GoviEx Highlights Strong Economics and Low-Cost Potential for Muntanga Uranium Project in Zambia
GoviEx Uranium, listed on the TSX-V, has announced robust feasibility study results for its Muntanga uranium project in Zambia. The study highlights the project’s low technical risk and confirms its potential as a shallow open-pit mine with a heap leaching operation.
The feasibility study estimates an after-tax net present value (NPV) of $243 million, with an internal rate of return (IRR) of 20.8%, based on a triuranium octoxide (U3O8) price of $90 per pound. For every $5 increase in the U3O8 price, the NPV increases by $45 million.
The project is expected to produce an average of 2.2 million pounds of U3O8 annually over its 12-year mine life, utilizing proven reserves from two deposits. There is additional upside potential from upgrading inferred resources and the mining of three satellite deposits.
GoviEx highlights the project’s environmental advantages, noting it will not require tailings storage, thus minimizing its environmental footprint. Additionally, the site can leverage existing local infrastructure, including water, electricity, and roads, to reduce costs.
The study confirms that the Muntanga project is cost-effective, with soft rock mining lowering mining costs and high mineral liberation requiring minimal crushing (25 mm) for agglomeration. Low acid consumption, low energy use, and high uranium recoveries further enhance the project’s efficiency.
CEO Daniel Major commented, “The Muntanga project is built on a foundation of strong fundamentals. With an operating cost of just $32.20 per pound of U3O8, we’ve established solid economics that ensure robust profitability.
The low technical risk of the open-pit mine, combined with conventional processing methods, fast uranium recoveries, and minimal environmental impact, underscores the project’s potential.”
Major also emphasized the project’s expansion potential, with satellite deposits and further exploration adding long-term value. “We’re excited to advance one of the few uranium projects capable of meeting rising demand in a constrained market.”
GoviEx points out that global energy demand, fueled by AI-driven technologies, is accelerating the need for nuclear energy. Years of underinvestment in uranium exploration and development have led to a critical shortage of new production capacity, making it difficult to meet this growing demand and counteract resource depletion.
Despite rising demand, there is a lack of advanced uranium projects in the pipeline, creating a significant supply gap that will be hard to fill in the near term.
With limited global uranium supply, the Muntanga project is uniquely positioned to capitalize on this exceptional market environment, with production potentially starting in 2028—just two years after financing.
