Beverley Uranium Mine in Australia.
  • Successfully completed numerous technical reviews of a number of projects in Bulgaria, Mongolia, Australia and Niger on behalf of various companies.
  • Worked in senior technical positions for several mid to small cap companies as well as operating his own contract and consultancy service.
  • Graduate of the University of Adelaide, South Australia, where he earned a Bachelor of Science with Honours in geology.
Rob Bowell (Technical Advisor)
  • Geochemist with 27 years experience.
  • Background in applied geology in tropical and deeply weathered terrain’s and mining consulting in the fields of due diligence, financial and technical audits, process chemistry, environmental geochemistry, environmental engineering and mineralogy.
  • Specializes in the application of chemistry and mineralogy to solve engineering problems.
  • Specialization in uranium, copper and REE deposits.
  • Experience in North America, South America, Greenland, Africa and in Eastern Europe.
  • Holds bachelors degree in chemistry and geology from University of Manchester, as well as PhD in Geochemistry from University of Southampton.

Investment Rationale

  • Strong shareholder base.
  • Experienced directors and management team.
  • A growing Africa-focused uranium company with a defined project development pipeline and increased jurisdictional diversification.
  • One of the largest combined uranium Mineral Resource bases amongst its peer group.
  • Considerable exploration potential with several drill-ready targets defined at each property.
  • Mining permits granted in Niger and Zambia – mining countries recognized for good infrastructure and mining history.
  • Significant metallurgical test work and engineering studies completed on its development assets providing GoviEx with an opportunity to build a strong development pipeline.
  • Uranium demand driven by nuclear energy growth forecast at 3% per annum average.
  • China nuclear energy capacity from 30 GWe to 130 GWe by 2030, 240 GWe by 2050.
  • India growing from 5 GWe in 2014, to 17 GWe in 2024 and 63 GWe in 2032.
  • Japan restarts slow to begin, but still targeting approx. 20% of long-term power mix.
  • Saudi Arabia planning 17 GWe of capacity by 2040 and small nuclear reactors for desalination.
  • Uranium production to decline unless new mines developed.
  • All-in breakeven cost for uranium mines estimated at US$40 and US$50/lb U3O8.
  • Higher uranium price required to maintain current production and to incentivize new production.

Source: Fintel.io

DYLLF : Deep Yellow Limited (ASX: DYL) Stock Research Report

Deep Yellow Limited Profile

Deep Yellow Limited is an advanced-stage uranium exploration company with a clear growth strategy to establish a multi-project global uranium development platform. Led by Paladin Energy founder John Borshoff, Deep Yellow Limited has the expertise and capability to achieve its strategy during a countercyclical period for uranium investment.

Deep Yellow Limited has a cornerstone suite of projects in Namibia, a top-ranked African mining destination with a long, well regarded history of safely and effectively developing and regulating its considerable uranium mining industry.

Deep Yellow Limited holds four key contiguous Exclusive Prospecting Licenses (EPLs) covering 1,590km2 within the heart of what is a world-recognized, prospective uranium province of high significance. The tenements are strategically located amongst the major uranium mines of this region — 20km south of the Husab/Rössing deposits and 40km southwest of the Langer Heinrich deposit.

Corporate Strategy

Deep Yellow Limited has a two-pronged growth strategy involving the development of its existing uranium resources in Namibia and its newly-discovered Tumas 3 deposit (March 2017). In parallel, Deep Yellow Limited will pursue accretive, counter-cyclical acquisitions to create a multi-project uranium platform. This will be conducted with a proven team led by John Borshoff who was appointed CEO & Managing Director in October 2016. This is an experienced senior management group with a unique historical record of accomplishment.

Key Achievements

  • Landmark $3.4 million joint venture with Japan Oil, Gas and Metals National Corporation (JOGMEC), the minerals investment arm of the Japanese government, over two tenements in Namibia where JOGMEC can earn 39.5%.
  • A new palaeochannel uranium discovery made on the 100%-owned Reptile Project (Tumas 3) with a further 100km of untested prospective palaeochannel targets delineated.
  • First 10,000m drill program at Tumas 3 identified extensive uranium mineralization having potential to upgrade the current Mineral Resource base.
  • Completed a successful $11.5 million capital raising, with the support of the Sprott Group, providing the base for future exploration and acquisition growth plans.

Namibian License Status

  • Post reporting period, renewal confirmations were received for Exclusive Prospecting Licenses (EPLs) 3496 and 3497 (Reptile Project) granting tenure for a further two year statutory period until 5 June 2019.
  • Renewal confirmations were received for EPLs 3669 and 3670 (Nova JV project) granting tenure until 19 November 2019.
  • Application has been made for a Mineral Deposit Retention License (Yellow Dune JV project) to secure the Aussinanis uranium resource within EPL 3498.

Mineral Properties

Namibian Operations

Deep Yellow Limited holds an interest in three key projects in Namibia: Reptile, the Nova Joint Venture (NVJ) and the Yellow Dune Joint Venture (YDJV) project. Reptile and NJV are active exploration projects, YDJV is non-active and these projects are described below. Reptile Mineral Resources and Exploration (Pty) Ltd (RMR – wholly-owned subsidiary of Deep Yellow Limited) is the manager of all projects.

New Exploration Focus

With the change in management of the Company in late October 2016 and redirection of exploration effort on its Namibian projects to discover larger uranium deposits, the Marenica test work program (referred to later in this overview) was discontinued and a new approach was initiated. The calcrete-associated uranium mineralization in the Tumas 1 and 2 areas including the Tubas zones was reassessed. This work enabled a better understanding of the stratigraphy of the surficial cover units that can host the calcrete uranium mineralization. Improved geological characterization of the prospective palaeochannels isolated specific uranium target areas to test for increasing the uranium resource base of the project. Reinterpretation of the historic geological and drill-hole data and previous geophysical survey work identified several new prospective areas in the eastern and central parts of the palaeodrainage system in the Tumas 3, S Bend and S Bend East areas.

Importantly, the reinterpretation of existing regional data delineated 120km of palaeochannel considered prospective for this Langer Heinrich-type mineralization across the Reptile project area. The Tumas 1 & 2 deposit, and the Tubas Red Sands/calcrete deposits, contain substantial resources in the Measured, Indicated and Inferred JORC resource categories previously reported and all occur within this extensive palaeodrainage system. The newly defined 120km palaeochannel system has identified an extensive exploration target of which only 25km has been adequately tested.

Tumas 3 Uranium Discovery

In July 2017, a 10,000m drilling program was completed at the newly discovered Tumas 3 prospect on EPL 3496. The RC drilling commenced in March and was completed in early July. A total of 400 holes for 10,545m was drilled. All holes were down-hole gamma logged by a fully calibrated AUSLogger and all down-hole gamma data were converted to equivalent uranium values in ppm (eU3O8ppm).

The drilling of the Tumas 3 target zone has delineated 4.4km of uranium mineralization in calcrete rich fluvial sediments occurring within the prospective palaeochannel system. Of the 400 drill holes defining the new discovery, 284 returned positive results (defined as greater than 100ppm U3O8 over 1m) – a 71% success rate.

The Tumas 3 mineralization remains open to the west and east. This, in addition to some outlying mineralized holes from previous drilling, strongly justifies continuing with extension drilling to determine the full extent of the Tumas 3 discovery. This new uranium discovery adds significantly to the uranium deposits that Deep Yellow Limited has already identified within these palaeochannels in its Tumas 1 & 2 and Tubas Red Sands/calcrete deposits.

A zone of continuous uranium mineralization has been delineated with equivalent uranium grades eU3O8 ranging from 101ppm to 0.71% (7100ppm) eU3O8 over 1m occurring within the 4.4km section tested to date. The mineralization remains open to the west and east and is defined as anything having a grade thickness (GT) of greater than 100ppm eU3O8 over a 1m interval. These GT values (eU3O8ppm x thickness in meters) are shown in contoured form in Figure 1 and highlight the robust, open nature of the uranium mineralization. Also shown in Figure 2 is a SW-NE drill hole cross section indicating mineralization in relationship to palaeochannels.

Figure 1

Figure 1.

Figure 2

Figure 2.

The mineralized channel system that has been identified at Tumas 3 varies from 200m to 900m in width and uranium mineralization ranges in thickness from 1m to 12m occurring at depths varying between 1m to 21m.

The blind nature of the mineralization at Tumas 3, having no surface radiometric expression, highlights the opportunity for further discovery. Apart from the benefit gained by the re-interpretation of the existing airborne geophysical data delineating more accurately the broad outline of this prospective palaeochannel system, the actual discovery has only been possible by drilling.

The palaeochannels occurring away from these deposits have only been sparsely drilled along widely spaced regional lines 2km apart near Tumas 1, 2 and 3 occurrences. Elsewhere spacing varies widely with large areas undrilled, leaving ample opportunity for both expansion of Tumas 3 and for further discoveries to be made within what is now recognized as a very poorly tested, highly prospective palaeochannel system of 100km in length.

Renewal applications for EPLs 3496 and 3497 for a further statutory two years were submitted in March 2017 to the Ministry of Mines and Energy (MME), prior to their expiry date in June 2017. The Company received notification from the MME on 22 August 2017 that these renewals had been granted until 5 June 2019.

Nova Joint Venture (EPLs 3669, 3670)

JOGMEC Earn-In Agreement

The tenements EPL3669 and EPL3670 comprise the Nova Joint Venture (NJV) held in the corporate entity Nova Energy (Namibia) Pty Ltd in which Reptile Mineral Resources and Exploration (Pty) Ltd (RMR – wholly owned subsidiary of Deep Yellow Limited) holds 65% (Manager), Nova Energy Africa Pty Ltd (wholly owned subsidiary of Toro Energy Limited, ASX listed) 25% and Sixzone Investments (Pty) Ltd 10%.

On 29 March 2017 Deep Yellow Limited advised that it had entered into a strategic earn-in agreement with JOGMEC to participate in the NJV. The NJV adjoins Deep Yellow Limited’s 100% owned Reptile project (EPLs 3496, 3497) where significant uranium resources have been defined and reported. Under the terms of the NJV, JOGMEC is responsible for expenditure from 1 November 2016.

The NJV area is considered prospective for both basement related alaskite-associated uranium targets (e.g. Rössing/Husab), skarn-type (e.g. Inca) and palaeochannel-related surficial calcrete uranium targets (e.g. Langer Heinrich). JOGMEC, under the terms of the earn-in agreement, can earn a 39.5% interest in the project through the expenditure of $3.4M within four years. RMR will continue to be the NJV manager. Following the achievement of the JOGMEC earn-in, the new equity distribution in the NJV would be JOGMEC 39.5%, RMR 39.5%, Nova Africa 15% and Sixzone 6%.

JOGMEC will earn no equity unless it meets the full $3.4M expenditure obligation. The remaining JV participants will be free carried until this expenditure commitment is satisfied and thereafter, the other parties will be required to contribute on a pro-rata basis (except for Sixzone, whose 6% share will be carried and paid back from future dividends).

JOGMEC is a Japanese Government organization that collaborates with governmental agencies and companies, both domestically and overseas, to secure stable supplies of natural resources and energy for Japan. JOGMEC carries out exploration activities through joint venture with overseas exploration companies. For projects that generate promising results, JOGMEC’s position in the project may then be transferred to Japanese companies with reduced exploration risk. Projects are selected based on geological potential, quality of management, mining investment environment (including safety) and Japanese companies’ interest. The organization has entered into more than 100 projects in the past 12 years and currently has more than 25 active joint ventures, spanning grassroots exploration through to pre-feasibility level projects.


Ground geological and geophysical follow-up of the anomalous zones have commenced to define the drill target locations for the 6,000m drilling program planned to start in the last quarter of 2017. The geophysical work on the basement targets included pole-dipole induced polarization (PDIP), ground radiometric, electromagnetic (EM) and magnetic surveys.

Ground geophysics is being utilized to better establish the location of the palaeochannels identified previously in more broad form from airborne EM data interpretation. This work on palaeochannel definition includes ground magnetics, gravity, EM and passive seismic surveys.

Basement Targets

Airborne magnetic imagery is effective at mapping rocks prospective for alaskite and skarn-type deposits, and contributed significantly to the discovery of the world-class Husab deposit. A 40km strike length of prospective rock units has been identified in EPL3669 and 3670 using airborne magnetic imagery. The previous exploration strategy was to use RC drilling as a front-line approach to test the prospective stratigraphy, which, although it led to the discovery of the Ongolo alaskite-type deposit, proved costly and time-consuming. A focus of the new work therefore, is to re-evaluate existing geophysical datasets with a view to identifying rapid and cost-effective geophysical exploration methods for target definition.

Uranium deposits in the area are associated with rocks that are rich in sulphide minerals, indicating that induced polarization (IP) surveys can be used to directly detect buried deposits of this type. Systematic, gradient-array IP (GAIP) surveys were carried out over prospective zones defined by magnetic imagery. The survey tested 15km of the previously defined alaskite associated target zones. Eight anomalies have been identified in total and are distributed equally between EPL3669 and EPL3670. The significance of these conductors will also be assessed.

Review of historic exploration data highlighted the Cape Flat alaskite target located in the north central part of EPL3670. This target is defined by a 4km long airborne radiometric anomaly and contains several EM conductors. Previous drilling returned an intersection of 55m at 133 ppm U3O8. This zone will be covered by GAIP and drill-tested.

Geological mapping was carried out in tandem with the geophysical data review and generated important new information, including significant revisions to the existing Geological Survey of Namibia geology maps. This will lead to improved targeting.

Surficial Calcrete Targets

Surficial, calcrete-type uranium deposits of the Erongo district are typically hosted within abandoned river channels referred to as palaeochannels. Defining these palaeochannels is a key step to discovering further surficial-type resources. The target definition work carried out identified surficial calcrete targets and these will be drill tested late 2017 to determine their prospectively.

Airborne electromagnetic surveys have proved to be effective at delineating these targets, probably due to high volumes of conductive, saline groundwater in the pores of the palaeochannel sediments. Many of the palaeochannels were previously unknown but the Skink prospect on EPL3670 was drill-tested by Aquitaine during the 1990s. Additional drilling is warranted, particularly in deeper sections of palaeochannel. A prominent NNW-SSE tending channel on EPL3669 seems particularly prospective as it drains a uranium-rich region to the North. This channel will also be drill tested.

Yellow Dune Joint Venture (EPL 3498)

The parties to the Yellow Dune Joint Venture (YDJV) are Yellow Dune Uranium Resources (Pty) Ltd, a wholly owned subsidiary of Reptile Uranium Namibia (Pty) Ltd (RUN) (85%), Oponona Investments (Pty) Ltd (10%) and Epangelo Mining Company (Pty) Ltd (5%).

Due to the depressed uranium market outlook, the fact that EPL3498 is considered fully explored and that there is no further potential for additional discovery to add to the existing resources that have been defined, an application has been made for a Mineral Deposit Retention Licence to secure the area containing the resource within EPL 3498. Economic studies show that a mining operation at the current prevailing low uranium prices is not viable.

Revised Mineral Resource Status

In October 2016, the Company provided the revised Mineral Resource Estimate for its Tumas 1 and 2 deposits. The Inferred Resource category remains unchanged at 0.3Mlb U3O8 resulting in a total Resource of 13.3Mlb. This work did however generate a 13% increase in the Measured and Indicated Resource categories.

Mineral Resource Estimates

The Company still has a number of Mineral Resource Estimates classified under JORC 2004 and has committed to progressively reviewing previously stated resources for the other deposits and bringing all resources up to JORC 2012 standard as indicated in Table 1.

Mineral Resource Statement (Table 1.)

Deposit Category U308(Mlb)
Basement Mineralization – Omahola Project – JORC 2004
INCA Deposit Indicated 7.2
INCA Deposit Inferred 6.2
Ongolo Deposit Measured 6.7
Ongolo Deposit Indicated 7.8
Ongolo Deposit Inferred 10.6
MS7 Deposit Measured 4.3
MS7 Deposit Indicated 1.0
MS7 Deposit Inferred 1.3
Omahola Project Sub-Total 45.1
Calcrete Mineralization – Tubas Sand Project – JORC 2012
Tubas Sand Deposit Indicated 4.1
Tubas Sand Project Inferred 8.6
Tubas Sand Project Total 12.7
Tumas Project – JORC 2012
Tumas Deposit Measured 8.2
Tumas Deposit Indicated 4.8
Tumas Deposit Inferred 0.3
Tumas Project Total 13.3
Tubas Calcrete Resource – JORC 2004
Tubas Calcrete Deposit Inferred 6.1
Tubas Calcrete Total 6.1
Tumas Project – JORC 2012
Aussinanis Deposit Indicated 2.7
Aussinanis Deposit Inferred 15.3
** Aussinanis Project Total** 18.0
Calcrete Projects Sub-Total 50.1

Source: Fintel.io

ANLDF : Anfield Resources (TSXV: ARY) Stock Research Report

Anfield Resources Profile

Anfield Resources is a uranium development and near-term production company that is committed to becoming a top-tier energy-related fuels supplier by creating value through sustainable, efficient growth in its energy metals assets. With the recent acquisition of 24 uranium projects in Wyoming, along with a Resin Processing Agreement to complement its existing conventional uranium mill and near-term production assets, Anfield is well-positioned to benefit from the growing global demand for energy.

Anfield Resources’ intent is twofold:

  • Advance its Wyoming properties in order to leverage the Resin Processing Agreement between Anfield and Uranium One
  • Restart its Shootaring Canyon Mill in Utah to process nearby uranium resources. As well, the potential development of vanadium assets is being evaluated.

Corporate Strategy

  • Participate in conventional uranium production to leverage larger-scale, longer-term production opportunities in a higher-price uranium environment.
  • Participate in ISR uranium production to leverage near-term production opportunities in a lower-price uranium environment.
  • Create a robust U.S.-based energy company, with significant potential production upside, through both organic growth and asset acquisitions.

Wyoming Properties

Anfield holds 2,667 federal mining claims, 56 Wyoming State leases and 15 private leases in Wyoming that cover 24 uranium projects in six active project areas:

  • Black Hills – one project
  • Great Divide Basin – seven projects
  • Laramie Basin – one project
  • Powder River Basin – nine projects
  • Shirley Basin – two projects
  • Wind River Basin – four projects

Anfield has also acquired a database of drilling and geologic work done by Uranium One that includes 575 drill holes totaling approximately 395,000 feet of drilling.

Shootaring Canyon Mill

Anfield Resources acquired the Shootaring Canyon Mill from Uranium One in 2015.

  • Located approximately 48 miles (77 kilometers) south of Hanksville, Utah.
  • One of three licensed conventional uranium mills in the United States.
  • Conventional acid-leach facility licensed to process up to 750 tons of ore per day.
  • Built in 1980; commenced operations in 1982 and operated for approximately 6 months; ceased operations due to depressed price of uranium.
  • During its period of operation, it produced and sold 27,825 pounds of U3O8.
  • Surface stockpiles at the facility include an estimate of 370,000 pounds of U3O8 at an average grade of 0.147%.

Historical Resources

Velvet-Wood Deposit

  • The most advanced asset in Anfield’s uranium portfolio.
  • Between 1979 and 1984 approximately 400,000 tons of ore were mined from the Velvet deposit at average grades of 0.46% U3O8 and 0.64% V2O5 (recovering approximately 4 million pounds of U3O8. and 5 million pounds of V2O5).
  • Some underground infrastructure is already in place at the Velvet mine, including a 3,500 ft. long, 12’ x 9’ decline to the ore body.
  • The historical mineral resources of the combined Velvet and Wood mines have been estimated to comprise 4.6 million pounds of U3O8 at an average grade of 0.285% U3O8 (measured and indicated resource) and 638,500 pounds of U3O8 at an average grade of 0.173% U3O8 (inferred resource).

Frank M Deposit

  • Located approximately 12 km north of the mill in Utah.
  • Historical mineral resource estimate of 2.2 million pounds of U3O8 at an average grade of 0.101%.

Breccia Pipes

  • The Findlay Tank Breccia Pipes are located in northern Arizona.
  • Findlay Tank Breccia Pipe: Historical mineral resource estimate (inferred) of 954,000 pounds of U3O8 at an average grade of 0.23%.
  • Average grade of breccia pipe deposits is typically higher than other U. S. uranium deposits.

Anfield Resources: Measured, Indicated and Inferred Uranium Resources (Includes Historical Resources)

Deposit Category U308 (lbs.)
Velvet (Utah) Measured 1,966,000
Velvet (Utah) Indicated 548,000
Velvet (Utah) Inferred 517,000
Wood (Utah) Measured
Wood (Utah) Indicated 2,113,000
Wood (Utah) Inferred 34,500
Red Rim (Wyoming) Measured
Red Rim (Wyoming) Indicated 1,142,449
Red Rim (Wyoming) Inferred 1,539,447
South Sweetwater (Wyoming) Measured 217,000
South Sweetwater (Wyoming) Indicated 66,200
South Sweetwater (Wyoming) Inferred 133,000
Clarkson Hill (Wyoming) Measured
Clarkson Hill (Wyoming) Indicated
Clarkson Hill (Wyoming) Inferred 939,888
Frank M (Utah) Measured
Frank M (Utah) Indicated 2,210,000
Frank M (Utah) Inferred 75,000
Findlay Tank (Arizona) Measured
Findlay Tank (Arizona) Indicated
Findlay Tank (Arizona) Inferred 954,000
Total M&I and Inferred 12,455,484

Source: Fintel.io

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