Kayelekera Project

Tenements

The Mining Licence, ML152, covering 55.5km2 was granted in April 2007 for a period of 15 years following the completion of the Development Agreement with the Government of Malawi. The surrounding EPL’s cover an additional 674.8km2.

Kayelekera Licence Summary

Kayelekera Uranium Project location and licences

Resource

The project hosts a Resource (JORC Code 2004 and NI 43-101) of 19Mt at 700ppm U3O8 for 28.7Mlb of contained U3O8. 

Based on a 2014 pit optimisation study, Paladin stated an Ore Reserve (JORC Code 2004 and NI 43-101) adjusted for mining to June 2014. However, due to current uranium prices, permitting requirement, and lack of a JORC 2012 PFS level study it is likely that the currently stated Ore Reserves do not meet the requirement of Ore Reserves under the JORC Code 2012 and would be downgraded to Mineral Resources. Accordingly, the Company has not repeated the Ore Reserve statements in this announcement, as it does not consider that there is a reasonable basis for the Company to do so in light of the factors referred to in this paragraph. Mineralisation remains open to the west and north-west of the existing ore body. Upon completion of the acquisition the Company would plan additional exploration to expand the size of the existing Mineral Resource and also to test known regional exploration targets for mineralisation.

Kayelekera Mineral Resource1
Reported above a 300ppm U3O8 cut-off figures have been rounded)

1 JORC 2004

Note: The Company has not repeated the Resource estimate previously reported by Paladin for stockpiles at the Kayelekera mine as they were not reported under recognised JORC categories. The estimates of Mineral Resources are not reported in accordance with the JORC Code 2012; a Competent Person has not done sufficient work to classify the estimates of Mineral Resources in accordance with the JORC Code 2012; it is possible that following evaluation and/or further exploration work the currently reported estimates may materially change and hence will need to be reported afresh under and in accordance with the JORC Code 2012; the company has conducted a site visit, and has technically reviewed the methodology and reporting documents used to estimate the Mineral Resources, and notes that Paladin technical staff had a high level of experience in the estimation of uranium resources; additionally nothing has come to the attention of the acquirer that causes it to question the reliability of the former owner’s estimates; the acquirer has not independently validated the former owner’s estimates and as required under the relevant ASX guidance notes, the Company should not be regarded as reporting, adopting or endorsing those estimates. As noted above, It is likely that the Ore Reserves previously stated by Paladin would not meet the requirement of Ore Reserves under the JORC Code 2012 for the reasons outlined above and would be downgraded to Mineral Resources and, accordingly, the Company has not repeated those Ore Reserve statements.