Lotus Resources’ (LOT) Kayelekera mineral resource increases 23 per cent

• The Mineral Resource Estimate (MRE) for Lotus Resources’ (LOT) uranium mine in Malawi has increased 23 per cent compared to the previous MRE
• The increased resource is a result of recent exploration success at the project and a 100ppm reduction in the cut-off grade following positive ore sorting test work on lower grade material from the project as well as strengthening uranium market conditions
• The updated MRE will form the basis of a revised mine plan to be incorporated in the Definitive Feasibility Study (DFS) which remains on track for mid-2022.
• Additionally, exploration results from the nearby Livingstonia uranium deposit are expected shortly
• Shares in Lotus are ip 2.13 per cent to 24 cents

The Mineral Resource Estimate (MRE) for Lotus Resources’ (LOT) uranium mine in Malawi has increased 23 per cent compared to the previous MRE.

The Kayelekera uranium mine has increased to 46.3 million pounds at 500 parts per million (ppm) triuranium octoxide.

Measured and indicated resources now account for 81 per cent of the total MRE.

While a portion of the updated MRE is a result of recent exploration success at the project, most of the material was included due to a 100ppm reduction in the cut-off grade.

Lotus says it is comfortable with the revised cut-off grade given positive ore sorting test work on lower grade material from the project as well as strengthening uranium market conditions.

The updated MRE will form the basis of a revised mine plan to be incorporated in the Definitive Feasibility Study (DFS) which remains on track for mid-2022.

Lotus Managing Director Keith Bowes said the drill results have given the company confidence that the Kayelekera mineralised zones can still be expanded, and this will be considered in future programs.

“This is a meaningful increase with majority of material classified in the Indicated category (~6.2Mlbs U3O8), which indicates that the LOM (compared to the Re-start Study) could increase by more than two years (name plate production 3Mlb U3O8) when the new mine plan is completed in the coming months,” he said.

Mr Bowes added that whilst management is focused on the Definitive Feasibility Study, exploration results from the nearby Livingstonia uranium deposit are expected shortly.

“Assuming success, an inaugural JORC 2012 MRE for Livingstonia will be completed, meaning a further increase in the global MRE is likely,” said Mr Bowes.

Shares in Lotus were trading up 2.13 per cent to 24 cents at 2:54 pm AEDT.