Name of the Project
Mutanga uranium project.

Location
In the Southern province of Zambia.

Project Owner/s
GoviEx Uranium.

Project Description
Mutanga comprises three mining permits that cover about 720 km² and contains five deposits – Dibwe, Dibwe East, Mutanga, Gwabe and Njame.

The project contains a measured and indicated mineral resource of 21.6-million tonnes at an average grade of 318 parts per million (ppm) uranium containing 15-million pounds of uranium, and an inferred mineral resource of 74.6-million tonnes at an average grade of 273 ppm uranium containing 45-million pounds of uranium in six deposits located over a 65 km strike.

The project benefits from simple and straightforward operations, owing to low waste stripping, low acid consumption and low capital expenditure requirements.

A preliminary economic assessment (PEA) completed in 2017 evaluated the economic and technical viability of the project. The PEA envisages the development of openpits at the Mutanga, Dibwe, Dibwe East, Gwabe, Njame and Njame South deposits. Three heap-leach pads will be located at Dibwe East/Mutanga, Dibwe and Gwabe/Njame, and a central processing facility between Dibwe East and Mutanga.

The deposits are amenable to conventional, shallow opencast mining methods using excavators and trucks, with relatively low stripping ratios. The base case envisions an average production rate of 2.6-million pounds of yellowcake a year over an initial 11-year mine life, with an 88% ultimate uranium recovery rate and a total forecast of 26.4-million pounds of uranium.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
At a long-term uranium price of $58/lb uranium, the base case economics for the project are positive and indicate an after-tax net present value, at an 8% discount rate, of $112-million and an internal rate of return of 25%, with a payback of three years.

Capital Expenditure
Initial capital costs have been estimated at $123.4-million.

Planned Start/End Date
Not stated.

Latest Developments
GoviEx Uranium has started its 2022 field programme that will target key aspects to assist in progressing the Mutanga uranium project towards completion of a feasibility study, and potential subsequent funding and construction.

The programme includes 15 500 m of infill drilling to upgrade Mutanga’s Dibwe East resource from the inferred to the indicated category, extending the work completed by GoviEx in 2021.

GoviEx has commissioned 9 000 m of diamond drilling to obtain core samples for uranium assays that will be used to determine uranium disequilibrium factors for Mutanga’s Dibwe East and Dibwe deposits.

The drilling will also provide metallurgical samples for process verification, optimisation testwork and geotechnical studies.

As part of the 2022 field programme, a hydrogeological study will be conducted to find a reliable water source for the plant and undertake the dewatering studies for the openpits.

GoviEx has commissioned an update of the environmental- and social-impact assessment and relocation action plan that will both begin in July.

The company has also commissioned downhole logging services, including calibrated gamma log used to correlate uranium grades, and hole deviation and conductivity logs to interpret the geology.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
GoviEx Uranium, tel +1 604 681 5529 or email info@goviex.com.