GoviEx announces reinstatement of Chirundu mining license in Zambia
GoviEx Uranium Inc. (TSXV: GXU) (OTCQB: GVXXF) (“GoviEx” or “Company”), is pleased to announce that it has received a letter from the Department of Mining Cadastre of the Republic of Zambia informing the company that The canceled Chirundu mining license (12634-HQ-LML) has now been reinstated.
“We are very happy and warmly welcome the decision taken by the mining cadastre regarding the reinstatement of the Chirundu mining license and believe that this decision was well thought out and in the best interest of all stakeholders in Zambia and abroad. The Zambian government has indicated its strategy to diversify its mining industry avoiding the heavy weight of base metals and to advance its long-term desire to include uranium and clean nuclear power as part of its development plans. economic. As the uranium market improves, the company plans to relaunch development of the Mutanga project starting with targeted exploration drilling for resources later this year. We look forward to advancing and deepening our long-term and mutually beneficial relationship with the Republic of Zambia, ”said GoviEx Executive Chairman Govind Friedland.
The Chirundu mining permit was acquired from African Energy Resources Ltd. (ASX: AFR) in October 2017 and includes the Njame and Gwabe mineral deposits. These deposits were then included with the Mutanga, Dibwe and Dibwe East deposits in the technical report entitled “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 “PEAS“). The PEA reported a net present value (“NPV“) At a long-term uranium price of $ 58 / lb U3O8 and a mining royalty rate of 9%, an after-tax NPV of $ 112 million (at a discount rate of 8%) with a rate internal efficiency (IRR) of 25%.
The PEA is preliminary in nature, it includes inferred mineral resources that are considered too geologically speculative to have the economic considerations that would allow them to be classified as mineral reserves, and there is no certainty that the PEA will be. carried out.
Since acquiring the Chirundu mining permit, GoviEx has ensured that all statutory reports and payments have been made, and further expanded its community and social responsibility programs to cover Chirundu mining permit villages, including rebuilding a school and starting an adult education program.
The reinstatement of the Chirundu mining permit (12634-HQ-LML) is subject to the completion of certain exploration and development milestones to advance the permit towards the final feasibility study.
The scientific and technical information disclosed in this press release has been reviewed, verified and approved by Dr Rob Bowell, Chartered Chemist of the Royal Society of Chemistry, Chartered Geologist of the Geological Society of London and Fellow of the Institute of Mining, Metallurgy and materials, who is an independent Qualified Person under the terms of National Instrument 43-101 for uranium deposits.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
About GoviEx Uranium
GoviEx is a mineral resources company focused on the exploration and development of uranium properties in Africa. GoviEx’s main goal is to become a major uranium producer through the continued exploration and development of its flagship Madaouela project in Niger, its Mutanga mining project in Zambia and its multi-element Falea project in Niger. Mali.
Caution regarding forward-looking statements
This press release may contain forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of current or historical fact contained in this press release are forward-looking information.
Forward-looking statements are subject to various risks and uncertainties relating to specific factors disclosed here and elsewhere in GoviEx’s periodic filings with Canadian securities regulators. When used in this press release, words such as “will”, “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential” “,” Should “and similar expressions are forward-looking statements. The information provided in this document is necessarily summarized and may not contain all the important information available.
Forward-looking statements include those relating to the nature or duration of the Company’s future relationship with Zambia, if any; and plans to revitalize the development plans of the Mutanga project.
Although the company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. These assumptions, which may prove to be incorrect, include the following: (i) the success of the Company in its development plans; and (ii) the price of uranium will remain sufficiently high and the costs of advancing the Company’s mining projects will remain sufficiently low to enable GoviEx to implement its business plans profitably.
Factors that could cause actual results to differ materially from expectations include (i) the inability of the Company to successfully complete the exploration and development stages which are the conditions for the reinstatement of the Chirundu mining license (12634 -HQ-LML); (ii) potential delays due to COVID-19 restrictions; (iii) failure of the Company’s projects, for technical, logistical, labor relations or other reasons; (iv) a decrease in the price of uranium below what is necessary to support the activities of the company; (v) an increase in the operating costs of the company beyond what is necessary to support its activities; (vi) accidents, labor disputes or the materialization of similar risks; (vii) a deterioration in capital market conditions which prevents the Company from raising the funds it needs in a timely manner; and (viii) in general, the inability of the company to develop and implement a successful business plan for any reason.
In addition, the factors described or referred to in the section entitled “Financial Risks and Management Objectives” of GoviEx’s MD&A for the year ended December 31, 2020, which is available on the SEDAR website at www.sedar.com, should be considered in conjunction with the information contained in this press release.
Although GoviEx has attempted to identify material factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, performance or achievements do not meet expectations, estimated or expected. There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates regarding future developments, circumstances or results will materialize. Due to these risks and uncertainties, no assurance can be given that events predicted by the forward-looking information contained in this press release will or will occur, or, if any of them do, what benefits GoviEx will draw from it. Therefore, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained in this press release are made as of the date of this press release, and GoviEx disclaims any intention or obligation to update or revise such information, except as required by applicable law.
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