GoviEx Uranium has submitted a Feasibility Study for the Muntanga uranium project with an NPV of $243 million and an IRR of 20.8%. The project will produce 2.2 million pounds of U3O8 annually over 12 years and has strong operational efficiencies. The company is working on securing financing to advance the project, potentially addressing the growing uranium demand.
GoviEx Uranium Inc has formally submitted a Feasibility Study (FS) for the Muntanga uranium project located in Zambia, signifying a significant advancement for what is one of the few imminent uranium projects aimed at meeting the rising demand for nuclear fuel. The study estimates an after-tax net present value (NPV) of $243 million and an internal rate of return (IRR) of 20.8%. Operating costs are projected at $32.20 per pound of U3O8 (uranium).
The economics of the project exhibit strong sensitivity to uranium market prices; each $5 rise in U3O8 prices could potentially enhance the NPV by $45 million. Muntanga is anticipated to yield an average of 2.2 million pounds of U3O8 per year over a projected mine life of 12 years, based on the current Probable Mineral Reserves. Furthermore, there exists additional upside potential through upgrading Inferred Resources and capitalizing on three satellite deposits.
The mine will employ a shallow open pit and heap leaching utilizing conventional processing techniques. This approach is supported by robust local infrastructure, including efficient road connectivity, water supply, and grid power. Moreover, GoviEx has expressed that the project will utilize established export routes through Namibia, facilitating access to both Western and non-Western markets.
Operational efficiencies are notable, as the soft rock conditions will contribute to reduced mining costs along with optimized ore processing that needs only 25 mm crushing for agglomeration. The mine will also see low acid consumption of less than 16.5 kg of sulfuric acid per tonne of ore, with anticipated recovery rates surpassing 90% and uranium extraction within 21 days of heap irrigation. The projected grid power demand will remain modest at 7 MWp.
GoviEx Uranium Ceo Daniel Major remarked, “The FS confirms Muntanga as a robust, shallow open-pit, heap leach operation in a mining-friendly jurisdiction.” He further stated, “The project is highly leveraged to uranium prices, adding USD 45 million in NPV for every USD 5/lb increase in U₃O₈.” GoviEx is currently pursuing financing avenues, having enlisted Endeavour Financial as an advisor and is proactively engaging with strategic partners and utilities. Major added, “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.”
In conclusion, GoviEx Uranium’s Feasibility Study for the Muntanga uranium project represents a strategic advancement for the company as it aims to fulfill the rising demand for nuclear fuel. With a substantial projected NPV and IRR, alongside operational efficiencies, the project is well-positioned in the uranium market. Moving forward, GoviEx is focused on securing financing to initiate production within two years, capitalizing on the favorable market conditions.
Original Source: www.proactiveinvestors.com
