Lotus Resources Limited (ASX: LOT) has announced a 31% increase to the Mineral Resource at its recently acquired Kayelekera Uranium Project in Malawi.
Kayelekera’s Total Mineral Resources is now 37.5Mlb of contained U3O8, up from 28.7 Mlb U3O8.
The primary driver for the resource increase is the identification and inclusion of a previously un-modelled high-grade basal arkose unit beneath the pit, and inclusion of existing Run of Mine (RoM) and low-grade stockpiles created while Kayelekera was in production from 2009 to 2014. The stockpiles have already been mined and sit near the processing plant.
The updated Mineral Resource utilised the same modelling techniques as the previous estimate and will form the basis for future mining studies at Kayelekera. These studies will focus on cost improvements of mining and processing, including the potential use of beneficiation and sorting techniques.
The next stage of the Kayelekera project includes assessment of regional exploration for both uranium and other minerals, and the initiation of a restart study to allow Kayelekera to recommence production when the uranium price has recovered.
Lotus is confident it can further expand Kayelekera through the significant exploration potential contained in the project area.
Numerous radiometric anomalies have been identified over the broader project region. Although several have been previously tested, targets remain open in the Mwankeja South, Livingstonia and Chilumba prospect areas based on untested radiometric anomalies as well as structural targets in the Nthalire areas.
No geophysical techniques other than radiometric and magnetic surveying have been employed previously and opportunities exist for alternative methods to be employed; and for exploration over areas under surficial cover.
The Kayelekera Uranium Project is a large 157 sq. km tenement package which hosts a high grade resource with an existing open pit mine and demonstrated excellent metallurgical recoveries. It is located in northern Malawi, 52km west (by road) of the provincial town of Karonga and 12km south of the main road that connects Karonga with the township of Chitipa to the west.