GoviEx Uranium Submits Feasibility Study for Muntanga Uranium Project in Zambia

GoviEx Uranium has filed a Feasibility Study for the Muntanga uranium project in Zambia, revealing an after-tax NPV of $243 million and an IRR of 20.8%. The project is projected to produce 2.2 million pounds of U3O8 annually over 12 years, benefiting from a strong operational framework and strategic export pathways.

GoviEx Uranium Inc., listed on TSX-V as GXU and on OTCQX as GVXXF, has officially submitted a Feasibility Study (FS) for its Muntanga uranium project in Zambia. This marks a significant milestone as it is one of the few near-term uranium projects poised to meet the growing demand for nuclear fuel.

The Feasibility Study indicates that the project holds an after-tax net present value (NPV) of $243 million and an internal rate of return (IRR) of 20.8%, with operating costs estimated at $32.20 per pound of U3O8. Notably, the project’s financial metrics exhibit a marked sensitivity to uranium prices, where every increase of $5 per pound in U3O8 raises the NPV by an additional $45 million.

Muntanga is projected to yield an average of 2.2 million pounds of U3O8 annually over a 12-year operational span, based on Probable Mineral Reserves. The project also has considerable growth potential, as there are prospects to upgrade Inferred Resources and develop three additional satellite deposits, as indicated by the company.

The operational strategy for Muntanga incorporates a shallow open pit mine and utilizes heap leaching combined with conventional processing techniques. The location benefits from robust local infrastructure, including access to roads, water sources, and grid power. Furthermore, GoviEx emphasized that the project can leverage established export routes through Namibia to reach both Western and non-Western markets.

Operational efficiencies are underpinned by favorable soft rock conditions that contribute to lowered mining costs. Additionally, the ore processing is optimized to require merely 25 mm crushing for agglomeration, with low acid consumption averaging less than 16.5 kg of sulfuric acid per tonne of ore. Recovery rates are estimated to surpass 90%, with uranium extraction expected within 21 days of heap irrigation, while grid power usage is projected to remain minimal at 7 MWp.

GoviEx Uranium’s CEO, Daniel Major, stated, “The FS confirms Muntanga as a robust, shallow open-pit, heap leach operation in a mining-friendly jurisdiction, with an after-tax NPV of US$243 million and an IRR of 20.8%.” He added, “The project is highly leveraged to uranium prices, adding USD 45 million in NPV for every USD 5/lb increase in U₃O₈.”

Currently, GoviEx is prioritizing the acquisition of financing for the project. The company has engaged Endeavour Financial as an advisor and is proactively communicating with utilities and strategic partners. In reference to future developments, Major remarked, “We have already appointed financial advisers to assist the company in securing funding, and with production targeted just two years after financing, I am looking forward to progressing with one of the few uranium projects that can help address the increasing uranium demand in a tight market.”

In summary, GoviEx Uranium’s Feasibility Study for the Muntanga uranium project indicates a promising economic outlook and operational viability, with significant potential to meet rising global uranium demands. The project’s favorable financial metrics, operational efficiencies, and strategic export capabilities position it well within the context of a competitive energy landscape.

Original Source: www.proactiveinvestors.com