Lotus Resources

ASX-listed explorer Lotus Resources has defined near mine and Brownfield exploration targets of between 6 Mt to 22 Mt, containing between 7 Mlb to 14 Mlb of uranium oxide at a grade of 300 to 600 ppm of U3O8 at its recently acquired Kayelekera uranium project in Malawi.

Potential further exploration upside on Greenfield targets exist and will need to be drill tested in order to prove up.

Lotus Resources completed the acquisition of a 65% interest in the high-grade Kayelekera uranium project from Paladin Energy in early March 2020. The remaining 35% is held by Lotus’s joint venture partner Chichewa (20%) and the Government of Malawi (15%). Lotus will have an option to acquire a further 20% interest in Kayelekera from Chichewa.

The release of the exploration targets follows an exploration review undertaken by the company, in which it reviewed the existing exploration dataset including 1 780 drill holes, surface and airborne geophysics, and surface sampling.

The four priority regional targets identified for exploration include:

  • Mpata – Karoo sediments with intercepts up to 10 m grading at 690 ppm eU3O8 (MP017 from 19 m);
  • Livingstonia North – strong radiometric anomalies detected in area adjacent to the 6 Mlb Livingstonia Resource;
  • Chilumba – strong radiometric anomalies north of Livingstonia North – never drill tested; and
  • Nthalire South – radiometric anomalies coincident with Karoo sediments.

On March 26, Lotus Resources announced a 31% increase to the mineral resource at its Kayelekera uranium project in Malawi. Kayelekera’s total mineral resources is now 37.5 Mlb of contained U3O8,up from 28.7 Mlb U3O8 previously reported by Lotus in June 2019, when it initially announced its intention to acquire the operation.

The total mineral resource comprises the following:

  • Measured: 2.3 Mt grading at 830 ppm U3O8 for 4.1 Mlb U3O8;
  • Indicated: 18.7Mt grading at 660 ppm U3O8 for 27.1 Mlb U3O8; and
  • Inferred: 6.1Mt @ 470ppm U3O8 for 6.3 Mlb U3O8.

The Kayelekera mine, which was placed on care and maintenance in 2014 due to the sustained low uranium spot price, produced 10.9 Mlb while in operation.