GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) has told investors it expects to complete the feasibility study for its Madaouela uranium project in Niger in the third quarter of 2022 as it reported positive progress from its infill drilling campaign at the Mutanga asset in Zambia.
At Mutanga, the explorer said it is focused on upgrading the lower confidence inferred resource at the Dibwe East deposit to the higher confidence indicated category ahead of a planned feasibility study and the company said it has received "very positive initial results so far".
Percussion drilling conducted at the end of June this year is around 40% complete, of the planned 15,500 metre (m) program, while a 9,000m planned diamond drilling campaign is just over 10% complete.
The Dibwe East deposit currently contains 43.1 million tonnes (Mt) of uranium mineralization at an average grade of 304 parts per million (ppm) for 28.9 million pounds (Mlb) of uranium. This represents only around 45% of the total resource tonnage at Mutanga.
READ: GoviEx targets feasibility study as it ramps up work at Mutanga uranium project in Zambia
Meanwhile, at Madaouela, GoviEx said it is in the final stages of completing the feasibility study and is currently working on final optimization and trade-off options. It expects to complete the report in Q3, 2022.
In addition, the Niger government is currently reviewing a new mining code, due to be finalised shortly, noted the company, adding that while no major impacts are expected, it wants to include any potential changes into the feasibility study.
Daniel Major, GoviEx CEO, said in a statement: "Despite the increase in inflation and pricing volatility, I am satisfied with the work completed and we are currently examining several final optimization options to improve the results to date. With the uranium market continuing to improve, we are committed to releasing the results of the Madaouela feasibility study soon as possible."
Govind Friedland, executive chairman of GoviEx, added: "The uranium market continues to be one of the most exciting investment propositions out there. Strong fundamentals coupled with the need for security of supply, a raging energy crisis, the push for decarbonisation and investment in clean energy; GoviEx is well positioned to potentially benefit from the expected strong market environment."
GoviEx is focused on the exploration and development of uranium properties in Africa.
Contact the author at giles@proactiveinvestors.com