GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) CEO Daniel Major talked with Proactive about the company's strategic focus following the revocation of its mining license by the Niger government. Major highlights the progress and potential of the Muntanga project in Zambia, describing it as a robust and straightforward open-pit heap leaching project. He emphasizes the favorable mining jurisdiction of Zambia, known for its diversification into various minerals.
In the interview, Major shares updates on the feasibility study at Muntanga, highlighting excellent metallurgical test results with high recovery rates and low production costs. He also outlines the expansion of the mineral resource estimate (MRE) and the project's potential to extend beyond the initial 12-year lifespan, and touches on continued efforts to defend its rights to the Madaouela project in Niger.
Proactive: In a letter to shareholders, your chairman outlined the way forward after the Niger government revoked your mining license. There's a significant focus on your Muntanga project in Zambia, and you will continue to defend your rights to the Madaouela project in Niger, correct?
Daniel Major: That's correct, and thanks for putting that letter into context because that's exactly what it was meant to do. It’s an update on our progress since the Niger government’s letter, emphasizing our ongoing efforts, especially in Muntanga.
We've had Muntanga as a project since we acquired it in 2017. It's a very robust project, a simple open-pit heap leaching operation in southern Zambia. Zambia is a recognized mining jurisdiction, known for copper production for years, and is now looking to diversify its mineral portfolio. There’s significant work being done on gold, rare earths, and gemstones. GoviEx, as a uranium producer, fits perfectly into that diversification.
The Muntanga project is already permitted. Last time we spoke, Daniel, you were busy with drilling at the site. Can you update us on the latest developments?
We've been pushing hard on the feasibility study this year, focusing on a lot of metallurgical test work. It's important to remind investors that this was already a pre-feasibility study under the previous owners, so we knew where to start. We've applied our skill sets and made significant advances.
The metallurgical test work so far looks very good, and we're waiting for the final results. We're seeing excellent recovery rates, very fast leaching rates, and simple permeability on a heap leach, which is crucial. We're now at the point where most people are starting to consolidate their final numbers, leading to trade-off opportunities that arise at this stage of the project.
We're still on track for the second half of this year and looking forward to the results.
Can you take us through the potential that you're seeing in Muntanga again?
From a project point of view, it's a straightforward heap leach operation. It has grown as a result of the drilling over the last two years. We published a Mineral Resource Estimate (MRE) last year and then went back and drilled again, which will expand it even further. We did the MRE at $70, and with the uranium price now higher, there is even more potential.
Originally, the project was designed to produce about 2.5 million pounds of uranium for around 12 years. I'm expecting that lifespan to be longer due to the larger MRE.
These are all positives. It's located in a country with low power costs and ample water resources, unlike places like Namibia where water is a major constraint. The rock is very soft; you can take a core sample, stand on it, and it will break. This means power consumption rates will be low, which will impact the cost of production positively.
We are also running the Environmental and Social Impact Assessment (ESIA), which is nearly finished and will be filed as soon as the Feasibility Study (FS) is completed. Everything is running on track at the moment.
As you continue to make progress in Zambia, you will also continue to defend your rights to the Madaouela Project in Niger?
Absolutely. One of the reasons for issuing the letter was to update investors. Since receiving the letter from the ministry, we have responded with a letter of dispute. We have provided them with an opportunity to reach an amicable resolution in accordance with the convention and our MoU with them.
If an amicable resolution is not reached, we will pursue our legal rights under our legal protections and see where that leads. This process will take as long as necessary. We are working with the government and maintaining communication, and we will update the market whenever there is something new to report.
Quotes have been lightly edited for style and clarity