GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) has announced an updated Mineral Resource Estimate (MRE) for its wholly owned, mine-permitted Muntanga Uranium Project in Zambia, which shows a substantial increase of open-pit mineral resources.
Based on the US$50 per pound of U3O8, used to define the mining schedule in the 2017 PEA (preliminary economic assessment), the new MRE shows constrained total pit resources are 36.5 million pounds (Mlb) of equivalent uranium (eU308), comprising 34 million tons (Mt) at 374 parts per million (ppm) eU3O8 for 28.4 Mlb in measured and indicated and 11 Mt at 348 ppm eU3O8 for 8.1 Mlb of inferred.
With the quality of the resource estimate improved, higher M&I, higher grade and a notable increase in estimated resources within the constrained open-pit area, the company said it is optimistic that the updated MRE will be favourable to the project economics previously estimated for Muntanga in the PEA, and especially as the ongoing drilling is targeting conversion of more inferred resources into indicated resources.
The Muntanga Project consists of three mining permits that cover some 720 square kilometres, and contains five deposits: Dibbwi, Dibbwi East, Muntanga, Gwabi and Njame.
In a statement, Daniel Major, CEO of GoviEx commented: "Our drilling campaigns in 2021 and 2022 have led to a significant update in the Muntanga mineral resource estimate. This progress is characterized by a notable growth in in-pit resources, a substantial conversion of inferred resources into the Indicated category, and an overall rise in uranium grades.”
“What's more exciting is that this upward trajectory in resource growth persists even under lower uranium prices, such as the USD50/lb used in our Preliminary Economic Assessment (PEA)1. There is also additional potential for further upgrading of inferred resources, thereby expanding the resources that can be included in the feasibility study. These are very promising results and will be integrated into our ongoing feasibility study,” he added.
The 2023 updated MRE is the result of extensive infill drilling, including 8,010 metres drilled in 2021 and a further 19,990 metres drilling in 2022, predominately on the Dibbwi East deposit, to further delineate the deposit and convert inferred resources to the indicated category.
The mineral resource update included a comprehensive reassessment of previous work and a revised correlation between down-hole radiometric probe data and chemical assays used to convert down-hole radiometric data into eU3O8 for mineral resource estimation.
Goviex said analysis of the open-pit shell used to constrain the MRE highlights that there are still inferred category mineral resources that have the potential to be converted to indicated resources with additional drilling. That would enable them to be included in the economics related to any future feasibility study. This work is currently underway as part of this year's previously announced drilling program.
The company said: “In conclusion, the updated MRE for the Muntanga Project is a testament to GoviEx's strategic focus and commitment to maximizing the potential of its vast resource base. As the only uranium developer with two African projects ready to begin development and near-term production, GoviEx is well placed to benefit from future growth.”
GoviEx’s principal objective is to become a significant uranium producer through the continued exploration and development of its flagship mine-permitted Madaouela Project in Niger, its mine-permitted Mutanga Project in Zambia, and its multi-element Falea Project in Mali.
Contact the author at jon.hopkins@proactiveinvestors.com