TSX- and OTCQX-listed GoviEx Uranium has secured an option to acquire a 51% interest in the Lundazi exploration licence from Stalwart Investments. This forms part of GoviEx’s broader strategy to increase its presence in Zambia.

The Lundazi licence covers 817.9 km², an area known for formations of the Karoo Supergroup, which contains significant sandstone-hosted uranium deposits, making it a potentially valuable region for uranium exploration.

The geology in Lundazi shares similarities with GoviEx’s ongoing Muntanga project, also located in Zambia. GoviEx has been making significant progress in its exploration efforts at Muntanga, with a feasibility study set for release in the second half of this year.

Following the publication of the study, GoviEx plans to advance financing efforts, with a view to making a production decision. Should everything proceed according to plan, the company expects Muntanga to begin production about two years after the start of construction.

"The Lundazi licence represents a strategic advancement for GoviEx, complementing our ongoing work in Zambia. The geological similarities between Lundazi and Muntanga are particularly encouraging, allowing the company to leverage its existing knowledge and expertise in the region," GoviEx CEO Daniel Major said on September 9.

Under the terms of the transaction, GoviEx has the opportunity to earn a 51% interest in the Lundazi licence by investing up to $1.5-million over three years. The initial commitment is $300 000 in the first year.

GoviEx retains the right to terminate the transaction at any point with 60 days' written notice, providing flexibility and minimising risk. If GoviEx proceeds with the full three-year option, the parties will form a joint venture for further exploration and potential development of the Lundazi licence. Exploration activities are set to begin with geological mapping and radiometric surveys, followed by drilling in 2025.

"The local geology of the Lundazi area closely resembles that of GoviEx’s Muntanga project, which makes this opportunity particularly exciting for us," GoviEx chief geologist Jerome Randabel added.

He highlighted that data from previous explorers indicated numerous geological faults in the Lundazi area, which were promising indicators for uranium deposits.

GoviEx has also significantly expanded its geological database for Lundazi, integrating radiometric data from government maps dating back to the 1960s and more recent surveys.

This dataset includes about 750 data points from the Luano and Luangwa Valleys, which, combined with 92 original government magnetic and radiometric maps, provide essential tools for identifying anomalies and conducting preliminary exploration work.

Similar deposits have proven economically viable in the region, with comparisons being drawn to the Kayelekera project, in Malawi.