PEA delivers encouraging results for GoviEx’s Mutanga
JOHANNESBURG (miningweekly.com) – A recently completed preliminary economic assessment (PEA) at TSX-V-listed GoviEx Uranium’s Mutanga project, in Zambia, has shown that the project can produce 2.4-million pounds a year of triuranium octoxide (U3O8) yellowcake over an initial 11-year mine life.
The study has also shown that Mutanga would have an 88% ultimate uranium recovery rate, with initial capital costs estimated at $123-million.
Cash operating costs are estimated to be around $31.1/lb of U3O8, excluding royalties, while total life-of-mine (LoM) costs are forecast at $37.9/lb of U3O8.
The PEA is based on measured and indicated mineral resources of 15-million pounds U3O8 and 45-million pounds of inferred mineral resources.
At a long-term uranium price of $58/lb U3O8, the base case economics for this project are positive, and indicate an after-tax net present value of $112-million with an internal rate of return (IRR) of 25% and total LoM net free cash of $268-million.
GoviEx chairperson Govind Friedland noted that the results were encouraging. “[We now have] two mine-permitted projects – Madaouela, in Niger, and Mutanga, in Zambia – and we can clearly see the economic potential for both of these projects to be developed when uranium prices rise, as expected, as a result of the looming supply deficit forecast later this decade,” he added.
Madaouela and Mutanga each have the potential to produce more than 2.4-million pounds a year of U3O8 at steady state, with total LoM costs of less than $38/lb and no shortage of exploration potential to possibly expand the mineral resources.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established in 1983, the ASTPM is an industry association and representative body of the welded carbon steel tube and pipe manufacturers of South...
VISIT SHOWROOM
CSIR International Convention Centre (CSIR ICC) - the leading conference and events venue in Pretoria/Tshwane.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
