Name of the Project
Kayelekera uranium project.

Location
Karonga district, in northern Malawi.

Project Owner/s
Lotus Resources.

Project Description
Kayelekera is one of five brownfield uranium projects on care and maintenance that historically achieved commercial uranium production of more than two-million pounds.

The project has significant existing infrastructure, including a 1.4-million-tonne-a-year processing facility, an on-site acid plant and accommodation camp, allowing for a quick and low-capital restart to production.

A restart scoping study has highlighted the project’s potential to support a viable long-term operation in a favourable uranium price environment.

The study assessed two production scenarios, both of which assumed 97% of production from the measured and indicated mineral resource category.

Scenario 1 envisages the production of 16.4-million pounds of uranium and an average head grade of about 900 parts per million (ppm) of uranium over an eight-year life-of-mine (LoM). Only high-grade material is proposed to be processed.

Scenario 2 envisages the production of 23.8-million pounds of uranium over a 14-year LoM, with treatment of stockpiles from Year 8 at an average head grade of about 680 ppm uranium. Scenario 2 incorporates the lower-grade materials mined from the pit and contained on the existing surface stockpiles into the production schedule.

In both scenarios, mining continues for six years, after which plant feed is sourced solely from stockpiled material.

Processing at the project will incorporate conventional crushing, milling, high-density ion exchange (resin-in-pulp), membrane-based acid recovery and conventional yellow cake and tailings operations.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The project has a low initial capital cost of $50.2-million, owing to Kayelekera’s existing infrastructure.

Planned Start/End Date
Not stated.

Latest Developments
Lotus Resources has reported a 23% increase in the mineral resource estimate of the Kayelekera uranium project.

The project is estimated to host 46.3-million pounds of uranium at 500 ppm uranium oxide. Measured and indicated resources now account for 81% of the total mineral resource estimate.

Most of the material is classified in the indicated category, which indicates that the LoM could increase by more than two years when the new mine plan is completed in the coming months.

“These drill results have also given us confidence that the Kayelekera mineralised zones can still be expanded and this will be considered in future programmes,” Lotus MD Keith Bowes has said.

Key Contracts, Suppliers and Consultants
Orelogy Mining Consultants (openpit optimisation and mine planning).

Contact Details for Project Information
Lotus Resources, tel +61 89 278 2441 or email info@lotusresources.com.au.