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“EPL-3638 covers a strategic land position with significant exploration upside,” commented Pine Van Wyk, Forsys’ in-country director. “We greatly appreciate the Ministry’s continued support as we accelerate development of the Norasa project and continue to work closely with the Ministry in obtaining the ML.”

Last June, the company obtained the renewal of its environmental clearance certificate (ECC) from the Ministry, allowing it to further advance the development plan for Norasa for three more years.

The wholly owned Norasa project consists of two uranium deposits: Valencia, for which a 25-year ML has already been obtained, and the aforementioned Namibplaas located 4.5 km to the northeast. Both deposits have NI 43-101-compliant uranium resources and reserves.

In 2015, Forsys completed a definitive feasibility study on the project, outlining a long-life operation producing a total of 77.8 million lb. of uranium oxide (U3O8), including 25.8 million lb. during the first five years. The project is anchored by total mineral reserves of 206 million tonnes grading 200 parts per million U3O8, for roughly 90 million lb. of U3O8.

The pre-tax net present value of the Norasa project is estimated at US$622.6 million, using a discount rate of 8%. Its internal rate of return is 32%, and the payback period is 4.4 years from production.

Forsys Metals’s stock traded 6.1% higher at C$1.05 by 3:30 p.m. in Toronto, near its 52-week high of C$1.15. The company has a market capitalization of C$204.9 million ($152m).

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