The license was acquired in late 2017 from African Energy Resources Ltd and includes the Njame and Gwabe deposits, noted GoviEx, which were subsequently included in the preliminary economic assessment (PEA) for the group's Mutanga uranium project.
The study pegged the after-tax net present value (NPV) of US$112 million, at 8% discount rate with an internal rate of return (IRR) of 25%, using a long-term uranium price of US$58 per pound and a 9% mining royalty rate.
READ: GoviEx Uranium unveils new gold anomalies on Falea project that highlight significant mineral potential
Due to the smaller scale and higher cost nature of the Gwabe and Njame deposits, they were scheduled to be mined in the later stages of the PEA and were not included in the mine plan, GoviEx said. Their exclusion is believed to have a low to no impact on project economics, it added.
Since acquiring the Chirundu mining permit, GoviEx said it had "ensured all statutory reports and payments" were made, and has also expanded its community and social responsibility programs to cover the villages within the Chirundu Mining Licenses, including the reconstruction of a school and the commencement of an adult education program.
"We are disappointed by the decision made by the Mining Cadastre with regards the Chirundu license and do not believe this decision is fair or in the interests of our Zambian stakeholders," said Daniel Major, chief executive of GoviEx in a statement.
"We will appeal the decision within the allotted time frame and hope to rectify any misunderstandings we believe were included in making this decision. Zambia has indicated its strategy diversify its heavy weighting towards copper, and with Zambia considering nuclear energy long term and with the uranium price showing signs of recovery we will stress that the decision should be reconsidered," he added.
Earlier this month, GoviEx revealed that new gold in soil anomalies at its Falea project in Mali highlighted the site's potential.
The Vancouver-based company told shareholders that “significant” gold in soil anomalies indicate potential extensions of the Sirabaya West and Siribaya-Bambadinka gold trends and may intersect within the Falea project.
The development of the Madaouela uranium project in Niger remains GoviEx's primary focus, but the company is committed to creating shareholder value amidst a favourable gold price environment, the company told investors.
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