Feasibility results announced for Zambia uranium project

Monday, 27 January 2025

The Vancouver-based company said the NI 43-101-compliant feasibility study is an important milestone for the mine-permitted project, which is 200 km south of Lusaka, north of Lake Kariba. The study represents a detailed, fully costed, and updated engineering study of the project, considering international best practices and standards for responsible project development, the company said.

The study found that operating costs would be USD32.2 per pound U3O8, with life-of-mine all-in sustaining costs of USD47.3 per pound, with average production of 2.2 million pounds U3O8 (846 tU) per year over a life-of-mine of 12 years.

The Muntanga project, in the southeastern region of Zambia in the Siavonga and Chirundu districts, is 100% owned by GoviEx and includes three mining licences - the Muntanga and Dibbwi mining licences, comprising the Muntanga, Dibbwi and Dibbwi East deposits; and the Chirundu mining licence, which contains the Njame and Gwabi deposits. An NI 43-101 compliant mineral resource estimate for the project from January 2024 puts measured and indicated resources at 40 million pounds U3O8, with inferred resources of 7.4 million pounds U3O8.

CEO Daniel Major said the project is founded on "exceptional fundamentals" with solid economics ensuring strong profitability. "The low technical risk of an open pit mine, combined with conventional processing methods, fast uranium recoveries, and minimal environmental impact, underpins the project’s robustness," he said. "Additionally, the potential for significant resource expansion through the development of satellite deposits and exploration only strengthens the long-term value proposition."

The feasibility study envisages a central processing plant handling 3.5 million tonnes per year of material sourced from the Muntanga and Dibbwi East mining sites. Leaching would be carried out using a weak sulphuric acid and hydrogen peroxide solution, and Zambia's position as a net surplus acid producer ensures reliable local supply, the company said. Uranium production would be expected within 4 months of mining.