Forsys Metals rearing to go
Forsys Metals this week announced that it had completed its feasibility study for its Norasa project. Salient points emanating from the completion of the study include; a material increase in Mineral Reserve estimates, and reduced operating costs amongst others.
“Norasa is one of the very few uranium projects in the world that is construction ready with a mining licence,” said Marcel Hilmer, Chief Executive Officer of Forsys Metals. “The completion of the feasibility study confirms the robustness of Norasa’s economics. The feasibility study delivered a number of outstanding results, including increases in tonnage, annual and life of mine production whilst lowering operating costs. We believe that the study results will attract strategic partners and investors, and provide us with alternatives for the next phase of Norasa’s development.”
A material increase in Mineral Reserve estimates to 90.7 million pounds uranium oxide, up 14.8% from 79 million per pound uranium oxide as of October 2013. The changes to the Mineral Reserve estimates are primarily as a result of the addition of 10.7 million pounds uranium oxide of reserves from the Namibplaas deposit, using a 140 parts per million cut-off grade according to the feasibility study.
The operating costs per pound are estimated to average US$32.96 per pound uranium oxide over the first five years of production and US$34.72 per pound uranium oxide over the life of the mine. The updated cost estimates represent a significant reduction from the 2013 Engineering Cost Study estimates of US$34.76 and US$38.20 per pound uranium oxide, respectively the study found.
The Norasa production schedule has been modified to incorporate the updated Mineral Reserves and to include a processing rate increase to 11.2 million tonnes per annum, up from 8.2 million tonnes per annum in 2010. Estimated annual production over the 15 year life of mine is approximately 5.2 million per pound uranium oxide according to projections made emanating from the study.