Valencia Uranium Project Public Meetings April 2007

Transcription

1 Valencia Uranium Project Public Meetings April 2007

2 Ownership Forsys Metals Corp TSX:FSY Canadian Forsys is only active in Namibia Westport Resources 100% Namibian Westport expenditures for exploration in Namibia between stand at ~ N$15.2 million Namibian Metals 100% Offshore Company Tsumeb Exploration 100% Namibian Tsumeb Exploration expenditures for exploration at Valencia between stand at ~ N$28.5 million Valencia Uranium Deposit

3 Why is Forsys in Namibia? Mining friendly, politically secure country Good infrastructure Legal, communications, power, roads, pipelines Supply economics for uranium are very robust The planet needs uranium for electrical generation Prices are at historical highs +US$100 Prices in 2005 were ~US$7 Valencia resources are at surface Cost effective open cast mining opportunity

4 Uranium Rationale Market Demand for Uranium Mlbs U3O Market Supply of Uranium

5 Project History 1972: Discovered by Trekkopje Exploration Airborne radiometric survey discovery 85 drill holes completed from drill holes completed during : License granted to Tsumeb Corp Subsidiary of Gold Fields South Africa 2004 License transferred to Tsumeb Exploration Company TECo was a subsidiary of Ongopolo Mining & Processing 2005 TECo acquired by Forsys Metals Corp 33 drill holes completed from RC drill holes completed during 2006

6 Project Resources History Phase 1 Mineral Resource Estimates Gold Fields South Africa 1979: 53.1 Mt at 0.22 U 3 O 8 kg/t 1981: 42.7 Mt at 0.21 U 3 O 8 kg/t Phase 2 Mineral Resources Estimates Forsys Metals 2005: 32.0 Mt at 0.22 U 3 O 8 kg/t - inferred 2007: 119 Mt at 0.13 U 3 O 8 kg/t measured & indicated Sufficient for a 11-year mine life

7 Exploration Exploration licenses controlled by Forsys Uramin Usakos Arandis Rössing Valencia

8 Valencia Camp Accommodations Complex Geology Area

9 Production Potential What are we going to mine? 90 million tonnes ore 92 million tonnes waste Production levels? 18 million tonnes per year 11 years of mining life Rössing 21 mt/a

10 Operations How will we mine? Drill, blast, load, haul

11 Operations cont. Use of local suppliers and services Capabilities to match our requirements Experience and capabilities of local operators

12 Infrastructure Power (15 MW) Discussions with NamPower Generation on site Water (2-3M m 3 /yr) Supply from NamWater OR Desalinisation plant at the coast Pit water (limited)

13 Access Road Valencia Arandis Rössing

14 Proposed Activities Construction Mining Mineral Processing Dispose Waste Ship Product Mine Closure Rehabilitation

15 Site Layout Targets of further exploration Rock Dump Pit Tailings Plant & Operations

16 Time Frame Where to now? Bankable Feasibility Study Detailed design work Identify more resources (drilling) What will we wait for? Ministry of Environment and Tourism decision Ministry of Mines and Energy awarding of Mining License Investment decision by the Forsys Board of Directors

17 Project Development Year 0 Year 1 Year 2 Year 3 Year 13 Investment Decision Begin Construction Recruitment and Training Complete Construction Begin Mining Shipment of Uranium Mine Closure and Rehabilitation BUT

18 Additional Potential Ongoing exploration of known targets Technical and economic assessments Repeat the current process Extension of mine life Expansion of planned operations

19 Staffing Preference given to local personnel Need to identify appropriate skills Skills development and training Staff to be accommodated in existing towns Recruitment to take place in the local towns NOT at the mine

20 Environmental Studies Environmental Management Plan (EMP) for Exploration and Addendum to EMP Preliminary Environmental Study for Mining (Feb. 06) Ad hoc Botanical Surveys (Mar. 06 & Mar. 07) Environmental Control Officer (ECO) Reports (Dec. 05; Mar. and Jun. 06; and Jan. 07) Hydrogeological Study (Nov. 06 ongoing) Radiation (Alara Consultants cc ongoing) Colin Christian & Associates CC

21 Groundwater Monitoring Khan River

22 Radiation energy traveling through space Uranium Information Centre Ionising radiation: invisible form of energy emitted by radioactive elements; alpha, beta and gamma radiation

23 Background Radiation Two primary sources: cosmic & terrestrial Medical exposure 20% Man-made 1% Radon 43% Cosmic 13% Earth gamma 15% Food and water 8% World Health Organization

24 Radiation Protection Aspects Uranium Information Centre Exposure: Occupational 20 msv/a (5 years); 50 msv/a Public 1 msv/a ICRP = International Commission on Radiological Protection Design Controls = ALARA

25 Radiation Protection Aspects Exploration, Planning, Construction & Operation, Decommissioning, and Handover & Surveillance Phases Exploration Dose Rates, Training Material, Baseline Background Radiation Surveys International Norms, IAEA Standards & Guidelines, Regulatory Regime in SA, NORM Experience Airborne Dust: Weather Station and Dust Sampling

26 Environmental Management System EA Environmental Policy Risks/Legal Requirements EMP Management Procedures Objectives Improvement Training Audits Pollution Resource Use Emergencies EMS ACT PLAN Continual Improvement DO CHECK

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