GoviEx Uranium eyes near-term production in Zambia

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GoviEx Uranium Inc. [GXU-TSX, GVXXF-OTCQB] is eyeing near term production in Zambia after expanding the scope of a feasibility study at its Mutanga Project,

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.

Following a successful drilling program in 2022 at Muntanga, GoviEx said it will expand the scope of the feasibility study for the Mutanga project to include detailed engineering and design. The company will also complete the project’s Environmental and Social Impact Assessment (ESIA) update and undertake additional drilling to target mineralisation extensions along sections at the project’s Dibbwi East deposit.

In 2022, the company conducted an extensive 15,500-metre infill drilling program at Dibbwi East, in a bid to upgrade the inferred resource of 29 million pounds of U308 into the indicated category. The company said it will provide an update to its mineral resource estimate in the coming weeks.

“Analysis of the 2022 drilling results has highlighted that the Dibbwi East deposit is open up and down dip, as several sections have not closed off the uranium resource,’’ GoviEx said in a press release. As a result, the company plans to conduct 7,000 metres of mud rotary drilling to target these areas of open mineralisation at the deposit and further enhance its understanding of the deposit’s potential.

Based on a 2017 PEA, the Mutanga Project is an open pit, heap leach operation with an 11-year mine life. The PEA envisaged 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.

“With the completion of our ESIA and feasibility study planned for 2024, we are well positioned to advance this project towards near term production and become a significant contributor to the global uranium market,’’ said GoviEx CEO Daniel Major.

GoviEx recently raised $15 million from an upsized bought deal private placement. On May 15, 2023, the shares closed at 16 cents and currently trade in a 52-week range of 37.5 cents and 14.5 cents.

GoviEx’s 80%-owned Madaouela in north central Niger hosts 100 million pounds of U308 in the measured and indicated resource category. On top of that is an inferred resource of 20 million pounds. Feasibility results were announced on September, 2022.

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