GoviEx Uranium has filed a Feasibility Study for its Muntanga project in Zambia, showcasing a post-tax NPV of $243 million and an IRR of 20.8%. The project will produce 2.2 million pounds of U3O8 annually, utilizing open pit mining and heap leaching. The company aims to secure financing to advance the project in response to increasing uranium demand.
GoviEx Uranium Inc has officially filed a Feasibility Study (FS) for its Muntanga uranium project in Zambia. This development is a significant milestone as the project is among the few slated to meet the growing demand for nuclear fuel. The feasibility study highlights a robust financial outlook, showing an after-tax net present value (NPV) of $243 million and an internal rate of return (IRR) of 20.8%.
Operating costs for the project are estimated at $32.20 per pound of U3O8 (uranium), and the economics of Muntanga are notably sensitive to fluctuations in uranium prices. For every $5 increase in U3O8 prices, the NPV rises by $45 million, indicating a strong correlation between market pricing and project viability.
Muntanga aims to produce approximately 2.2 million pounds of U3O8 annually over a 12-year lifespan, based on Probable Mineral Reserves, with potential to increase output through further resource upgrades and the development of satellite deposits. This initiative will utilize a shallow open pit mining approach with heap leaching and conventional processing techniques, supported by robust local infrastructure including roads, water, and grid electricity.
Additionally, GoviEx has addressed export strategies, planning to utilize established transport routes through Namibia to access various global markets. The operational efficiency is enhanced by favorable geological conditions requiring minimal mining costs, along with optimized ore processing that necessitates only 25 mm crushing for agglomeration. Low acid consumption rates averaging 16.5 kg of sulfuric acid per tonne of ore further contribute to the project’s feasibility.
Projected recovery rates are expected to exceed 90%, with uranium extraction occurring within 21 days of heap irrigation. The project’s grid power consumption is relatively low, anticipated at 7 MWp. GoviEx Uranium’s CEO, Daniel Major, emphasized the project’s benefits, stating, “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%.”
The company is focusing on securing financing for the project and has appointed Endeavour Financial as an advisor. Major expressed enthusiasm regarding the project’s progress, noting, “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.”
GoviEx Uranium’s Feasibility Study for the Muntanga project demonstrates its financial robustness with significant potential for profit linked to uranium price increases. The operational efficiency, supported by local infrastructure and innovative processing methods, positions Muntanga as a competitive player in the uranium market. The company is actively seeking financing and partnerships to move forward, targeting uranium production shortly to address growing demand.
Original Source: www.proactiveinvestors.com
