- GoviEx Uranium (TSXV:GXU) has entered discussions with the Government of Niger to restart mining operations at its Madaouela uranium project
- The government notified the company that it must recommence mining at Madaouela by July 3, or else risk losing its mining permit
- GoviEx is a mineral resource company exploring and developing uranium properties in Africa
- GoviEx stock has given back 54.55 per cent year-over-year and 44.44 per cent over the past five years
GoviEx Uranium (TSXV:GXU) has entered discussions with the Government of Niger to restart mining operations at its Madaouela uranium project.
The government notified the company that it must recommence mining at Madaouela by July 3, or else risk losing its mining permit. The government holds a 20 per cent stake in COMIMA, the Nigerien company contracted to develop the project.
Management is committed to a resolution that protects the company’s rights and optimizes to maximize for stakeholder results, as it progresses with numerous ongoing discussions with third parties about potential investments to fast-track Madaouela, which is expected to create 800 jobs throughout its lifespan.
A track record of consistent development
GoviEx has successfully advanced the project from exploration, through historically low uranium prices, to a 2022 feasibility study estimating net free cash flow of US$673 million, initial capital expenditures of US$343 million, and uranium production of 50.8 million pounds U3O8 over a 19-year mine life.
Despite a coup d’Etat on July 26, 2023, management continued to make progress, completing the project’s environmental and social impact assessment, and attracting expressions of interest over US$200 million for project-related debt financing, in addition to beginning initial groundwork and front-end engineering designs.
The company’s other main property, the Muntanga uranium project in Zambia, adds to its prospectivity, considering that GXU shares have given back 54.55 per cent year-over-year and 44.44 per cent over the past five years. GoviEx expects to publish a feasibility study for Muntanga in the second half of 2024, substantiating the extraction of measured and indicated resources of 33.7 million pounds of U3O8, and inferred resources of 10.9 million pounds of U3O8, across five deposits located over 65 kilometres of strike.
Management insights
“Since the start of our operations in Niger, we have completed an unprecedented 650,000-m drilling campaign, all with local contractors and employees, to define the potential mineral resource there, which is now amongst the largest known resources in the world,” Govind Friedland, GoviEx Uranium’s executive chairman, said in a statement. “The company has since worked with local engineers to design a state-of-the-art open pit and underground mine that has an expected life of 19 years and that will provide hundreds of new jobs to Nigeriens.”
“The company was able to do this because it cooperated with governments and worked with locals to create a mutually beneficial outcome,” he added. “Our commitment to the country remains, and we will use all appropriate means available to us to ensure that we continue to develop the project.”
About GoviEx Uranium
GoviEx is a mineral resource company exploring and developing uranium properties in Africa.
GoviEx Uranium Inc. stock (TSXV:GXU) is down by 20 per cent, trading at C$0.10 per share as of 10:32 am ET.
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