Lotus Resources on a uranium high

Lotus Resources on a uranium high

Lotus Resources is reviving the historic Kayelekera uranium project in Malawi.

By Leon Louw founder of WhyAfrica and editor of the WhyAfrica magazine.

ASX listed Lotus Resources is not only reviving the historic Kayelekera uranium project in Malawi. Drilling at the company’s Letlhakane uranium project in Botswana, has returned good results.

The lakeside road from Nkhata Bay to Karonga in Northern Malawi has many surprises. Once past the turnoff to the town of Livingstonia, spectacular views of Lake Malawi from Chilumba and the hilly plateau of the Misuku Hills keeps one hoping that you’ll find another viewpoint on the steep descent to the Chitipa Plains.

The biggest surprise of the day is saved for last though. Well-hidden between the hillocks of Chitipa, about 40km from Karonga, lies Lotus Resources’ Kayelekera Uranium Project, which the company plans to restart towards the end of 2025.

Solid infrastructure to work with

The existing processing plant at Kayelekera needs to be refurbished in the lead up to the mine becoming fully operational again in 2025.

Paladin Energy, who mined Kayelekera between 2009 and 2014, left behind solid infrastructure, including roads, power, an open pit, tailings storage facilities and a complete uranium processing plant.

According to Theo Keyter, General Manager at Lotus Resources’ Kayelekera uranium project, the company will initially start re-mining old stockpiles left by Paladin before further developing the current open pit to a depth of about 60m.

Keyter spoke to WhyAfrica during a site visit to the mine on day 23 of the 2024 WhyAfrica Road Trip through South Africa, Zimbabwe, Mozambique, Malawi and Tanzania.

Lotus Resources released a Definitive Feasibility Study (DFS) in August 2022 which confirmed that Kayelekera ranks as one of the lowest capital cost uranium projects globally. The government of Malawi owns 15% of Kayelekera.

In addition, ongoing exploration projects, especially in the Livingstonia region, have delivered encouraging results.

Fully funded for restart

Meanwhile Lotus announced in November that Kayelekera is now fully funded for the 2025 restart.

According to Lotus CEO Greg Bittar the successful placement of AUD130-million, along with AUD25-million cash the company had at the end of September, will ensure that Lotus is fully funded to restart operations at Kayelekera in the third quarter of 2025.

“The progress to date is clearly visible with a whole host of site activities and work streams focused on lifting the tailings storage, repairing, refurbishing and recommissioning plant and equipment along with plant structural modifications,” says Bittar.

Bittar adds that with a new team in place on site, safety is of utmost priority. “We have ensured the necessary management and supervision are in place to strive for a culture of and commitment to zero harm,” he says.

Following the completion of Tranche 1 of the AUD130-million placement, Lotus is on track to deliver the Accelerated Restart Project Development Schedule.

Early works and long lead orders

Early works and long lead orders include:

• Camp infrastructure upgrades including water treatment, sewage system and rooms
• Orders placed for calciner, scrubber and screw feeder for drying and packaging plant
• Tools and mobile equipment and plant, including man-lifts and telehandlers for construction crew
• Purchased 70-tonne and 200-tonne cranes for construction and operations
• Engineering, Procurement, Construction and Management contract issued for acid plant relocation and refurbishment with civil works to begin before the end of the year and
• Design package awarded for drying and packaging plant.

According to Bittar, key operations management personnel have been recruited, along with more than 150 people (combined local and expat workforce) that is expected to grow in coming months to ensure the restart is completed on schedule.

In addition to Kayelekera, Lotus owns 100% of the Letlhakane Uranium Project in Botswana.

Letlhakane in Botswana

The Letlhakane uranium project is close to high quality infrastructure with a sealed road, rail line and power line running past the license area. The growing city of Francistown is within 50km of Letlhakane.

Lotus has recently updated Letlhakane’s mineral resource model to a reasonable prospects of eventual economic extraction (RPEEE) basis, and is progressing beneficiation test work, geometallurgical modelling and a processing option study.

A 180-hole infill drilling programme has confirmed continuity and grade of the resource.

In September 2024, Lotus completed a Scoping Study, which demonstrated Letlhakane can support ~3Mlbpa over an extended, 15-year life-of-mine (LoM) with flexibility to adjust production with uranium price fluctuations.

Towards the end of last year, Lotus announced that it had increased its Indicated Mineral Resources by 65% at Letlhakane, which further underlines its potential as a large-scale, standalone uranium development project.

Bittar says that the company’s infill drilling has successfully converted a significant portion of the Inferred Mineral Resources at Letlhakane into the Indicated Mineral Resource category, with the Indicated portion of the Mineral Resource Estimate now standing at 50%.

“We are now focused on completing mining optimisation studies, process flowsheet development and associated cost estimates to prepare an updated Scoping Study for release during Q3 2025,” he says.

“This drill program has also provided valuable insight into opportunities for further mineral resource growth which we will look to pursue during infill drilling next year that will seek to convert more of the remaining Inferred material into Indicated status.”

Lotus Resources on a uranium high