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 Letlhakane uranium mineralisation is hosted within shallow, flat lying sedimentary rocks of the Karoo Super Group. These Permian to Jurassic aged sediments were deposited in a shallow, broad, westerly dipping basin, generated during rifting of the African continent. The source area for the sediments was extensively weathered, uranium bearing, metamorphic rocks of the Archaean Zimbabwe Craton which outcrops in the eastern portion of the licence area. The sandstone hosted mineralisation has roll front characteristics, where uranium was precipitated at redox boundaries. Three ore types have been identified, Primary Ore, Secondary Ore and Oxide Ore. The most abundant  is the Primary Ore.

Letlhakane has a resource base of 269Mt at 321ppm U3O8 for 190Mlb contained uranium at a cut-off of 200ppm U3O8; 22% is in the Measured & Indicated categories.

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.

Consolidated Uranium Resources 1,5

Lotus Ore Reserve Inventory – July 2022

1 – See ASX announcements dated 15 February 2022 and 9 June 2022 for information on the Kayelekera and Livingstonia Mineral Resource Estimates. Lotus confirms that it is not aware of any new information or data that materially affects the information included in the announcements of 15 February 2022 and 9 June 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.

The Kayelekera Mineral Resource Estimates are reported inclusive of the Kayelekera Ore Reserve Estimates.

Mineral Resources are based on a 100% ownership basis of which Lotus has an 85% interest

2 – RoM stockpile has been mined and is located near mill facility.

3 – Low-grade stockpiles have been mined and placed on the medium-grade stockpile and are considered potentially feasible for blending or beneficiation, with initial studies to assess this optionality already completed.

4 – Letlhakane Mineral Resources reported at 200ppm cut-off grade

5 – The Mineral Resource information relating to Letlhakane Uranium is based on the outcomes of a technical study which was previously released to the ASX on 5 October 2015 “Upgrade in Letlhakane Uranium Resource“.