Name of the Project
Muntanga uranium project.

Location
In the Southern province of Zambia.

Project Owner/s
GoviEx Uranium.

Project Description
Muntanga comprises three mining permits that cover about 720 km² and contains five deposits – Dibwe, Dibwe East, Muntanga, Gwabe and Njame.

The project contains a measured and indicated mineral resource of 21.6-million tonnes at an average grade of 318 parts per million (ppm) uranium containing 15-million pounds of uranium, and an inferred mineral resource of 74.6-million tonnes at an average grade of 273 ppm uranium containing 45-million pounds of uranium in six deposits located over a 65 km strike.

The project benefits from simple and straightforward operations, owing to low waste stripping, low acid consumption and low capital expenditure requirements.

A preliminary economic assessment (PEA) completed in 2017 evaluated the economic and technical viability of the project. The PEA envisages the development of openpits at the Muntanga, Dibwe, Dibwe East, Gwabe, Njame and Njame South deposits. Three heap-leach pads will be located at Dibwe East/Muntanga, Dibwe and Gwabe/Njame, and a central processing facility between Dibwe East and Muntanga.

The deposits are amenable to conventional, shallow opencast mining methods using excavators and trucks, with relatively low stripping ratios. The base case envisions an average production rate of 2.6-million pounds of yellowcake a year over an initial 11-year mine life, with an 88% ultimate uranium recovery rate and a total forecast of 26.4-million pounds of uranium.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
At a long-term uranium price of $58/lb uranium, the base case economics for the project are positive and indicate an after-tax net present value, at an 8% discount rate, of $112-million and an internal rate of return of 25%, with a payback of three years.

Capital Expenditure
Initial capital costs have been estimated at $123.4-million.

Planned Start/End Date
Not stated.

Latest Developments
Although GoviEx Uranium plans to fight for its rights at the Madaouela uranium project, in Niger, the difficulties faced in that country present the company with a unique opportunity to concentrate on its Muntanga project, in Zambia.

The company was informed by the Nigerien government more than two weeks ago that it no longer has rights over the perimeter of the mining permit for its Madaouela project, which reverted to the public domain.

This decision came despite the company’s efforts spanning almost two decades, which have transformed Madaouela from an exploratory venture into one of the world’s largest-known uranium deposits.

“Fortunately, our Muntanga project . . . has all its main permits and we are reinvigorated in our focus to publish its feasibility study later this year,” the company has said.

Key Contracts, Suppliers and Consultants
Ukwazi Site Services (project manager and mining); SGS Bateman (process design); and SRK UK (power, hydrogeology and heap-leach design).

Contact Details for Project Information
GoviEx Uranium, tel +1 604 681 5529 or email info@goviex.com.