Lotus Resources boosts Kayelekera uranium resource ahead of definitive feasibility study

Lotus Resources ASX LOT Kayelekera Uranium mine resource increase 2022 Malawi
Lotus Resources plans to deliver the definitive feasibility study for Kayelekera by mid-year.

Lotus Resources (ASX: LOT) has posted a 23% increase to the mineral resource for its Kayelekera uranium project in Malawi as it progresses the definitive feasibility study to completion mid-year.

The mineral resource now totals 46.3 million pounds of uranium grading 500 parts per million uranium.

Of this, 81% has been classified as measured and indicated – totalling 31.8Mt at 530ppm uranium for 37.4Mlb.

Underpinning the resource upgrade was recent exploration at the project and a decision to reduce the cut-off grade from 300ppm to 200ppm following positive ore sorting test work and a strengthening uranium market.

Lotus managing director Keith Bowes said the upgrade was a “meaningful increase” that indicates the life-of-mine could be expanded by more than two years, when a new mine plan is completed in the coming months.

“These drill results have also given us confidence that the Kayelekera mineralised zones can still be expanded, and this will be included in future programs.”

“Whilst a portion of the updated mineral resource estimate is a result of the recent exploration success at Kayelekera project, the majority of material was included due to decreasing the cut-off grade from 300ppm to 200ppm,” he explained.

“We are comfortable with this revised cut-off grade given the success to date from our ore sorting test work on material from the project, as well as the continuing strengthening of fundamentals for the sector, including higher uranium prices.”

Advancing Malawi uranium project

Mr Bowes said that while the company is focused on delivering the definitive feasibility study for Kayelekera, it was also anticipating exploration results from the regional Livingstonia uranium target.

“Assuming success, an inaugural JORC 2012 mineral resource estimate for Livingstonia will be completed – meaning a further increase in the global mineral resource estimate is likely.”

Kayelekera previously produced 11Mlb of uranium over four years before being closed down due to a plunging uranium market.

The project has US$200 million (A$280 million) in existing infrastructure that remains in good condition and is strongly backed by the Malawi Government which holds a 15% interest.

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