Nigerien Uranium, Africa

Southampton was granted (in May 2007) four prospective uranium exploration permits in the democratic west-African country of Niger, one of the world’s leading uranium producers. These permits comprise four contiguous blocks each approximately 500 square kilometers (for an aggregate total of 2,000 square kilometers) and were selected based on their prospective stratigraphy and structure.

The Concessions
Pursuant to the terms of the agreement between Southampton and the Government of Niger, Southampton is required to expend an aggregate of US$2,005,000 on each of the four properties over a period of three years, with an aggregate of US$235,000 being required to be expended on each such property in the first year. The permits are valid for an initial three year period and confer the right to any minerals obtained during exploration and test work.

Property
The Ibadanan concessions are situation in a desert plain in the Tim Mersoi basin, Niger. The concessions are located just west of the Arlit mine.

Uranium in Niger
Uranium was discovered at Azelik in Niger in 1957 by the French Bureau de Recherches Geologiques et Minières (BRGM). This initial discovery was followed by several other discoveries in the late 50’s and 60’s including, Arlit (1965) and Imouraren (1966)

Uranium is mined close to the twin mining towns of Arlit and Akokan, 900 km north-east of the capital Niamey on the southern border of the Sahara desert and on the western range of the Air mountains.

The Société des Mines de l'Air (SOMAIR) ) was formed in 1968 and started production from the Arlit deposit in 1971, by open cut mining of 0.30 - 0.35% ore down to 60 metres depth. Capacity was subsequently expanded to about 2100 tU/yr in 1981 (though half was then laid up). Since 2003, production is ramping up again, with the Tamou deposit producing 1565 tU in 2006. Somair has produced more than 44,000 tU. It has started groundworks for a new 1.4 Mt per year heap-leach operation while planning for the next deposit, Artois, deeper (90 metres) and at a lower grade (0.20 - 0.25%).

In 2006 Areva NC signed an agreement to develop the large Imouraren deposit about 80 km south of Arlit, while launching a new drilling program on site. Production at about 4000 tU/yr using in situ leaching (ISL) is expected by 2011. Areva says it is investing some US$ 1.47 billion in developing the deposit, making it the largest mining project ever undertaken in Niger. The deposit contains 146,000 tonnes of measured and indicated uranium resources at 0.11% U. An Imouraren joint venture agreement was signed in 1974 but development stalled on economic grounds. A development decision is expected in 2008, depending on progress on permitting and negotiations with the government of Niger.

In July 2006 the China National Nuclear Corporation (CNNC) agreed to develop the 12,790 tU Abokorum deposit in the Agadez region. CNNC, now through its subsidiary China Nuclear International Uranium Corporation (SinoU) also holds rights to the 6190 tU Madaouela deposit in the Arlit region and to the Azelik deposit, southwest of Imouraren where it is now developing the Teguida mine to come into production in 2010 at 700 tU/yr.

Niger is a signatory to the Nuclear Non-Proliferation Treaty. Niger has a comprehensive safeguards agreement in force and in 2004 signed the Additional Protocol.