GoviEx Uranium has filed a Feasibility Study for the Muntanga uranium project in Zambia, showcasing a $243 million after-tax NPV and a 20.8% IRR. The project aims to produce 2.2 million pounds of uranium annually, benefiting from favorable mining conditions and strong local infrastructure. GoviEx is now working on securing financing to advance the project within two years.
GoviEx Uranium Inc. has recently filed a Feasibility Study for its Muntanga uranium project located in Zambia, representing a significant advancement for one of the few imminent uranium projects aimed at meeting the escalating demand for nuclear fuel. This filing positions Muntanga as a pivotal contributor in response to rising global nuclear energy needs.
The Feasibility Study indicated an impressive after-tax net present value (NPV) of $243 million and an internal rate of return (IRR) of 20.8%. Additionally, the projected operating costs amount to $32.20 per pound of U3O8 (uranium). The project’s financial viability demonstrates considerable sensitivity to fluctuations in uranium prices, with a $5 increase in U3O8 prices resulting in an additional $45 million added to the NPV.
The Muntanga project anticipates an average annual production of 2.2 million pounds of U3O8 over a 12-year lifespan, based on Probable Mineral Reserves. Potential exists for enhanced production through the upgrading of Inferred Resources and the development of three satellite deposits, as indicated by the company.
Utilizing a shallow open pit mining technique and heap leaching coupled with conventional processing, the project is supported by robust local infrastructure, including road access to essential resources like water and grid power. Furthermore, GoviEx has emphasized the project’s export capabilities through established routes in Namibia, granting access to both Western and non-Western markets.
Operational efficiencies are notable, with soft rock conditions leading to lower mining costs, optimized ore processing necessitating just 25 mm crushing for agglomeration, and an average low acid consumption of less than 16.5 kg of sulfuric acid per tonne of ore. Recovery rates are anticipated to exceed 90%, and uranium extraction is projected to occur within 21 days of heap irrigation. The project’s grid power requirement is forecasted to be low at 7 MWp.
GoviEx Uranium CEO Daniel Major expressed confidence in the findings, 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%.” He further commented on the project’s financial leverage to uranium prices, emphasizing, “The project is highly leveraged to uranium prices, adding USD 45 million in NPV for every USD 5/lb increase in U₃O₈.”
As part of its next steps, GoviEx is focused on securing financing, having appointed Endeavour Financial as its advisor. The company is actively seeking engagement with utilities and strategic partners. Major highlighted the urgency of funding, stating, “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 project highlights its strong economic potential and strategic significance in the uranium sector. With favorable metrics such as a $243 million after-tax NPV and a robust IRR of 20.8%, the project is well-positioned to capitalize on fluctuating uranium prices. As the company moves forward with financing efforts, it aims to fulfill growing global nuclear fuel demands, underlining the project’s vital role in the competitive market.
Original Source: www.proactiveinvestors.com
