URANIUM exploration firm GoviEx said on Monday it had acquired a control option over the Lundazi exploration licence in Zambia.
The option was bought from from Stalwart Investments and comes as the Toronto-listed firm switches its attention from Niger to the southern African country.
If exercised, GoviEx will take a 51% stake in the Lundazi licence area which covers a 817km² area known for being rich in uranium mineralisation.
The geology of the area is similar to GoviEx’s existing Muntanga Project in Zambia where advance exploration is underway. A feasibility study on Muntanga is due in the second half of this year, the company said.
“GoviEx anticipates advancing project financing efforts with a view to be in a position to make a production decision, that could see the Muntanga Project potentially commencing production two years after construction commences,” the company said.
GoviEx said in July it may seek damages as it looks to legal measures following the cancellation of a mining permit for Madadouela in Niger. The West African country’s military junta withdrew the licence on July 4, claiming GoviEx had failed to develop the prospect quickly enough.
“We are fully prepared to pursue all necessary legal avenues to defend our rights,” said GoviEx chairman, Govind Friedland. “We are starting the process to secure independent assessments of damages related to the withdrawal of our mining rights”.
“Adversity often paves the way for reflection and re-evaluation,” said Friedland of Muntanga. “We will not be defined by this setback but by our capacity to adapt and thrive.”
