GoviEx announces strong feasibility study results for Muntanga uranium project
GoviEx Uranium has confirmed a strong feasibility study results for the Muntanga uranium project in Zambia. CEO Daniel Major made the announcement and said the feasibility study confirms the project’s after-tax net present value (NPV) of $243-million and internal rate of return of 20.8% for a $90/lb triuranium octoxide (U3O8) price – for every $5/lb price increase for U3O8, it adds $45-million to the NPV.
The firm’s production plan includes an average annual production of 2.2 million pounds U₃O₈ over a 12-year mine life. Based on probable mineral reserves from two primary deposits, with potential to upgrade inferred resources and explore three satellite deposits.
Muntanga uranium project
The project will not need tailings storage thereby reducing the project’s environmental footprint. It will utilize local infrastructure i.e. water, electricity, and roads. The feasibility study also confirms the project’s ability to be cost effective, with soft rock mining reducing mining costs and high liberation of minerals only requiring crushing to 25 mm for agglomeration.
The project’s operating cost is estimated to be $32.20/lb U₃O₈ and method to be used include simplified processing crushing to 25 mm for agglomeration and heap leaching. Low acid consumption, low energy requirements and high uranium recoveries also add to the project’s cost efficiency.
CEO Daniel Major emphasized the long-term value of resource expansion through satellite deposits and ongoing exploration. Among the limited number of advanced uranium projects globally, Muntanga’s low costs and minimal environmental impact provide a strategic edge.
The company aims to address the growing uranium supply gap, potentially making a significant contribution to the global nuclear energy sector while leveraging favorable market conditions for uranium prices.
