Lotus Resources release scoping study for Letlhakane Uranium Project
Lotus Resources has released scoping study for Letlhakane Uranium Project in Botswana showcasing the project’s potential for long-term economic viability.
The study outlines the potential for Letlhakane to support uranium production of approximately 3 million pounds per annum (Mlbpa) over a 15-year life of mine (LoM). The project offers flexibility to adjust production based on uranium price fluctuations, with forecasts pointing to a stronger market in the future.
A base case cash cost reduction to US$36/lb, optimized from an initial US$42/lb, driven by mining and acid consumption efficiencies. Potential to capitalize on a US$100/lb uranium price, which could enable the recovery of up to 83Mlbs of uranium, including low-grade stockpiles.
Future growth
Strong “blue sky” potential for future growth based on uranium price increases and further optimizations. Additionally, Lotus is investigating the feasibility of an in-situ recovery (ISR) process for deeper mineralized zones at Letlhakane. Early assessments by ERM Australia Consultants have been promising, and Lotus plans to explore this option further to potentially lower operating costs.
Bittar expressed optimism about ongoing trade-off studies, set for completion in 4QCY24, and an ISR assessment, with an updated resource and further project optimizations expected in 1QCY25. With $34.1 million in cash reserves as of June 30, 2024, Lotus is well-funded to advance both Kayelekera and Letlhakane, setting the stage for significant growth in a bullish uranium market.
