Global Atomic Announces 1st Quarter Results and Approval of Turkish Plant Expansion
May 28 2018 - 6:00AM
Global Atomic Corporation (“Global Atomic” or the “Company”),
(TSX-V:GLO) is pleased to announce its operating results for the 3
months ended March 31, 2018. Highlights of these results are as
follows:
- Net income for Q1 2018 was $3.7 million, up from $2.4 million
in Q1 2017.
- A drill program to test the Flank Zone area of the DASA deposit
was initiated in January 2018, with 7,854 metres drilled in Q1 2018
with excellent results (see press releases dated February 22nd,
April 5th and May 7th, 2018).
- CSA Global Pty Ltd. have been engaged to update the DASA
resource, incorporating recent drill results and to provide
potential mining scenarios.
- Exploration drilling to expand the DASA deposit to the
southwest and to the northeast is continuing.
- Global Atomic continues to work cooperatively with Orano Mines
Ltd. (formerly Areva) to evaluate plans to ship DASA material to
its nearby mill for processing.
Global Atomic also announced the approval of the
expansion and modernization of its electric arc furnace dust
(“EAFD”) plant in Iskenderun, Turkey. The project will expand EAFD
throughput to 110,000 tonnes per annum, from the current 60,000
tonnes per annum, producing concentrates containing 55 to 65
million pounds of zinc per annum. The new plant has been engineered
using the best available technology employed by joint venture
partner Befesa Zinc S.A.U. (“Befesa”), a world leader in the
processing of EAFD.
Based on improved plant efficiencies, recovery
rates are expected to improve and operating costs reduced. The cost
of the project is approximately US $26 million, most of which is
subject to a fixed price contract. Site construction is expected to
begin in February 2019 and completed by September 2019. Existing
cash balances and forecasted cash flow through January 2019,
together with available bank lines of credit, should be sufficient
to cover capital and other costs through to commissioning of the
new plant.
Stephen G. Roman, Chairman, President and CEO of
Global Atomic, stated, “We are excited about the current steel
market improvements in Turkey and our modernization and expansion
plans moving forward. In addition, the exceptional results at the
DASA Project suggest this asset could generate significant value as
Global Atomic continues with its development.”
QP StatementGeorge 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.
About Global AtomicGlobal
Atomic is a TSX Venture listed company providing a unique
combination of high grade uranium development and cash flowing zinc
concentrate production.
Global Atomics’ 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.
Global Atomics’ Base Metals Division holds a 49%
interest in the BST joint venture which operates a re-processing
facility located in Iskenderun, Turkey that converts EAFD (Electric
Arc Furnace Dust) 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”), holds a 51%
interest in and is the operator of BST. Befesa is a market
leader in EAFD recycling, capturing approximately 45% to 50% of the
European EAFD market with facilities located throughout Europe and
Korea.
Key contacts:
Stephen G. Roman
George A. Flach, P.Geo.Chairman, President & CEO
Vice President,
ExplorationTel: (416) 368-3949
Tel:
(416) 368-3949 Email: sgr@globalatomiccorp.com
Email:
gaflach@globalatomiccorp.com
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.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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