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 will expand the scope of the feasibility study for its Mutanga project to include detailed engineering and design.

With an updated mineral resource to be published in the coming weeks and metallurgical testwork under way, GoviEx has appointed Ukwazi Site Services (project manager and mining), SGS Bateman (process design) and SRK UK (power, hydrogeology and heap leach design) as the project team to undertake the feasibility study for the Muntanga project, targeting 2024 for completion.

These firms will provide specialised expertise and guidance that will help to ensure that the final design and development of the project are optimised for efficiency, safety and sustainability, and that GoviEx’s commitments to environment, social and governance are included in the study.

The company is also focused on completing the project's environmental- and social-impact assessment update and undertaking additional drilling to target mineralisation extensions along sections at the project’s Dibbwi East deposit.

Key Contracts, Suppliers and Consultants
Ukwazi Site Services (project manager and mining), SGS Bateman (process design) and SRK UK (power, hydrogeology and heap-leach design).

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