GoviEx Uranium targets 2028 production in Zambia - ICYMI

GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) earlier this week confirmed that it has officially filed the feasibility study for its Muntanga Uranium Project in Zambia. The company is targeting production in 2028, emphasizing the project's low technical risk, solid economics, and ability to help meet the growing uranium supply deficit.

CEO Daniel Major explained that Muntanga is an open-pit heap leaching project with simple metallurgy and good infrastructure, making it one of the more straightforward uranium developments. The feasibility study outlines a cash cost of $32 per pound and an all-in sustaining cost of $36 per pound, positioning it well in the current market environment.

Proactive: I'm joined by GoviEx Uranium CEO Daniel Major. Daniel, very good to speak with you. You're out with a feasibility study for your Muntanga Uranium project in Zambia. A very big milestone for the company?

Daniel Major: Yeah, it's nice to get that program out of the way. We announced the results for that feasibility study about a month ago, but we've now filed the official document itself. It can be found on our website for those who want to read it. The study underpins the simplicity of the project.

You mention in the press release that it’s one of the near-term uranium projects positioned to address the growing supply deficit. When you say near-term, how soon are we talking?

Our target for production is 2028. I think that’s very doable. The project is technically simple—an open-pit heap leaching operation. The mineralogy and metallurgy have been very straightforward. We redid all of that test work last year as part of the feasibility study. The project has good infrastructure all around, so we’re not required to build significant infrastructure.

And solid economics as well. Apart from the low technical risk, it’s also significantly leveraged to uranium prices if they increase?

Absolutely. The term contract price is very strong at around $80 per pound. Our cash cost is $32, and our long-term all-in sustainable cost is $36, so it’s well positioned. We’ve already started the process to make this a project that can be built now. The market needs these projects.

We see a supply deficit in primary uranium supply, and that gap is growing. The feasibility study is complete, and we've appointed Endeavor Financial to lead the debt financing. Initial letters have been sent to potential lenders. The next phase is to secure letters of intent from them, which will take us into full due diligence. That process should take around 12 to 18 months.

By the end of this month, we will file our full Environmental and Social Impact Assessment (ESIA) with ZEMA, the environmental agency in Zambia. Based on standard timelines, we expect approval by year-end, which would allow us to begin construction. We’re also in discussions with potential off-takers, having sent them the feasibility study, and we’re now engaging in discussions about supply agreements.

You mentioned significant leverage to higher uranium prices. What’s happening in the uranium market right now, and why isn’t the price reacting more to the supply deficit?

The uranium market is reacting—term contract prices are strong at around $80 per pound. But like all markets, there’s uncertainty. Political discussions around tariffs and trade restrictions have led to hesitation in the spot market. Participants are holding back until there is more clarity.

However, this is building pressure in the market. At some point, that demand will have to return. If we look at the uranium cycle, the Enriched Uranium Price (EUP) is very high and continues to rise. The UF6 conversion price is also high. In the past, we’ve seen EUP and UF6 prices rise first, and then uranium (U3O8) prices catch up.

Another key factor is the shift in supply chains. Due to restrictions on Russian and Kazakh uranium, much of Kazakhstan’s future supply is going to China or Russia. That means fewer available pounds for Europe and the U.S., making African uranium more critical.

As I said, there's a supply gap, and we need more pounds delivered. GoviEx, with Muntanga, is one of the projects that can help fill that gap.

Daniel, I hope you'll keep us posted on the progress. Thank you for speaking with us today.

Thank you very much.

Quotes have been lightly edited for style and clarity