May 10, 2021
Vancouver, British Columbia–(Newsfile Corp. – May 10, 2021) – GoviEx Uranium Inc. (TSXV: GXU) (OTCQB: GVXXF) (“GoviEx” or “Company“), is pleased to announce that it has received a letter from the Mining Cadastre Department of the Republic of Zambia notifying the Company that the previously cancelled Chirundu Mining License (12634-HQ-LML) has now been re-instated.
“We are very pleased and warmly welcome the decision made by the Mining Cadastre concerning the reinstatement of the Chirundu mining license and believe this decision was well considered and in the best interests of all stakeholders both in Zambia and abroad. The Zambian Government has indicated its strategy to diversify its mining industry from the heavy weighting of base metals and advancing its long-term desire to include uranium and clean baseload nuclear power as part of its economic development plans. As the uranium market improves, the Company plans to reinvigorate the development of the Mutanga Project starting with targeted resource exploration drilling later this year. We look forward to advancing and deepening our long-term and mutually beneficial relationship with the Republic of Zambia,” stated GoviEx’s Executive Chairman Govind Friedland.
The Chirundu Mining License was acquired from African Energy Resources Ltd. (ASX: AFR) in October 2017 and includes the Njame and Gwabe mineral deposits. These deposits were subsequently included with the Mutanga, Dibwe and Dibwe East deposits in the technical report titled, “NI 43-101 Technical Report on a Preliminary Economic Assessment of the Mutanga Uranium Project in Zambia”, dated November 30, 2017, prepared by SRK Consulting (UK) Limited for the Company (the “PEA“). The PEA reported a Net Present Value (“NPV“) at long-term uranium price of US$58/lb U3O8 and a 9% mining royalty rate, an after-tax NPV of US$112 million (at 8% discount rate) with an internal rate of return (IRR) of 25%.
The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
Since acquiring the Chirundu Mining License, GoviEx has ensured all statutory reports and payments have been made, and in addition has expanded its Community and Social Responsibility programs to cover the villages within the Chirundu Mining License, including the reconstruction of a school and the commencement of an adult education program.
The reinstatement of the Chirundu Mining License (12634-HQ-LML), is subject to completion of certain exploration and development milestones to advance the license towards final feasibility study.
Please read the complete news release here: LINK