KEY POINTS
- GoviEx acquires a 51 percent interest in Zambia’s Lundazi uranium project.
- The Lundazi site has promising geological similarities to GoviEx’s Muntanga project.
- Exploration is set to begin, with drilling planned for 2025.
GoviEx Uranium has decided to acquire a controlling interest in the Lundazi exploration license in Zambia, a new development in its operational expansion plan.
This acquisition has helped the company to expand its base in a region considered to have abundant uranium deposits. The area of Lundazi is 817. 9 square kilometres and is still highly prospective for future exploration because of its favorable geophysical characteristics, similar to the Muntanga project of GoviEx.
A move in Zambia
The Lundazi project is a component of GoviEx’s expansion plan in Zambia, a country increasing its uranium exploitation.
The Karoo Supergroup formations found in the Lundazi area are well-known for hosting significant uranium deposits. There is a possibility that this acquisition can lead to other discoveries, meaning that GoviEx will gain more value in the region.
‘The Lundazi license is a strategic move forward for us,’ said Daniel Major, the CEO of GoviEx. “Geologically, the Muntanga project is very similar to this project; thus, we shall apply our prior knowledge and experience.”
The firm has been active in the Muntanga project and anticipates coming up with a feasibility report in the second semester of the current year.
If everything turns out as planned, GoviEx could make a production decision, and start construction soon after, with hopes of production beginning within two years of that.
Terms of the acquisition
According to the provisions of the agreement, GoviEx can purchase a 51% stake for up to 1.5 million dollars over the next three years.
The total investment of $300,000 is to be made in the first year of marketing. This open-ended arrangement allows GoviEx the option to walk away at any time with 60 days written notice, which helps to reduce risk.
Exploration activities are expected to commence in the coming month, followed by geological mapping and radiometric surveys, while intense drilling operations are likely to commence from 2025 onwards.
Jerome Randabel, the chief geologist of GoviEx, was also enthusiastic about the project, highlighting that the general geological indicators are substantially favorable for uranium.
‘The Lundazi area has several geological faults, like our Muntanga project; therefore, it is interesting to us.’
Increasing confidence in the Zambian uranium industry
Uranium has emerged as a big commodity in this region. Kayelekera uranium mine in Malawi, for instance, has shown the viability of similar deposits.
Consequently, GoviEx has been increasing its geological database, which consists of radiometric data from the government maps of the 1960s. These historical datasets provide about 750 data points that are being integrated into the company’s planning.
