The Mineral Resource Estimate (MRE) for the Kayelekera project in Malawi has increased to 46.1 Mlbs at 500 ppm U3O8.
The announcement was made by Lotus Resources Limited, a minerals exploration and development company which owns 65 percent interest in the Kayelekera Uranium Mine.
Lotus Managing Director Keith Bowes says, in a statement, the development gives a positive perspective for completion of the project.
“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. 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.
“Whilst 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 300ppmto 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 price,” he said.
Bowes further expressed optimism with an expected uranium deposit at Livingstonia, which could increase minerals for other areas.
“Whilst 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,” he said.