Lotus Resources has commenced a Definitive Feasibility Study for the company’s Kayelekera Uranium Project in Malawi.
The Study follows strong results from multiple technical studies being undertaken which have indicated the potential for significantly enhanced outputs and returns compared to the Scoping Study released in October 2020.
Kayelekera is a proven uranium operation, having successfully produced 11Mlbs U308 over five years (nameplate production capacity – 3Mlbs/annum), which ceased operations in 2014 due to sustained low uranium prices and was placed on care and maintenance.
“Whilst this officially kicks off the Definitive Feasibility Study, the Company has been diligently working through a number of technical studies over the course of 2021 that are central to the outcomes of this Study.
“Results from the individual technical studies have been impressive, and already indicate significantly improved production rates and/or operating costs compared to our October Scoping Study.
“The most notable technical study so far has been the ore sorting work, a technology not available when Kayelekera was previously in production. This aspect alone could see annual production rates more readily increase to the original nameplate of 3Mlbs per annum and this level achieved on a more consistent basis. There is also scope to extend the mine life through conversion of marginal ores into higher grade ores.
“Together with the findings of other technical studies, we are confident that a material reduction in operating costs can be achieved.
The Company looks forward to keeping shareholders updated through the year, in what will be a very busy second half to 2021.”