April 13, 2022
Lotus Resources Ltd. (ASX:LOT, BUY, A$0.40 target, David A. Talbot) has completed a 29-hole (3,395m) drilling program at its Livingstonia prospect, located 90km from its 85%-owned, Kayelekera project in Malawi. The objective of the program was to convert historic resources to current and test potential extensions of the prospect. Drilling has expanded mineralization up to 250m north of the existing resource limits, with highlights including: 1) 733 ppm U over 3m (LIV003) and 2) 983 ppm U over 4m (LIV007). While the Livingstonia prospect is not part of the upcoming DFS for Kayelekera, these results have shown that it has the potential of becoming a satellite deposit in the future. An updated resource estimate is expected for Livingstonia later in Q2/22. Recently, resources at Kayelekera grew by 23% to 46.3M lb U3O8, forming the basis for the restart DFS, scheduled for mid-2022 (read more). This larger resource increase should help increase LOM and potentially improve Kayelekera’s project NAV, assuming ore sorting is incorporated into the mine plan. We anticipate the DFS to incorporate other cost savings measures such as connecting to the power grid, acid plant optimization, potential steam power plant, processing plant improvements and efficiencies and new tailings disposal options. Read more
