GoviEx Uranium has filed a Feasibility Study for its Muntanga uranium project in Zambia, indicating a strong economic outlook with an NPV of $243 million and an IRR of 20.8%. The project is set to produce 2.2 million pounds of U3O8 annually over 12 years, leveraging local infrastructure and operational efficiencies. GoviEx is currently focused on securing financing to move forward.
GoviEx Uranium Inc. has officially submitted a Feasibility Study (FS) for its Muntanga uranium project located in Zambia. This submission marks a significant milestone as the project is positioned to meet the increasing demand for nuclear fuel. The study reveals an after-tax net present value (NPV) of $243 million and an internal rate of return (IRR) of 20.8%, with operational costs estimated at $32.20 per pound of uranium (U3O8).
The economics of the Muntanga project are highly sensitive to fluctuations in uranium prices. Specifically, every $5 increase in U3O8 prices is expected to enhance the NPV by an additional $45 million. The project is predicted to yield an average of 2.2 million pounds of U3O8 annually over a planned 12-year mine life, based on Probable Mineral Reserves. Potential exists to further enhance these figures through upgrading inferred resources and the development of three satellite deposits.
GoviEx plans to employ a shallow open pit mining technique, complemented by heap leaching and conventional processing methods. The project benefits from robust local infrastructure, including road access, water supply, and grid power. GoviEx also highlights that it has established logistical routes through Namibia, enabling access to both Western and non-Western markets for uranium exports.
Operational efficiencies are a key aspect of the project, including favorable soft rock conditions that reduce mining costs and optimized ore processing which requires only 25 mm crushing for agglomeration. The estimated acid consumption is low, averaging under 16.5 kg of sulfuric acid per tonne of ore, with uranium recovery rates exceeding 90% achieved within 21 days of heap irrigation. The anticipated grid power requirement is a modest 7 MWp.
Daniel Major, CEO of GoviEx Uranium, emphasized the project’s robustness, stating that the FS underscores Muntanga as a strong, shallow open-pit operation in a favorable mining jurisdiction. Major remarked, “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 concentrating on securing financing for the project. The company has engaged Endeavour Financial as an advisor and is actively communicating with utilities and potential strategic partners to facilitate funding. Major expressed optimism regarding the project’s timeline, stating, “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 conclusion, GoviEx Uranium’s Feasibility Study for the Muntanga project signifies a pivotal step towards advancing a viable uranium source amidst rising nuclear fuel demand. With a robust economic profile highlighted by a significant NPV and IRR, coupled with strong operational efficiency and favorable local infrastructure, the project is poised for success. The company is proactively seeking financing to capitalize on this opportunity.
Original Source: www.proactiveinvestors.com
