GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) announced that it has filed a feasibility study (FS) for its Muntanga uranium project in Zambia, marking a key step toward advancing one of the few near-term uranium projects positioned to address rising nuclear fuel demand.
The project has an after-tax net present value (NPV) of $243 million and an internal rate of return (IRR) of 20.8%, with operating costs estimated at $32.20 per pound of U3O8 (uranium), the FS showed.
The project’s economics show strong sensitivity to uranium prices, with each $5 increase in U3O8 (uranium) prices adding $45 million to the NPV.
Muntanga is expected to produce an average of 2.2 million pounds of U3O8 annually over a 12-year mine life, based on probable mineral reserves. Additional upside potential exists through upgrading inferred resources and developing three satellite deposits, the company highlighted.
The project will use a shallow open pit mine and heap leaching with conventional processing methods, supported by strong local infrastructure that includes road access, water, and grid power.
GoviEx also noted the project's ability to export via established routes through Namibia, giving access to both Western and non-Western markets.
Efficiencies
Operational efficiencies include soft rock conditions that reduce mining costs, optimized ore processing that requires only 25 mm crushing for agglomeration, and low acid consumption averaging less than 16.5 kg of sulfuric acid per tonne of ore.
Recovery rates are projected to exceed 90% with uranium extraction occurring within 21 days of heap irrigation. The project’s grid power draw is expected to remain low at 7 MWp.
"The FS confirms Muntanga as a robust, shallow open-pit, heap leach operation in a mining-friendly jurisdiction, with an after-tax NPV of US$243 million and an IRR of 20.8%,” GoviEx Uranium CEO Daniel Major said.
GoviEx is now focused on securing financing, having appointed Endeavour Financial as an advisor and actively engaging with utilities and strategic partners.
“We have already appointed financial advisers to assist the company in securing funding, and with production targeted just two years after financing, 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,” Major said.