GoviEx Uranium Inc. has filed the technical report on a preliminary economic assessment (PEA) of the Mutanga Uranium Project.
Prepared by qualified persons from SRK Consulting highlights include the project development plan envisions an average annual production rate of 2.4 million pounds of U3O8 yellowcake over an initial 11-year mine life, with an 88% ultimate uranium recovery rate.
The initial capital costs are estimated at US$123 million, with estimated cash operating costs of US$31.1/lb U3O8, excluding royalties.
In addition, at a long-term uranium price of US$58/lb U3O8, the base case project economics for this project are positive, and indicate an after-tax net present value of US$112 million (at 8% discount rate) with an internal rate of return (IRR) of 25% and total life-of-mine net free cash of US$268 million.
According to GoviEx the PEA is considered preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
The mineral resource focused company GoviEx is exploring development of uranium properties in Africa.
GoviEx’s principal objective is to become a significant uranium producer through the continued exploration and development of its flagship mine-permitted Madaouela Project in Niger, its mine-permitted Mutanga Project and other uranium properties in Africa.