Canadian mining company Goviex Uranium has announced the results of a feasibility study for its Muntanga Mine in Zambia, confirming the project’s commercial viability and economic benefits for the country.
The study projects $243 million in after-tax revenue over the mine’s 12-year lifespan, with annual production of 2.2 million pounds of uranium anticipated. Goviex will need to direct $32.2 per pound in operating costs, leverage the increasing demand for uranium globally for a quick return on investment which is anticipated within 3,8 years from start of production in 2028 according to the study.
“… years of underinvestment in uranium exploration and development have left a critical supply gap that existing projects simply cannot fill,” stated Govind Friedland, Executive Chairman, Goviex. “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.”
Production is anticipated to begin within four months of mining. Goviex will expand the mine with the additional satellite deposits and future exploration.
The mine will contribute to efforts by Zambia to diversify its mining industry, having traditionally focused on copper mining, according to Friedland.
Goviex owns a 100% stake in the project and will apply for Environmental Permits in Q1 – 2025, having secured all mining licenses for the project.
