Lotus Resources’s licence for mining and exploration of its Kayelekera project in Malawi has been renewed. The Mining Licence, ML0152, which was signed by the Honourable Rashid Abdul Gaffar, Minister of Mines, in accordance with the Mines and Minerals Act, has been renewed for 15 years.
Kayelekera is located in northern Malawi, 52km west (by road) of the provincial town of Karonga and 12km south of the main road that connects Karonga with the township of Chitipa to the west. The mine was officially opened in April 2009 and produced 10.9Mlb between 2007 and 2014. The mine is currently in care and maintenance since 2014 due to the sustained low uranium spot price and to preserve resource and shareholder value, Lotus explained.
“We are delighted to have received an extension of our Mining Licence for an additional 15 years. This is a critical step, as it provides certainty and confidence to our investors that Lotus has the full backing of the Government to continue our on-going development of Kayelekera, as we position the project to be one of the first assets to recommence production in an ever- improving uranium price environment,” Managing Director Keith Bowes commented.
Lotus Resources owns an 85% interest in the Kayelekera uranium project which hosts a current resource of 37.5M lbs U3O8. The company noted that once uranium prices offer sufficient incentive for restart, production, with some RIP/elution upgrades, is expected to be approximately 3Mlbpa.
The company added it completed a positive Restart Study which demonstrated that Kayelekera can support a viable long-term operation and has the potential to be one of the first uranium projects to recommence production in the future.