GoviEx had vowed to appeal the termination of the licence last year and is now planning to reinvigorate the project.
Chirundu contains the Njame and Gwabe deposits, which were included in GoviEx's 2017 preliminary economic assessment for its broader Mutanga uranium project.
The PEA had outlined initial capex of US$121 million for an 11-year mine, with after-tax NPV8 of $112 million and IRR of 25%, using a long-term uranium price of $58/lb and a 9% mining royalty rate.
The spot price is currently around $29/lb and uranium major Cameco said this week it was excited about supply and demand fundamentals as carbon-intensive sources of energy were being phased out around the globe.
"As the uranium market improves, the company plans to reinvigorate the development of the Mutanga project starting with targeted resource exploration drilling later this year," GoviEx executive chairman Govind Friedland said.
"The Zambian government has indicated its strategy to diversify its mining industry from the heavy weighting of base metals and advancing its long-term desire to include uranium and clean baseload nuclear power as part of its economic development plans."
GoviEx said the reinstatement was subject to completing certain exploration and development milestones and noted since acquiring the licence in 2017, it had ensured all statutory reports and payments were made and had expanded its community and social responsibility programmes.
The company is aiming to get its 80%-owned Madaouela uranium project in Niger into production in 2024, with Mutanga slated for 2026.
Govind's father, Robert Friedland, is among the company's major shareholders, along with Cameco and Denison Mines.
GoviEx shares (TSXV: GXU) rose 4.8% to C33c yesterday towards the upper end of a one-year range, valuing it at $175 million (US$145 million).