GoviEx Uranium Inc. is pleased to announce that it has executed a drilling contract with Hydro Tech Drilling & Exploration (Z) LTD (“Hydro Tech”) to undertake exploration and resource delineation drilling programs focused at the Company’s Mutanga Uranium Project, in Zambia (the “Project”).
“With the reissued Chirundu Mining Permit we are keen to get back to advancing our Zambian assets with the development of Mutanga. The Project benefits from very simple and straight forward operations due to low-waste stripping, low acid consumption and potentially one of the lowest capital expenditure requirements of its African peers needed to get into production. The mine plan currently forecasts an 11-year mine life and the drill targets identified through trenching, in known uranium intersections, indicate potential for resource extension making this a potential long-life project. Furthermore, considerable metallurgical test work has already been undertaken to a pre-feasibility study standard, providing considerable confidence on the process route considered.” stated Daniel Major, Chief Executive Officer.
Objectives
GoviEx has planned a 8,000 metre down-hole percussion drilling program, focused on the Dibwe East deposit and new areas defined by previous trench sampling east of Dibwe East. The objectives of the program are:
To upgrade the mineral resource associated with the Dibwe East deposit from an Inferred to an Indicated category, allowing its inclusion in a Feasibility Study. Drilling will be carried out based on a 100 m x 50 m grid to an average depth of 110 metre. The Dibwe East deposit currently contains 43.1 Mt of ore at an average grade of 304 ppm U3O8 for 28.9 Mlb U3O8.
To undertake exploration drilling on three trenches on strike and to the east of Dibwe East, which have previously shown anomalous uranium.
Hydro Tech is a Zambian based drilling company that specialises in groundwater and exploration drilling and has been operating for seven years. Terratec Geophysical Services Namibia will provide down-hole logging services including, calibrated gamma log, used to estimate the uranium grade, hole deviation and conductivity log, to interpret the geology.
In addition, the Company will start the installation of water points in the nearby village of Hachibozu, which will include: drilling a water well, installation of a wind pump and a water tank. This is part of the Company’s CSR program and aims to help facilitate access to water within the village.
In 2017, the Company filed the “NI 43-101 Technical Report on a Preliminary Economic Assessment of the Mutanga Uranium Project in Zambia”, dated November 30, 2017 (the “PEA”). The PEA was prepared by Qualified Persons from SRK Consulting (UK) Limited.
Highlights of the PEA include the following:
The Project development plan envisions an average annual production rate of 2.4 million pounds of U3O8 yellowcake over an initial 11-year mine life, with an 88% ultimate uranium recovery rate. Key benefits of the Project are the low stripping ratio (3.4:1) and low sulfuric acid consumption (3-9 kg/tonne ore).
Initial capital costs are estimated at US$ 123 million, with estimated cash operating costs of US$ 31.1/lb U3O8, excluding royalties. Total life-of-mine costs are forecast at US$ 37.9/lb U3O8. The PEA is based on Measured and Indicated Mineral Resources of 15 million pounds (Mlb) U3O8 and 45 Mlb of Inferred Mineral Resources.