Name of the Project
Muntanga uranium project.

Location
In the Southern province of Zambia.

Project Owner/s
Canadian mining company 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
GoviEx Uranium states in its latest ‘Sustainability 2024’ report that it is taking a precautionary approach to environment and social risks, devising strategies that effectively mitigate or minimise risks pertaining to environmental, social and governance (ESG).

As the company develops the Muntanga uranium mine towards construction within the next year or two, GoviEx says climate-related risks and opportunities have influenced its strategy and financial planning from the earliest stages of development.

The company is already allocating resources for renewable-energy infrastructure to its projects, in Zambia and Niger, to reduce reliance on fossil fuels, lower greenhouse-gas emissions and enhance energy security.

It is also factoring climate-related risks into its risk management process.

In regions, such as Zambia, this feedback integrates into the company’s Relocation Action Plan, which aims to ensure that its project design not only mitigates adverse impacts but also benefits the local community.

GoviEx’s current Scope 1 and 2 emissions are limited to vehicle and drill fuel consumption during exploration. However, as projects evolve, the company will consider ways – including solar energy – of minimising its carbon footprint.

For now, diesel is mostly used to power the Muntanga site, as it is not connected to the grid. 

GoviEx has an environmental policy and a socioeconomic development policy, which are used to define the environmental and social objectives guiding the Muntanga project.

At Muntanga, GoviEx has hosted a series of community support initiatives, including local training on the benefits of using nonchemical fertilisers for farmers. Additionally, the company maintains water infrastructure that supplies the Sikoongo Village and Dambilo community, in Zambia.

The company remains committed to responsible business conduct and upholding the highest standards of ethics, integrity and responsibility in its business dealings, GoviEx has stated.

GoviEx holds regular training sessions with its workforce and on-site contractors on the implementation of ESG commitments.

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.