Mutanga uranium project looks promising-report

PRELIMINARY Economic Assessment (PEA) conducted on Zambia’s Mutanga uranium project in Chirundu has indicated positive results with the project having an after-tax net present value of US$112 million which will increase revenue collection for Government and channelled to other sectors of the economy.

PEA evaluates the economic and technical viability of a largescale uranium project with lowcapital costs and low-operating costs.

Mutanga is among the three projects which will be undertaken by GoviEx, a Canadian firm focused on the exploration and development of uranium properties in Africa.

The Mutanga Project contains a Measured and Indicated Mineral Resource of 21.6 million tonnes

According to the PEA obtained from GoviEx, the initial capital costs for the project are estimated at US$123 million.

The project development plan envisions an average annual production rate of 2.4 million pounds of over an initial 11-year mine life, with an 88 percent ultimate uranium recovery rate.

Other highlights in the PEA indicated that the Mutanga Project consists of three contiguous, fully-permitted mining licences.

Commenting on the outcome, GoviEx Executive Chairman, Govind Friedland, said the company anticipated economic potential for the project.

“We are pleased by the encouraging results of this PEA. GoviEx now has 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.

“Madaouela and Mutanga each have the potential to produce more than 2.4 million lbs U3O8 per annum steady state, with total life-of-mine costs less than US$38/lb U3O8 and no shortage of exploration potential to possibly expand the mineral resources,” Mr. Friedland said.