Globe Metals releases study on 20-year Malawi project | The Australian

June 30, 2008

GLOBE Metals & Mining has lifted its trading halt today, announcing the results of its scoping study on its central Malawi project.

Globe (ASX: GBE: quote) said its Kanyika project in Malawi in Africa has the potential to become a very profitable operation with at least a 20-year mine life.

The uranium and specialty metals resource company has completed a study into the economic potential of the site and said both revenues and cash flows were substantial over the life of the mine.

“Plus, the capital expenditure is modest and the capital payback period short,'' Globe managing director Mark Sumich said.

Globe estimated the capital expenditure at $US177 million ($184 million), and the capital payback period at less than two years, according to a statement today.

The Kanyika project is the Perth-based company's lead project, situated in central Malawi.

It contains an inferred resourced of 56Mt, including niobium, uranium, tantalum and zircon.

AAP