Lotus Resources confirms satellite potential of Livingstonia uranium project

Lotus Resources ASX LOT Livingstonia Malawi uranium drilling
Lotus Resources expects to release an updated resource estimate for Livingstonia this quarter.

Lotus Resources (ASX: LOT) has confirmed the Livingstonia uranium project, located approximately 90 kilometres from its flagship Kayelekera mine in Malawi, has the potential to become a satellite deposit.

A recent 29-hole reverse circulation drilling program focused on the northern margins and north-eastern extensions of Livingstonia’s known trend aimed to define new mineralisation and increase the company’s confidence in the resource classification.

Several holes were completed within existing limits to validate the original resource estimate from 2004.

Drilling expanded the Livingstonia deposit by up to 250m north of known mineralisation and has enabled the preparation of an updated estimate later this quarter.

Best assays were 3m at 733 parts per million uranium oxide from 94m; 4m at 983ppm from 87m; 4m at 636ppm from 74m; and 6m at 379ppm from 89m.

Satellite operation

Lotus managing director Keith Bowes said Livingstonia has potential to become a satellite operation once Kayelekera is depleted.

“Our strategy [at Livingstonia] is to confirm historical results and test extensions around the known mineralised area to upgrade the resource estimate,” he said.

“Although Livingstonia is not included in the current definitive feasibility study, we believe there is potential for it to become a satellite operation in the future once the Kayelekera resource has been depleted.”

Livingstonia acquisition

The October acquisition of the Livingstonia project consolidated Lotus’ ownership of Kayelekera’s southern project area, which comprises a known uranium mineralised district with limited exploration history.

The project has a historical inferred resource of 8.3 million tonnes at 325ppm uranium oxide equivalent for 6 million pounds of contained uranium oxide at a cut-off grade of 150ppm.

It is hosted in the prospective Karoo-equivalent sedimentary sequence which is also host to the main deposit associated with Kayelekera.

Livingstonia North (which is already held by Lotus) is situated directly along-trend of the Livingstonia resource, with drilling at the northern end of the deposit supporting a continuation of mineralisation into Livingstonia North.

    Join Small Caps News

    Get notified of the latest news, interviews and stock alerts.