The Madaouela Uranium Project is situated southeast of the mining towns of Arlit and Akokan, and the Marianne-Marilyn deposit is located approximately 9km from Arlit.  The proximity of the town of Arlit and Akokan are an asset for Madaouela permits. The towns have over 160,000 people supporting local mining operations with airports, drilling companies, electricity, potable water and a hospital. Arlit is connected to the Southern part of Niger via the so-called "uranium-highway" through Agadez and Tahoua to Niamey, the Niger capital further south. A power line connects the town to the Sonichar coal-fired power station located North of Agadez. Access by plane is possible through an airstrip in Arlit and also Agadez.

Sandstone-hosted uranium deposits occur in permeable medium-coarse grained sandstone, usually deposited in continental fluvial or marginal marine sedimentary environments. The source of uranium is usually igneous or volcanic rocks either in close proximity to or inter-bedded with the sandstone units. The uranium mineralization typically precipitates from oxidizing fluids, under reducing conditions caused by a variety of reducing agents. The reducing agent for Madaouela is most likely in-situ organic material (lignite) or hydrocarbons transported along major fault. The main primary uranium minerals are uraninite and coffinite with minor secondary uranium minerals being noted in exposed (weathered) mineralization.

The Marianne-Marilyn deposit is a nearly flat tabular body of mineralization that spans approximately 5km by 2km across in plan, and the deposit thickness varies from 0.2 to over 2m (average thickness of about 1m). The mineralization occurs at depths from about 30m on the east-end of Marilyn, to approximately 60m in depth in the middle of the Marianne-Marilyn deposit, up to 120m in depths on the west extensions of Marianne. The MSNE deposit is approximately 4 km south of Marianne-Marilyn with Maryvonne deposit in between. The geology of these deposits is very similar to Marianne-Marilyn. Ore depth ranges from 100 m to 160 m across the deposits. Miriam deposit was discovered in 2011 and is located in the Southern portion of Madaouela I tenement. The ore is 20 to 30 m in thickness at Miriam and at a depth of 60 to 80 m.

Summary of the classified mineral resources in accordance with CIM guidelines for Madaouela Project (cut-off: 0.4 kg/t eU) as of March 2nd, 2016

The company’s mineral resources as at March 2, 2016 are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards - For Mineral Resources and Mineral Reserves” in accordance with the requirements of National Instrument 43-101 “Standards of Disclosure for Mineral Projects" (the Instrument). Mineral reserve and mineral resource estimates reflect the company's reasonable expectation that all necessary permits and approvals will be obtained and maintained. (1kg/t eU3O8=0.1% eU3O8). The “e” symbol denotes that resource estimation is based on spectrometer data obtained in the field and confirmed by a smaller number of samples by laboratory chemical analysis.

Mineral resources that are not mineral reserves do not have to demonstrate economic viability. Mineral resources are subject to infill drilling, permitting, mine planning, mining dilution and recovery losses, among other things, to be converted into mineral reserves. Due to the uncertainty associated with inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to indicated or measured mineral resources, including as a result of continued exploration.
 
The Mineral Resource Statement was prepared by John Arthur, FGS, CGeol (CP) and Peter Gleeson FAusIMM (CP) of SRK Consulting (UK) Ltd, both are Qualified Persons as defined by the CIM Code.

The Marilyn/Marianne deposits are shallow with depths below surface from 30m in the NE to 120m in the SW, while the MSNE/Maryvonne deposits are approximate 160m in depth. The deposits are generally flat lying (0-15° slope) with thicknesses varying from 1-3m. Tabular deposits such as these generally lend themselves to room and pillar type mining methods. The mineralized material will be mined using low profile mining equipment capable achieving mining heights of 1.8 m.

The mineralized material is transported by LHD to the conveyor feeder that is located at the entrance to the panel, where initial crushing will occur. The crushed material is to be transported by conveyor to a coarse ore stockpile situated before the process plant. A panel mining fleet will consist of a single boom face drill, a ground support jumbo with fully automated rockbolt installation and a 3m3 bucket capacity LHD.

While the Miriam deposit is approximately 60 m to 80 m deep, but has a greater thickness up to 30m with local grades over 1% U308 thus containing the highest grade*thickness (GT) in four main seams (11, 21, 31 and 41) that coalesce locally in a redox front system. The mining of Miriam is planned to be by open pit operations in line with that under taken at Areva's Sominak mine.

The current Pre-feasibility Study (2015) assumes that mined ore is transferred to the run of mine ("ROM") stockpile. Feed preparation consists of primary crushing with the ore then routed to radiometric ore sorter ("ROS") where by the radiometric selection ore is pre-concentrated to provide a higher grade material. Following the ROS stage the ore is secondary crushed and mixed with water to produce a slurry for the Ablation stage, where two slurry streams are impacted together to form a high impact energy zone that separates fine heavier uranium minerals from the host rock. The combination of ROS and Ablation results in a 810tpd of feed for feed to the leaching circuit, with approximately 97% of the uranium that was contained in the initial 4020 tpd mined feed.

The two stage leaching circuit consists of primary and secondary agitated leach tanks in recirculation. In the first stage solution from the second stage belt filters is recirculated to leach the fresh feed after which the slurry is thickened with the thickener overflow routed to the uranium recovery circuit as pregnant leach solution ("PLS"). The thickener underflow is routed to the second stage leach, which uses fresh acid to further leach the milled solids. After the second stage the slurry is filtered and the filtered solids residue is washed with fresh solution and discarded to the tailings disposal system.

Leach tanks are agitated and aerated to allow the milled ore to react with sulfuric acid allowing dissolution of the contained uranium. The solution from leach (thickener overflow) is routed to uranium recovery. Uranium recovery from the neutralised PLS takes place through Solvent Extraction (“SX”).

SX is undertaken using a new process to recover both molybdenum and uranium from acidic solutions using CYANEX® 600 extractant. The overall circuit configuration would consist of two extraction steps, one stripping step for iron, two stripping steps for molybdenum, an ammonia washing step and two uranium stripping steps.