GoviEx Uranium Inc (CVE:GXU) (OTCQB:GVXXF) (FRA:7GU) announced that it has received a letter from the Mining Cadastre Department of the Republic of Zambia, notifying it that the previously cancelled Chirundu mining license (12634-HQ-LML) has now been reinstated.
"We warmly welcome the decision made by the Mining Cadastre concerning the reinstatement of the Chirundu mining license and believe this decision was well-considered and in the best interests of all stakeholders in Zambia and abroad,” GoviEx Executive Chairman Govind Friedland said in a statement.
He noted that the Zambian Government has telegraphed its strategy to diversify its mining industry from the heavy weighting of base metals, and advance “its long-term desire” to include “uranium and clean baseload nuclear power” as part of its economic development plans.
“As the uranium market improves, the company plans to reinvigorate the development of the Mutanga Project, starting with targeted resource exploration drilling later this year,” added Friedland. “We look forward to advancing and deepening our long-term and mutually beneficial relationship with the Republic of Zambia."
The Chirundu mining license was acquired from African Energy Resources Ltd (ASX:AFR) (FRA:BP6) in October 2017, and included the Njame and Gwabe mineral deposits. These deposits were subsequently included with the Mutanga, Dibwe and Dibwe East deposits in the technical report dated November 30, 2017, prepared by SRK Consulting (UK) Limited for the company.
The PEA reported a net present value (NPV) at a long-term uranium price of US$58/lb U3O8 and a 9% mining royalty rate, an after-tax NPV of US$112 million (at an 8% discount rate) with an internal rate of return of 25%. The company, however, noted that the PEA is “preliminary in nature.”
Since acquiring the Chirundu mining license, GoviEx said it has ensured all statutory reports and payments have been made. In addition, it has expanded its community and social responsibility (CSR) programs to cover the villages within the Chirundu mining license by focusing on the reconstruction of a school, and an adult education program.
The company noted that the reinstatement of the Chirundu mining license is incumbent on completing “certain exploration and development milestones” to advance the license towards final feasibility study.
Vancouver-based GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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