GoviEx aims for Niger uranium feasibility, shares active
GoviEx Uranium Inc. [GXU-TSX, GVXXF-OTCQB] shares were active Thursday after the company said it has launched a 2022 field program at its 100%-owned Mutanga uranium project in Zambia.
The field program will target key aspects aimed at moving Mutanga towards the completion of a feasibility study and potential subsequent funding and construction. The program includes 15,500 metres of drilling aimed at upgrading Mutanga’s Dibwe East resource from inferred to the indicated category.
GoviEx has also commissioned 9,000 metres of diamond drilling to obtain core samples for uranium assays that will be used to determine uranium disequilibrium factors for Mutanga’s Debwe East and Dibwe deposits. The drilling will also provide metallurgical samples for process verification and optimisation test work for geotechnical studies.
Meanwhile, the company is planning a hydrogeological study to find a reliable water source for the plant and carry out dewatering studies for the open pits.
On Thursday, GoviEx eased 6.7% or $0.025 to 35 cents on volume of 542,960. The shares are currently trading in a 52-week range of 59 cents and 19 cents.
GoviEx is focused on the exploration and development of its African uranium properties. Its principal objective is to become a significant uranium producer via the continued exploration and development of its mine-permitted Madaouela project, its mine-permitted Mutanga Project in Zambia, and its multi-element Falea Project in Mali.
The company’s shareholders include Cameco Corp. [CCO-TSX, CCJ-NYSE], Denison Mines Corp. [DML-TSX], and privately-owned Ivanhoe Industries.
Based on a 2017 PEA, the Mutanga Project is an open pit, heap leach operation with an 11-year mine life. The PEA envisages production of 2.6 million pounds of U308 annually, based on a mineral resource of 15.2 million pounds in the measured and indicated category and 44.9 million pounds in the inferred category.
Uranium recovery is forecast at 88% with a relatively low capital intensity, with start-up capital expenditures estimated at U$123 million and cash operating costs at US$31.1 per pound of U308.
As of April 25, 2022, spot uranium was priced at US$53 a pound.
“We are a multi-asset developer on track to deliver on the feasibility study four our mine permitted Mutanga project,” said GoviEx CEO Daniel Major. “This is two years after we plan to deliver the feasibility study for our Madaouela Project in Niger, which is due in the first half of this year,” he said.
“With increased uranium prices driven by strong market fundamentals, the Mutanga Project continues to be a key asset for GoviEx.”
The Madaouela Porject is located near Arlit in north central Niger, a key area for sandstone-hosted uranium deposits. The project is controlled 100% by the Nigerian mining company Compagnie Miniere Madaouela SA (COMIMA), owned 80% by GoviEx and 20% by the Government of the Republic of Niger.
Madaouela hosts 111 million pounds of U308 in the measured and indicated resource category. On top of that is an inferred resource of 28 million pounds. Probable mineral reserves stand at 54.7 million pounds.