GoviEx Uranium Announces Encouraging Results of a Preliminary Economic Assessment for the Mutanga Uranium Project in Zambia

GoviEx Uranium (TSX-V: GXU; OTCQB: GVXXF) (“GoviEx” or “Company”) announced today that it has completed a National Instrument (NI) 43-101 Preliminary Economic Assessment (“PEA”) for the Mutanga Uranium Project (“Mutanga Project”) in Zambia, which evaluates the economic and technical viability of a large-scale uranium project with low-capital costs and low-operating costs.
PEA Highlights:

• The Mutanga Project consists of three contiguous, fully-permitted mining licences.
• 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.
• 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 (“LoM”) 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
• At a long-term uranium price of US$58/lb U3O8, the base case project economics for this project are positive, and indicate an after-tax net present value of US$112 million (at 8% discount rate) with an internal rate of return (IRR) of 25% and total life-of-mine net free cash of US$268 million.

Click here to read the full text release.