Lotus Resources Ltd (ASX:LOT) has increased the mineral resource estimate (MRE) for the Kayelekera Uranium Mine to 46.3 million pounds at 500 parts per million(ppm) triuranium octoxide (U3O8).
The new mineral resource represents a 23% increase on previous estimates and will form the basis of a revised mine plan for Kayelekera.
In turn, that plan will be incorporated with a definitive feasibility study, which is on track for release mid-this year.
Measured and indicated resources now account for 81% of the total MRE, totalling 31.8 million tonnes at 530ppm U3O8 for 37.4 million pounds of U3O8.
MRE upgrade could lead to life-of-mine increase
Lotus Resources managing director Keith Bowes said there was a “meaningful increase” in uranium resource and based on the bulk of indicated resource, the project’s life-of-mine 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 programs,” Bowes explained.
“While 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.
“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.
“While the majority of management time is now fully 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.”