Lotus Resources Expands Known Mineralized Zone at Historic Kayelekera Uranium Mine

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

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

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

South Kayelekera borehole

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

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

Drilling highlights were 2m at 2541 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 extended mineralization up to 100m from existing resource drilling.

An updated mineral resource estimate is now expected for Kayelekera and will be used as the basis for a new mine plan as part of the project’s definitive feasibility study which is expected to be published mid-year.

Good start

Lotus chief executive Keith Bowes said Kayelekera had provided the company with a strong start into the new year.

“Results from our first uranium exploration program were very encouraging as we were able to confirm that the shallow mineralization extends well outside the existing pit envelopes,” he said.

“This will likely have a positive impact on our existing mineral resources, [with] any increase in tonnes with the potential to extend the life of mine production described in the DFS. »

Acquire the project

Lotus completed the acquisition of the Kayelekera project from Paladin Energy (ASX: PDN) in March 2020 and shortly thereafter announced a 31% increase in total mineral resources to 37.5 million pounds of oxide. uranium content.

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

The results of a restart scoping study released in October 2020 confirmed that the project could sustain viable long-term operation and had strong potential to be one of the first uranium projects to resume production in a near future.

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