![SRK Consulting](https://cisp.cachefly.net/assets/articles/images/resized/0001107600_resized_310.jpg)
+27 11 441 1111
SRK House, 265 Oxford Road, Illovo, 2196, South Africa
![](https://cisp.cachefly.net/assets/articles/images/resized/0001140419_resized_engineeringnewsesgsolvedcoverimage1152x250.jpg)
Madaouela uranium project, Niger – update
![](https://cisp.cachefly.net/template/en2016/images/spacer_large.gif)
![Location map of the Madaouela uranium project](https://cisp.cachefly.net/assets/articles/images/resized/0001145610_resized_lithiummadaouelanigergoviex.png)
Photo by GoviEx Uranium
Name of the Project
Madaouela uranium project.
Location
Agadez region, northern Niger.
Project Owner/s
GoviEx.
GoviEx holds 80% in COMIMA SA, the Nigerien company established to develop the project, and the Nigerien government 20%, of which 10% represents a free-carry interest.
Project Description
The project hosts one of the biggest uranium resources in the world, with 100-million pounds of uranium in measured and indicated mineral resources, and inferred resources of 20-million pounds of uranium.
The mineral resources comprise the Miriam, M&M, MSNE, MYVE, MSEE and MSCE sandstone-hosted uranium deposits.
The project is based on a self-sustaining operation, including process plant and renewable power supply, without any reliance on third-party facilities.
Mining operations are planned to be based on standard truck-and-shovel openpit mining for the Miriam deposit at one-million tonnes a year of ore feed to the process plant.
The M&M and MSNE-Maryvonne deposits are planned to be mined as two separate underground room-and-pillar operations. M&M will be mined first, after the completion of the Miriam openpit operation, with MSNE-Maryvonne to be mined after M&M.
At both underground operations, the mine development and ore-production operations are planned to be mined using conventional drill-and-blast methods. The process plant is designed around two-stage acid leaching to maximise uranium and molybdenum recovery while reducing overall acid consumption. Plant feed is designed at one-million tonnes a year, with ore initially crushed before milling.
Life-of-mine uranium production is estimated at 50.8-million pounds of uranium, averaging 2.67-million pound of uranium a year over 19 years.
Potential Job Creation
The project is expected to create up to 800 skilled and semiskilled jobs over its forecast 20-year mine life. Madaouela is also expected to contribute substantial royalty payments and taxes to the Nigerien government.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $140-million and an internal rate of return of 13.3%.
Capital Expenditure
$343-million.
Planned Start/End Date
Not stated.
Latest Developments
The government of Niger issued GoviEx with a letter on July 5, stating that the company no longer had rights over the perimeter of the mining permit.
GoviEx has indicated that this decision does not follow the withdrawal procedure prescribed under the applicable mining code.
The Niger government’s decision came despite GoviEx’s very best efforts, spanning almost two decades, which have transformed Madaouela from an exploratory venture into one of the world’s largest-known uranium deposits.
“Since acquiring our licence, we have navigated through extreme uncertainty and withstood periods of historically low uranium prices,” GoviEx has said.
The company is ready to escalate development, having secured expressions of interest totalling $200-million for project-related debt financing in 2023.
It has started construction of an access road, and prepared for initial groundworks, terracing and exploitation; and received its environmental- and social-impact assessment certificate.
GoviEx is prepared to pursue all necessary legal avenues to defend its rights and protect its investments, and notes that it has formally written to the Ministry of Mines to contest the decision and seek an amicable solution as per Niger’s Mining Convention.
“We are starting the process to secure independent assessments of damages related to the withdrawal of our mining rights,” the company has said.
The need for clean energy, coupled with uncertainty regarding energy security and a structural deficit in uranium supply, will result in the uranium market’s continuing to require new projects to meet demand.
While uranium is an abundant metal, the company has added that permitting a uranium mine can take decades.
Key Contracts, Suppliers and Consultants
SRK Consulting and SGS Bateman (feasibility); and Endeavour Financial (financial adviser).
Contact Details for Project Information
GoviEx Uranium, tel +1 604 681 5529 or email info@goviex.com.