Lotus Resources Ltd (ASX:LOT) has identified multiple near-mine exploration target areas, all within a short trucking distance of the Kayelekera Uranium Mine site in Malawi.
An ongoing exploration review has identified two priority target areas - Kayelekera South and Mpata.
The company plans to complete additional reconnaissance exploration work over each of these exploration targets prior to commencing drilling.
Compelling opportunity to extend life of mine
Lotus Resources managing director Eduard Smirnov said: “The company’s major focus for 2021 is to progress the recent positive scoping study towards a feasibility study, positioning Kayelekera to be one of only a handful of projects globally capable of rapidly and effectively recommencing production to meet the growing demand and shortfall in uranium supply expected in the coming years.
“The newly identified exploration target areas provide further confirmation of uranium resource growth potential in the underexplored near-mine areas where uranium mineralisation discoveries were made through airborne radiometric surveying.
“We are confident that there is an opportunity to extend the current life of mine.
“Whilst there is a preference that this is achieved through expansion around the existing resource, which remains open, this recently completed review of near-mine exploration opportunities has identified a number of prospective, and in the case of Kayelekera South, new and untested target areas.
“Given the clear and strong radiometric anomaly of these newly defined target areas, all of which are similar to the radiometric and lithological characteristics of the Kayelekera Mine, there is a compelling opportunity to expand the existing resource.
“We look forward to providing further updates towards resource growth.”
Kayelekera South
The Kayelekera South prospect in the south and southwest of the Kayelekera pit, has a mineral resource combined endowment of around 50 million pounds contained uranium mineralisation comprising of current resource (37.5 million pounds) and historical production (11 million pounds).
A total of six target areas have been identified ranging between 500 metres and 4 kilometres from the existing Kayelekera pit.
The newly identified target areas are additional to the exploration target of 2.6-4.4 million pounds of uranium, which has been defined on the margins of the existing classified mineral resource and represent the western extensions of the prospective arkose units.
Detailed geological mapping and ground scintillometer surveys are planned to further define the targets prior to drilling.
Mpata target
The Mpata prospect represents the largest cluster of radiometric anomalies outside of the Kayelekera resource and comprises several high priority anomalies associated with arkose units identified over a 3-kilometre strike length, all contained within Karoo sediments.
A total of 76 historic drill holes have been completed within the Mpata prospect area, and a total of 23 of the holes encountered grades in excess of 250 parts per million (ppm) uranium.
Mineralisation appears to be open along strike, with about 600 metres of trend untested, and is open at depth.
Recent structural re-interpretations with regard to the genesis of uranium mineralisation and late-stage faulting has identified a potential focal region for higher-grade mineralised fluids.
An exploration target for Mpata is estimated between 2-9 million tonnes at a grade of between 200 to 400 ppm uranium for a potential endowment range of between 2-4 million pounds of contained uranium remains unchanged.
The potential quantity and grade of the Kayelekera exploration target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of mineral resources.
Kayelekera project
Lotus owns a 65% interest in the Kayelekera project, which hosts a current resource of 37.5 million pounds uranium and historically produced around 11 million pounds of uranium between 2009 and 2014.
The company completed a positive restart study, which showed Kayelekera can support a viable long-term operation and has the potential to be one of the first uranium projects to recommence production in the future.