February 4, 2022
GoviEx Uranium Inc. (TSXV:GXU, BUY, C$0.60 target, David A. Talbot) announced a 6,000m drill program at its 100%-owned Falea Polymetallic Cu-Ag-U project in southwestern Mali. The program will focus on drilling the high-priority IP targets identified from the geophysical exploration conducted in 2020/21. The IP anomalies, which run right up along the Road Fault zone, are highly suggestive of two chargeabilities at Falea, one of which is a large 2km X 500m body beneath the existing deposit, presenting the potential to significantly expand the polymetallic deposit. Additionally, a third chargeable body has also been identified at the Bala license. We believe GoviEx has well-timed the decision to explore these projects as the fundamentals for copper and uranium improve. The copper demand is primarily being driven by the hot EV market. Meanwhile, the paradigm shift to recognize uranium as the green source of energy has led institutions like Sprott Physical Uranium Trust (SPUT) to increase their physical uranium holdings (read more). On the geopolitical side, we note that it is business as usual in Mali after West Africa’s economic bloc imposed sanctions on the country for refusing to hold elections in the near term (read more). While the southern borders are closed, we note that borders to the north and with Guinea remain open, ensuring the flow of necessary supplies. Although the country remains in a state of emergency, there seem to be no immediate issues for GoviEx other than some delays. We highlight that this is the third project in GoviEx’s pipeline, with most eyes on Madaouela in Niger and then Mutanga in Zambia. The company expects to release the FS at Madouela by end of Q2/22 and subsequently plans to seek investment for project financing. Meanwhile, the company also plans to advance the Mutanga project this year by conducting additional fieldwork including infill drilling, metallurgical testing, and geotechnical work. Read more
