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

Based upon a process of ongoing technical review undertaken by site geologists since the previous estimate was undertaken by Paladin (re-stated by Lotus on 24 June 2019), an updated Mineral resource was announced on 25 March 2020.  The updated resources represents a 31% increase on the reported global metal content to the previous Mineral Resources stated by the company in June 2019 , and now totals  27.1Mt @ 630 ppm U3O8 for 37.5Mlb of contained U3O8 ( refer Table 1 and Figure 1).

The estimate utilised the same methodology as the previous Mineral Resource estimate with modelling of individual arkose units within the deposit and also included a previously unmodelled lower arkose unit.  The Mineral Resource update also incorporates mining and processing depletion. The March 2020 Mineral Resource update (Table 1) was reported in accordance with the JORC Code (2012).

The March 2020 Mineral Resource is summarised in Table 1 below with 11% (by metal content) classified as Measured, 72% classified as Indicated and 17% classified as Inferred.  The in-situ Mineral Resources were estimated at several cut-off grades using Multiple Indicator Kriging with block support correction.  The primary model panel dimensions are 20mE x 20mN x 2mRL.  The estimates assume that final grade control sampling at approximately 3.5mE x 3.2mN x 1mRL spacing will be available prior to final mining and a selective mining unit of approximately 3mE x 3mN x 2mRL.  Stockpile values were taken from surveyed stockpiles with average grades based upon grade control tracking.

Table 1: Kayelekera Updated Mineral Resource – March 20201

Reported above a 300ppm U3O8 lower cut-off for in-situ material; and a 200ppm U3O8 lower cut-off for the low-grade stockpiles

Mt Grade (U3O8 ppm) U3O8 (M kg) U3O8 (M Lb)
Measured 0.7 1,010 0.7 1.5
Measured – RoM Stockpile1 1.6 760 1.2 2.6
Indicated 18.7 660 12.3 27.1
Inferred 3.7 590 2.2 4.8
Total 24.6 660 16.3 36.0
Inferred – LG Stockpile2 2.4 290 0.7 1.5
Total All Material 27.1 630 17.0 37.5
1 RoM stockpile has been mined and located near mill facility. 

Low-grade material was mined and placed on the low-grade stockpile and are considered potentially feasible for blending or beneficiation, with studies planned to further assess this optionality.

Figures have been rounded. Grade has been determined from a combination of XRF and downhole logging derived eU3O8 grades. In-situ Mineral Resources are depleted for mining to 31 December 2013 when mining ceased; Stockpiles have been depleted to the end of processing in June 2014.  Metal contents are based on contained metal in the ground and take no account of mining or metallurgical recoveries, mining dilution or other economic parameters. An in-situ bulk density of 2.29g/cm3 was applied for Arkose material and 2.20g/cm3 for mudstone material to all blocks within the model

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.