GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) has announced the results of its Feasibility Study (FS) for the Muntanga Uranium project in Zambia.
The study revealed a robust after-tax net present value (NPV) of approximately US$243 million and an internal rate of return (IRR) of 20.8%.
The operating costs are estimated at US$32.2 per pound of U3O8, with all-in sustaining costs (AISC) projected at US$47.3 per pound.
The Muntanga project is expected to produce an average of 2.2 million pounds of U3O8 annually over a lifespan of 12 years, based on probable mineral reserves from two deposits, with additional potential from inferred resources and three satellite deposits.
Notably, the project exhibits significant leverage to rising uranium prices, with projections indicating an increase of US$45 million in NPV for every US$5 per pound increase in U3O8 prices
The FS highlighted the low technical risk associated with the project, which will utilize a shallow open-pit mining approach combined with heap leaching.
The project benefits from local infrastructure with road access, water and power grid and well-established export routes through Namibia which allow it to supply Western and non-Western markets.
Uranium production is expected within four months of mining, with “rapid” payback of 3.8 years from the start of production.
GoviEx CEO Daniel Major said the FS results have established “solid economics that ensure strong profitability.”
“The low technical risk of an open pit mine, combined with conventional processing methods, fast uranium recoveries, and minimal environmental impact, underpins the project's robustness,” Major said in a statement.
“Additionally, the potential for significant resource expansion through the development of satellite deposits and exploration only strengthens the long-term value proposition. We're excited to be advancing one of the few uranium projects that can help meet rising demand in a constrained market."
Govind Friedland, GoviEx's executive chairman, highlighted that years of underinvestment in uranium exploration have left a crucial supply gap amid surging demand for clean, reliable power to support AI technologies and electrification.
“In this extraordinary market environment, Muntanga stands out as one of the few advanced uranium projects ready to help meet this demand,” Friedland said.
“With production forecast for 2028, Muntanga is uniquely positioned to deliver significant value while contributing to the global transition toward sustainable energy."
The NI 43-101-compliant FS was prepared by Ukwazi Transaction Advisory (Pty) Ltd, SRK Consulting (UK) Limited and SGS Bateman (Pty) Ltd.