ASX-listed Lotus Resources notes that a scoping study on the Letlhakane uranium project, in Botswana, confirms the viability of a ten-year operation producing three-million pounds a year of triuranium octoxide (U₃O₈).

Over the mine’s life, 29-million pounds of U₃O₈ can be produced based on a 45-million pound indicated resource.

This confirms the project’s potential to become a significant uranium operation complementing the company’s uranium production at Kayalekera, in Malawi.

The Kayelekera project is set to restart production in the third quarter of this year.

Lotus aims to become a globally significant U₃O₈ producer once both operations are in production.

Moreover, the Letlhakane scoping study shows production flexibility can be aligned with the uranium price; however, Lotus expects a strong long-term uranium price to prevail. 

The scoping study also demonstrates an optimal cash cost of $35/lb compared with a non-optimised cost of $41/lb. Lotus will communicate more details on the project’s capital and operating expenditure requirements in the next phase of study on the project.

In terms of processing, Lotus is considering the viability of a two-stage leach process that retains the original uranium extraction, but minimises acid consumption, as well as a modified downstream process that aims to eliminate solvent extraction and better controlled impurities.

Testing with potential mining contractors to determine the optimal mining approach and methodology is under way.

Lotus remains well funded to continue development at Kayelekera and Letlhakane with $133-million of cash as at December 31, 2024.

Lotus MD Greg Bittar says the scoping study on Letlhakane validates the project’s merits as the second uranium project that can meet the expected longer-term supply shortfall in the market.

Once both projects are in production, the company can deliver about 5.5-milion pounds of U₃O₈ a year – making it one of the largest uranium producers on the ASX and globally.