GoviEx Uranium has announced encouraging results of a preliminary economic assessment for the Mutanga Uranium Project.
Mutanga is GoviEx’s second large-scale, mine-permitted project in Africa postioned for development
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.
Initial capital costs are estimated at US$123 million, with estimated cash operating costs of US$31.1/lb U3O8, excluding royalties. Total life-of-mine (“LoM”) costs are forecast at US$37.9/lb U3O8.
“We are pleased by the encouraging results of this PEA. GoviEx now has two mine-permitted projects – Madaouela in Niger and Mutanga in Zambia – and we can clearly see the economic potential for both of these projects to be developed when uranium prices rise, as expected, as a result of the looming supply deficit forecast later this decade.
“Madaouela and Mutanga each have the potential to produce more than 2.4 million lbs U3O8 per annum steady state, with total life-of-mine costs less than US$38/lb U3O8 and no shortage of exploration potential to possibly expand the mineral resources,” Govind Friedland, GoviEx Executive Chairman said.
The PEA was prepared for GoviEx by SRK Consulting and the technical report, titled ‘NI 43-101 Technical Report on a Preliminary Economic Assessment of the Mutanga Uranium Project in Zambia’.
The Mutanga Project area is situated within the Karoo Supergroup, which is a thick, terrestrial sedimentary strata, widespread across much of southern Africa.