GoviEx to acquire 51% interest in Zambia exploration license
TSX- and OTCQX-listed GoviEx Uranium has obtained an option to acquire a 51% interest in the Lundazi exploration licence from Stalwart Investments. This move is a key part of GoviEx’s strategy to expand its footprint in Zambia’s uranium sector.
The Lundazi licence spans 817.9 km², an area notable for the Karoo Supergroup formations, which are known to host significant sandstone-based uranium deposits. This geological setting makes the Lundazi region a promising site for uranium exploration.
The geology in Lundazi closely mirrors that of GoviEx’s ongoing Muntanga project, also located in Zambia. GoviEx has made substantial progress at Muntanga, with a feasibility study scheduled for release in the second half of this year.
After the study’s publication, GoviEx plans to secure financing and aims to make a production decision. If successful, production at Muntanga is expected to commence approximately two years after construction begins.
“The Lundazi licence is a strategic addition to our portfolio, aligning with our broader efforts in Zambia. The geological parallels between Lundazi and Muntanga are especially promising, enabling us to apply our existing knowledge and experience in the region,” said GoviEx CEO Daniel Major on September 9.
Under the terms of the agreement, GoviEx can earn a 51% stake in the Lundazi licence by investing up to $1.5 million over three years, with an initial commitment of $300,000 in the first year.
The agreement allows GoviEx the flexibility to terminate the transaction at any time with 60 days’ written notice, thus minimizing risk.
Should GoviEx proceed through the full three-year option, a joint venture will be established for further exploration and potential development of the Lundazi licence. Initial exploration efforts will include geological mapping and radiometric surveys, with drilling anticipated in 2025.
“The local geology of Lundazi is strikingly similar to that of our Muntanga project, which is why this opportunity is particularly exciting,” added GoviEx’s chief geologist, Jerome Randabel.
He noted that data from previous explorations reveal numerous geological faults in the Lundazi area, which are promising indicators of uranium deposits.
GoviEx has also expanded its geological database for Lundazi, integrating radiometric data from government maps dating back to the 1960s, along with more recent surveys.
This comprehensive dataset includes approximately 750 data points from the Luano and Luangwa Valleys, combined with 92 original government magnetic and radiometric maps, providing essential tools for identifying anomalies and guiding preliminary exploration efforts.
Similar deposits in the region, such as the Kayelekera project in Malawi, have proven economically viable, further underscoring the potential value of the Lundazi licence.
