Mineral Resources
AND Ore Reserves
RESOURCE AND RESERVES
The Kayelekera deposit hosted a total mineral endowment of approximately 60Mlbs U3O8 equivalent when historical production (11Mlbs) and the current resource (46.3Mt at 500ppm U3O8 for 46.3Mlbs U3O8) are accounted for. The Company completed a positive Restart Study which was announced to the market on 11 August 2022 and has determined an Ore Reserve of 23Mlbs U3O8.
Kayelekera is a sandstone-hosted uranium deposit associated with the Permian Karoo sediments and is hosted by the Kayelekera member of the North Rukuru sediments of the Karoo. The mineralisation is associated with seven variably oxidised course-grained arkose units, separated by shales and chocolate-coloured mudstones. Uranium mineralisation occurs as lenses primarily within the arkose units and, to a lesser extent, in the mudstone units. The lowest level of known mineralisation currently is at a depth of approximately 160m below surface.
The Company also owns the Livingstonia Uranium deposit (6.9Mt at 320 ppm U3O8) in Malawi . Combined Kayelekera and Livingstonia account for a total global MRE for the Company in Malawi to 49.4Mt at 475ppm U3O8 for 51.1Mlbs U3O8 as shown in the table below.
Kayelekera Mineral Resource Estimate – June 2022
Lotus Ore Reserve Inventory – July 2022
3 See ASX announcement dated 11 August 2002 for information on the Definitive Feasibility Study
4 See ASX announcement dated 15 February 2022 for information on the Kayelekera mineral resource estimate. Lotus confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 15 February 2022 and that all material assumptions and technical parameters underpinning the Mineral Resource Estimate in that announcement continue to apply and have not materially changed.
5 RoM stockpile has been mined and is located near mill facility
6 Low-grade stockpiles have been mined and placed on the medium-grade stockpile and are considered potentially feasible for blending or beneficiation, with studies planned to further assess this optionality.
7 Ore Reserves are reported based on a dry basis. Proved Ore Reserves are inclusive of RoM stockpiles and are based on a 200ppm cut- off grade for arkose and a 390ppm cut-off grade for mudstone. Ore Reserves are based on a 100% ownership basis of which Lotus has an 85% interest. Lotus confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 11 August 2022 and that all material assumptions and technical parameters underpinning the Ore Reserve Estimate in that announcement continue to apply and have not materially changed