GoviEx Uranium, the developers of Muntanga Uranium mining project, has indicated that it is scheduled to produce approximately 2.5 million lbs of U3O8 at its Mutanga Project per annum for 11 years after commencement of productions in 2027. The Company however said this is subject to change after the publication of its Feasibility Study.
GoviEx Uranium Inc. Head of Investor Relations and Corporate Communications, Isabel Vilela exclusively told the Zambian Business Times – ZBT – that since its discovery, over $50m has been invested by the predecessors and GoviEX into the Muntanga project.
She said the expected capital investment for the development of this project is currently US$123 million adding that the major challenge when it comes to actualizing this project has been the sharp decline in uranium prices post Fukushima nuclear incident which happened in 2011 in Japan.
She explained that the Muntanga project was permitted in 2010, just before uranium prices collapsed to $16/lb, below the industry cost of production following the Fukushima nuclear incident in Japan in 2011 adding that GoviEx, only acquired the project at the end of 2016, when uranium prices were still below the industry cost of production.
She stated that Uranium prices have slowly recovered and only now are starting to reach more sustainable long term price levels required to justify new project development. “We have been advancing the project in anticipation of improving uranium market fundamentals, and accelerated this work in the past two years.”
“The Muntanga site has seen an ambitious field program which included 15,500 meters of infill drilling last year, and the start of the updating of the bankable feasibility study due to be completed in early 2024.” she said.
Vilela said construction of Muntanga Uranium mine will start once the Bankable Feasibility study is completed in 2024 and the with the first uranium production targeted for 2027/2028.
