GoviEx Uranium Files Feasibility Study for Muntanga Project in Zambia

GoviEx Uranium has filed a Feasibility Study for its Muntanga uranium project in Zambia, revealing an after-tax NPV of $243 million and an IRR of 20.8%. The project aims to produce an average of 2.2 million pounds of U3O8 annually, supported by strong local infrastructure. GoviEx is now focused on financing with the help of Endeavour Financial.

GoviEx Uranium Inc. (TSX-V:GXU, OTCQX:GVXXF) has submitted a Feasibility Study (FS) for its Muntanga uranium project in Zambia, signifying a pivotal advancement towards a rare near-term uranium venture addressing the escalating demand for nuclear fuel. The FS indicates that the project possesses a post-tax net present value (NPV) of $243 million and an internal rate of return (IRR) of 20.8%, with operating costs approximated at $32.20 per pound of U3O8 (uranium).

The project’s financial framework demonstrates notable sensitivity to uranium prices; an increase of $5 in U3O8 prices correlates with an additional $45 million to the NPV. With a mine life estimated at 12 years, Muntanga is projected to produce an average of 2.2 million pounds of U3O8 annually, based on Probable Mineral Reserves, while potential growth can arise from upgrading Inferred Resources and developing three satellite deposits.

Utilizing a shallow open-pit mine and heap leaching with conventional processing, the project is bolstered by robust local infrastructure, including road access, water, and grid power. Additionally, GoviEx noted the advantage of established export routes through Namibia, providing access to both Western and non-Western markets.

Operational efficiencies are highlighted by favorable soft rock conditions that lower mining costs and optimized ore processing requiring merely 25 mm crushing for agglomeration, alongside low acid consumption averaging below 16.5 kg of sulfuric acid per ton of ore. Recovery rates are anticipated to exceed 90%, with uranium extraction occurring within 21 days of heap irrigation, and the project’s grid power draw expected to remain modest at 7 MWp.

GoviEx Uranium 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 further remarked, “The project is highly leveraged to uranium prices, adding USD 45 million in NPV for every USD 5/lb increase in U₃O₈.”

The company is now focused on securing financing, having appointed Endeavour Financial as an advisor while actively engaging with utilities and strategic partners. Major concluded, “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.”

The filing of the Feasibility Study for the Muntanga uranium project by GoviEx Uranium represents a significant advancement in uranium production that caters to increasing global demand. With a strong economic profile, supported infrastructure, and operational efficiencies, the project is poised to deliver remarkable outputs. GoviEx’s next steps include securing necessary financing to facilitate production, which is anticipated to address the urgent requirements of the uranium market.

Original Source: www.proactiveinvestors.com