Canadian miner Atomic Eagle is accelerating its uranium exploration programme in Zambia with a major new drilling campaign, as it pivots away from a stalled project in Niger and seeks to capitalise on strong global demand for nuclear fuel.
The company said Tuesday it has launched a 30,000-metre drilling programme at its Muntanga uranium project, marking a significant expansion of activity in southern Africa as it strengthens its position in a recovering uranium market.
The push comes after Atomic Eagle, formerly known as GoviEx, lost control of its more advanced Madaouela uranium project in Niger in 2024, following the revocation of its mining permit by authorities.
The project, once considered a key asset in the company’s portfolio, has since reverted to state control, prompting Atomic Eagle to pursue international arbitration through the International Centre for Settlement of Investment Disputes. The firm later agreed in early 2025 to suspend proceedings and enter talks with the Nigerien government, but discussions remain unresolved.
Against that backdrop, the company is now focusing on its Zambian operations, where it sees stronger prospects for near-term development.
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The Muntanga project has recently been upgraded to an estimated 58.8 million pounds of uranium resources, according to company data, and could support average production of about 2.2 million pounds per year over a 12-year mine life, based on a 2025 feasibility study.
Atomic Eagle says it has secured funding to support exploration activities through 2027, underscoring its commitment to advancing the project toward potential development.
The renewed focus on Zambia reflects broader shifts in the global uranium sector, where rising demand for nuclear energy is driving renewed investment interest. Prices for uranium have strengthened in recent years, with spot prices hovering around $85 per pound and long-term contracts close to $90 per pound, levels considered supportive for new mine development.
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Analysts say the improving market environment is encouraging miners to accelerate exploration and development projects that were previously delayed or shelved during weaker price cycles.
The Muntanga programme is part of Atomic Eagle’s strategy to reposition itself in jurisdictions seen as more stable and supportive of mining investment, after its experience in Niger.
In Niger, the uranium sector has faced significant disruption in recent years, with production falling sharply amid political tensions and disputes over resource control. Output dropped from more than 4,000 metric tons in 2015 to just 962 metric tons in 2024, according to industry data cited by the World Nuclear Association.
Tensions between the Nigerien government and foreign mining companies, including the nationalisation of key assets, have contributed to uncertainty and reduced investor confidence.
The loss of the Madaouela project, which was estimated to hold around 100 million pounds of measured and indicated uranium resources, represents a significant setback for Atomic Eagle. The project had been expected to produce more than 50 million pounds of uranium over nearly two decades.
Despite that setback, the company is betting on Zambia to drive its next phase of growth. Industry observers note that the country has been steadily attracting mining investment, particularly in critical minerals, as global demand for energy transition materials increases.
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However, the success of the Muntanga project will depend on several factors, including the outcome of ongoing drilling, the ability to expand resource estimates, and access to financing for eventual mine construction.
It will also require navigating regulatory approvals and infrastructure challenges typical of large-scale mining projects in the region.
For now, Atomic Eagle’s strategy reflects a broader trend in the uranium sector: a shift toward politically stable jurisdictions and a renewed push to bring new supply online as global energy systems increasingly turn back toward nuclear power.
