This massive uranium deposit in Niger is almost shovel ready

POSTED ON January 28, 2015 BY Tommy Humphreys
CATEGORY GoviEx Uranium,

At the Vancouver Resource Investment Conference last week, CEO.ca caught up with GoviEx Uranium (CSE:GXU) CEO and engineer Daniel Major, with 25 years global mining experience, who works closely alongside GoviEx founder and Executive Chairman Govind Friedland.

The company is developing one of the largest uranium resources in Niger, the Madaouela project (Project Interactive, Corporate Presentation).

Mr. Major gave a quick overview of the uranium market at the moment before getting into the GoviEx story. The following is a transcript of the above video.

Daniel Major, CEO, GoviEx Uranium, Cambridge House transcript:

The biggest risk out there remains spot, and consistently. I think we're starting to see a change in this market.

If you look at the longer period of time, there was a real bull market in uranium, back ten years ago. The price ran, a lot of new projects came on stream, and then Fukushima happened, and Perestroika happened. The Perestroika part of it has gone away already, and you're waiting for the Fukushima part to unravel.

You've started to see the re-starts. We've always felt the first re-start would be the hardest re-start. The re-election of ruling party into the Japanese parliament, also is a major change and we will wait to see how aggressively they will make that stance to push uranium re-starts. At least the price is starting to pick up again, all of this month, every day we've seen price movement upwards.

GoviEx has the money already in its account to get through the medium to long term. We've got good backers, Toshiba Corporation is a major shareholder, they own 19%, they came in because they own Westinghouse, and Westinghouse wanted long term off-take.

We have 122 million pounds in the ground at .14% average grade. 100 million pounds of that is in M&I. We've done a full PFS that shows we can produce at $26 per pound.

The project is all based one 1 of our 7 licenses, so there's a lot of exploration potential around the property.

We're closed to Areva's operations, we have Somair and Cominak just to the north of us, 10km away. We have Imouraren just to the south of us with 200 million pounds of reserves.

We are in the right district. Niger has produced 7-8% of the world's uranium for the last 50 years.

For us, we've done the hard work, we've got the PFS, we're in the licensing process in the moment, filling the ESIA out, and we'll have a mining permit application by the middle of the year, hoping to get the mining license by the end of the year.

With the potential of the market growth, we're one of the few guys who can build a major project into that project.

We have done $150 million worth of investment already. We've done all the drilling to define the project. We're doing the permitting and it's short term permitting.

If you think the market is going to be slow, why would you not be investing in a company that's ready to go into the production side, rather than a company that has a lot of drilling to do and a long time for permitting?

We're undervalued relative to all of our Canadian peers so to me, it's an obvious investment choice.

-- Tommy again. Yesterday, GoviEx came out with important news. The company's ESIA will be filed in February and is the penultimate step before qualifying for its mining permit. Here's the news release: GoviEx Uranium provides update on its Environmental and Social Impact Assessment for the Madaouela Uranium Project in Niger

This is not a solicitation to purchase or sell securities. Always do your own due diligence. Additionally, this video and article may contain forward looking statements. Please read the GoviEx disclaimer.

Tommy Humphreys

Tommy Humphreys, 30, is an entrepreneur, investor and writer from Vancouver, Canada. He founded CEO.CA, a popular junior mining and Canadian finance blog, in 2012. He has been the president of Pacific Website Company Inc., a private marketing and web development company, since 2007. Tommy has authored articles for Globe and Mail, Financial Post and others. He speaks at select conferences. Reach him by email: tommy@ceo.ca. Follow him on Twitter: @TommyHump More →

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Tommy Humphreys

Twitter: @tommyhump

tommyhump@gmail.com

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