TORONTO, Aug. 14, 2019 (GLOBE NEWSWIRE) -- Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX: GLO, FRANKFURT: G12) is pleased to announce its operating and financial results for the second quarter (“Q2 2019”) ended June 30, 2019.
- Global Atomic lists on TSX Main Board, May 8, 2019
- The Turkish EAFD processing plant in Iskenderun is undergoing hot commissioning. The kiln has been fired and EAFD will be fed to the kiln by August 18, 2019
- Approximately 20,000 tonnes of EAFD has been stockpiled in BST’s warehouse and will enable operations at full capacity for the balance of the year
- The new plant is expected to generate free cash flow on the re-start with enhanced profitability
- An updated Mineral Resource Estimate (“MRE”) was completed by CSA Global Pty. Ltd. (“CSA Global”) for the DASA Project, highlighting the following increase in Indicated and Inferred Resources:
- Indicated Resource Increases by 56% to 101.6 million pounds eU3O8 at 1,752 ppm
- Inferred Resource Increases by 81% to 87.6 million pounds eU3O8 at 1,781 ppm
- The DASA Deposit remains open along strike and down dip and further expansion drilling is recommended by CSA Global
- The Turkish EAFD processing plant will resume full operations in September
- A Prefeasibility Study (“PFS”) is underway by CSA Global on the Indicated Resources suitable for open pit mining
- An Environmental Impact Study (“EIS”) is also being prepared as pre-requisite to receipt of a mining permit
- The Company expects to apply for the DASA Mining Permit in mid-2020 with permits expected to be issued Q4 2020
- Continued discussions with the French uranium producer, Orano Mining, under the Memorandum of Understanding, signed in July 2017, are ongoing. The Company is considering various options for the early delivery of ore to Orano
Base Metals Division Operations:
Hot commissioning of the Iskenderun plant is underway and EAFD will be fed to the kiln on August 18, 2019. The existing plant was closed in January 2019 to facilitate the construction of the new plant. During the shut-down period EAFD is being stored in a warehouse and an estimated 20,000 tonnes EAFD is available for start-up.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6eebf1e9-d9e3-482a-9c37-393c0dbdf02c
The economics of the new plant will be greatly improved as a result of the following:
- EAFD throughput increases from 60,000 tonnes to 110,000 tonnes EAFD
- Zinc recovery rates are expected to improve from 80% to 90%
- Zinc contained in concentrate will double from 30 million pounds/year to 60 million pounds/year based on full utilization
- Unit operating costs will be reduced
- Dependent on utilization rates and zinc prices, EBITDA is expected to increase by 2 to 3 times.
The Iskenderun plant will utilize the best available technology and process EAFD in a clean, environmentally sensitive manner.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0a2ce464-d239-4ce8-9287-603df2dd2ae5
Uranium Division Operations:
In December 2018, CSA Global was commissioned by Global Atomic to provide an updated NI 43-101 compliant Mineral Resource Estimate and PEA for the DASA Project, located in the Tim Mersoi Basin, Republic of Niger, West Africa.
The current MRE incorporates data from twenty-three additional holes that were not included in the December 2018 resource, plus chemical assay data from the diamond drilling program carried out 2017 to 2018. In addition, lithology and structural data derived from drill core was used to build a definitive geological model for the deposit. The additional data has enhanced the understanding and definition of the structural and stratigraphic boundaries of the resource, and accordingly a new Geological Model and a new Block Model have been generated.
Table 1. Constrained DASA Mineral Resources as at 1 June 2019
|Indicated Open Pit||25.59||1,711||96.5|
|Inferred Open Pit||18.93||1,357||56.6|
1. Mineral Resources are based on CIM definitions
2. Mineral Resources for pit constrained resources are estimated within the limits of an ultimate pit shell
3. Mineral Resources for underground resources are estimated outside the limits of ultimate pit shell
4. A cut-off grade of 320 ppm eU3O8 has been applied for open pit resources
5. A cut-off grade of 1,200 ppm eU3O8 has been applied for underground resources
6. A bulk density of 2.36t/m3 has been applied for all model cells
7. Rows and columns may not add up exactly due to rounding
As part of this MRE, CSA Global completed a conceptual pit optimization study based on the updated block model. The mineral resource above a 320 ppm cut-off was reported within the constraining conceptual optimized pit. The material outside of the pit-constrained resources was considered for extraction by underground mining methods and was reported at a higher cut-off of 1,200 ppm. Table 2 contains examples of tonnages and grades at varying cut-off values within the resource model.
Grade Tonnage Report
The overall unconstrained resources have increased at the DASA deposit reflecting improved geological understanding and confidence in the continuity of mineralization. Equally important is that the MRE uses a 320 ppm cutoff for open pit and 1,200 ppm for underground. Higher cut-offs can be utilized to mine higher grade ores during periods of low uranium prices. See Table 2 below.
Table 2. Sensitivity Analysis – Grade Tonnage Report at Varying Cut-Off Grades
Global Atomic is planning more detailed work with CSA Global on the Indicated Resources suitable for open pit mining, and on the Inferred Resources at depth which are more suited to underground mining. An announcement will be made once the scope and parameters of the studies are finalized. In parallel, the Company continues to discuss development options with Orano Mining.
The Company issued 2,329,546 stock options to Directors, Management, Employees and Consultants on August 14, 2019. Stock options are exercisable at $0.50 per common share for a period of five years from issuance.
George A. Flach, Vice President of Exploration, P.Geo. is the Qualified Person (QP) as defined in NI 43-101 and has prepared, supervised the preparation of, and approved the scientific technical disclosure in this news release.
The PEA was completed in accordance with NI 43-101, Canadian Institute of Mining, Milling and Petroleum (“CIM”) standards. The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative geologically to have economic considerations’ applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that PEA results will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
About Global Atomic
Global Atomic Corporation is a TSX listed company providing a unique combination of high grade uranium development and cash flowing zinc concentrate production.
The Company’s Uranium Division includes six exploration permits in the Republic of Niger covering an area of approximately 750 km2. Uranium mineralization has been identified on each of the permits, with the most significant discovery being the DASA deposit situated on the Adrar Emoles III concession, discovered in 2010 by Global Atomic geologists through grassroots field exploration. The DASA deposit is currently undergoing a feasibility program to study shipping mineralized material to Orano Mining’s operations in Arlit under an MOU signed with Orano in July, 2017.
Global Atomics’ Base Metals Division holds a 49% interest in Befesa Silvermet Turkey, S.L. (“BST”) joint venture, which operates a processing facility, located in Iskenderun, Turkey, that converts Electric Arc Furnace Dust (“EAFD”) into a high-grade zinc oxide concentrate which is sold to zinc smelters around the world. The Company’s joint venture partner, Befesa Zinc S.A.U. (“Befesa”, listed on the Frankfurt exchange under ‘BFSA’), holds a 51% interest in and is the operator of the BST joint venture. Befesa is a market leader in EAFD recycling, capturing approximately 50% of the European EAFD market with facilities located throughout Europe and Korea.
BST is well underway with an expansion project to significantly modernize and expand its processing plant in Turkey. The expansion is targeted to double annual production of zinc from 30 million lbs to 60 million lbs and is supported by EAFD supply currently available for processing in Turkey. The new plant is scheduled for completion by September 2019.
|Stephen G. Roman|
Chairman, President & CEO
Tel: +1 (416) 368-3949
Tel: +44 7803 712 280 Email:
The information in this release may contain forward-looking information under applicable securities laws. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Global Atomic’s development potential and timetable of its operating, development and exploration assets; Global Atomic’s ability to raise additional funds necessary; the future price of uranium; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", “targets”, "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Global Atomic to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Global Atomic and in its public documents filed on SEDAR from time to time.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Global Atomic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Global Atomic does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Global Atomic’s annual and interim MD&As.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.