ASX-listed Lotus Resources has completed a scoping study for its Letlhakane uranium project in Botswana, confirming its potential as a commercially viable operation. The project could produce up to three million pounds of uranium annually and may have an extended operational lifespan.
According to the study, the open-pit mine is expected to generate 42.3 million pounds of uranium oxide over a 15-year period, with total cash costs projected at $42 per pound. CEO Greg Bittar noted that optimization efforts could potentially reduce costs to $36 per pound. He highlighted the project’s “blue sky” potential, stating that at a uranium price of $100 per pound, the project could recover 65 million pounds of uranium, increasing to 83 million pounds by including low-grade stockpiles in later operational phases.
The initial capital requirement for the project is estimated at A$465 million. Additionally, Lotus has identified the potential for in-situ recovery (ISR) in deeper mineralized zones at Letlhakane. ISR is a method used in the U.S. that involves injecting a solution into the ground to dissolve and extract minerals without traditional excavation.
ERM Australia Consultants, an ISR specialist, has confirmed the suitability of Letlhakane for this method, citing its location below the water table, flat tabular structure, and the presence of necessary aquitards to control fluid movement.
Though still in the early evaluation stages, Lotus is optimistic about the ISR results and plans to develop a comprehensive program to further explore this option. If successful, ISR could complement the proposed open-pit heap leach process, especially in more challenging mining areas. “We will be following up on this opportunity over the next few months to assess its potential impact on operating costs, which we believe could be significant,” said Bittar.
The Letlhakane project is one of the largest undeveloped uranium projects, with a resource base of 155 million tonnes at 345 parts per million, equating to 118 million pounds of contained uranium. Lotus is also concurrently planning to restart production at the Kayelekera project in Malawi.
Bittar emphasized, “Our scoping study clearly demonstrates Letlhakane’s merits as our second, longer-life uranium project that can address long-term supply shortfalls. In a stronger long-term uranium price environment, Letlhakane enhances the life-of-mine for Lotus.”
With plans to restart production at Kayelekera next year, Lotus aims to position itself as a 5.5 million-pound annual producer, potentially making it one of the largest uranium producers on the ASX. Following the announcement, Lotus’ share price rose by 5% to A$0.24 per share on Thursday.
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