Global Atomic Announces 1st Quarter Results and Approval of Turkish Plant Expansion
TORONTO, May 28, 2018 (GLOBE NEWSWIRE) -- Global Atomic Corp. (“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 Statement
George 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 Atomic
Global 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, Exploration
Tel: (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.