Kayelekera Uranium Project (“Kayelekera” or the ”Project”) is a large 157km 2 tenement package with excellent exploration potential and hosts a high grade resource with an existing open pit mine and demonstrated excellent metallurgical recoveries. It is located in northern Malawi, 52km west (by road) of the provincial town of Karonga and 12km south of the main road that connects Karonga with the township of Chitipa to the west.
On 24 June 2019 Lotus Resources Limited (“Lotus”), previously named Hylea Metals Limited, announced it had entered into an agreement to acquire a 65% interest in the Project from Paladin Energy Limited (ASX: PDN). The remaining 35% is held by Lotus’s joint venture partner Chichewa (20%) and the Government of Malawi (15%). Lotus will have an option to acquire a further 20% interest in Kayelekera from Chichewa.
The Kayelekera Mine was officially opened in April 2009 and produced 10.9Mlb between 2007 and 2014. The mine is currently in care and maintenance since 2014 due to the sustained low uranium spot price and to preserve resource and shareholder value. It is expected that production will recommence once the uranium price provides a sufficient incentive and grid power supply (ESCOM) is available on site to replace the existing diesel generators. Once uranium prices offer sufficient incentive for restart, production, with some RIP/elution upgrades, is expected to be approximately 3Mlbpa.