Forsys Metals (TSX: FSY) shares surged 6.1% on news the uranium developer has secured a prospecting licence renewal for the Namibplaas deposit, part of its flagship Norasa project in Namibia.
This licence has been renewed for two years until February 2026, it said in a press release Thursday. In September 2022, Forsys applied to Namibia’s mines ministry to convert the licence into a full 25-year mining licence (ML); this submission is pending.
The licence covers a strategic land position with significant exploration upside, Pine Van Wyk, Forsys’s in-country director, said in a release.
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.
Norasa consists of two uranium deposits: Valencia, for which a 25-year mining licence has already been granted, and 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 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’ stock traded at $1.05 by 3:30 p.m. in Toronto, near its 52-week high of $1.15. The company has a market capitalization of $204.9 million.
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