Impressive Lotus lifts Kayelekera uranium resource to 46.3Mlbs ahead of DFS in mid-2022
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An almost 25% increase in Kayelekera resources to 46.3Mlbs at 500ppm U308 will form the basis of a much revised mining plan, which will be incorporated in the definitive feasibility study (DFS) still on track for mid-2022.
Lotus Resources says the increased resource was partly a result of recent exploration success at the Kayelekera Project where hits of up to 2m at 2,541ppm U3O8 from 9m expanded the mineralised footprint at the project.
Positive ore sorting on lower-grade material from the project as well as strengthening uranium market conditions have also played a part, with new Measured and Indicated resources now accounting for 81% of the total mineral resource estimate.
Lotus Resources managing director Keith Bowes said this, ‘meaningful increase’, where much of the majority is classified in the Indicated category, suggest the life of mine (LOM) could increase by more than two years when the new mine plan is completed in coming months.
“Whilst a portion of the updated MRE is a result of the recent exploration success at the Kayelekera Project, the majority of material was included due to decreasing the cut-off grade from 300ppm to 200ppm,” he said.
“We are comfortable with this revised cut-off grade given the success to date from our ore sorting test work on material from the Project, as well as the continuing strengthening of fundamentals for the sector, including higher uranium prices.”
The updated MRE represents a 3% increase on the reported global metal content to the previous MRE when using the previous 300ppm U3O8 reporting cut-off grade and a further 20% increase when using the updated cut-off grade of 200ppm U3O8.
Exploration results from the nearby Livingstonia uranium deposit are due soon and if consistent, an inaugural JORC mineral resource estimate will be completed – suggesting an overall increase in the global MRE is likely.
This article was developed in collaboration with Lotus Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.