Global Atomic Fuels Corporation

Global Atomic Fuels Corporation

February 01, 2016 15:24 ET

Global Atomic Granted Uranium Permit Renewals by Government of Niger

TORONTO, ONTARIO--(Marketwired - Feb. 1, 2016) - Global Atomic Fuels Corporation ("Global Atomic" or "the Company"), a private Ontario corporation, is pleased to announce that the Minister of Mines of the Republic of Niger, Omar Hamidou Tchiana, has signed 3 year renewals on Global Atomic's 6 uranium exploration permits in Niger.

Global Atomic is currently developing four uranium deposits in the country with the flagship DASA deposit currently undergoing a Preliminary Economic Assessment (PEA). The other 3 deposits, Isakanan, Dajy and Tin Negouran are currently less advanced.

As part of the DASA PEA program, Global Atomic has completed 110,000 meters of drilling including 22,000 meters of core drilling as well as advanced metallurgical, hydrogeological, environmental and geophysical studies. The current resource has been defined over a 1 km strike length however, Global Atomic's exploration programs have defined a potential strike length of over four kilometers.

The DASA project is located on the main highway 80 km south of AREVA's two operating uranium mines in Arlit which supply 30% of France's uranium requirements. All infrastructure including roads, power and water are available at the DASA site.

Current studies are focused on a ramp access underground operation based on a 1,500 ppm cut-off grade which produces a blended headgrade of >3,400 ppm.

Drilling to date indicates in excess of a 10 year mine life at this grade, which would be economic even at current uranium prices. Should prices improve, a lower cut-off grade would increase the mineable tonnes and extend the mine life to over 20 years based on a 5,000,000 pound per year production rate. The current resource estimates for DASA are:

Cut-off Grade '000 Tonnes Grade ppm '000 lbs. U3O8
600 ppm 28,655 1,828 115,488
1,000 ppm 16,985 2,554 95,677
1,500 ppm 10,308 3,420 77,759

Global Atomic has spent approximately CDN $50 million on exploration and development to date on its Niger projects and expects to apply for its Mining License for the DASA project during this exploration term.

QP Statement

Mr. George A. Flach, BSc., P.Geo., Vice President of Exploration, has reviewed this press release as the Qualified Person (QP) as defined in National Instrument 43-101.

About Global Atomic Fuels Corporation

Global Atomic Fuels Corporation is a private Ontario corporation founded in January 2005 by executives with extensive experience in the mining and marketing of uranium. The Company has exploration agreements covering six uranium permits in the Republic of Niger, as well as owning a database consisting of numerous uranium exploration targets around the world collected over a 30 year period by a major Canadian uranium producer. The company's flagship project, DASA, has resources of over 115 million lbs. U3O8 at a 600ppm cut off grade. As the Preliminary Economic Assessment continues, Global Atomic will continue to conduct exploration activities with the intention to significantly expand the current resource.

Current shares outstanding: 67,148,941 million

The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

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