Lotus Resources expands known mineralised zone at historic Kayelekera uranium mine

Lotus Resources ASX LOT mineralised zone historic Kayelekera uranium mine Malawi
Lotus Resources has expanded the mineralised zone surrounding the Kayelekera uranium mine.

Maiden drilling at Lotus Resources’ (ASX: LOT) historic Kayelekera uranium mine in Malawi has expanded the project’s known mineralised zone and underpinned the release of an updated mineral resource estimate this quarter.

The company completed 35 reverse circulation holes for a total 4,533 metres, targeting areas peripheral to the existing resource to test the margins of the resource estimate for further extensions.

The campaign comprised limited exploratory testing of radiometric anomalies located within 3km of the existing processing facility.

Kayelekera South drilling

Eight holes were also drilled at the Kayelekera South prospect, which is located approximately 2km from the current Kayelekera pit.

The area comprises several airborne radiometric anomalies and the results represent the first intersection of significant uranium mineralisation outside the known mineral resource area.

Drilling highlights were 2m at 2,541 parts per million uranium oxide from 9m; 3m at 829ppm uranium oxide from 13m; 3m at 919ppm uranium oxide from 53m; and 4m at 539ppm uranium oxide from 46m.

The campaign is believed to have expanded the mineralisation by up to 100m from existing resource drilling.

An updated mineral resource estimate is now planned for Kayelekera and will be used as the basis for a new mine plan within the project’s definitive feasibility study scheduled for release mid-year.

Strong start

Lotus managing director Keith Bowes said Kayelekera had provided the company with a strong start to the new year.

“The results from our first uranium exploration program have been very encouraging as we have been able to confirm that shallow mineralisation does extend outside of the existing pit shells,” he said.

“This will likely have a positive impact on our existing mineral resource, [with] any increased tonnes having potential to extend the life-of-mine production outlined in the DFS.”

Project acquisition

Lotus finalised the acquisition of the Kayelekera project from Paladin Energy (ASX: PDN) in March 2020 and soon after, announced a 31% increase to the total mineral resource to 37.5 million pounds of contained uranium oxide.

The following month, Lotus said that in addition to being fully permitted and having significant plant and infrastructure, Kayelekera could also hold a significantly larger resource.

Results from a re-start scoping study released in October 2020 confirmed the project could support a viable long-term operation, and had strong potential to be one of the first uranium projects to re-commence production in the near future.

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