Name of the Project
Mutanga uranium project.

Location
The project is located in the Southern province of Zambia.

Project Owner/s
GoviEx Uranium.

Project Description
The Mutanga project comprises three contiguous, fully permitted mining licences.

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 has signed a drilling contract with Zambia-based drilling company Hydro Tech Drilling & Exploration to undertake exploration and resource delineation drilling programmes at the Mutanga project.

The drill targets identified through trenching indicate potential for resource extension, making it a long-life project for the company.

Metallurgical testwork has been undertaken to a prefeasibility study standard, “providing considerable confidence” on the process route considered.

GoviEx has planned an 8 000 m down-hole percussion drilling programme, focused on the Dibwe East deposit and new areas defined by previous trench sampling east of Dibwe East.

In addition, the company will start the installation of water points in the nearby village of Hachibozu, which will include drilling a water well, the installation of a wind pump and a water tank.

This is part of the company’s corporate social responsibility programme, which also aims to facilitate access to water in the village.

Key Contracts, Suppliers and Consultants
None stated.

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