TSX-V-listed GoviEx Uranium has announced strong feasibility study results for the Muntanga uranium project, in Zambia, confirming its low technical risk for a shallow openpit mine and heap leaching operation.

The feasibility study confirms the project’s after-tax net present value (NPV) of $243-million and internal rate of return of 20.8% for a $90/lb triuranium octoxide (U₃O₈) price - for every $5/lb price increase for U₃O₈, it adds $45-million to the NPV.

Production will average 2.2-million pounds of U₃O₈ a year over a 12-year mine life, based on probable mineral reserves in two deposits. There is further potential for upgrading inferred resources as well as the mining of three satellite deposits.

GoviEx says the project will require no tailings storage, thereby reducing its environmental impact. The company adds that the site can leverage existing local infrastructure including water, electricity and roads.

The feasibility study also confirms the project’s ability to be cost effective, with soft rock mining reducing mining costs and high liberation of minerals only requiring crushing to 25 mm for agglomeration.

Low acid consumption, low energy requirements and high uranium recoveries also add to the project’s cost efficiency.

CEO Daniel Major comments that the Muntanga project is built on a foundation of exceptional fundamentals. “With a low operating cost of $32.20/lb of U₃O₈, we have established solid economics that ensure strong profitability.

“The low technical risk of an openpit mine, combined with conventional processing methods, fast uranium recoveries and minimal environmental impact, underpins the project’s robustness.”

Major adds that the potential for significant resource expansion through the development of satellite deposits and exploration only strengthens the long-term value proposition.

“We’re excited to be advancing one of the few uranium projects that can help meet rising demand in a constrained market.”

MARKET VIEW

GoviEx says a surge in global energy requirements, fuelled by AI-driven technologies, continues to accelerate demand for nuclear energy and that years of underinvestment in uranium exploration and development resulted in a critical lack of new production capacity to meet growing demand and resource depletion.

Even with rising demand, there are very few advanced uranium projects in the pipeline, creating a significant supply gap that cannot be bridged in the near term.

With limited global new supply of uranium, Muntanga is uniquely positioned to capitalize on this exceptional market environment with potential production forecast in 2028 – or two years after financing.