Name of the Project
Kayelekera uranium restart project.

Location
Karonga district, northern Malawi.

Project Owner/s
Lotus Resources.

Project Description
Kayelekera, currently under care and maintenance, successfully produced uranium in the past, having delivered about 11-million pounds of uranium to the market from 2009 to 2014.

A restart definitive feasibility study (DFS) confirmed Kayelekera as one of the lowest capital-cost uranium projects worldwide while having the ability to quickly restart production once a final investment decision has been made.

The DFS is based on an ore reserve estimate of 15.9-million tonnes at 660 parts per million uranium for 23-million pounds of uranium.

Average production is estimated at 2.4-million pounds of uranium a year over a 9.5-year life-of-mine (LoM). The LoM includes four years of stockpile treatment.

Potential Job Creation
More than 600 jobs will be created for the local community.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
$88-million.

Planned Start/End Date
Fourth quarter of 2025.

Latest Developments
Lotus Resources has announced two uranium offtake agreements and a binding $15-million loan to partially fund the restart of its Kayelekera mine.

The contracts total between 1.5-million pounds and 1.8-million pounds of uranium from Kayelekera from 2026 until the end of 2032.

Kayelekera will supply PSEG, a subsidiary of Public Sector Enterprise Group, a diversified energy company based in Newark, New Jersey, and Curzon Uranium, an international uranium market participant.

The term sheet with PSEG is subject to execution of a definitive uranium sale and purchase agreement within four months and Lotus’ proceeding with the restart of Kayelekera.

The binding agreement with Curzon is conditional on Lotus’ completing an equity raise in conjunction with the restart of Kayelekera.

Key Contracts, Suppliers and Consultants
Orelogy Mining Consultants (pit optimisation, mine design and production scheduling ore reserve); Gill lane Consulting (mineral resource estimate); Merrill Ford Independent Metallurgical Operations (metallurgical/process design); Steinert (ore sorting); Nagrom (metallurgical testwork); Senet (process plant and infrastructure, and cost estimate compilation); SLR Consulting (tailings and water); Mine Technics (openpit); SLR Consulting (plant); InfinityCorp (financial model); Dhamana (community and environment); and Mine Earth (mine closure plan and cost estimate).

Contact Details for Project Information
Lotus Resources, tel +61 89 2000 3427 or email info@lotusresources.com.au.